The Introduction

            In recent years, there has been a shift in the mindset and marketing strategies of businesses and major companies.  It is probably a transition that you have noticed without even realizing or recognizing it.  That is how subtle they have been about it, but it is there if you know to look for it.

Think of a typical car commercial that you may see on tv today.  It features either a family or a group of friends in the latest model.  They are in the forest with no one around.  They stop next to this beautiful lake and have a picnic., with the car in the background.  You get the idea.  Now, think back to only even a few years ago.  There is a row of the newest cars in a line, in the dealership parking lot.  There is not a person in sight, except for maybe a salesman.  Do you notice the difference?

The first model is showing the experience and adventure that this group people is having with the product while the latter simply showcases the product.  This switch is what companies are picking up on in order to change their viewer’s focus.  It is no longer about the product itself, it is now about what the product can offer its customers, experientially.

The Problem

            Society is no longer as interested in simply buying products anymore.  Instead, they are more interested in buying the experience, whether associated with a product or not.  Referring back to the car commercial example, when purchasing a new car, there is more that comes with it now.  The ability to travel farther.  The capability of climbing mountains and driving through nature.  All of these ‘features’ are what customers are looking for in today’s market.

            The term ‘experience economy’ is credited to Joseph Pine and James Gilmore in 1999.  They published an article titled ‘Welcome to the Experience Economy’ in the Harvard Business Review.  While this is the most popular, and often thought to be the first, Pine and Gilmore were featured in a 1997 edition of Strategy & Leadership.  Their piece in this edition was titled “Beyond Goods and Services: Staging experiences and guiding transformations”.

            Almost three decades ago, at this point, Pine and Gilmore were able to see the next step in the economic transition coming before it was happening.  The steps that preceded the experience economy were services, goods, and commodities.  Each transition of commodities to goods, goods to services and presently, services to experiences, was driven by the consumer.

            The most recent shift from services to experiences is probably the most extreme change that has occurred.  With the previous moves, there was still a slight resemblance between the older and newer.  However, there is not as much similarity between the two.  The service economy, that was once in place, focused on certain industries like healthcare, finance, and education.  Those services still have their faults, but systems are in place for them to succeed on their own.  Now, the experience economy is homing in on the hospitality industries in order to accomplish what it needs to.

            Instead of simply being a guest at a hotel, you are now greeted by name when you walk in the doors.  Economy passengers on flights can now be treated as if there were first-class.  The whole focal point that businesses in experience economy are trying to capitalize on is personalization, memorability and inclusivity while still making each of their customers feel unique.

One of the factors that has allowed for the transition to more of an experience-based model is a change in the way marketing and advertisements are designed.  Another shift that has occurred without being noticed is emotional design.  Designers have learned how to manipulate their customers to click on or view certain things without them even realizing it.  Have you ever noticed how your eye is drawn to the sale banner flashing across the top of the website?

The designs of everything you see is intentional, from the colors chosen to the type of font used.  People have subconscious responses to different styles.  A lot of it is psychologically based off of previous findings.  The three main points that are touched on in emotional design are visceral, behavioral and reflective.  By touching on all three of these points the designer ensures that they can evoke the emotion they were looking for from the viewer.  Visceral reactions are similar to that gut feeling reaction.  The cause of it might not be known for sure, but something is telling you to choose this one.  Behavioral reactions are based off of the individual’s own life and experiences, which causes them to differ more amongst the viewers.  Reflective reactions are when the viewer can see something of themselves within the design, making it unique and more personalized.  These practices might not work for every single person who come across the design, but it does work for the vast majority.  Emotional design works because people feel that they are being catered to directly.

It is helpful for designers to use specific sets or rules to help them implement emotional design to its fullest.  One of these concepts is Gestalt Design Principles.  The infographic to the right shows the main components of what Gestalt entails.  They are a combination of seven different design styles that help understand human perception.  These designs are what humans are automatically drawn to when looking at something.  They vary in a range of methods, purposes and looks, but if anyone, or more, of these are incorporated into a design, it makes it that much more attractive to the viewer.  In contrast, if these principles are violated in any way, it is very obvious.  Rarely, the designer will intentionally not follow a certain Gestalt principle to add originality to their work, but it needs to be done correctly or not at all.

 There is a possibility for the concept of emotional design to be in danger and come to an end before it really even gets started.  With the exponential increase in Artificial Intelligence usage, the transition to the next design methodology might be sooner than expected.  AI does not have the capability for emotional intelligence, therefore cannot base its’ designs on emotions.  It is able to create designs given parameters, like the Gestalt principles but it is not able to create anything that would be suitable for true emotional design.  AI will not be able to perceive its’ creations through a human perspective in order to predict or assume possible reactions.  If artificial intelligence is used to design emotional design-like creations, it is imaginable that it will end up creating its’ own subset of design style altogether.

The Solution

In order to keep up with the shift toward the experience economy, and not get left behind, businesses need to approach their strategies.  It needs to be understood that society is no longer driven solely by function or status of the products they are selling.  Instead, customers want personalized, immersive, and memorable experiences.  Once this is realized, companies can employ different techniques to ensure that they still stay competitive in the ever-changing market.

One possible solution is to utilize visual storytelling into their own design, marketing and branding.  As previously mentioned, with the car commercial example, storytelling can be a powerful tool that allows consumers to immerse themselves in endless possible experiences, rather than just looking at a car in a parking lot.

Personalization is another strategy that can be used.  Businesses that want to thrive in the experience economy must shift from their typical generalized approach to offering customizable experiences based on the individual’s wants and needs.  This can be determined by gauging customer feedback and current trends to predict what customers might want.

The Conclusion

The rise of the experience economy marks a major shift in the way businesses need to approach and interact with their consumers’ engagement.  Economic milestones in the past focused on products, services, or commodities.  But now, society is looking for the next step: experiences.  This evolution is not a simple trend as previous ones might have been.  Instead, it reflects a deeper cultural and psychological shift in priorities, where the value of something is no longer measured by how expensive it was, but rather what memories can be created with it.

The concept of emotional design has become a critical tool in this new phenomenon.  By understanding and implementing visceral, behavioral, and reflective reactions, designers can craft experiences that resonate with customers on multiple levels and keep them coming back.  From visual aesthetics to personalized interactions, each element contributes to an experience that fulfills exactly what they are looking for.  The application of Gestalt principles and other design frameworks ensures that these experiences are attractive for the customer.  The intersection and implementation of both emotional design and the experience economy represents an opportunity for businesses to stand out amongst their competitors that might not be using the same practices.

However, the future of emotional design faces challenges, particularly from the rise of AI technologies. While AI can automate many aspects of design and predict user behaviors, it lacks true emotional intelligence, empathy, and the ability to perceive design from a human perspective. As AI continues to evolve and used more and more, businesses and designers must maintain a careful balance between the two, using technology to enhance efficiency without compromising the emotional depth that drives meaningful customer experiences.

The integration of emotional design with the principles of the experience economy represents not only a marketing strategy but a human-centered approach to business, which is what the world needs.  Companies that prioritize emotional resonance and memorable experiences over transactional interactions will not only succeed in the short term but also be able to create lasting loyalty, meaningful engagement, and a competitive advantage that cannot be easily replicated. The future of commerce is no longer about products or services alone. It is about creating experiences that matter.

References

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