The Role of Experiences in Driving Strategy in the 21st Century

Abstract

Many industries have witnessed a shift from traditional features and benefits marketing towards creating experiences for their customers (Pathak, 2014), but perhaps none more so than the service industry. The concept of experiences and experiential marketing has garnered much attention in recent years and has evolved to where it now has become more strategic and encompasses

the process of identifying and satisfying customer needs and aspirations profitably, engaging them through authentic two-way communications that bring brand personalities to life and add value to the target audience. (Smilansky, 2018, p. 12)

Despite its popular usage however, experiential marketing has had to contend with a lack of acceptance that was – at least in part – justifiable given its emergent nature and poor measurability properties. Its theoretical underpinnings have been explored but are less codified than many other areas of marketing. Nonetheless, it is an established part of a marketer’s armoury, is innovative in its use of technology such as virtual reality (VR) and augmented reality (AR) and, interestingly, has paved the way for a move to a focus on overall business experience. Where customer experience was limited to the marketing domain, business experience is a priority of the CEO, where customer-centricity becomes the driving force throughout the entire company. In this way, the role of experience is central to the ways that companies will grow and achieve better performance in a fast-changing global market. This is of particular relevance to the service industry, which perhaps has experienced the most upheaval of all, throughout the global Covid pandemic. To succeed in a post-Covid world, this chapter will establish how service companies must examine every aspect of their business to create meaningful experiences for customers, that will in turn translate into brand differentiation, ongoing customer satisfaction and business growth.

Citation

Barry, H., Fenton, P. and Leahy, R. (2022), "The Role of Experiences in Driving Strategy in the 21st Century", Tabari, S. and Chen, W. (Ed.) Global Strategic Management in the Service Industry: A Perspective of the New Era, Emerald Publishing Limited, Leeds, pp. 175-188. https://doi.org/10.1108/978-1-80117-081-920221015