November 28, 2022

From Product to Experience: The Journey of a Luxury Offering

Do not Be Left out in the Digital Transformation in Luxury Brand Marketing

Photo Credit: Getty Images

Nearly everything is getting smarter everyday right from smartphones with fewer buttons to automotive with breathtaking features. Perhaps you live in a decent city like Francisco. You can request a ride in an Audi for the weekend. Most of the features on the Audi, like the opening and starting the engine can be done via your smartphone. Leave alone the instance where the Audi disappears from the driveway after you just had the Audi powered adventure.

The Audi A7 is a brand that is coming up with premium features for the consumers. The A7 model is engineered to perfection, making its availability as an on-demand service. While the Audi on demand was being created, we had to confront other auto builders. This was necessary to ensure they were aware of how to transition to experience economy and leave the product economy.

One of the reasons why luxury companies are looking to deliver experience is because most customers are increasingly spending on experience rather than just the actual products. This means that what consumers can access matters most that what they own. For the luxury industry to move, hey must understand the changes they need as well as the rules of the experience and digital economies. Those companies already in the luxury space can find it challenging to discover the required changes because they are loyal to the traditional materiality of their luxurious products.

In the past decades, people considered luxury as something that relies on best and superior materials as well as craftsmanship. These materials cost a lot, and as a result, they needed more attention. However, according to the digital or experience economy, luxurious products rely on distinctive physical characteristics. Some products such as software do not have physical attributes, and they do not have any rules of the economics of luxurious goods.

A Folk in the Road

Even though companies are thriving to move from products to services, they find converging paths. Digital technologies create one path leading to luxurious goods. Some of these products are inaccessible goods or those with fractional use. However, this path brings a customer-provider relationship as well as standardizing operations.

The other path focusses on understanding the premium experiences. Once a consumer has appreciated their experiences, they look into possible technological approaches to use or personalize products.

The Value of Unique Experiences

The only way to make clear how digital technologies are playing its role is to understand the attributes of premium experiences.

You can tell that experience is something temporary. This means the experience is produced and consumed almost immediately. Also, experiences usually have an incremental cost, and their value increases when scarce. If the customers become too many, the experience will be spoiled.

When an experience is yet undiscovered, it becomes exceptional. It is considered something authentic and unspoiled when a few or no person has found the uniqueness in a product. However, finding the experience that is right for you can be challenging. This is because of problems like information discovery and matchmaking. As people think about their personal preferences, they make it harder to establish the meaning of the best.

The Attributes of Peak Experiences

Sometimes, all a consumer require is a more authentic experience in products. The quality of experience that consumers are likely to encounter includes convenience, value, and essential simplicity. The products should show smart points of view and focus. Consumers would love a simple product that will make their lifestyle memorable and sharable. Also, experiences are improved through digital channels and support system, making everything convenient and individualized.

You Want the One You Cannot Have

Some products have a high demand as their price rises. Restricting the supply is something businesspeople do to make experience scarce. However, you should know that scarcity has nothing to with quality. However, customers will look at what they like without considering what other people’s opinion about quality. This means that experiences are personal. One does not require any predictable algorithm to decide about their experience in luxurious products. Therefore, companies should implement digital systems to ensure that digital luxury is achieved.