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The $12 Trillion Experience Economy Opportunity

  • 3 min read

The global experience economy is projected to reach $12 trillion by 2028, up from $5.2 trillion in 2019. It’s time for your technology to realize this potential.

In the last decade we’ve seen a fusion of advances in AI, Robotics, IoT, Genetic Engineering, Biotechnology, Quantum Computing and more. Innovation that is now powering the experiences in our everyday lives and it’s a big deal. In our homes, in our pockets on our wrists, or as other wearables, as well as through our everyday desktop or chosen ‘sit on the couch’ and browse devices.

Experience is everything. Innovation should be based on this exciting experience economy.

Could you ever imagine buying something online without experience-based reviews? Through someone we know or the volume and quality of Amazon, TripAdvisor, and other reviews to validate our decision. We buy holidays, TV’s, a couch, a massage, insurance, software all based on the buying, device-powered and user experience.

How Does Your Technology, Innovation or Service Help in an Experience Economy?

Over the next five years the world experience economy will continue to change buyer behaviors in dramatic ways. It’s already providing the opportunity to shape products and services in a way that maximises the potential of realizing a $12 million opportunity.

The Experience Economy introduces a crucial shift from customer acquisition cost (CAC) to customer retention cost (CRC) because we try before we buy. We subscribe to Netflix, the New York Times online, Software as a Service (SaaS) solutions and then decide. So, now a vendor or service provider just needs to keep us interested past the trial.

There’s pent-up demand following the pandemic for more travel, entertainment and other experiences. A greater emphasis on sustainability, means businesses can win by being more transparent about carbon neutral progress. Technology use is going through the roof but you have to offer the most effortless experiences through devices. Any vendor claiming to be a customer or employee experience provider need only focus on the demands of this experience economy to win.

In defining the services and solutions your company provides, how it addresses the needs of buyers B2C and B2B in this experience economy is essential. If you’re focused on other vendors as a vendor you’re not realising the full potential of the opportunity. Because the end user customer, us in fact, is telling you what’s more important. Voice of the customer is more important than ever.

The Author

Simon is a passionate global, $multi-billion, company Chief Marketing Officer. At heart he’ll always be an analyst when it comes to research and loves to share through articles like these.