Your Brand has Entered the Journey Economy
Some say the COVID-19 pandemic was an accelerant to the economy. I'm one to agree with that. For the last five years, our economic value for our brands has been shifting. As technology has advanced and political and economic uncertainty has permeated our brand ecosystem, we've been experiencing massive shifts in the competitive landscape and consumer behaviors, which manifests in rising consumer expectations.
As consumers interact with the brands they do business with, their expectations are formed and reformed. And this crosses industry lines. Meaning, the experience a consumer has with hailing an Uber has a direct expectation link they now have with their grocery store. This collective expectation shift is rooted in the value exchange.
Traditionally, the value exchange has been money for a product or service. This expectation was rooted in one moment with one transaction - built on the back of the manufacturing-consumption model.
Now, as we look at the consumer expectation shift, this one moment of transactions has flowered into multiple moments of value-exchange interactions across the entirety of the consumer journey. These value exchanges can be how a consumer learns about and researches a brand; how the products are shopped for and ultimately purchased; what the onboarding process is like; how the brand treats the consumer during support interactions. All of these exchanges are moments of value in today's economy - The Journey Economy. And the brand leaders that are succeeding it this environment are capitalizing on these consumer expectation shifts by intentionally and deliberately creating the consumer experience journey - continuously adding value along the way.
These brands have shifted their mindset from:
Manufacturing to agility.
Transaction to relationship.
Ownership to membership.
And they have created a singular experience for their consumers by integrating all business units to be orchestrated to fulfill their consumer experience strategy. By creating an End to End consumer journey, brands deploy marketing, retail, supply chain, product, logistics and support in an orchestrated fashion based on their consumer experience strategy and the interactions the consumer has had with their brand.
Acting in the Journey Economy shifts the value of industry:
Value in Auto is no longer the vehicle itself, but the act of getting from Point A to Point B as easily as possible across different modes of transportation.
Value in Retail is no longer having a storefront, but seamlessly guiding the consumer through purchase and service across device, screen and aisle – on their terms.
Value in CPG is no longer a product, but an understanding of the consumer’s life to become a trusted advisor who recommends the best products for them.
Value in Airlines is no longer a seat on an airplane, but an end-to-end travel experience that starts with the planning of a trip.
Value in Manufacturing is no longer a sheet of metal, but a holistic metal solution that can transform the manufacturing experience through interoperability and service.
“Every day we’re saying, ‘How can we keep this customer happy?’ How can we get ahead in innovation by doing this, because if we don’t, somebody else will. ”
So what are the real economics in the Journey Economy?
Zero Waste: By deliberately creating the consumer experience journey, brand leaders reduce excess waste in process, spending and time. Using the consumer journey, they continuously remove consumer pain points and optimize processes along the way, with the end goal of getting to zero waste.
Lifetime Value: Moving to the multiple interaction model of the consumer experience journey, brand leaders establish strong, progressive relationships with their consumers. By moving from ownership to membership, brands not only increase the ability to charge a premium for their products, services or experiences, but they massively increase the likelihood of repurchase - expanding the lifetime value of each consumer.
Business Model: Acting in the Journey Economy, business models shift from a singular transaction into something more dynamic and robust. This changes the way brand leaders actually make money. They do so in various ways.
Incremental Revenue: Found through the consumer journey or charged as a premium.
New Revenue: New offerings of product, service or experience by understanding consumer unmet needs.
Recurring Revenue: Developing a subscription or recurring revenue model to change the consumer relationship from one transaction to ongoing transactions.
Welcome to the Journey Economy. How will your brand transform?