Immersive theatre, specialist gin tasting, velodrome track days. On the surface three very disparate pastimes, but with two key things in common – they are experiential business ideas and they are becoming more popular all the time.
There has been a shift among consumers towards purchasing experiences over things. Time spent on activities and travel appears to bring more happiness than clothes and cars. Experiences generate memories, and good memories, in turn, can increase brand loyalty – and business is booming.
A 2014 report in Psychological Science examined money spent on doing (experiential) versus money spent on having (material), finding that people derive value from anticipation (and in turn excitement and happiness), and that value tends to be greater for experiential than for material purchases.
The concept has been embraced by many consumer brands, as customers choose to interact with a brand at a different level, building long-term relationships with the brand, rather than a quick fix on a one-off shopping spree.
“Research shows that we are seeing an increase in spending on culture, entertainment and experiences [pdf] that is larger than equivalent spending on goods and belongings,” says Adrian Leu, CEO of innovation agency Inition, which creates immersive experiences for companies such as Adidas, The Shard, Hendrick’s Gin, and Renault.
“Experiences can be enhanced further by bolting on a service, so that the time spent by a consumer is further rewarded. For example, John Lewis has just announced its most experience-led new shop opening at Westfield in White City,” says Leu. The reinvented department store offers personal stylists, home design consultation and an app designed to maintain the relationship out of store.
It’s a trend that smaller brands and entrepreneurs are tapping into as well. Already famous as the home of golf, Scotland’s St Andrews could also become known as the new home of gin, thanks to Blendworks. Launched last year by the local Eden Mill distillery, Blendworks offers discerning gin fans the chance to craft their very own spirit, from selecting botanicals through to bottling and labelling.
“There is no better brand introduction than getting liquid on lips on the site of where the product is brewed or distilled,” says Blendworks manager Jasper Daly. “However, tours and tasting experiences are a dime a dozen, so we decided to convert our St Andrews tasting room into something more special, where guests could become totally immersed in gin and flavour.”
With a maximum capacity of 12 people, Blendworks tries to make each experience bespoke to the guests involved, in turn creating a memorable product and experience.
“The difference with Blendworks is that it is designed to be standalone and not necessarily drive guests into an immediate purchase of one of our other products. Guests walk away after an enjoyable experience that is tactile, educational and bespoke, and should leave them with a sense of accomplishment,” says Daly.
Tiffany Ceri and Lara Goodison are the entrepreneurs behind Brush and Bubbles. Launched last May, it is essentially a painting class with prosecco. “We’re both quite creative and wanted to come up with a fun, relaxed experience for people to create something they are proud of, in a social environment,” says Ceri.
Classes, which take place at a number of different venues, are two hours in length and during that time guests are invited to create a canvas painting, with step-by-step instructions from a resident artist, while enjoying a glass of fizz. All materials are provided and participants can take their masterpieces home.
“We took a risk and invested our own money at the start, and fortunately it has paid off,” says Ceri. “A lot of our generation seem to think that buying a house is so far out of their reach that they’d rather spend money on experiences and living for the now.”
Founded in 1991 and working in the consumer and enterprise space, Future Designs is a well-established, high-end lighting manufacturer. Also taking the experiential approach, the firm is due to open a new showroom in Clerkenwell without a single product on display. Instead, it will offer visitors what it calls an immersive human-centric lighting experience. The idea is to show potential clients how specialist illumination can impact our moods and concentration levels.
“Technology has leapt into a sphere where ‘tuneable’ white lighting can positively impact the human circadian rhythms [the cycles that govern our sleep and wake patterns], which is vital to our wellbeing and ultimately productivity,” says managing director David Clements. “The showroom is an opportunity to take the story one stage further and show how advanced our research and development is in this area.”
Visitors to the showroom will be able to experience white lighting that spans the Kelvin spectrum – from 2,700k, warm yellow white to 6,000k, cool blue white – and judge the difference in how this makes them feel.
Historical and current evidence suggests that human-centric lighting can improve physical and mental wellbeing and increase output. However, modern life often dictates that people don’t follow the natural rhythms of rising with the sun and sleeping at dusk.
“Offering a simulated environment can therefore be beneficial to some of us at certain times,” adds Clements. “In the case of lighting, which is a vital element for life, people have a visceral reaction to its presence, the ability to demonstrate the latest technology is hugely beneficial for my clients who are buying lighting solutions.”
