Feb 4, 2022
3 min read
By Talía Bravo
The border between products and services is merging into integrated experiences.
2 main reasons for this to happen:
1. Experience over products & services
Studies show that spending our hard-earned money on experiences actually makes us happier
often because they can be shared with others in the moment, as well as offering shareability on social media. In short, experiences are a way to build community and to deepen relationships.
Case: Airbnb now offers an Experience service that lets you immerse into local life as a traveler, rather than simply seeing typical tourist traps.
2. Liquid experiences
The last best experience that anyone has anywhere becomes the minimum expectation for the experiences they want everywhere.
Case: Fintechs are creating 100% digital experiences where in one click customers can create an account, as simple as ordering a taxi.
Designing Experiences payoff!
The best design performers returns at nearly twice the rate of their counterparts
1. Experience as a driver of behavior: Design top performers companies can get an annual growth rate of 10% in revenues compare to 3–6%. (Source: Mckinsey Design Index)
2. Experience as a driver of optimization: Design top performers companies can get an annual growth rate of 21% in total return to shareholders (TRS) compare to 12-16%.
(Source: Mckinsey Design Index)
3. Do it properly or don’t do it at all: The relationship between design and financial performance is not linear. An extra dollar spent on design doesn’t always get you an extra dollar in revenues or TRS. Top quartile gets annual growth of 10% in revenues and 21% in TRS, but the 2nd quartile falls to 6% and 15%.
(Source: Mckinsey Design Index)
Applying Design to Businesses is at the heart of creating exceptional experiences with real impact
6 Key principles to apply this process in a successful way
1. The Design Cult
Culture changes from “selling products” to “solving problems”. Governance, Incentives, Talent and Leadership must be aligned with that culture.
2. Data over Guts
Design decisions are based on customer feedback and research, and organizations leverage design metrics to track design outcomes with the same rigor as they track financial performance.
3. Symbiotic multi-channel experience
Demolishing the barriers between physical, digital and service design experience.
4. Design helps to create an identity for business
Design is what defines any brand’s identity. Through data collection and research on users needs, it generates the guidelines to communicate what the brand is, adding the capability to increase profits through a good reputation.
5. Iteration over perfection
Solutions are in continuous improvement based on up-to-date research, iteration and customer feedback that allows to launch and adjust rapidly.
6. Real economic commitment
Applying design to businesses includes investments that range from talent to digital tools.
Start-ups are the ones that create and give success to this movement.
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