Consumer brands are facing new sources of pressure. Traditional funnels are now crowded with new competitors, including online marketplaces that push prices down. Market leaders set high standards for customer experience, pushing consumer expectations to a new level. AI and algorithms give an edge only to those already strongest. And social commerce has turned even consumers into brands’ competitors.

Positioning through Experience identities

Although brand interactions are evolving, many consumer experiences fall short. Inflation and corporate cost-cutting often mean consumers are paying more, getting less, and dealing with lower-quality services. With rising inflation, consumers are much more picky about which brands deserve their attention and money. Our consumer behavior research reveals that consumers’ decision-making has shifted substantially in the past five years.

In a constantly changing society, evaluating information is increasingly challenging, and the market is oversaturated with products and brands. Therefore, consumers nowadays assess a brand's relevance based on the role it plays in their lives. From our research, we’ve identified how consumers build brand affinity, and based on that, we developed the concept of Experience identities. This model helps brand leaders (whether they’re CEOs or managers at the intersection of product–marketing) understand and respond to these new consumer expectations.

A scale from convenience to surprise

Experience identities reflect a range of customer needs – from simplifying choices to breaking away from monotonous experiences – and suggest the role a brand should play in consumers' lives:

  • Problem solvers make decision-making and daily tasks easier for customers. Think of leaders like Amazon, Ikea, or local company Alza, which offer services that handle as many purchase-related concerns as possible, covering everything from financing to delivery, setup, and returns.
  • Empathetic experts are trustworthy partners who build communities around shared passions. Through their expertise, they engage consumers also beyond the buying phase, securing their place in customers' lives. Examples include Miele's cooking classes or Isadore's community rides for cycling enthusiasts.
  • Responsibility enablers guide consumers to make responsible purchasing decisions, addressing their increasing sensitivity towards ethical business practices, social impact, and product lifecycle. This explains the rise of circular solutions like Vinted, Recup, or Martinus’ book return program, as well as brands with lifetime guarantees like Patagonia.
  • Magic makers bring back a human touch to an increasingly automated customer service. Instead of bland, templated online stores and customer service bots, they deliver a more human touch. For instance, in the fashion industry, you’ll find magic makers offering personal stylists as shopping curators or smart wardrobes in fitting rooms with selected items appearing upon request.

Deciding which experience identity a brand wants to excel in is a challenging strategic decision. One that enables a brand to deliver a clear and meaningful value to the customer, that will be irreplaceable by any other brand.

Brand = communication + experiences

Customers perceive a brand not only through its communication but also through the feelings it evokes through all interactions. This holistic perception of a brand is called brand experience. Brand experience is built on strong analytics – understanding consumers and competitors and identifying untapped opportunities. The experience identity framework allows brands to identify the right approach, whether they’re focused on revenue, market share, or customer retention.

Our report on new consumer expectations offers a deep dive into shopping behavior, key trends, and numerous examples of world-famous and local brands that understand where they stand on the experience identity spectrum. We’ll show you how these brands innovate based on the needs and future expectations of their target audiences, tailoring their entire service portfolio accordingly. After all, it’s the design and quality of customer services that shape how consumers resonate with a brand, giving it a real competitive advantage.

If you'd like to discuss Experience identities in person or have them explained to your colleagues, don’t hesitate to reach out to me.

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