Unlike Madonna, I’m not much of a “Material Girl.” I’m ambivalent about Prada purses. Meh on McMansions. And completely disinterested in ever owning a luxury car. Even if Xzibit just handed me a free Ferrari in some bizarre alternate universe, it would still be a challenge to feign excitement. They’re just so…tacky…

But if someone offered me free plane tickets to Bali? Or to see the constantly-sold-out, impossible-to-get-into, smash Broadway hit “Hamilton?” I’d cry. Why? Because the show looks amazing! It’s the talk of the town/city/country right now and I’d love to be part of the community that has seen it and experienced it live (not to mention, it wouldn’t hurt my social media cred)…

FOMO (Fear of Missing Out) is real. It’s real and it’s brutal. If a friend posts a pic on Instagram of them at a Beyoncé concert, you can bet your butt I’m going to be feeling the FOMO hard. And if I post a pic of my beautifully composed ice cream cone one sunny Sunday, you can bet your butt that my sister who lives in a different state will be FOMO-ing too. The data agrees. Nearly 7 in 10 (69%) millennials experience FOMO and this fear of missing out drives them to show up, share and engage.

In today’s over-hashtagging, over-sharing society, experiences are the new social currency. Because sending a Snap of a plate of pastel macarons in Paris is epically more impressive and enviable than sporting a Rolex. And this reprioritization is a fairly new trend.

In the 1990s and 2000s, Americans were obsessed with watching MTV “Cribs,” popping bottles of Cristal and drooling over Carrie Bradshaw’s $350 Louboutins. Excess was in (remember the release of the “Hummer?”) But today in 2016, we’re living in what economists are calling “The Experience Economy.” We still love and value luxury, but our definition of “luxury” is no longer confined to champagne and diamonds.

In fact, recent studies show that 78% of millennials would choose to spend money on a desirable experience or event over buying something desirable. And 69% of millennials believe attending events makes them feel more connected to other people, the community, and the world. Take a look at the rise of popularity with Periscope and the live-streaming video feature on Facebook. People are sharing where they are and what they are experiencing in real-time; and it’s bringing them immense joy and fulfillment. Forget scrapbooks. Our digital footprint is now one living, breathing scrapbook of the highlights of our lives.

Why else do we millennials love spending our money on experiences? Because experiences are FUN (shocking, I know). There’s a lot of science to back up the notion that even though you can’t buy happiness, you can buy experiences which in turn, help make you happy.

Retailers need to capitalize on the importance of “experiences” and find a way to apply this concept to their own shopping experiences, both digitally and physically. Consumers don’t want to just transact. They want an experience they can connect with and Tweet about. Even seemingly ordinary purchasing decisions like which gym to join are influenced heavily by experience. Consider SoulCycle — their loyal following is due to the experience they provide; catchy music-themed rides, intense instructors and a community that borders on cultish.

LuluLemon has also created a solid marketing strategy around more than their $90 yoga pants; they offer events, special promotions, connections to charities and a social status that screams, “Namaste, bitches.” And of course, there’s Apple who reinvented the way people purchase big-ticket technology items…without lines (unless it’s New iPhone day), without inventory stocked on a shelf and without a paper receipt. These brands are able to mark up their prices without anyone caring, because their fans are so infatuated with the experience, and quick to share with their friends. Sorry Louis Vuitton, but expensive product sitting on shelves just isn’t cutting it anymore.

What  marketers can do to help create better experiences for millennial customers

1. Make It -Grammable: Make your physical space, your products, your packaging as beautiful, curated and shareable as possible. It’s not just what customers enjoy. Frankly, it’s what they expect. The bar has been raised and you can’t afford to let one almost-Instagramed/Snapchatted/Yelped moment fly by.
2. Create a Community: If your customers are talking about you on Twitter, join the conversation. Host events. Create a VIP program for your most loyal customers like Sephora. Donate money to a cause you care about à la Toms. Customers want to feel like they are part of something bigger than just you and them.
3. Understand How Everything You Do Connects: Your website, mobile experience, social media and product offerings should all feel connected, as though they are coming from the same voice (and talking to the same person). When so many people work on different parts of a business, it’s easy for things to feel choppy, but seamless integration is the new expectation.
4. Remember That Hashtags are Not Experiences: Think beyond the hashtag. Beyond the “marketing.” How can you tailor your retail and service experiences to surprise and delight your customers? It’s not as easy as creating a sponsored post on Facebook anymore. Make sure you hire savvy marketers who understand this brave new world and know how to craft and nurture a brand that people love.
5. Personalize When Possible: There is an endless amount of data floating out in the world right now. We know when people check in and what they think of certain experiences. There is no lack of information out there. So use the information you’re capable of gathering to work in your favor. Not in a creepy way, of course. But a little thoughtful personalization can go a long way.

What does this mean for marketers? A lot. Big luxury brands can’t just rest on their laurels like they once did. They need strategies to entice millennial purchasers and exciting, unforgettable experiences that will keep them coming back for more. It’s definitely not easy, but there’s never been more flexibility or more opportunities to turn a small idea into a big, industry-altering company (again, think Toms).

Oh, and if anyone out there has a couple tickets to “Hamilton” they’re trying to get rid of, hit me up.

--

‍This article was originally published to Elyse Ash's Medium account on May 9, 2016.

‍

‍