Experience-Innovation: Are Singaporean companies ready?

Digital and social media have changed all the rules of advertising, communicating, and getting customers to experience products and services. Many conventional approaches are now extinct. Others are under the scanner, to see if they justify their costs. Newer ones are ready to be tried.

In this category, I put in all the online limited-time 'deals' through sites like Groupon. Whether these are ways to clear piled up inventory or to use up extra capacity, they have become a great way for companies to invite customers to experience their offering, and potentially convert them into long-term patrons.

My wife tried a spa through one of these deals, and over the last year has not only become a regular, but also a recommender. We also found our favourite restaurant after a 50% off deal, and go back quite regularly even sans any 'promotions'.

However, to take full advantage of innovative ways to increase customer trials, even providers and merchants need to be ready. All too often I find Singaporean companies missing the whole point of why they created those digital deals in the first place. They appear to be so pained at the prospect of the discount they are offering that they reduce the service or diminish the experience, since they are offering it at 30-70% off anyway. Bad idea.

Last week the wife and I trotted out to an expensive fine-dining restaurant in Sentosa. We had bought the deal online. They had an advance reservation requirement. One of the two printed phone numbers on their voucher connected me to someone at an investment bank. Careless printing. Strike one.

Then I discovered they wanted to take the 'one day advance reservation' very literally. Having already told me the restaurant had several tables available that evening, the moment they discovered I was a 'coupon-wallah' they said they were unable to accommodate. By the rulebook. Strike two.

I set up a reservation for the next day, which took them more than 24 hours to confirm. When we reached, seeing the vouchers in our hand they wanted to re-confirm that we had indeed reserved, when the entire restaurant barring one table was empty. The food was nice, the ambience pleasing. However this experience was simply not classy. Strike three. We will not add it to our list of regular haunts.

Innovations in marketing, advertising, and promotions ultimately are all about creating good customer experiences. Yes, Singaporeans love great deals, but if the only thing on offer is a deal, merchants will not be able to create any loyalty.

Expo-style trade shows, purely price-driven, have their place in the scheme of things. However, the digital age is driven by experience. No better example than the iPhone. Typically lags in technology, generally priced at the highest end of the smartphone market, smaller screens, closed ecosystem, yet immensely popular due to its terrific experience.

Singaporean companies would do well to refocus on experience. Just that changed mindset could well be the biggest innovation we need!