What makes a business memorable? For some consumers, it’s the experience they have from the moment they enter a store and start engaging. When businesses create an environment that feels personal and make an extra effort to build relationships, it can stand out in customers’ minds and encourage repeat visits. This emphasis on the customer experience has become increasingly important across industries and is a key concept in what is known as the experience economy.

In this post, we help explain why prospective franchisees should invest in franchise systems that prioritize the customer experience and embrace the experience economy to positively impact long-term success. We cover:

WHAT IS THE EXPERIENCE ECONOMY?

The experience economy is a concept that describes how businesses create economic value by offering memorable and emotionally engaging experiences rather than relying solely on selling products or services. The idea was first introduced in the late 1990s by B. Joseph Pine II and James H. Gilmore, who explained that businesses can stand out by intentionally crafting experiences that resonate with customers on a personal level.

Instead of keeping interactions transactional, businesses that embrace the experience economy can use their products or services as elements to help create a broader experience. For example, a high-end spa offers more than just treatments; it combines a calming environment and attentive staff to create a memorable and emotionally engaging visit that can leave a lasting impression.

WHY SHOULD FRANCHISEES PRIORITIZE THE CUSTOMER EXPERIENCE?

In a competitive market, customers have many choices. Not only has customer loyalty declined, but in a recent survey, more than 63% of respondents said customers are less loyal than they were five years ago. And while there can be several reasons someone becomes loyal, businesses across all industries should strive to create a positive, memorable experience for customers so they can increase the likelihood of return visits.

When considering a franchise to invest in, you want to feel confident that their business model has a good grasp on customer retention, and one way to determine this is by how they prioritize the customer journey.

CUSTOMER PURCHASING DECISIONS

The experience a customer has with a franchise business is important, as research finds it impacts 73% of purchasing decisions, while 80% of customers report that a company’s experience is just as important as the products/services it offers. Even if the franchise you invest in provides high-quality products and services, disregarding the customer experience can hurt your business.

GREATER PROFIT

With 86% of customers reporting they are willing to spend more for a superior experience, the quality of a customer’s interactions with a business becomes all the more essential. Additionally, customers who rate their experience as a perfect 10 out of 10 will spend 140% more.

For franchisees, there is an opportunity to boost profits simply by prioritizing the customer journey. Because customers are willing to spend more for an exceptional experience, investing in a franchise that delivers robust support, proven tools, and clear operational guidance becomes a strategic advantage. With the right framework behind you, franchisees gain the time and space needed to craft the kind of customer experience that drives long-term success.

INCREASED LOYALTY

Customers remain loyal up to six times longer when they give a business a perfect customer experience score, while 52% say poor service is a primary reason they won’t make repeat purchases.

There can be several reasons why this is the case, and what makes a customer loyal can look different for each person. However, personalization can play a key role. 78% of consumers report that they are more likely to make repeat purchases from companies that personalize.

HELPS FORM AN EMOTIONAL CONNECTION

The feelings and emotions that arise when customers engage with a business can significantly shape their overall experience, as emotions are the key drivers of memorable moments.

A Harvard Business Review study found that customers who feel emotionally connected to a brand are more than twice as valuable as those who are merely satisfied. Although the concept of fostering emotional connections and providing positive customer experiences has been recognized for years, it remains a vital growth strategy.

When customers are emotionally connected to a brand, they have a whopping 306% higher lifetime value than satisfied customers. Research also shows that 83% of consumers are more likely to purchase from a brand if they feel a connection to it.

For franchisees, prioritizing customer satisfaction is not just a nice-to-have in their customer service strategy; it is key to creating emotional connections that support long-term success. By investing time and resources in delivering thoughtful, enjoyable experiences, franchisees can help customers feel valued and eager to return. It can be as easy as keeping notes about repeat customers so the staff remembers their names and can greet them personally on each visit, or adding a personalized note to loyal consumers’ shipments. Over time, the emotional connections formed can help strengthen brand loyalty and lead to long-term gain.

ABILITY TO DIFFERENTIATE

Franchisees are required to follow the franchisor’s proven business model, meaning they cannot deviate from the provided guidelines. However, the responsibility for delivering a positive customer experience lies solely with the franchisee. This can be a valuable opportunity to differentiate from the competition by offering exceptional customer service that stands above the rest.

LEARN MORE ABOUT BECOMING A DOGTOPIA FRANCHISEE

At Dogtopia, we prioritize the customer experience. As the world’s largest dog wellness franchise, we offer pet parents services that support the physical, emotional, and social needs of their dogs, which makes each visit more than just a place to drop their pup off. Pet parents are paying for peace of mind, trust, and the comfort of knowing their dog is part of a caring and highly skilled community.

Dogtopia’s business model is designed to help franchisees deliver these meaningful experiences. For example, our advanced technology, such as the Dogtopia app, allows pet parents to stay connected through features like live webcams and updates that help build trust and transparency. Our membership model also helps encourage recurring visits, so franchisees can get to know regular customers and encourage a genuine connection to the brand.

The elements of our business model work together to create a positive, memorable experience for both dogs and pet parents, helping us become the leading dog daycare franchise.

To learn more about a Dogtopia franchise opportunity, check out our detailed FAQ page. If you’re ready to move forward and meet our initial requirements, please fill out our online inquiry form.

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