Market Mondays: The Farm Experience Economy
The experience economy is the business of generating revenue through a planned customer experience. In a Harvard Business Review (HBR) article on the experience economy the authors describe how a company can use their core service or good as the platform for a distinctive experience. We know that for farms that sell B2B (Business to Business) finding and maintaining buyers to sell crops to is an on-going process. The development of farm experiences can expand a farms customer base and generate additional revenue.
I Already Do This On My Farm…
For the thousands of farms that already operate a farm experience this article is for you too. It’s a good time to re-envision your existing operation and explore ways to generate more revenue. Farm owners have the opportunity to build on the growing market for Experiences globally. According to an analysis by McKinsey & Company consumers spending habits have shifted towards experiences rather than purchasing goods. An article posted on the Financial Review noted that market research leader Euromonitor, has forecasted that by 2028 $8.2 Trillion will be spent on the experience economy globally. Over the past several years opportunities in the agricultural industry have grown for investors, asset managers, and tech innovators. Farm Experiences is the opportunity for farm owners & operators to innovate within the agricultural industry. Farm operations are uniquely positioned to build on the growing market in an unprecedented way.
The Benefit of Farm Experiences
The Buyers Come To You
Farm Experiences draw customers to the farm allowing farm operators to capture more of the economic value of their production that's missed when crops are sold to an intermediary. Farms may also save on transportation and distribution costs associated with selling direct to customers at farmer's markets and other events off of the farm.
Independent of Production & Processing
Popular Farm Experiences can include pick - your - own operations, but experiences do not have to be tied to a farm’s production. Farms can create unique events like movies under the stars or trivia nights to engage visitors in different ways. In Farm Revenue: Growth Beyond Crop Sales we mentioned that space and land use rental is another way to generate farm revenue that is not contingent on farm production or processing.
Whether you are considering creating an experience for your farm or if you’re re-evaluating your operations here are two tips for a successful Farm Experience operation.
Social Media = Currency
Social Media is a businesses free platform to endless opportunities. When managing a Farm Experience leverage the direct accessibility to customers that social media provides. When used efficiently social media platforms can be used to market to potential farm visitors, to engage previous visitors, and to build the brand. To bolster visitor engagement, farms can develop a signature hashtag for their Farm Experience like #BekorFarmYoga which can expand the farm’s social media reach.
Know Your Market & Price For Value
Depending on the farm experience you develop or currently operate, it will determine your customer fee structure. No matter whether your target market is schools, wedding planners, or young professionals you have the opportunity to curate an experience for visitors that makes the value tangible. Price the experience for the value that is being offered. In a discussion on the Service Design Show, Joe Pine, one of the authors of The Experience Economy stated that “Services are about time well saved…experiences are really about time well spent.” Time well spent is time worth paying for. In A market in which consumers are expected to spend several trillion dollars globally, its an area that operators should be comfortable in pricing experiences and related services based on the high and meaningful value that they provide.