• by TJ Person , August 12, 2013

Of course, I know my own life better than anyone else does. As it turns out, however, this giant concept of data-tracking not only gives advertisers an “in” but more significantly, has the potential to help regular people live better, more efficient lives. Contrary to what many think, this personal experience economy -- where we leave clues about all kinds of information about our daily lives -- offers advertisers ways to pester us less and help us more.

Value exchange as currency

This is only the beginning of the personalization and targeting we will experience. Mobility, email conversations, social media "likes," Google searches, and other digital activities are giving advertisers a pretty good idea of our preferences. In the very near future, we’re going to be sending even more clues about who we are and how we live our lives through wearable sensors, the connected car, and the Internet of Things, which ultimately incorporates sensors into just about everything in our home and office, including the television, heaters and AC units, lighting and stereo systems (ambiance sensors), refrigerators, washing machines, and more.

Don’t adverpester me

Does all this data tracking mean that we want to be constantly notified when we walk down the street? Just because I walk by a shoe store doesn’t mean I want to buy a pair of shoes. Personalization is, well, personal. And, we all know that when advertisers “get it,” we’re pretty happy. If we get real value, chances are we’ll like it, and probably return for more in the future. Whether we have interacted via mobile, email, TV, or even paper, if the value fits within our lives, we’ll engage. And we’ll share these positive experiences with our friends, in real life and online.

But just because I shopped at Abercrombie once doesn’t mean I want to download the app and join a Web site. Our lives are more complicated than that, and there are more factors to consider when trying to understand and fit into the personal experience economy.

Value exchange more attractive than cash

Many studies show how customers will exchange personal information for value. We no longer even need to explicitly provide information, but our behavior and actions are still keeping track of what I do. I don't care -- in fact, I welcome it -- because I’m getting value by doing it. I search for a stroller, and I get information on child safety as well as offers from brands and retail outlets. I search for a restaurant, and I get reviews to know if the food (and service) are good or bad. I download an app for my favorite convenience store, and I get deals on the things I like to buy.

Brands prefer to receive the data (rather than cash) from visitors, because they also want to know what you want, when you want it, and how to provide value, in order to turn you into a long-time, happy customer.

Value in the Personal Experience Economy

At different points in my life, I want different things. My wife and I recently had a baby. Before that, we got married. I am no longer interested in knowing about wedding venues or money-saving opportunities on reception locations. Now that the baby is born, we are no longer interested in pregnancy information. But these days, I am very interested in information about raising a child. I am also very interested in saving money on strollers, toys, diapers and the like.

Advertisers might like to take advantage of the many clues via my digital behavior, and they might know how to reach me pretty well. These same advertisers might also know that I wear a Nike Fitbit and that I recently made myself a pair of running shoes with embedded sensors to track my steps, weight and even blood pressure. I also recently discovered that I love the new Naked health drink with coconut water (which may soon have RFID sensors on the actual product), and I bought a new fridge (which may soon include sensors in them to monitor and maintain the right temperature) to store my health foods.

Personal value. Personal loyalty

This behavior, which I actually call “my life,”(or at least a small part of it) adds up to quite a few clues of what I might like to hear about. A variety of advertisers might like to know that I bought a stroller and that I am being health-conscious -- namely because I didn’t buy a running stroller, which I might realize soon that I’d enjoy having. I might want more information about health and wellness, which might ultimately help me choose a better lifestyle for my child and myself.

In this new personal experience economy, the retail war of the future will be won on the data battlefield. The apps and elegant experience are very important -- clearly, we want people to enjoy the experience. But, in the end, we want to be able to get a complete understanding of what people need and want. Offering people convenience through an understanding of how they live their lives will be the new economy.