Lived experience is data too

Organizations have never had more data. Across almost every point in the customer journey, we can measure behavior with remarkable precision. Data is extraordinarily good at explaining the “what.” It is often much less good at explaining the “why.” That “why” often sits in lived experience: the knowledge that comes from experiencing a product, service, or situation, including what matters, how it feels, and what conventional measures may fail to capture. I first learned to focus on that kind of information through years of working as an investment banker and strategic adviser to many of the world’s leading luxury goods companies. I am learning it again, in a very different way, while building a social impact startup. WHAT LUXURY GOODS TEACHES ABOUT LIVED EXPERIENCE Some of the best luxury companies excel at understanding and marketing to lived experience. They know that a purchase is rarely about product attributes alone, but also about what the product represents and how it makes someone feel. A company can know that a customer spent $15,000 on a handbag, which bag she chose, and whether she is likely to buy from the brand again. Across thousands of transactions, it can identify …