Sales Concepts and Apps Module 12 The Experience Economy

Welcome to The Experience Economy As goods and services become commoditized, the customer experiences that companies create will matter most. The Experience Economy

matter most. The Experience Economy

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Beyond Entertainment Customers can be drawn into the Experience Economy three others ways: education, escapism and esthetic appeal. A company that combines various active and passive elements can offer customers varied levels of experiences. The Experience Economy

What are you charging for? It’s an indication of the maturity of the service economy that companies a like IBM and other manufacturers now make greater profits from the services than from the goods they provide. The business equivalent of a shopping mall is a trade show—a place for finding, learning about, and, if a need is met, purchasing exhibitors’ offerings. The Experience Economy

The Characteristics of Experiences One way to think about experiences is across two dimensions. The first corresponds to customer participation. The second dimension of experience describes the connection, or environmental relationship, that unites customers with the event or performance. The Experience Economy

Designing Memorable Experiences It is expected experience design will become as much a business art as product design and process design are today. Design principles are already apparent from the practices of and results obtained by companies that have (or nearly have) advanced into the experience economy. Five key experience-design principles have been identifies. The Experience Economy

Finding A Theme – Themes should alter the way guests view their everyday reality create a new environment create multiple locations within a theme If the theme fits, use it The Experience Economy

Harmonize impressions with positive cues. To create the desired impressions, companies must introduce cues that affirm the nature of the experience to the guest. It’s the cues that make the impressions that create the experience in the customer’s mind. The Experience Economy

Mix In Memorabilia Companies make their themes memorable by providing many positive cues that reinforce the theme's premise. Visitors to themed sites also like to purchase souvenirs — postcards, T-shirts, baseball caps, programs — as remembrances of their experiences. The Experience Economy

Eliminate negative cues. Experience stagers also must eliminate anything that diminishes, contradicts, or distracts from the theme.. Eliminating negative cues creates a more pleasurable customer experience. The Experience Economy

Engage All Five Senses The sensory stimulants that accompany an experience should support and enhance its theme. Some cues heighten an experience through a single sense affected through striking simplicity. Not all sensations are good ones, and some combinations don’t work The Experience Economy

Getting Personal Memorable customized service is tailored specifically to each customer. Your decision about the use of customization ranks with your choices about other operational strategies. Basic customization is not the same thing as offering an extensive list of choices do not confuse customers by offering too many similar items The Experience Economy

The Theatre Model One way to offer a memorable experience is to put on interesting plays or to offer other performances to engage your audience. When companies produce experiences, customers are generally open to participating. The Experience Economy

Transformation Economy To get around this problem, companies can offer "transformational" experiences. Companies in the transformation sector of the Experience Economy give customers personalized attention and sustain their involvement over time. The customer aspires to gain something new or to achieve a personal goal The Experience Economy

Transformation Economy In this transformational economic phase, companies need wisdom to guide people toward their real aspirations. The shift toward a transformational Experience Economy benefits customers, over time, "the customer is the product." The Experience Economy

Entering the Experience Economy Design principles: Theme the experience Harmonise impression with positive cues Eliminate the negative cues Mix in memorabilia Engage all five senses The Experience Economy

Take Aways Many businesses offer their products as experiences When a service is personal, enjoyable and memorable, it becomes an experience. Your business can create an experience any time you interact with a customer Starbucks turned a commodity (coffee beans) into a quality product and an engaging experience. Engage your customers with entertainment, education, escapism or esthetic appeal. The Experience Economy

Take Aways Enter the "Experience Economy" by providing customized service with showmanship. To engage your audience, introduce the "theater performance model" into your business. People in the midst of having an experience tend to buy souvenirs and share the fun with others. Once your customers have seen your theme in action, refresh it so they keep coming back. Transformational experiences affect the provider, as well as the customer. The Experience Economy

Working in a group, design a trade show theme experience for a product of your choice Classroom Exercise