Transcript No Slide Title

Sales Concepts
and Apps
Module 12
The Experience Economy
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
.
The Experience Economy
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
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
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alter the way guests view their everyday reality
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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
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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
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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."
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The Experience Economy
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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.
Classroom Exercise
The Experience Economy
Working in a group,
design a trade show theme
experience for a
product of your choice