In a recent conversation, I was asked by a customer one question that made me think of the Experience Economy. The term (and book) was created by Pine and Gilmore in the latter part of 1990 and must be revisited by every business in the present.
He stated, “Why is it when you go to a chain steak house you don’t feel good about spending seventy dollars for steak, but when you go to Kayne Prime (a local steakhouse favorite in Nashville) you post on social media, fist-bump the people you go with, knowing you spent over $450.00 dollars on steak?”
In 1996, Danish researcher Rolf Jensen published a book entitled The Dream Society. The book described emotional commercialization by saying, “In 25 years, what people buy will be mostly stories, legends, emotion, and lifestyle continue reading this.” Jensen was on target to Nashville, TN (and the world!).
The experience economy can be described as “an economy in which many goods or services are sold by emphasizing the effect they can have on people’s lives.” The experience economy requires that businesses respond to the following questions:
- How can the product/service I offer help to make the quality of life?
- Do the customer’s time and money well-spent on your service or product?
The author of The Leadership Mindset, Joe Calloway, states “The single most important factor in determining the success or failure of a business is the mindset of its leaders. It’s how they think that makes the difference.” My client has scheduled time on Fridays to create a vision. He is interested in learning about new ideas, such as experiences economy. He is prepared to meet with his team and receive feedback on what he’s learned and how it could help the employees and customers. The company he runs sells turf. In reality, however, it’s selling stories, myths, emotional states, and lifestyles.
Experiences are an experience when the product, price, or service is linked to memorable and emotional moments. Utilizing a framework for a brand-named customer experience can provide leaders with a method to direct employees in creating memorable moments. Here is an example of an architect who I was working for in my area:
Think about what business is it that you are engaged in? While working with this builder of homes and we have concentrated on the notion the idea that “new homes are better,” informing the public that people don’t desire to purchase a house that was previously owned by someone else and they would prefer a brand-new place that doesn’t have the toenails of the previous owner in the carpet.
Our emotions bring us as human beings, and many people make buying decisions based on emotions. We employed “See New. Feel New. Live New.” as emotional points of contact for the same builder. This allowed agents to tell their story about the house with a style that gave the story emotion and, ultimately, more enthusiasm and urgency from buyers.
Every experience has a memorable moment. Consider the event as a series of snapshots, not the film. The customer won’t recall the entire movie, but they’ll remember the snaps. In this case, handing keys over to the client was the moment that summed up the essence of the experience. The keys symbolized the bond and trust that would be built the foundation of a customer’s life around.
Celebration Of The Customer
The best companies all do this. The company held barbecues in all of their communities. They utilized them to celebrate the people who have purchased homes and an opportunity to invite their potential buyers. This can help to build relationships with them while they think about their lives, their future, and where they could be living.
It’s your turn! Are you prepared to design your version of a brand-name customer experience and get into the world of knowledge?