Create an Experience
February 25th, 2009 in Uncategorized. 4 Comments
It’s been a while since I last read Joe Pine and Jim Gilmore’s book The Experience Economy. If you haven’t read this book, trust me. Go buy it and start reading it right now. If you have a product or service that you offer (we all do, whether in business, church, or the non profit arena), it is imperative that you grasp the context of the Experience Economy.
I am reminded of it because in a conversation yesterday someone asked me how I would recommend they keep their product from becoming a commodity. From just being lumped in with all the other similar products in their space, and being seen as just an option instead of the only option. Where price determines what the consumer chooses vs. other factors like emotion, connection, and memories.
In the book, Pine and Gilmore lay out the four levels of economic value : commodities, goods, services, and experiences. Progression happens by moving from commodity to experience. Think about coffee. Coffee beans are a commodity, ground coffee is a good, a cup of coffee at dinner is a service, and a latte at a trendy cafe is an experience.
Or about birthday parties for kids- a cake is a commodity, a customized cake is a good, a birthday party with friends is a service, and a full fledged laser tag birthday celebration is an experience. Think about Apple stores. Disney World. You get the point.
The question is how are you creating an experience with the product or service that you offer? How are you allowing your customer to be so engaged with your product that they connect emotionally? Does your product or service creates memories for your customer? Do they want to tell their friends?
There is also a fifth level of economic value, which is transformation. Incredibly hard to reach this level, but our goal should be to get there.
4 Comments
Guy
February 25, 2009 at 2:30 pm
WELL STATED!!!
Just like Nike doesn’t sell shoes but athletic ability and victory. Or Volvo doesn’t sell cars but safety. I had an old friend who makes signs in Atlantic City once tell me that “people will forget what they buy from you but will never forget how they felt when they bought it.”
Guy
Prv. 3:5-6
Josh Gunkel
February 25, 2009 at 2:56 pm
Good Post Brad,
I will definitely check this book out. It is one that Chris Carneal recommended to me a year or so ago. I think it definitely applies to what we are trying to do here at Hallmark.
Have a good one!
Josh
Benjamin
February 25, 2009 at 5:26 pm
If the progression continues, I would contend that we are perhaps moving past the experience economy to a relational economy.
jasondtaylor
March 2, 2009 at 4:52 am
Brad, I’ve had this book on the shelf to read for a couple years. Almost picked it up two weeks ago to take with me on a trip but didn’t. Read some of the reviews on Amazon and decided it might not be worth it. I appreciate your review here. Still have to decide whether or not to pick it up though. My book pile keeps getting larger. Aaaagh.