Feb 8, 2020
Joe Pine is a sought after speaker, author and management advisor to Fortune 500 companies. Known 20 years ago as forecasting the then ascent, just emerging Experience Economy that is in full bloom today.
In this take 2 recording Joe and I talk about the transformation of industry as a result of this book and shifts in business thinking around how to create experiences as an economic offering.
We do a deep dive into specific executions and examples giving life to how this is changing the business landscape.
In 1999, Joseph Pine and his author/partner James Gilmore
presented a new way to think about connecting with customers and
keeping their attention. They released a book called The
Experience Economy and is now a must read for anyone wanting
to uniquely serve customers effectively.
Now 20 years later this forecasted economy has exploded and in this episode we discuss the journey and new the NEW experience economy and some of the subtle changes and not so subtle ones.
For more background Joe Pine wrote this celebrated article in the Harvard Business Review called: "Welcome to the Experience Economy"
"Economists have typically lumped experiences in with services, but experiences are a distinct economic offering, as different from services as services are from goods. Today we can identify and describe this fourth economic offering because consumers unquestionably desire experiences, and more and more businesses are responding by explicitly designing and promoting them. As services, like goods before them, increasingly become commoditized—think of long-distance telephone services sold solely on price—experiences have emerged as the next step in what we call the progression of economic value. (See the exhibit “The Progression of Economic Value.”) From now on, leading-edge companies—whether they sell to consumers or businesses—will find that the next competitive battleground lies in staging experiences." - credit: Harvard Business Review / Pine & Gilmore
According to Wikipedia The term "Experience Economy" was first used in a 1998 article by B. Joseph Pine II and James H. Gilmore describing the experience economy as the next economy following the agrarian economy, the industrial economy, and the most recent service economy. The concept had been previously researched by many authors.
Pine and Gilmore argue that businesses must orchestrate memorable events for their customers, and that memory itself becomes the product: the "experience". More advanced experience businesses can begin charging for the value of the "transformation" that an experience offers, e.g., as education offerings might do if they were able to participate in the value that is created by the educated individual. This, they argue, is a natural progression in the value added by the business over and above its inputs.
The Experience Economy is also considered the main underpinning for customer experience management.
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