experience economy

How is the economy changing? The entire history of economic development can be summarized through four stages (goods, goods, services, expertise, or firms using regulation and delivery) by considering the development of a birthday cake as a relic of an agricultural economy. Make a birthday cake from scratch by mixing products (sugar flour, butter, eggs) that add up to a cent (very few). With the growth of the commodity-based industrial economy, moms paid Betty Crocker a dollar or two for these pre-blended basic ingredients. Then, with the development of the service economy, parents began to order ready-made cakes from bakeries or grocery stores for as little as ten to fifteen dollars, almost ten times the cost of the packaging components. In an age as crazy as the ’90s, parents would cancel birthday parties if cakes weren’t made, but now they’re willing to spend at least $100 on “outside vendors” for unforgettable birthday parties (Chuck E Cheese, Discovery District). Mining companies), these companies organize a birthday party complete with a free birthday cake. It can be said that this is simply the emerging experience economy.

Economists have conducted randomized trials of services that appear to be an economic supply different from that of services, which are seen as accompanying goods. Today ; The fourth economic parade or the fourth stage of economic development can now be better described as consumers undoubtedly desire more experiences, and thus by clearly publicizing these experiences, more and more firms deal with their desires, and the services themselves increasingly become a commodity, just Like the item offered to them. for example ; long-distance telephone service, the price of which is determined by experience; It appears in the next step in the evolution of what we call economic value (see attached picture in the article “Economic Value Increasing”). Going forward, leading companies, whether consumer-facing or enterprise-facing, will find that the next competition lies in experience curation.

Economic Value Development:
Experience is not an amorphous structure, but a true offering, such as the rendering of any service, good or product, in today’s service economy; Many companies are trying to incorporate expertise into their traditional offerings, to sell better and get the most out of curated experiences. However ; Companies must design a set of new experiences that can purposefully charge fees. This transition from selling services to selling expertise will not be easy for existing companies, especially after a major shift in the economy from an industrial economy to a service economy. This means that companies that do not wish to be mere commodities must quickly upgrade their products to advanced stages of economic value. The question is not whether companies operating now should enter the experience economy. Instead, the question remains: How and when did this happen? Later in this article, the characteristics and principles of experiment design are detailed, and how companies can answer this question.

Building an Experience That Drives Sales!
We must appreciate the difference between service and experience, here we think of an episode of the old TV series “Taxi”; Taxi driver Iggy decided to be the best taxi driver in the world, serving sandwiches and drinks, along with Frank Sinatra (Frank Sinatra) the rhythm of the song roams the city. So, the experience of an ordinary taxi ride turns into an unforgettable event. Iggy created something else entirely. It is a unique economy proposition, and the experience of a taxi ride is more valuable to his customers than the basic service of a regular taxi, and he happily responds to the customer on the TV show (Eggy) and gives them the best advice. And some of them ask (Eggy) to go to the same place and extend the way to enjoy the experience with him. The new service of (Eggy) via taxi is the stage of developing the experience that makes it better selling later.

Companies intentionally use services as a stage and merchandise as props to create an experience; Attract individual clients in a way that creates memorable events. Goods are often interchangeable, and tangible goods and intangible services represent unforgettable experiences. (See the table attached to the article “Economic Differences”). Seasoned buyers usually appreciate what the company has been offering them for a while and are looking for an experience similar to what Walt Disney has to offer. It invites everyone as guests and is a giant for the customer experience economy. In an age when economic offers depend on goods and products, all are external to the buyer; The experience presents deeply personal questions that lie in the customer’s mind and are directly related to their relevant physical, moral and emotional experience of the product. If the products are the same; The experience varies from client to client, and appears to be a state of interaction between a particular event and the client’s mind – a theatrical scene – that will never be the same.

Economic advantage:
Experience has always been at the heart of the entertainment industry, there’s a fact that Walt Disney and the company he founded depended on creativity, but today; The concept of selling recreational experiences is rooted in businesses far from theaters and parks, especially new technology, encouraging entirely new types of experiences. Examples include interactive games, online chat rooms, multiplayer games, motion-based simulations, and virtual reality. Intel President Andrew Grove, speaking at the Comdex Computer Trade Show in November 1996, said the ever-increasing processing power needed to deliver a more robust experience is now driving demand for goods and services in the computing industry. “Our business is not just about manufacturing and selling personal computers. Our business is to provide dynamic and interactive information and experiences.”

Spread of the Sales Experience Concept Outside Entertainment Companies:
On topics such as Hard Rock, Planet Hollywood, or Pete Blues Restaurant; Food is just the backbone of what is called entertainment. Stores like Niketon, Capella, and Recreational Equipment Incorporated attract consumers with entertainment, offers, and promotions. This is called leisure or entertainment shopping. But experiences are more than just entertainment, companies build experiences to engage customers in a personal and memorable way. In the tourism sector, the former head of British Airways, Sir Colin Marshall, said the commodity group believes that business only works in our case; She was getting people from point A to point B on time, and at the lowest possible price. According to Sir Cullen, British Airways does more than work, but they compete on the basis of providing expertise.

(See “The Competition in Customer Service: An Interview with Sir Colin Marshall,” November-December 1995.) The company uses its core service—travel itself—as a stage for unique on-the-go experiences, and attempts to transform air travel from a challenging, messy, and busy experience to a comfortable one. Experimentation is not limited to the consumer industry, but also the commercial sector that deals with ordinary people and companies, and is also keen on building their expertise. For example, a Minneapolis computer repair and installation service company that calls itself “Geek Squad,” has agents who wear white shirts with thin black ties, pocket bags, and name tags, drive classic cars, and turn their services into an unforgettable customer experience. . St. Louis and world music groups, by adding so-called synergy to samba to transform traditional meetings, stimulate thinking and creativity. In June 1996, when Disney sold goods and services, new places of attraction opened; For example, Silicon Graphics has opened the Visionar-eum Real Estate Center at the company’s headquarters in Mountain View, California. “California” ; To bring customers and engineers together in an environment where they can visually interact with 3D products in real time, customers can see, hear, touch, move, walk and even fly above the endless possibilities of the product.
Management and CEO (Edward) McCracken): “It’s the best in experimental computing, where our customers can see what their product will look like before it’s even produced.”

What you pay matters to you!
However ; It is worth noting that while all of these companies have gone through multiple trials, most still charge fees for goods and services, and companies usually move from one economic stage to another. IBM’s slogan in the 1960s and 1970s was “IBM as a Service” and then the computer maker provided the service for free, unlike any company that buys hardware, IBM plans to provide the facilities, code, and partnership to provide other companies with equipment, repair their own mechanisms, and offer Services Overcome competitors. but in the end; IBM had to make customers pay for services it provided for free earlier because the Department of Justice asked it to require the company to separate its hardware and software products, even though IBM couldn’t meet that demand. * Commercial – Commercial Marketers: Refers to business exchanges between companies at the commercial level rather than between individuals, where wholesalers deal with retailers.

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