Refresh Panel And The Experience Economy

Today in our Refresh World panel one of the audience members asked us “What is the worst experience you have had”? This was actually a great question because while most people know when they have had a good experience they have difficulty explaining why. Bad experiences on the other hand are easily defined. We all gave what I thought were really good answers touching on everything from dealing with airlines to dealing with telephone IVRs. So with all the advances in technology and knowledge why is this still the case? It’s because most companies still don’t think in terms of experience. Most are mired in metrics that don’t really mean anything for their customers, because ultimately these metrics ask the customer to wrap themselves around the needs, timetables and policies of the company instead of the other way around.

If you haven’t read The Experience Economy by Joseph Pine and James Gilmore I highly recommend it because it helps reinforce a couple of key points 1) As our economy continues to mature consumers will be drawn to companies that have mastered the subtle art of consumer experience, those who create emotion in their experience drawing the consumer in and keeping them there. 2) Even though consumers are maturing, they are still human. Nearly every purchase or decision they make is an emotional one. Increasingly they will care less about the tangibles of the deal (color, specs, the product) than the intangibles – the motives and desire for purchasing the services in the first place and the extent to which you have actually met those needs. The real trick here is realizing that consumers don’t want good service. In fact some research shows that 80+ percent of customers who switch suppliers express satisfaction with their previous supplier.

Consumers want “experiences” that can transform their behavior, their health, even their lives.” From end-to-end, from sale throughout the customer lifecycle – experiences should matter. Experience is why a 49¢ cup of coffee, with a Starbucks Logo on it can for sold for $4.00. It is why families dream of (and pay dearly for) their Disney vacations. Starbucks and Disney like the iPod, iMac, and Las Vegas are well crafted experiences. When an experience is great the actions and interactions stay with you for a long time, you are drawn into the experience such that you feel emotionally involved.