Progression of Economic Value

 

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Economies are constantly evolving. Historically, economists have lumped experiences with services. Recently experiences have become classified as a distinct economic offering. Because of this, companies have shifted their focus to provide a Customer Experience (CX) worth paying more for.

In a 1998 issue of Harvard Business Review, B. Joseph Pine and James H. Gilmore published “Welcome to the Experience Economy.” In this insightful article, they outlined the evolution of the Experience Economy, detailing its impact on the progression of economic value. While written over 20 years ago when this newfound form of economy was only just emerging, it is still relevant today.


The article outlines the economic progression of the birthday party over the years, something SocialSurvey’s CEO, Scott Harris, has personally experienced. 

COMMODITIES: When Scott’s father was a child, his mother would take flour, butter, eggs and sugar and make a cake. The finished product probably cost a couple of dimes.

GOODS: When Scott was a child, his mother would run to the store and buy Betty Crocker’s box mix. She paid $1.50 for the easy instructions and to save time. 

SERVICES: When Scott’s first-born was young, he would run into the local grocery store bakery the day before her birthday and point to one of the Disney Princess cakes. They would personalize the cake with “Happy Birthday Becca” for free. It seemed like a bargain at $15.

EXPERIENCES: Today, for Scott’s younger children, he will break the bank ($300-$600) for a birthday party, and they throw in the cake.

Simply put, consumers today, such as Scott, crave experiences and will pay more for them. 

Pine and Gilmore called it years ago when they stated,

From now on, leading-edge companies—whether they sell to consumers or businesses—will find that the next competitive battleground lies in staging experiences.

You’re probably already creating memorable experiences for your customers. By implementing a CX 2.0 strategy, you can use technology to automatically broadcast feedback to help attract new customers and improve the customer experience. 

Is your company ready for the CX 2.0 battle? 

To learn how to put your data in motion to create real-time improvement and power your brand, download the free CX 2.0 The Evolution of Customer Experience Management eBook today.