Presentation on Experience Economy delivered at the 2012 EASM Masterstudent Seminar

1. SAMMEN
GØR
VI
DIG
BEDRE
1
Increasing
venue
revenue
and
costumer
experience
through
the
use
of
service
management
and
transforma5on
economy
Experience
economy

2. Experience
economy
I
a
0me
of
increasing
global
compe00on
in
the
event
and
sport
industry,
elements
like
innova0on,
crea0vity
and
customer
service
are
becomming
ever
more
important.
Clubs,
venues
and
events
need
to
create
unik
experiences
for
their
customers
in
order
to
differen0ate
their
services
and
products
from
the
compe0tors.
Price
and
technology
is
no
longer
the
decisive
factor
for
succes.
Quality,
emo0ons,
values,
meaning,
iden0ty
and
esthe0cs
are
all
something
that
customers
are
willing
to
pay
extra
for.
Source:
Danmark
i
kultur
og
oplevelsesøkonomien
–
nye
skridt
på
vejen.
Regeringen
2003.

3. jhm@ucn.dk
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From
discoun0ng
to
unique
pricing

4. Experience
economy?
! ”When
a
person
buys
a
service,
he
purchases
a
set
of
intangible
ac7vi7es
carried
out
on
his
behalf.
But
when
he
buys
an
experience,
he
pays
to
spend
7me
enjoying
a
series
of
memorable
events
that
a
company
stages
–
as
in
theatrical
play
–
to
engage
him
in
a
personal
way.”
4

5. 5
Meaningful
experiences?

6. From
commodi0es
to
transforma0ons
6

7. Economy Agrarian Industrial Service Experience
Function Extract Make Deliver Stage
Nature Fungible Tangible Intangible Memorable
Attribute Natural Standardized Customized Personal
Method of
supply
Stored in
bulk
Inventoried Delivered on
demand
Revealed
over time
Seller Trader Manufacturer Provider Stager
Buyer Market User Client Guest
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Experience
economy?

8. A
new
stage
of
economic
offering

9.
Experience
economy
”The
Mother
of
all
slides”

10. What
is
experience
economy?
10

11. Apple
products
! h^p://www.youtube.com/watch?v=csRu6Z9RXwY
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12. Marke5ng
via
experience
economy
Memory
itself
becomes
the
product
–
the
"experience".
Joseph
Pine
II,
James
H.
Gilmore,
The
Experience
Economy,
Work
is
Theatre
&
Every
Business
a
Stage,
Harvard
Business
School
Press,
Boston
Massachuse^s,
1999
12

13. ! Developing
new
products
and
services
based
on
experience
economy
The
use
of
experience
economy

14. ! Development
of
experience
oriented
products
The
use
of
experience
economy

15. ! Development
of
experience
arenas
–
physical
or
virtual
The
use
of
experience
economy

16. ! Crea0ng
tools
to
keep
and
share
memories
of
experiences.
The
use
of
experience
economy

17. The
Experience
compass

18. jhm@ucn.dk
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Intertainment
Ac0vi0es,
that
are
relaxed
and
enjoyable
without
being
to
deep
or
challenging
.
A
professional
actor
or
actors
are
entertaining
a
passive
audience

19.
Educa0on
Educa0on
is
something
that
takes
place
through
our
life
and
at
all
situa0ons.
It
can
be
”learning
by
doing”,
or
the
constant
learning
that
takes
place
as
am
ever
ongoing
proces
between
the
person
and
its
surroundings.

20.
Aesthe0c
Aesthe0c
is
when
we
are
learning
and
experincing
with
our
senses,
and
realising
that
there
are
other
ways
of
learning
than
by
ra0onality
alone

21. Escape
Escapism
is
gelng
away
from
reality
and
everyday
life
–
consciously
or
onconsciously.

22. Designing
and
delivering
experience
”Set
the
stage
by
exploring
the
possibili7es
of
each
realm”
”The
richest
experiences
encompass
aspects
of
all
the
four
realms”
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23. Sct.
Andrews
! "This
is
the
origin
of
the
game.
Golf
in
its
purest
form,
and
it’s
s0ll
played
that
way
on
a
course
seemingly
untouched
by
0me."
Arnold
Palmer
h^p://www.standrews.org.uk/About-­‐Us/
Gallery.aspx

24. Designing
and
delivering
experience
From
a
marketperspec0ve
a
typical
approach
0l
developing
new
services
are
to
conduct
surweys
to
determine
what
the
custumers
want,
or
if
they
are
sa0sfied.
Is
this
always
a
smart
approach
when
it
comes
to
developing
new
great
experiences?
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25. The
anatomi
of
the
experience
Before
the
experience
During
the
Experience
Aqer
the
Experience

26. Before
-­‐
expecta0ons
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27. jhm@ucn.dk
27
The
experience

28. jhm@ucn.dk
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Aqer
the
experience

29. SAMMEN
GØR
VI
DIG
BEDRE
Transforma0on
economy

30.
What
comes
aqer
experiences
?

31. Work
is
Theatre…
! Is
not
a
metaphor
but
a
model!
! In
the
EE
work
is
literally
theatre
! Important
ques0ons
regarding
the
sequence,
progression
and
dura0on
of
events:
-­‐
How
are
the
work
ac0vi0es
arranged?
-­‐
Where
does
the
work
begin,
reach
a
dram0c
climax
and
have
its
dénouement?

32. Work
is
Theatre…

33. Assignment
”Drama0c
Structure”
Give
an
example
of
an
event
or
experience
that
(more
or
less)
can
be
illustrated
by
the
model
”Drama0c
Structure”

34. Work
is
Theatre…
h^p://www.youtube.com/user/PineGilmore?blend=23&ob=5#p/c/CEE696649B302BE8/6/qLBjCqLJnLM

35. h^p://en.jyskebank.tv/012699565731418/joe_pine_part_2_the_transforma0on_economy

36. The
Progression
of
Economic
Value
Revisited
! Experiences
are
not
the
final
economic
offering
! When
you
customize
an
experience
you
turn
it
into
a
transforma0on

37. Transforma0onsøkonomi

38. The
difference
between
experience
and
transforma0on
Experiences
! Staging
! Memory
! Personal
! Revealed
over
0me
! Stager
! Guest
Transforma5ons
! Guiding
! Effect/change
! Individuel
! Maintained
over
0me
! Facilitator
! Aspirant/par0pant

39. h^p://www.nzihf.co.nz/media-­‐resources-­‐1/ar0cles/the-­‐transforma0on-­‐economy.-­‐what-­‐the-­‐fitness-­‐
industry-­‐is-­‐really-­‐about

40. To
guide
successful
transforma0ons
the
authors
highlight
three
crucial
phases
1.
Diagnosing
consumer
aspira0ons/goals
2.
Staging
transforming
experiences
3.
Following
through

41. Diagnosing
aspira0ons/goals
In
order
to
guide
our
clients
from
‘a
to
b’
we
must
establish
what
their
current
situa0on
is
and
what
it
is
they
want
to
achieve.
Oqen
clients
have
trouble
ar0cula0ng
what
their
goals
are,
why
the
goals
are
important
to
them
and
what
the
achievement
of
the
goal
will
mean
to
them.
We
need
to
help
them
with
this.
We
also
need
to
highlight
barriers
that
may
interfere
and
establish
strategies
to
help
deal
with
them.
This
requires
us
to
care
enough
about
our
clients
to
allocate
the
necessary
0me
to
this
phase.
How
much
0me
do
you
currently
spend
‘screening’
clients?

42. Diagnosing
aspira0ons/goals
In
many
gyms
the
0me
allocated
for
this
is
minimal.
Rather
than
developing
an
understanding
of
clients
aspira0ons,
a
standard
‘screening’
oqen
consists
of
clients
comple0ng
a
0ck
box
form
so
they
can
be
deemed
‘safe’
to
start
exercise.
The
client
is
then
rushed
through
a
regime
of
fitness
tests,
before
being
delivered
a
generic
exercise
programme.
Consequently
many
instructors
or
gyms
don’t
understand
why
many
of
their
clients
are
there
and
what
help
they
need
to
achieve
their
aspira0ons.

43. Staging
transforming
experiences
In
fitness
this
relates
to
the
exercise
planning,
programming
and
sessions
that
we
deliver
to
our
clients.
It
is
the
detail
of
what
they
need
to
do
to
get
from
‘a
to
b’.
To
guide
the
client
we
need
to
design
programs
that
will
achieve
each
individual
client’s
aspira0ons,
help
them
plan
exercise
into
their
weekly
rou0ne
and
monitor
their
progress.
And
we
need
to
deliver
training
sessions
or
‘experiences’
that
clients
want
to
repeat,
rather
than
avoid.

44. Following
through
Why
do
so
many
people
not
renew
their
gym
membership
when
it
expires,
or
stop
using
a
trainer
aqer
a
block
of
sessions?
More
than
likely
they
didn’t
achieve
their
goal(s)
or
feel
that
they
were
on
the
right
path
to
achieving
them.

45. ! Following
through
requires
us
to
regularly
measure
our
clients
progress
against
their
goals
and
their
adherence
to
their
exercise
plan.
Follow
up
also
requires
us
to
make
altera0ons
when
required
to
help
address
obstacles
and
ensure
constant
progress.
It
requires
us
to
no0ce
when
our
client’s
a^endance
isn’t
regular
and
their
progress
isn’t
as
expected
and
have
strategies
to
address
this
immediately.
Is
follow
through
a
standard
prac0ce
in
your
business,
or
does
it
consist
of
phone
calls
a
month
before
the
clients
membership
is
due
to
expire?
Following
through

46. Stages
of
socializa0on
! Orienta0on
to
the
club
as
an
individual
transi0on
from
”newcomer”
to
”member”
Club
entry
Time
with
the
Organiza0on
An0cipatory
Socializa0on
Encounter
Socializa0on
Role
Management
Managing
People
in
sport
organisa0ons
Taylor,
Doherty
and
McGraw
(2008)
p.
87
The
stages
of
organiza0onal
socializa0on
(Feldman,
1976)

49. Maslow´s
hiearachy
of
human
needs

50. Mo0va0on
for
a^endance

51. Business
impera0ves
and
consumer
sensibili0es

53. You
are
what
you
charge
for

54. SAMMEN
GØR
VI
DIG
BEDRE
Customer
Experience
Management

55. Customer
Experience
Management
55
Service
Management
• Common
language
for
servicemanagement
• The
”moment
of
truht”
•
Service
as
something
intangible
• Customer
as
part
of
the
service
deliverance
system
Total
Quality
Management
• ”Do
it
right
the
first
0me
philosofy
• Reduce
unnecessary
cost
for
quality
and
service
• Quality
management
systems
–
preven0ng
problems
• Costumer
sa0sfac0on
through
”do
it
right
the
first
0me”
Customer
Rela5onship
Management
• Technology
driven
• Genera0ng
knowledge
about
the
costumers,
their
needs,
desires
and
buying
history
• CRM
systems
to
control
sales
and
rela0ons
• Increasing
customer
sa0sfac0on
through
adap0on
to
the
specific
desires
of
the
customer.
• Focus
on
the
life0me
value
of
the
customer
Customer
Experience
Management
• Focus
on
the
customers
experiences
with
the
company
• Measuring
the
costumers
experience
with
the
company
in
real
0me
• Technology
plays
a
major
role
• Increased
focus
on
the
importance
of
the
emo0onelle
experiences
for
the
overall
sa0sfac0on
of
the
customer.
• Working
with
”Touch
points”
and
the
customers
path
through
the
company/event

56. New
tools
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Service
Management
Total
Quality
Management
Costumer
Rela0onship
Management

57. Li^erature
! Pine
&
Gilmore;
The
Experience
Economy,
Haward
Business
Review
Press,
1998
! Wagen,
Lynn.
V.D,
Event
Management,
Pearson
2007
! Taylor,
Doherty,
McGraw,
Managing
People
in
Sport
Organiza0ons,
Elsevier,
2008
! Bechmann,
Søren,
”Servicedesign”
Academica,
2010
! Parry
&
Shone,
”Succesfull
Event
Management”,
Cengage
Learning,
2010
! Hagelquist,
Me^e,
! Mermiri,
Tina,
”The
transforma0on
Economy”,
Found
at
www.artsandbusiness.org.uk
! Mermiri,
Tina,
”Beyond
experionce:
Culture
consumer
&
Brand”,
www.artsandbusiness.org.uk.
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