The Experience Economy

Synopsis

By customizing each part of the customer experience, a product or service increases in value. Using key points from theater and stage, the book teaches readers how to make each step in the customer experience a bit like a mini-performance.

The Experience Economy is the new state of business marketing and readers will learn how to turn their product or service into an experience instead of just another commodity.

Readers will learn the principles used in successful transformations, such as Rawling's, and learn to create their own product transformations. Using the four tenets of theater, the book teaches readers how theatrical principles apply to the business world to create new and different experiences.

Summary

The authors describe their concept as "Companies stage meaningful events to engage customers in a memorable and personal way."

The Experience Economy isn't just about adding value; it's about transformation. The example of how the Rawlings company transformed baseball is a good way for readers to understand this game-changing concept. For a company that is the exclusive baseball manufacturer to the Major Leagues, the thought of improving upon a seemingly perfect product seems like a waste of time. But Rawlings realized that most of its customers aren't Major League players, they are people who enjoy baseball and a good game of catch.

Questions and answers

What are some ways to innovate within the Experience Economy?

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Innovation within the Experience Economy can be achieved by focusing on transformation rather than just adding value. This involves understanding your customer base and tailoring your products or services to enhance their experience. For instance, a company could improve upon a seemingly perfect product by considering the needs and preferences of its broader customer base, not just its top-tier users. This could involve making the product more enjoyable or accessible for casual users. It's also important to continually seek feedback and adapt to changing customer expectations.

How can a company balance the need for product quality and experience?

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A company can balance the need for product quality and experience by understanding their customer base and tailoring their products to meet their needs. In the case of Rawlings, they realized that most of their customers are not Major League players, but people who enjoy baseball and a good game of catch. Therefore, they focused on improving the experience of these customers, while maintaining the quality of their products.

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By rethinking the simple baseball, and the customers who buy it, Rawlings designed a baseball called the "radar ball." Using simple information technology, they created a baseball with a microchip that digitally shows how fast the ball is thrown after each throw. The result is a fun, inexpensive alternative to costly radar guns. But more importantly, Rawlings found a way to increase social interaction, taking a game of catch to a different level and creating a different experience.

Questions and answers

What are the potential implications for the sports equipment industry of the success of the Rawlings radar ball?

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The success of the Rawlings radar ball could have several implications for the sports equipment industry. It could lead to an increase in the use of technology in sports equipment, creating a new market for tech-integrated products. This could also drive innovation and competition among manufacturers to develop similar or better products. Additionally, it could change the way sports are played and experienced, making them more interactive and engaging.

How might the Rawlings radar ball influence the development of other sports equipment?

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The Rawlings radar ball, with its innovative use of technology, could influence the development of other sports equipment by encouraging manufacturers to incorporate similar technology into their products. This could lead to a new generation of sports equipment that not only enhances performance but also increases social interaction and provides a unique user experience.

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Platform theater

The most traditional type of theater, Platform Theater is typically a staged performance with a set script. In the business world, this would work well in presentations and advertising to create a specific experience.

Street theater

Think of mimes and jugglers. The script stays the same, but the audience is constantly changing. This type of theater brings the experience of excitement to product launches, public meetings, and any other venue where the goal is to create some buzz.

Matching theater

Television shows and movies are shot at different times and in different locations and then edited to form a consistent presentation with a common theme. Successful customer experiences require that same consistency from each department and each person they interact with in a company.

Improv theater

Just like an unrehearsed comedy sketch, Improv Theater is all about "winging it" while performing for an interactive audience. Creative meetings, telephone interviews, and other similar situations in business require this quick thinking to keep the customer experience consistent.

In the competitive world of commodities, a good product and good service just don't cut it anymore. Readers of this book will learn how to stand out in a crowded marketplace by focusing on the customer experience and bringing out their inner showmanship.