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Welcome to the experience economy
1Strategic Horizons LLP, Cleveland, OH, USA. pine@gilmore@customization.com
Harvard Business Review
|June 6, 1998
Summary
Companies can gain a competitive edge by staging memorable experiences, moving beyond commoditized services. This involves designing and delivering engaging events that customers value, creating a new frontier in the experience economy.
Area of Science:
- Business Strategy
- Marketing
- Consumer Behavior
Background:
- Economic evolution from agriculture to manufactured goods, then services.
- Services are increasingly commoditized, necessitating new value propositions.
- Leading companies are shifting focus to staging experiences.
Purpose of the Study:
- To identify the next level of economic value beyond commoditized services.
- To provide principles for designing, selling, and delivering valuable experiences.
- To guide companies in competing within the emerging experience economy.
Main Methods:
- Analysis of leading companies in the experience economy.
- Identification of design principles for creating memorable customer experiences.
- Drawing lessons from pioneering experience providers like the Walt Disney Company.
Main Results:
- Experiences are created when companies use services as a stage and goods as props to engage customers memorably.
- Five key design principles enhance the creation of memorable experiences.
- Engaging all five senses is crucial for heightening customer engagement.
Conclusions:
- Companies must learn to design, sell, and deliver experiences to compete effectively.
- The five design principles offer a framework for successful experience staging.
- Mastering the experience economy is essential for future business success.