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Creating Experiences Is Where We Are Headed

I am re-reading a book I found on my bookshelf during a recent clean out called The Experience Economy by B. Joseph Pine and James H. Gilmore  Though it was published in 1997 and much has changed since it’s writing, I believe the central thesis is incredibly valid in today’s market.

We are moving from a service-based economy to an experience-based economy.

This post isn’t a book review, so I’m not going to re-count all the nuggets of wisdom. You are smart people and can get the book yourselves. :-)

But, I have to say that this book has me thinking – a lot. (I know I know – dangerous right?!)

To give you an idea of what I mean by an experience-based economy, just think about everyone’s favorite coffee shop, Starbucks. Up until it’s arrival on the scene, coffee was mostly an afterthought and cost somewhere in the neighborhood of fifty cents a cup.

Ah – but Starbucks decided to sell coffee a whole different way – and charge an unheard of price for the end product.  And it worked record-breakingly well.

Why? Because they don’t sell coffee. They sell the entire Starbucks experience. And we willingly que up and part with our hard earned dollar so that a barista can prepare our decaf-no-whip-skinny latte while we listen to uber-hip music and say hey to all our friends.

They sell the experience of feeling COOL. And every second of our time inside a Starbucks is orchestrated to enhance that experience. Next time you pop in for your favorite caffeinated beverage, pay attention to every detail and you’ll see what I mean.

(Another company who intentionally designs their customer experience is Zappo’s. GREAT case study to pay attention to.)

So how does all this apply to me – the humble blogger/escape artist/business coach?

I’m still working all that out but I can tell you what I am chewing on long and hard: What kind of experience am I designing for my tribe? My clients? My “guests”?

See I know we all crave great experiences – even online. It’s why we love bloggers like Chris Guillebeau, and tweeters like @SummerTomato. After spending just a few minutes of virtual time with them, we know we’ve been transported somewhere else and witnessed something pretty cool.

The success of recent “flash” launches lasting just 24 hours I believe rests largely on the story we watch unfold before our eyes. There is drama, suspense, urgency, humor, crowd-participation, climax and resolution – all rolled into the sale of a product.

Who wouldn’t want to pay attention to that?!

So I’m still working it all out in my head, but here’s the one thing I know for sure: From the get-go I have to be clear and intentional about the experience I am designing for you. Not in a fake, manipulative kind of way, but in a “how can I make it amazing for you?” kind of way.

Stay tuned for more on all that.

What do you think about this whole idea of experience? Because without you, I am writing a play for an empty theatre. :-)

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This entry was posted on Tuesday, June 15th, 2010 at 11:11 am and is filed under Uncommon Business. You can follow any responses to this entry through the RSS 2.0 feed.You can leave a response, or trackback from your own site.

  • http://twitter.com/martijnsjoorda martijnsjoorda

    As a manager at Starbucks once said: it’s not the office, it’s not home. It’s this third place we create for people. And that’s why they come. (tx, @tom_peters)

  • Nazima Ali

    Sarah,

    I read this book last year but thanks for the reminder. You just helped me add to/refine my business plan!

    Thank you

  • http://www.accessabundance.com/ Teresa Romain

    Hi Sarah!

    As if you haven’t stirred my pot enough lately in terms of my biz and biz plan, now you’ve added THIS! :-) Seriously, though, it’s a great question and one that I’ve thought of and given lip service to but haven’t really gotten solid on… again, no foundation.

    That being said, I think you already do and are creating an experience for your tribe… and that’s what has drawn people to you. So instead of asking what kind of experience do you want to create here… maybe you simply need to look at what kind of experience you’ve already created that has attracted people to you… and then just be more intentional at that. Just a thought…

    Thanks for sharing your process with me/us…

  • http://twitter.com/martijnsjoorda martijnsjoorda

    As a manager at Starbucks once said: it's not the office, it's not home. It's this third place we create for people. And that's why they come. (tx, @tom_peters)

  • Nazima Ali

    Sarah,

    I read this book last year but thanks for the reminder. You just helped me add to/refine my business plan!

    Thank you

  • http://www.accessabundance.com/ Teresa Romain

    Hi Sarah!

    As if you haven't stirred my pot enough lately in terms of my biz and biz plan, now you've added THIS! :-) Seriously, though, it's a great question and one that I've thought of and given lip service to but haven't really gotten solid on… again, no foundation.

    That being said, I think you already do and are creating an experience for your tribe… and that's what has drawn people to you. So instead of asking what kind of experience do you want to create here… maybe you simply need to look at what kind of experience you've already created that has attracted people to you… and then just be more intentional at that. Just a thought…

    Thanks for sharing your process with me/us…

  • http://twitter.com/IAC_Heather Heather

    As a true Starbucks fan I totally understand what you’re saying here. When I go to my local Starbucks, all the employees know me and my drink. I will go out of my way to make it to my neighborhood Starbucks just for the very reason of how good going there makes me feel.

    This is wonderful reminder for all businesses. Consumers will pay more for something intangible – like a good experience. And it’s the people that makes this happen not the product.

  • http://twitter.com/IAC_Heather Heather

    As a true Starbucks fan I totally understand what you're saying here. When I go to my local Starbucks, all the employees know me and my drink. I will go out of my way to make it to my neighborhood Starbucks just for the very reason of how good going there makes me feel.

    This is wonderful reminder for all businesses. Consumers will pay more for something intangible – like a good experience. And it's the people that makes this happen not the product.

  • Jen Louden

    I loved this book and have obsessed about it for years. But more in terms of creating live experiences for people… love the idea of taking it to the experience others have with my work. Juicy! Really heel digging good. :)

  • http://twitter.com/Sally_G Sally_G

    I completely embrace the necessity of experience. In all aspects of my life, I try to leave those whose paths I’ve crossed feeling better for the ‘experience’. With thought, I’d say Heart Lift is the experience I aim for. Whether I make you laugh, or help you feel seen, appreciated or understood in the moment(s) we were together … I’ve left you feeling something.

    It’s no accident that we learn best through experience. Words alone are sometimes just not enough.

    As a tribe member here – I’d say I often experience the fullness of Possibility. That all imaginings are possible, and that some simply need to be broken down and faced one at a time. So, thank you for that. It’s mighty empowering …

  • http://velveteenmind.com/ Megan {Velveteen Mind}

    I invest a good deal of time standing in the shoes of my audience. I have yet to be satisfied with the fit. And so I keep working on it.

    Paying attention or, hell, even acknowledging the notion of the “experience” is an integral part of our foundation as [fill in the blank-- I'll take "humble blogger" too]. When consulting for new clients, I urge them to think like their audience first and foremost. You can scream “I write for me!” all you like, but I believe we owe our audience more than that.

  • http://www.lisarobbinyoung.com Lisa Robbin Young

    We pay more for experiences because they are unique. It’s why live theater tickets are more than a movie ticket. It’s a supply and demand driven thing. BUT – people won’t pay if the experience sucks. Creating an experience – as any direct seller can tell you – is what happens when you bring the sales STORY to life. Stories sell and vivified stories are experiences – selling in FULL force.

    Great post Sarah!

  • Jen Louden

    I loved this book and have obsessed about it for years. But more in terms of creating live experiences for people… love the idea of taking it to the experience others have with my work. Juicy! Really heel digging good. :)

  • http://twitter.com/Sally_G Sally_G

    I completely embrace the necessity of experience. In all aspects of my life, I try to leave those whose paths I've crossed feeling better for the 'experience'. With thought, I'd say Heart Lift is the experience I aim for. Whether I make you laugh, or help you feel seen, appreciated or understood in the moment(s) we were together … I've left you feeling something.

    It's no accident that we learn best through experience. Words alone are sometimes just not enough.

    As a tribe member here – I'd say I often experience the fullness of Possibility. That all imaginings are possible, and that some simply need to be broken down and faced one at a time. So, thank you for that. It's mighty empowering …

  • http://velveteenmind.com/ Megan {Velveteen Mind}

    I invest a good deal of time standing in the shoes of my audience. I have yet to be satisfied with the fit. And so I keep working on it.

    Paying attention or, hell, even acknowledging the notion of the “experience” is an integral part of our foundation as [fill in the blank-- I'll take "humble blogger" too]. When consulting for new clients, I urge them to think like their audience first and foremost. You can scream “I write for me!” all you like, but I believe we owe our audience more than that.

  • http://www.lisarobbinyoung.com Lisa Robbin Young

    We pay more for experiences because they are unique. It's why live theater tickets are more than a movie ticket. It's a supply and demand driven thing. BUT – people won't pay if the experience sucks. Creating an experience – as any direct seller can tell you – is what happens when you bring the sales STORY to life. Stories sell and vivified stories are experiences – selling in FULL force.

    Great post Sarah!

  • Anonymous

    Definitely! All about the experience. One of the things I’ve been saying to myself lately…especially when I’m dealing with something hard is…how can I be amazing today? And by that I mean…what do I do to feel that I am amazing? OK- that was a segue. Sorry! But every step towards amazing is felt and appreciated. Thank you.

  • meganmatthieson

    Definitely! All about the experience. One of the things I've been saying to myself lately…especially when I'm dealing with something hard is…how can I be amazing today? And by that I mean…what do I do to feel that I am amazing? OK- that was a segue. Sorry! But every step towards amazing is felt and appreciated. Thank you.