Consumers are no longer just buying products or services, they are looking for unforgettable moments. The experience economy is a response to these new expectations. Experiences are becoming commodities and companies have to be creative in staging them in order to remain relevant.
Fundamentals of the experience economy
The term “experience economy” was established in 1998 by Joseph Pine II and James H. Gilmore in an article in the Harvard Business Review. They described a change in the economy in which experiences appear as independent economic offerings, after goods, services and before the transformation economy.
The central point is the distinction between four dimensions of experience: entertainment, education, escapism and aesthetics. These arise from two axes, active or passive participation and the absorbing or immersive involvement of the customer, as FourWeekMBA explains. An experience arises when companies consciously create an environment in which customers feel emotionally involved and participate actively or observantly.
How experiences are designed
In order for experiences to have their full effect, they must be designed according to certain rules. Pine and Gilmore identify five design principles: developing a clear theme, using positive cues, removing distracting elements, incorporating keepsakes, and appealing to all five senses.
These principles can be found in many successful concepts. The Apple Store is designed to look less like a traditional store and more like a high-quality lounge. Customers should feel good, discover, learn and remember. Another example is the “Business Experience World” in Styria, where production companies open their doors to visitors and offer exciting, sensory-experienced tours. The project creates a connection between industrial value creation and personal experience and is constantly being developed further.
Beyond the experience
Pine and Gilmore assume that experiences do not represent the highest level of economic activity. Rather, what follows is the transformation economy, in which customers pay for lasting change. This phase is no longer about just feeling something, but becoming someone else. Examples range from fitness programs to caoching services – anything that specifically changes consumers’ identities or behavior.
This development presents opportunities, but also risks. Because while some companies make authentically transformative offers, others remain stuck in pure experience staging – superficial and interchangeable. Consumers, some observers criticize, could be reduced to players in a self-expression game that is more about photos for social media than real self-development.
Editorial team finanzen.net
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