Easm masterstudent seminar 2012 experience economy


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Presentation on Experience Economy delivered at the 2012 EASM Masterstudent Seminar

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Easm masterstudent seminar 2012 experience economy

  1. 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. 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. 3. jhm@ucn.dk   3   From  discoun0ng  to  unique  pricing    
  4. 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. 5    Meaningful  experiences?  
  6. 6. From  commodi0es  to  transforma0ons   6  
  7. 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 jhm@ucn.dk   7    Experience  economy?  
  8. 8. A  new  stage  of  economic  offering  
  9. 9.   Experience  economy  ”The  Mother  of  all  slides”  
  10. 10. What  is  experience  economy?   10  
  11. 11. Apple  products       ! h^p://www.youtube.com/watch?v=csRu6Z9RXwY   jhm@ucn.dk   11  
  12. 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. 13. ! Developing  new  products  and  services  based  on   experience  economy         The  use  of  experience  economy  
  14. 14. ! Development  of  experience  oriented  products   The  use  of  experience  economy  
  15. 15. ! Development  of     experience  arenas     –  physical  or  virtual   The  use  of  experience  economy  
  16. 16. ! Crea0ng  tools  to  keep  and  share  memories  of   experiences.     The  use  of  experience  economy  
  17. 17. The  Experience  compass  
  18. 18. jhm@ucn.dk   18     Intertainment   Ac0vi0es,  that  are  relaxed  and  enjoyable  without  being  to  deep  or   challenging  .  A  professional  actor  or  actors  are  entertaining  a  passive   audience  
  19. 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. 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. 21. Escape   Escapism  is  gelng  away  from  reality  and  everyday  life  –  consciously  or   onconsciously.    
  22. 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”   jhm@ucn.dk   22  
  23. 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. 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?     jhm@ucn.dk   24  
  25. 25. The  anatomi  of  the  experience   Before  the   experience   During  the   Experience   Aqer  the   Experience  
  26. 26. Before  -­‐  expecta0ons         jhm@ucn.dk   26  
  27. 27. jhm@ucn.dk   27   The  experience    
  28. 28. jhm@ucn.dk   28   Aqer  the  experience  
  29. 29. SAMMEN  GØR  VI  DIG  BEDRE   Transforma0on  economy  
  30. 30.     What  comes  aqer  experiences  ?  
  31. 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. 32. Work  is  Theatre…  
  33. 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. 34. Work  is  Theatre…   h^p://www.youtube.com/user/PineGilmore?blend=23&ob=5#p/c/CEE696649B302BE8/6/qLBjCqLJnLM    
  35. 35. h^p://en.jyskebank.tv/012699565731418/joe_pine_part_2_the_transforma0on_economy    
  36. 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. 37. Transforma0onsøkonomi  
  38. 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. 39. h^p://www.nzihf.co.nz/media-­‐resources-­‐1/ar0cles/the-­‐transforma0on-­‐economy.-­‐what-­‐the-­‐fitness-­‐ industry-­‐is-­‐really-­‐about    
  40. 40. To  guide  successful  transforma0ons  the   authors  highlight  three  crucial  phases     1.                                  Diagnosing  consumer  aspira0ons/goals   2.                                  Staging  transforming  experiences   3.                                  Following  through    
  41. 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. 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. 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. 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. 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. 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)    
  47. 47. Maslow´s  hiearachy  of  human  needs  
  48. 48. Mo0va0on  for  a^endance  
  49. 49. Business  impera0ves  and  consumer   sensibili0es  
  50. 50.  You  are  what  you  charge  for  
  51. 51. SAMMEN  GØR  VI  DIG  BEDRE   Customer  Experience  Management  
  52. 52. 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  
  53. 53. New  tools     jhm@ucn.dk   56   Service   Management   Total  Quality   Management   Costumer   Rela0onship     Management      
  54. 54. 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.   jhm@ucn.dk   57