Your customers buy your products but they pay for experiences. The document discusses that customers are increasingly paying for experiences rather than just products. It recommends that companies focus on designing customer experiences and interactions rather than just products in order to differentiate themselves and increase profits. Experiences are harder for competitors to copy and customers will pay more for good experiences. The document provides examples of how the consulting firm Stimmt has helped clients shift their focus to experiences.

1. Your customers buy your products
but they pay for experiences.
Presentation
Glenn Oberholzer | glenn.oberholzer@stimmt.ch

2. Switzerland exports almost twice as much coffee than cheese
«At Nestlé Nespresso, we pride
ourselves in creating the ultimate
coffee experience, moments of
genuine pleasure, wherever,
whenever, and however you
wish.»
Nespresso has ten-folded its revenue since 2000.
Welcome to the experience economy.
Source: «Kaffee-Land Schweiz», 10vor10, 9. Juni 2009 and www.nespresso.com, accessed June 24, 2009
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3. The experience economy is becoming a reality in many markets.
Are your ready to differentiate on experience?
The Progression of Value
Differentiated
Experience
Competitive Service
Position
Product
Undifferentiated
Commodity
Market Pricing Premium
Are you tired of competing on price?
Try competing on experience.
Adapted from: Pine, J. and Gilmore, J. (1999) The Experience Economy. Harvard Business School Press.
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4. 8 benefits from competing on experience
1 reason to start becoming an experience company: Profitability
Top Line Bottom Line
New segments, new offering Smart cost cutting
Because you can configure your offering Because you know where to save without
and expand it to new experience segments. hurting your customers.
Higher Margins High protection of investment
Because people pay more for experiences Because experience strategies are much
than for products or services. harder to copy than products.
Higher recommendation rate Cheaper Development
Because your customers become Because you can develop what customers
your advocates. really want and need.
Higher customer loyalty Fewer Complaints
Because customers feel listened to and feel Because you fix problems before you
cared for. go live.
More Revenue More Profit Lower Costs
How to get there? Forget about your company for a while and focus
on your stakeholders.
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5. To become an experience company: Put your stakeholders first
Know your stakeholders Configure your offering
Analyze what they expect, what they think, how Break down your silos and reassemble to
they act, what they feel. And how they would enable the desired experiences.
like to feel. Then you know where to go.
Design your interactions Orchestrate your
Design for the user, not for the company.
And prototype, prototype, prototype. touchpoints
Make yourself consistent and integrate
seamlessly into your stakeholders’ lives.
Design for your stakeholders not your company.
They will thank you for it.
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6. Example: In-depth customer know-how enabled our client to
invest where it matters for customers
Stimmt project for a large language school operator based on in-depth interviews
The client thought that their ... Stimmt found it‘s more like
booking process was like waiting for the roller-coaster to
buying a ticket ... drop.
Guessing on experiences Knowing about experiences
«We have very little complaints, and very «This is the first time in my life I’m going
high customer satisfaction. We suspect abroad on my own. I’m excited and
only to finetune.» scared.»
Our client’s focus shifted to what matters most to customers:
reducing anxiety and fear.
Can you afford to base your decision on assumptions?
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7. Example: Our client can redefine its value proposition and
expand the market instead of optimizing pricing
Stimmt project for a large Swiss museum including all day observations, in-depth interviews and surveys
The client thought that they are ... Stimmt found that many
primarily a museum to their visitors are looking for all day
visitors... entertainment.
The 4P approach The experience approach
«How much can a museum ticket cost at «For my family this is the alternative of
max so we don’t shy away my customers» going skiing for a day and you know how
much that costs.»
Our client can tailor the offering and pricing to this new segment.
Are you sure you know what your customers really want from you?
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8. Example: Our client found out how to increase the revenue by
serving unmet user needs
Stimmt project for a large Swiss company based on in-depth interview, innovation workshops and surveys.
The client thought that his ... Stimmt found out that it can
intranet was primarily an drive sales.
information tool...
Unquestioned traditional views New sales opportunities
«At our company, the intranet is primarily «Since the intranet is affecting the top-line,
a cost factor.» it gets much more attention from
management.»
The client can now reposition the intranet to be a sales channel.
Are you sure you are not missing out on untapped business?
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9. Example: The client wanted to become more customer centered
in its online application and it paid off
Stimmt project for a large Swiss bank, concept and prototyping in several iterations with users
The client wanted to make the ... Stimmt helped to save
system usable... money.
Engineered inside-out Designed outside-in
«We were never happy with it but did «We designed for the user. Since the new
many things because the back-end system release, we have 30% fewer support calls.»
demands it this way.»
The client profits long term by building the system for the user.
Can you afford not to take your client as seriously as your IT?
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10. Convinced about the experience economy?
We have been for 11 years.
Interdisciplinary Team A Selection of Our Clients
Lukas Karrer Dr. Gudrun Moeller  Axpo (Energy)
Partner Senior Consultant
Dipl. Ing. ETH Dr. sc. nat.  Coop (Retail)
 Credit Suisse (Banking)
 Direktion für Entwicklungszusammenarbeit (Government)
 Helsana (Insurance)
Stefan Leuthold Michael Svoboda
Partner Senior Consultant  Mettler Toledo (Industry)
dipl. phys. M.Sc.  Migros (Retail)
 Raiffeisen (Banking)
 Swisscom (Telecommunications)
Glenn Oberholzer Johanna Elster  Zürcher Kantonalbank (Banking)
Partner Senior Consultant  Zürich Versicherungen (Insurance)
Dipl. Ing. ETH Dipl.-Medienwiss.
Recent Projects
Lorenz Ritzmann Patrick Keller
Consultant Consultant  Intranet redesign for a leading Swiss bank and a large
M. Sc. Psychology M. Sc. Psychology government agency.
 Concept for the global front-end for agents of an
insurance company.
Marc Blume  Concept and prototype for the ordering process of a
Helmut Kazmaier
Senior Consultant Senior Consultant large telco.
Diplom-Psychologe Dipl. Ing.  Concept for the Future of Online Banking for a large
Swiss bank.
You are looking for concepts to bring you to the next level of
competition? Contact us.
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11. A good customer experience doesn‘t happen by accident.
Stimmt.
We are looking forward supporting you in
delighting your customers.
Glenn Oberholzer| +41 44 562 10 17 | glenn.oberholzer@stimmt.ch
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