Everything!

There was a great book written several years ago titled “The Experience Economy”, by B. Joseph Pine. The author describes the changes in consumer behaviors throughout the years, from the industrial age, where our purchases were need-based. As America evolved, we became a service based consumer society. Now, the evolution has moved towards an experience based purchase… just look at the evolution of shopping malls and casinos as a quick example.

Sometime during the last 30 years, the service economy emerged as the dominant engine of economic activity. At first, critics who were uncomfortable with the intangible nature of services bemoaned the decline of the goods-based economy, which, thanks to many factors, had increasingly become commoditized. Successful companies, such as Nordstrom, Starbucks, Saturn, and IBM, discovered that the best way to differentiate one product from another–clothes, food, cars, computers–was to add service.

But, according to Joseph Pine and James Gilmore, the bar of economic offerings is being raised again. In The Experience Economy, the authors argue that the service economy is about to be superseded with something that critics will find even more ephemeral (and controversial) than services ever were: experiences. In part because of technology and the increasing expectations of consumers, services today are starting to look like commodities. The authors write that “Those businesses that relegate themselves to the diminishing world of goods and services will be rendered irrelevant. To avoid this fate, you must learn to stage a rich, compelling experience.”

I am personally a big believer in this theory – and I am also a big fan of the evolution from a competitive point of view, because experiences are much more difficult to copy than simply goods or service. Putting this into actuality – elements for women is more than an upscale fitness brand with great health clubs… this goes without saying. elements was designed as a total lifestyle experience for our consumers… an acclaimed online magazine, interactive media channels, All Star Fitness Experts, and popular consumer products geared to wellness and weight loss – the synergy (along with the proper staff training, of course) leads to a winning consumer experience – and is the reason elements is emerging as the category leader in womens fitness.

Many will find the idea of staging experiences as a requirement for business survival far-fetched. However, the authors make a compelling case, and consider successful companies that are already packaging their offerings as experiences, from Disney to AOL. Far-reaching and thought-provoking, The Experience Economy is for marketing professionals and anyone looking to gain a fresh perspective on what business landscape might look like in the years to come.