Business is a Stage, You are in the Experience Economy

The most successful companies today stage their business process, its like going through a theatrical play. A rich experience is obviously the heart of any good entertainment, yet we don't often think about this in business. Cirque du Soleil, Disney and Starbucks are all creating memorable experiences in the visitor's mind.

What is value?

Is it money?

Nope, money doesn't have any intrinsic value. Think of a cup of coffee, making a cup at home is very inexpensive. At your regular coffee shop it's a bit more expensive, at Starbucks: people are ready to pay up to 5$ for it. Why is that?

I recently listened to an Al Ries report, where he mentions that they have done a coffee test between McDonald's coffee and Starbucks coffee. People liked McDonald's coffee more, not knowing that it was from McDonald's. Who do you think sell the most coffee? Starbucks own this position, this association in peoples' heads. We want the experience of coffee not the experience of coffee from a hamburger place.

What is Memorable?

The subjective experience of happiness, pleasure, fear or pain can be very vivid and memorable. Emotion engage us, we want more of it, emotions are to say the least very addictive. While emotions are very intangible, to the subjective, it's very real, maybe even more real than the tangible. I once heard someone say that he watched film because he thought it was more authentic than social life. The actors really embrace their characters.

So experience connected with impact, emotion, can become strong memory. These kinds of experiences have very high value, we are ready to pay high prices for cherished memories. It's up to the creator to think about how this experience should be accomplished. The visual, sounds, the touch, the tastes, the fragrance, the atmosphere, the mood, the tempo, the temperature, the motivation behind product/service, the time, and the feel, all these and more should be thought about. The richer the experience, the more memorable it will be. Yet it must be synchronized, it can't be a bunch of stuff put together because you have to fill the list. The list of things should match what experience your customer/user is after/looking for.

Exclusivity

Scarcity is a powerful experience, owning something that nobody else owns, like a Van Gough, can really increase value and experience. We really like to be owners of the special and unique. People wanting to buy the experience of unique seems odd, but nevertheless a fact. If you can produce an experience that is different from what others are doing, then what you have is exclusive, I must come to you for that experience. You own it.