SAMMEN  GØR  VI  DIG  BEDRE  

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Increasing  venue  revenue  and  costumer  experience  through  the  use  of  service  management  and  transforma5on  economy  

Experience  economy      

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.    

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From  discoun0ng  to  unique  pricing    

 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.”  

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 Meaningful  experiences?  

From  commodi0es  to  transforma0ons  

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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

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 Experience  economy?  

A  new  stage  of  economic  offering  

 Experience  economy  ”The  Mother  of  all  slides”  

What  is  experience  economy?  

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Apple  products    

 ! h^p://www.youtube.com/watch?v=csRu6Z9RXwY  

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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  

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! Developing  new  products  and  services  based  on  experience  economy  

   

 

The  use  of  experience  economy  

! Development  of  experience  oriented  products  

The  use  of  experience  economy  

! Development  of    experience  arenas    –  physical  or  virtual  

The  use  of  experience  economy  

! Crea0ng  tools  to  keep  and  share  memories  of  experiences.    

The  use  of  experience  economy  

The  Experience  compass  

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 Intertainment  

Ac0vi0es,  that  are  relaxed  and  enjoyable  without  being  to  deep  or  challenging  .  A  professional  actor  or  actors  are  entertaining  a  passive  audience  

 

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.    

 

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  

Escape  Escapism  is  gelng  away  from  reality  and  everyday  life  –  consciously  or  onconsciously.    

Designing  and  delivering  experience  

   ”Set  the  stage  by  exploring      the  possibili7es  of  each  realm”  

 ”The  richest  experiences  encompass  aspects  of  all  

the  four  realms”  

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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    

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?    

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The  anatomi  of  the  experience  

Before  the  experience  

During  the  Experience  

Aqer  the  Experience  

Before  -­‐  expecta0ons  

   

 

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The  experience    

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Aqer  the  experience  

SAMMEN  GØR  VI  DIG  BEDRE  

Transforma0on  economy  

   

What  comes  aqer  experiences  ?  

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?      

Work  is  Theatre…  

Assignment  ”Drama0c  Structure”  

 Give  an  example  of  an  event  or  experience  that  (more  or  less)  can  be  illustrated  by  the  model  ”Drama0c  Structure”  

Work  is  Theatre…  h^p://www.youtube.com/user/PineGilmore?blend=23&ob=5#p/c/CEE696649B302BE8/6/qLBjCqLJnLM    

h^p://en.jyskebank.tv/012699565731418/joe_pine_part_2_the_transforma0on_economy    

The  Progression  of  Economic  Value  Revisited  

! Experiences  are  not  the  final  economic  offering  

 ! When  you  customize  an  experience  you  turn  it  into  a  transforma0on  

Transforma0onsøkonomi  

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  

h^p://www.nzihf.co.nz/media-­‐resources-­‐1/ar0cles/the-­‐transforma0on-­‐economy.-­‐what-­‐the-­‐fitness-­‐industry-­‐is-­‐really-­‐about    

To  guide  successful  transforma0ons  the  authors  highlight  three  crucial  phases  

 1.                                  Diagnosing  consumer  aspira0ons/goals  2.                                  Staging  transforming  experiences  3.                                  Following  through    

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?  

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.  

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.  

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.  

! 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  

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)    

Maslow´s  hiearachy  of  human  needs  

Mo0va0on  for  a^endance  

Business  impera0ves  and  consumer  sensibili0es  

 You  are  what  you  charge  for  

SAMMEN  GØR  VI  DIG  BEDRE  

Customer  Experience  Management  

Customer  Experience  Management  

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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  

New  tools    

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Service  Management  

Total  Quality  Management  

Costumer  Rela0onship    Management      

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.  

 

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