Easm masterstudent seminar 2012 experience economy

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


! Development of experience arenas – physical or virtual


! Crea0ng tools to keep and share memories of experiences.


The Experience compass


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”


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?


The anatomi of the experience

Before the experience

During the Experience

Aqer the Experience

Before -‐ expecta0ons



The experience


Aqer the experience


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


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


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.


Easm masterstudent seminar 2012 experience economy

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