Experience Economy

Good and services are not enough. Lately, my reading book list is heavy on the business & economics and children’s books. I think the last fiction book I read was the Good Omen by Terry Pratchet and Neil Gaiman about 6 months ago. Working at my current job has rekindled my love of business especially since this company is growing fast and I believe in what they are doing. It’s quite an exciting time for everyone. I work at 4Cats Arts Studios. My job is a what cotton candy dreams are made of. I am paid to be creative.
At work it’s “Full speed ahead, as fast as you can – try, learn, and try again.”

I’m soaking up business books because I want to understand what makes this company better and better. A couple of months ago I read a book called Experience Economy. Good and Services are not enough (Havard Business School Press (Pine and Gilmore).  It’s an old book but I find their examples still very relevant for today. Companies stage an experience when they engage a customer in a memorable way. 4Cats is a great example of providing amazing memorable birthday experiences and classes.

“Experiences occurs whenever a company intentionally uses services as the stage and goods as props to engage an individual.  While commodities are fungible, goods tangible and services intangible, experiences are memorable.” 12

Manufactures must EXPERIENTIALIZE their goods. “One great example is consider a simple baseball. The Rawlings Sporting Goods Company of St. Louis, Missouri, exclusive baseball manufactures to the Major Leagues, introduced a ball that  makes play-catching more engaging. This ‘radar ball” has a microchip in it that digitally displays how fast the ball has been thrown after each toss. Retailing for more than $30, consumers pay much more for radar balls than regular baseballs, which generally go for less than five dollars each. Information about the ball’s physical speed has long been available via radar guns, but those cost around $1000 and few little leagues own one. The radar ball makes it affordable to know a kid’s throwing velocity. But the real value lies in the new social interaction generated between two people playing catch. Rawlings used simple information technology to make playing catch a richer experience. The thrower must rely on the catcher-the other person sharing the same experience-not some third party on the sidelines with a radar gun, to know his speed. Thanks to Rawlings, right now somewhere in the backyard, some child is asking, “Hey, Dad, how fast was that one?” 17