Joseph Pine’s career as a business coach began at IBM when he did something truly unorthodox: he brought business partners and customers into the development process of a new computer. Taking from this the lesson that every customer is unique, he wrote a book called Mass Customization on businesses that serve customers’ unique needs. Later he discovered what he would coin the “Experience Economy” — consumers buying experiences rather than goods or commodities — and wrote a book of the same name.
Progression of economic value : commodities (extract) – goods (make) – services (deliver) – experiences (staging) – tranformation (guide)
- doing things on demand
- getting customers to pay before and pay suppliers after
- concept of modularity
Customised experiences – life transforming experiences – guide your customers to change.
Achieve customers aspirations. Means to and end. Think about what end
From __________ to ______________. How to stage experiences to get from a to b.
Align what you charge for with what customers value. You are what you charge for.
Demonstrated outcomes – how will you help customer achieve outcome.
Transformation guarantee (refer to 193 of the Experience Economy book) – 25% totally at clients discretion.
Guide – key to transformation.
Before go into transformation – must do triage process.
Triage – Diagnosis – Do – Follow through.
Client must go through process themselves then they take ownership of the work.
The internet to creating commodities.
Change is hard – status quo is easy.
Disruptive innovation – starts in low cost and moves beyond.
Need to go beyond current services
Key measure of mass customisation – customer sacrifice.
Customer sacrifice is the gap between what is the ideal offering and what you can provide.
Customer centric :-
Experience, sacrifice, transformation.
Website – Strategic Horizons