1. Lawrence Appell & Associates
Maximizing Your Return on Investment in the Cost of a Prospect
The Experience Economy

2. The Experience Economy
Manufacturing products and providing services are no
longer enough. Experiences are the foundation for
future economic growth.
Successful companies will use products as props and
services as the stage to create experiences that will
engage customers in personal ways.
From the Experience Economy: Joseph Pine & James Gilmore
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3. The Experience Economy
The Progression of Economic Value
Differentiated Relevant to
Stage
Experiences
Deliver
Services
Competitive Needs of
Position Customers
Make
Goods
Extract
Commodities
Undifferentiated Irrelevant to
Market Pricing Premium
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4. The Experience Economy
Example: Price of Coffee Offerings
Differentiated Premium
Starbucks Experiences
Coffee Vendors
Services
Pricing
Roasted /
Ground Coffee Goods
Coffee Beans
Commodities
Undifferentiated Market
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5. The Experience Economy
Example: Price of Birthday Offerings
Differentiated Premium
Get Cake with
Staged Party Experiences
Buy Cake from
Services
Bakery
Pricing
Bake Cake
using Mix Goods
Bake Cake from
Scratch Commodities
Undifferentiated Market
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6. The Experience Economy
Example: Insert Your Idea Here!
Differentiated Premium
Experiences
Services
Pricing
Goods
Commodities
Undifferentiated Market
Commodity Goods Service Experience
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7. The Experience Economy
Staging Customer Surprises
What Customer
Actually Gets
Customer
Surprise
= Minus
What Customer
Expects to Get
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8. The Experience Economy
Staging Customer Surprises
Example 1
I got a free lunch!
I ll never
forget the = Minus
time when...
I expected to pay $7.50
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Westlake Management Company, LLC

9. The Experience Economy
Staging Customer Surprises
Example 2
I sampled sushi & loved it!
I ll never
forget the = Minus
time when...
I thought sushi was raw fish
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10. The Experience Economy
Six Cues to Creating Positive Impressions
1. Time: traditional vs. contemporary vs. futuristic
2. Space: city/country, east/west, indoor/outdoor
3. Technology: hand-made/machine-made, natural/artificial
4. Authenticity: original or imitative
5. Sophistication: refined/unrefined, expensive/cheap, easy/
difficult
6. Scale: large/small
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11. The Experience Economy
Eliminate Negative Cues
1. Signage: information that must compensate for poor design…
(e.g. order here , pick-up here , wait here …)
2. Clutter: stuff that has nothing to do with the experience…
(e.g. newspapers, flyers, solicitations, etc…)
3. Wear & Tear: fixtures, furnishings & equipment that needs
replacement or repair
4. Behavior: Poorly trained staff
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