Wenjie's introduction to "Experience Economy Era"
Currently, the number of products sold online in Taiwan alone reaches nearly 10 million (please refer to ezprice). If you add in the various products sold through physical channels, the number is several times that number. This also represents one thing. No matter what industry you are in and what kind of products you sell, there will be thousands of competitors doing the same thing as you. According to Porter’s basic competitive strategy:
1. Cost leadership strategy: Find ways to reduce operating costs, production costs, channel costs, marketing costs, etc., and create a niche by selling goods at a lower cost than competitors. _
2. _Differentiation strategy: Create differences from competitors, such as brand image, positioning, design, packaging, etc. _
- Concentration strategy: that is, segmenting the market to lock in a certain market segment and focus on meeting the needs of that segment. _
But in fact, the world is cruel, and others will do what you know, which means that the products, channels and even marketing strategies you sell are similar. In the end, you will fall into price comparison…
What to do?
The answer is to jump away from competition at this stage and move directly towards the economic value model of the next generation. Refer to the figure below:
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](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEilyTQDzrD-BZHRVxOmCcgShg1xN9jewSN31UAR9m1dY-u4YL_7OuILuRSLfhyphenhyphenHhQruy-pJB oPWano8DoBx6-9x8hwmo3J810jBvb09JXGuBBoH_D4H4Cf-btdLsR5Y0JRPN0FA4OjzdHE/s 1600/%E9%AB%94%E9%A9%97%E7%B6%93%E6%BF%9F%E7%A4%BA%E6%84%8F%E5%9C%96.jpg)
We directly quote the case of the birthday party in the book “Experience Economy Era” to let you understand what the above picture is talking about.
Primary products: In the 1960s, when parents celebrated their children’s birthdays, they would buy sugar, eggs, flour, etc. to make homemade cakes at home, which cost about 1-2 cents.
Commodities: In the 1980s, parents would go directly to the store to buy ready-made cake additives, canned frosting and other commodities to make cakes, which cost about US$1-2.
Service: After 2000, parents will go to the store to order cakes, including customized names, patterns, home delivery and other services, which cost about 10-20 US dollars.
Experience: Modern parents will outsource the entire birthday party to a professional party company, hold a party and invite a clown or magician to perform, which costs 100-250 US dollars.
Let me add a note here: the next stage of the experience economy is the transformation economy, which means that “transformation” of goods or services can change your attitude towards life and affect your future life.
You can think back to what stage your current products or services, or even the website you operate, are at? How do you want to move to the next stage?
I believe that most people’s products or services are still in the product and service stage, which is also the reason for your business difficulties. Your best strategy will be to design and plan your products and services directly in the experience mode.
Here are a few examples of the experience economy:
- In Shinjuku Kabukicho, Tokyo, a “holy place” to attract foreign tourists - “Robot Restaurant” was born. Here, female dancers sing and dance, and dinosaurs, chariots and large robots appear. The plot of the performance has no logic, and the operator himself is “unclear”. Hollywood directors and world-class bands also frequently visit.
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](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgrzNyAvREbk7VsghJLyXjs0DdsdgjVoPnMiRwXCxPBoclbqERt1 PXgZkXM_pfBXXlrbm0r4CnQKWp1zjfKUjcyhFZxfaxXzbhexYDNrZyR1hl8KQQR2fx6vSKPtweg3_7yqJWuaL5h_2U/s1600/0516-10-4-M.jpg)
- A hot dog shop located in [Chicago, USA](http://vlog.xuite.net/play/TXdINzVoLTY5OTI4MDQuZmx2/%E 5%B9%B9%E8%AD%99%E5%8D%A1%E9%80%9A%E7%8B%97%E5%A4%A7%E6%88%B0%E8%8A%9D%E5 %8A%A0%E5%93%A5%E5%85%87%E6%82%8D%E5%BA%97%E5%93%A1-%E4%B8%AD%E6%96%87%E5 %AD%97%E5%B9%95-), consumers used to experience being scolded when buying hot dogs. Yes, the product was hot dogs (and they were very expensive), and the experience was being scolded. There is no need to doubt that their business is very good.
The focus of the experience economy is what experience consumers get when they purchase your goods or services? And this experience is so unique that consumers are willing to pay for this experience. Is it possible that in the future you will no longer make profits from selling goods or services, but provide experiences as the source of your profits?
If you run a shopping website or store today, are you sure you can collect membership fees (admission fees, experience fees), and only members can enter and make purchases?
We set up a website to provide products, this is the product stage.
This website provides 24-hour door-to-door delivery, which is the service stage.
The next stage is experience, what do you do?
The UI/UX we are talking about now is about consumer experience. Thinking about the user-centered experience we bring to them? (You can refer to User-centered strategy)
Can you charge an annual membership fee of 1,000 yuan? Assuming there are 10,000 paid members, you will earn 10 million yuan. How can you use this 10 million yuan to create a unique experience?
Under what circumstances will consumers be willing to pay 1,000 yuan to become your member?
(Why can Costco do it, but iBuy, RT-Mart, and Carrefour can’t?)
This is the focus, not how to promote, how to advertise, how to push consumers to enter your website.
Is it possible to do it on Taobao? The customer service staff of each store on Taobao are different. It is possible that each customer service staff is an “idol” with his own fans and creates a unique shopping atmosphere?
Some store customer service are masters of price negotiation, so you can enjoy the fun and sense of accomplishment of back-and-forth negotiation?
The customer service staff of some stores are fashion experts who can design your own dressing style for you?
Some stores are very funny, and you are always amused by them when shopping? Rather than saying that you spent money to buy a product, it is better to say that you spent money to buy an exclusive happy time.
How do you design your experience? Your store and website are a theater, your employees are actors, and your products are your props. How do you plan the script design experience process?
Start using your imagination now.
(The final stage of “transformation” I mentioned in the article, I will give an example of a product experience like Google gless, which will likely change the lives of all users. It is not just an experience, this experience can last and permanently (long-term) change your attitude or behavior. We call it a transformation economy)
Further reading
- Marketing is an organic creation: looking at marketing through antifragility
- How to detonate a pop? Manipulate choice?
- Is your choice really your decision?
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