Insights

The road of retailing: Where your customer experience takes precedence

It is undeniable that the retail industry will forever be changed through the spread of technology and our current economy. Recently, a Forbes article discusses the changes and what lies ahead for the retail industry. The article reminded me of one of my favorite articles “Welcome to the Experience Economy“ by B. Joseph Pine and James Gilmore, from the Harvard Business Review published in 1998. In that article the authors wrote:

“Today the concept of selling experiences is spreading beyond theaters and theme parks.”

“Companies should think about what they would do differently if they charged admission.”

Recall that once there were more than 100 automakers in Eastern Michigan. Now only the Big Three automakers remain. The growth of the industrial economy and the service economy came with proliferation of offerings-goods and services that didn’t exist before imaginative designers and marketers invented and developed them. That’s also how the experience economy will grow: through the “gales of creative destruction,” as Joseph Schumpeter termed it-that is, business innovation, which threatens to render irrelevant those who relegate themselves to the diminishing world of goods and services. As goods and services become commoditized, the customer experiences that companies create will matter most”¦Welcome to the Experience Economy.”

Today of course we are all wondering if the Big Three they refer to will even be One. Do you think they did a good job of creating a great experience for those who bought cars? The “gales of creative destruction” rest in our hands. THE CUSTOMER EXPERIENCE IS EVERYTHING. Are you doing enough to improve your customer’s experience? Is your organization galvanized behind doing this? Measuring the customer experience is just the start. Are you managing it?