You’re Late to the Experience Economy

We are living in a new economy. 

Many years ago the economy functioned on the basis of commodities. You bought flour, eggs, potatoes, coal, and other commodities, and you used them every day to provide for yourself.

Then, a shift happened. We moved into the goods-based economy. We went from buying all the individual commodities to buying already assembled goods from stores.

Another shift happened though – we moved to the services-based economy. You can go to a restaurant and buy a completely “done for you” meal instead of making it yourself.

Finally, the shift to today occurred – we moved to the experience based economy.
Companies like Disneyland, escape rooms, Axe-throwing venues, luxury seated movie theaters, Top-Golf, and professional sports leagues have gone from merely providing a service to creating truly immersive, WOW-inspiring experiences.

Everyone else is disappearing.

It’s Happening Everywhere

The retail-pocalypse is not just a result of fast 2-day shipping and easier-than-ever shopping thanks to Amazon. It’s a result of retail stores’ failure to create WOW experiences for their customers.

The Shops at South Town, a mall in Salt Lake City, Utah realized this and is working feverishly to change. Half of the mall was recently completely redesigned to incorporate a massive bowling alley and arcade. There is a virtual reality gaming booth where a shopping stand once was, and more high-quality food options have been added to the “Dining Terrace” (no longer called the “Food Court”). the shops at South Town aren’t the only ones trying to adapt.

All the ordinary malls are disappearing.

The newest stadiums in professional sports are more than just venues for watching a game. They are multi-billion dollar entertainment complexes. The new stadium being constructed in Los Angeles, CA for the Rams and Chargers has some big plans:

“The surrounding development around the stadium will include the new Hollywood Park entertainment complex and master planned neighborhood with over 8.5 million square feet (790,000 m2) for office space and condominiums, it will also include a 6,000-seat performance and theatre venue attached to the stadium, outdoor movie screenballrooms, indoor and outdoor room, an a lake with a water fallfountain, a luxury hotel, high-scale restaurants and an open-air shopping center.” 

All the ordinary stadiums are disappearing. 

More and more, movie theaters are filling their venues with luxury seating, IMAX screens, bigger-than-ever surround sound. Some even have in theatre dining available!

All the ordinary theaters are disappearing.

What’s the common thread? 

The winners in this experience economy are the ones that adapt and build a WOW experience not just around their product/service, but they actually make the WOW experience a service in itself.

Customers now expect to have an immersive and WOW-inspiring experience that they can share with their peers and on social media – not because you asked them to, but because they want to. They share it because it boosts their status. 

The good news is that companies who take advantage of this shift and make a change will come out on top.

The bad news is… the home services industry is behind the curve.

It’s still largely a service-based business (hence the name of the industry). It still revolves around a customer with an issue, who calls in for help, gets service done, pays for it, and the transaction is over. Neither party thinks much of the other after it’s over.

(NOTE: Knowing HOW to make the customer experience come alive is challenging. Make it easier on yourself and download our FREE HVAC Customer Service Checklist so you know what to look for and train for in your customer service team and technicians.)

Occasionally, though, we see a company who is taking steps to create experiences.  

Home Service Experience Makers

A couple months ago I came across a post on LinkedIn from Joe Martin, VP of Marketing and Strategy at CloudApp. 

He shared an experience his local service business provided him:

Screen Shot 2019-06-19 at 11.01.18 AM.png

Joe has nearly 18,000 followers on LinkedIn. That’s some pretty solid free marketing. 

That’s what the new world of service businesses looks like in the experience economy.

Just yesterday, our Founder Brigham Dickinson was able to capture Brian’s Story. Brian is the owner of Payless Water Heaters in Utah.

Here is what Brian experienced in ONE day after starting the transition to the experience economy:

It’s well past the time to think outside the box for service businesses. The very name of the industry begs for an update. In a world where people are begging for experiences, an industry that names itself after services, an economy of the past, has a major opportunity to change.  

It’s time for the trailblazers to stand up and create the Home Services Experience Industry.

As for everyone else? Well… one day, you just might disappear.

(NOTE: Knowing HOW to make the customer experience come alive is challenging. Make it easier on yourself and download our FREE HVAC Customer Service Checklist so you know what to look for and train for in your customer service team and technicians.)

Zac Garside is the Marketing Manager here at Power Selling Pros, but his title is “The Dark Knight”. He’s never really sure if he should write his bio in the 3rd or 1st person… so for now, he’ll stick with the 3rd person. Zac is hugely passionate about leadership and marketing as the most powerful forces in business.