How to Integrate Customer Experiences in your Business Model?

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How to Integrate Customer Experiences in your Business Model?
Anneke Zwart, Moderator
Since products and services are increasingly becoming commoditized and similar, many companies are trying to differentiate themselves by creating a unique "customer experience".
Pine and Gilmore (2016) argue there are five approaches to integrate client experiences in business models:
  1. EXPERIENCES THROUGH MARKETING: The first approach refers to a type of marketing and advertisement that focuses on helping customers to experience the brand. In other words, it integrates experiences in an organization’s marketing campaigns. An example is the creation of events in which the customer can experience or try the product or service.
  2. EXPERIENCES THROUGH TECHNOLOGY: This has become increasingly important in an age in which technology plays a critical role, not only in business, but also in social organizations and daily life. Companies are able to influence customer experiences not only through the goods and services created, but through all aspects of the customer’s interaction with the organization. Customer experiences can go beyond just the satisfaction of goods and services. Think of a company's web site, Facebook page, App etc.
  3. OPERATIONAL CUSTOMER EXPERIENCE: An increasingly connected world simultaneously indicates the need for organizations to be immediately responsive to customers. This can be realized through tailoring your operations to customer needs. By balancing the costs, revenues and quality of your operations, organizations are able to achieve a virtuous circle of improved customer experiences. Think of call centers, help desks, etc. Another example is Apple's very nice packaging of its products.
  4. PROVIDING ‘SOMETHING DIFFERENT’: The fourth approach sees experiences as a distinctive economic output. This approach refers to influencing customer experience through letting them perceive the product or service of an organization as a different experience. Remarkably, the output offered itself will not change, but the company tries to commercialize the experience, in other words it is about renewing the experience of the already existing output.
  5. EXPERIENCES THAT YIELD TRANSFORMATIONS: Organizations that use the last approach try to create a so-called ‘transforming experience’ through matching the organization’s offering with a particular important wish or desire of a customer at a certain moment in time. In other words, the organization offers an experience that will fundamentally change the customer experience. This approach asks questions such as ‘What does the customer aspire to?’ and ‘How can organizations help customers to clarify their aspirations in life and help them through the process of achieving those aspirations?’
Source: Pine, B.J. and J. Gilmore (2016) "Integrating Experiences into your Business Model: Five Approaches", Strategy & Leadership Vol. 44 Iss. 1 pp. 3 - 10

The Role of Customer Experience
ileleji aaron alaba, Member
I quite agree with Anneke Z. This research is in line with best practices all around the world. It all boils down to meeting identified customer needs in a remarkable way, fostering continuity and a profitable partnership with the customer.

Business Models for Experience
srinivas, Member
In studies it has been observed that price increases from a commodity to a product, a service, to an experience and in that order. The greater the quality of the experience, the greater will be the price.
Similarly we have the triangle of cost, schedule and quality. Till now it is believed that there is a need to balance all three. However with the advent of semantic web technology I believe we can have adaptive solutions which can satisfy all three together at the same time.

Problem Areas in Customer-Oriented Business Models
Jaap de Jonge, Editor
Customer demands and experiences are increasingly individual (i.e. personal), dynamic (i.e. changing) and local (i.e. regional).
So it is a logical idea to try to integrate such client experiences in business models.
However there are several problems associated with trying to do so, including:
  1. Additional COMPLEXITY of the products/services (marketing, operations).
  2. More sophisticated ORGANIZATIONS are required.
  3. More intelligent and flexible EMPLOYEES are needed.
  4. Substantial additional COST is involved to offer such individualized and dynamic offerings.
On the other hand, the rewards are huge for those companies that can make this happen. No doubt web technology is playing a key role, but if you add up 1 through 4 you see the challenge really is all about MANAGEMENT!


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