Experience Economy
The term "Experience Economy" was first used in a 1998 article by B. Joseph Pine II and James H. Gilmore describing the experience economy as the next economy following the agrarian economy, the industrial economy, and the most recent service economy. The concept had been previously researched by many authors.
Pine and Gilmore argue that businesses must orchestrate memorable events for their customers, and that memory itself becomes the product: the "experience". More advanced experience businesses can begin charging for the value of the "transformation" that an experience offers, e.g., as education offerings might do if they were able to participate in the value that is created by the educated individual. This, they argue, is a natural progression in the value added by the business over and above its inputs.
Although the concept of the experience economy was initially focused in business, it has crossed into tourism, architecture, nursing, urban planning and other fields.
The Experience Economy is also considered the main underpinning for customer experience management.
Joseph Pine - The Experience Economy
Joseph Pine helps businesses conceive and design new ways of adding value to their economic offerings. He teaches them how to grasp the nature of the emerging Experience Economy and envision their role in it - whether it be staging experiences, guiding transformations, or mass customizing. He and his business partner James Gilmore, are the best-selling authors of The Experience Economy: Work Is Theatre & Every Business a Stage. Focusing on topics of future trends, business, and strategic alliances, Mr. Pine is in high demand as a speaker at conferences, strategic planning meetings, and executive education programs.
Millennials and the Rise of the 'Experience Economy'
A new study shows that millennials are more likely to spend money on experiences rather than objects. Eventbrite co-founder and president Julia Hartz discusses with Tanya Rivero.