The value of a product or service is increased with the customer experience offered with it. This opens the door for higher customer demand and commensurate increase in prices charged. This means that the customer experience must be adapted accordingly, e.g., by attuning promotion or shop fittings.
The product should have a wide range of characteristics to increase its value for consumers.
The product should have a minimum set of characteristics to reduce production costs.
The company should perform a lot of customer relations operations and receive feedback in order to produce products that fully meet the needs of customers.
The company should minimize the number of customer relations operations to reduce costs.
Based in Seattle, Washington, Starbucks is a coffeehouse chain that currently operates over 20,000 stores in 62 countries. Starbucks’ worldwide stores provide a range of food and beverages including coffee, pastries, snacks, teas, sandwiches and packed food items. Its coffees also include more ‘gourmet’-type drinks such as caffè latte and iced coffee. In addition, Starbucks offers a series of features, products and services that together make for the unique Starbucks experience (e.g. WiFi, relaxing music, a cosy atmosphere and comfortable furniture). By adopting the Experience Selling model and offering many unique features besides coffee, Starbucks has gained in popularity and customer loyalty, ultimately leading to increased revenue.
Barnes & Noble is the largest American bookstore. The New York-based company has an online presence, but it is known primarily for its large retail outlets that adopt the Experience Selling concept. In addition to book sales (many of which are sold at discount prices), Barnes & Noble provides its customers with a variety of other products and services as part of the overall ‘experience’ in each of its hundreds of stores throughout the country: coffeehouses, events, special author appearances and book readings. Many Barnes & Noble retail outlets also sell DVDs, video games, gifts and music. Experience Selling has enabled Barnes & Noble to differentiate itself from the competition and cross-sell many products and services within its chain of bookstores. Customers are drawn to the overall experience and the convenience of many products and services available in one store, giving rise to a unique ‘Barnes & Noble experience’.