Welcome to the Experience Economy - Joe Pine

Summary

The speaker discusses the evolution of economic value, emphasizing a shift from goods and services to experiences. Highlighting examples like Starbucks and Nespresso, they argue that customers no longer seek just products or services but memorable experiences that engage them personally. The talk explores how creating distinctive, immersive experiences adds value in a commoditized world, where time and attention are scarce resources. Companies can thrive by offering 'time well spent,' making experiences the core of their offerings to build customer loyalty and drive economic growth.

Takeaways

• 😀 Innovation in experiences can create more value even without improving the product, as shown by the gumball machine example.
• 💡 The economy has shifted from goods and services to an experience-based economy, where experiences are distinct and more valuable.
• 🛠 Services and goods are becoming commoditized, meaning they are often judged only by price, forcing companies to differentiate through experiences.
• ☕ Starbucks revolutionized the coffee industry by focusing on the coffee-drinking experience rather than just the product.
• 🏠 Nespresso innovated by combining the home experience with their coffee machines and creating a distinctive brand experience through clubs and boutiques.
• ⏳ The key differentiator in the experience economy is time—customers seek 'time well spent' rather than just convenience.
• 🎭 Memorable and personal experiences are what create distinctive value, not just making interactions easy or nice.
• 🎹 Companies like Steinway and Procter & Gamble use immersive experiences to drive product demand and create strong marketing impact.
• 🌍 In the experience economy, businesses are competing globally for customers' time, attention, and money, which are limited resources.
• 🎯 The experience itself becomes the marketing, as seen with cases like Apple's stores and Zappos’ customer service model.

Q & A

What is the gumball machine example in the script meant to illustrate?

The gumball machine, specifically the Gumball Wizard, illustrates how adding an experience, like watching the gumball spiral down, increases perceived value, even though the product itself (the gumball) is unchanged. This shows how experiences can enhance value in the experience economy.

Why are goods and services becoming commoditized according to the speaker?

Goods and services are becoming commoditized because customers increasingly care only about price, due to features becoming similar and easily comparable. The internet accelerates this trend by allowing instant price comparisons.

What economic shift does the speaker suggest businesses need to adapt to?

The speaker suggests that businesses need to adapt to a shift towards an 'experience economy,' where growth and success come from staging unique and memorable experiences for customers, rather than just offering goods or services.

How did Starbucks innovate in the coffee industry according to the speaker?

Starbucks innovated by creating a coffee drinking experience, rather than just selling coffee as a product. They focused on the ambiance, environment, and overall customer experience, which added value beyond the coffee itself.

How does the Nespresso example demonstrate innovation in the experience economy?

Nespresso innovated by designing their coffee machines to deliver a unique at-home coffee experience, complemented by Nespresso boutiques where customers can try products. They also offer a service (Nespresso Club) that allows automatic replenishment of capsules, enhancing the overall experience.

What is the significance of time in the experience economy?

In the experience economy, time is crucial. Companies must focus on creating 'time well spent' for customers, where customers value the time they spend with a company. This contrasts with services, where 'time well saved' is more important.

What makes a distinctive experience different from just offering convenience or good service?

A distinctive experience is memorable and personal, engaging the customer on a deeper level. While convenience and good service are important, they are not enough to create a truly remarkable experience that leaves a lasting impression.

How does the concept of 'the experience is the marketing' work?

'The experience is the marketing' means that a well-designed customer experience itself generates demand. By creating engaging experiences, companies naturally attract attention, retain customers' time, and motivate purchases, as illustrated by examples like Steinway's in-home concerts and the Charmin restroom experience.

Why does the speaker mention Zappos' customer service as an example of time well spent?

Zappos encourages its customer service representatives to spend as much time as needed with customers, sometimes hours on a single call, to ensure that the customer has a positive and engaging experience. This approach exemplifies valuing customers' time well spent.

How can companies create memorable experiences for employees, and why is this important?

Companies can create memorable experiences for employees by offering engaging training and work environments, like Whirlpool's real-world program or Molina Hospital's focus on 'sowing seeds of abundance.' This helps ensure employees are motivated to create great customer experiences, which is essential in the experience economy.

Outlines

00:00

🍬 The Gumball Wizard: A Revolutionary Experience

The speaker introduces the concept of experience-based innovation by discussing the 'Gumball Wizard,' a device that revolutionized the gumball industry by adding an experiential aspect. Instead of delivering the product instantly, it provides an engaging experience for children as the gumball spirals down, even though this added experience does not enhance the quality of the gumball itself. This shift from traditional goods to experiences is a sign of the changing economy, where experiences add more value than goods or services.

05:01

💸 The Commoditization of Goods and Services

The speaker explains the commoditization process, where goods and services are increasingly seen as interchangeable, leading to competition based solely on price. The internet accelerates this by allowing customers to compare prices easily. The shift from a goods-based to a service-based economy has further commoditized services, making price the primary differentiator. To escape this trend, businesses must move beyond commoditized goods and services to offer unique experiences.

10:04

☕ The Experience Economy and Coffee

Illustrating with examples from the coffee industry, the speaker describes how experiences create more value than goods or services. While coffee as a commodity is worth only a few cents, places like Starbucks turn it into an experience, charging customers much more for the same product by surrounding it with ambiance and personalization. High-end coffee shops like Café Florian exemplify how businesses can charge a premium by creating memorable experiences.

15:06

🌟 Creating Distinctive and Memorable Experiences

The speaker emphasizes the need for businesses to create memorable, distinctive experiences rather than just focusing on making things convenient or 'nice.' True experiences are personal and leave lasting memories, unlike service characteristics that are merely functional. To create these experiences, companies need to engage customers deeply, moving away from generic service features toward personalization and creating value through time spent with the customer.

🎮 Engaging Employees Through Experiences

The speaker highlights how creating unique experiences for employees is just as important as for customers. Examples include the U.S. Army’s recruitment game, Whirlpool’s experiential training program, and Molina Hospital's employee engagement initiatives. These organizations create time well-spent for employees, which in turn fosters better customer experiences. The key takeaway is that companies need to stage experiences for employees to enhance engagement and productivity.

⏳ Competing for Time, Attention, and Money

The speaker discusses how companies are now competing globally for the limited time, attention, and money of customers. As time and attention are finite, businesses must capture customers' focus through engaging experiences. The experience itself serves as a form of marketing, drawing customers in and encouraging them to spend time and money. The principle is simple: create an experience that holds the customer’s attention, and they will naturally want to invest in your product or service.

🎹 The Experience as Marketing

The speaker shares examples of how experiences act as powerful marketing tools. Steinway’s in-home concert events for piano buyers and Procter & Gamble’s Charmin restroom experience in Times Square exemplify how staging unique experiences can directly drive sales. Whether for high-end or low-end products, creating memorable marketing experiences leads to customer engagement and brand loyalty.

🍏 The Power of Great Experiences: Apple and ING Direct

The speaker discusses how companies like Apple and ING Direct have succeeded by combining great products with immersive experiences. Apple’s retail stores provide not just shopping but a complete brand experience, while ING Direct’s cafés offer a relaxed environment where customers can learn about financial services while enjoying coffee. These examples illustrate how businesses can build strong customer relationships through experience-driven interactions.

🏙️ Las Vegas: The Capital of Experiences

Las Vegas is presented as the ultimate hub for experiences, where every aspect of the city is designed to engage visitors. The speaker highlights how even entertainment, like Bellagio's fountain show, acts as a marketing tool to draw people in. Similarly, companies like Blendtec use digital platforms like YouTube to create engaging experiences that attract millions of customers and boost sales, proving that experiences can be staged both physically and virtually.

🏗️ Case Construction: Building Experiences for B2B

The speaker provides an example of a B2B company, Case Construction, that has leveraged the power of experiences to engage customers. By offering hands-on experiences with their equipment at their Tomahawk Experience Center, Case Construction drastically increases their chances of closing sales. This shows that experiential marketing is just as effective in the business-to-business realm as it is in consumer-focused industries.

🏆 Embrace Experiences or Face Commoditization

The speaker concludes by urging businesses to evolve beyond traditional goods and services. Those that cling to outdated practices will inevitably be commoditized, while those that innovate by staging unique and personal experiences for their customers will be rewarded. The future of economic value lies in experiences, and companies must adapt to this shift to stay competitive and thrive.

Keywords

💡Experience Economy

The 'Experience Economy' is a key concept in the video, referring to an economic shift where businesses focus on creating memorable and engaging experiences for customers, rather than just selling goods or services. This concept emphasizes that in today’s marketplace, customers value the time and experience they have with a product or brand, leading to deeper customer engagement. For example, Starbucks doesn’t just sell coffee; it stages an entire coffee-drinking experience.

💡Commoditization

Commoditization occurs when goods or services become indistinguishable from each other in terms of features, and are only differentiated by price. The video discusses how this happened with products and services, such as coffee beans, which are sold at low prices because consumers no longer care about brand or quality. The video explains how companies need to innovate in experiences to escape commoditization.

💡Staging Experiences

Staging experiences means using goods and services as tools to create personal and memorable customer interactions. Businesses like Starbucks and Nespresso use their products as a backdrop to craft an engaging experience that customers value. The video describes this as essential to moving beyond commoditized goods and services.

💡Innovation

Innovation, in the context of the video, refers to developing new ways to engage customers through experiences rather than just improving products or services. For instance, Starbucks is praised for creating a coffee-drinking experience, while Maxwell House is criticized for not seeing the importance of this type of innovation.

💡Customer Engagement

Customer engagement refers to how businesses interact with their customers in meaningful ways that go beyond simple transactions. The video highlights how companies like Nespresso use their machines and coffee-making process to engage customers on a deeper level, turning the act of making coffee into an experience that keeps customers coming back.

💡Memorability

Memorability is a key characteristic of experiences that businesses aim to create, according to the video. A memorable experience leaves a lasting impression on the customer, which can increase loyalty and drive repeat business. For example, the speaker mentions how a personal experience, like having a concert in one's home after purchasing a Steinway piano, makes the product more memorable.

💡Starbucks

Starbucks is used as a case study in the video to demonstrate the shift from selling a commodity (coffee) to staging an experience. Starbucks created a unique coffee-drinking experience, surrounding the product with ambiance and service, and this approach allowed them to charge a premium price for what was once a basic commodity.

💡Nespresso

Nespresso is another example of a company that successfully staged an experience. The video discusses how Nespresso didn’t just create a coffee machine, but an entire ecosystem, including personalized capsules and stylish boutiques, to turn coffee-making into an experience. This contrasts with traditional coffee brands that focused purely on the product.

💡Customer Experience

Customer experience refers to the overall perception a customer has when interacting with a business or brand. The video explains that in the experience economy, customer interactions should be designed to be engaging and memorable, moving beyond just being convenient or easy. This includes everything from how a customer interacts with a product, to the ambiance of a store or even an online interaction.

💡Time Well Spent

'Time well spent' is a central concept in the video, representing how businesses should aim to create experiences where customers value the time they invest with them. Rather than focusing on convenience and efficiency, companies in the experience economy should make customers feel that their time was meaningful and enjoyable, which is a key difference from traditional service models.

Highlights

The 'Gumball Wizard' machine provides a novel experience by delaying the reward, creating added value despite no change in product quality.

The shift from a goods-based economy to an experience-based economy is driving innovations like the gumball machine, emphasizing experiences over mere goods and services.

Goods and services are increasingly becoming commoditized, forcing companies to differentiate themselves by offering unique customer experiences.

The internet has intensified commoditization by allowing customers to easily compare prices, making price the main factor for goods and services.

In the experience economy, companies use goods as props and services as the stage to create memorable interactions for customers.

Starbucks revolutionized the coffee industry by focusing on the coffee drinking experience, inspired by Italy, rather than simply selling coffee as a commodity.

Nespresso innovated by providing a home coffee experience with its capsule system and creating boutique stores to enhance the customer experience.

Coffee exemplifies the economic value progression: from commodity (beans) to good (packaged coffee), service (brewed coffee), and experience (Starbucks or Café Florian).

Distinctive customer experiences must be memorable, personalized, and go beyond simply being nice, easy, or convenient.

Time well spent is crucial in the experience economy, where companies compete globally for the time, attention, and money of their customers.

Zappos creates a unique experience by celebrating customer interactions, even rewarding employees for spending more time with customers on the phone.

Whirlpool trains employees by creating an immersive experience in their 'Real World' program, resulting in high employee retention.

The experience is the marketing: creating engaging customer experiences (e.g., Steinway piano concerts or Charmin's restroom experience) drives sales.

Apple's success in retail is due to combining innovative products with a distinctive store experience that customers remember.

Companies like ING Direct use physical spaces, such as cafés, to create personalized experiences that drive customer engagement and sales.

Transcripts

thank you very much with all the talk

this morning about experience and

innovation I thought I'd start with one

innovation I think is particularly

telling let me know if you've ever seen

this particular innovation before you've

seen these devices this is known as the

gumball Wizard from a company called

global gumball and it truly has

revolutionized the global gumball

industry if you haven't seen one of

these devices what happens is that a kid

will come up to the device with this

quarter to put the quarter in the slot

and then turn the crank and then he

doesn't get a gumball at least not right

away and said first he gets this gumball

een experience as it goes spiraling down

clickety clack as it goes now there's no

functional purpose whatsoever for this

device you don't get a better

manufacturer good you know the gumball

is the same as it's always been you

don't get better service in fact the

service is actually worse why mine takes

longer to get that gumball that you

requested and yet it has more value it

has more value because of that gumball

spiraling experience I've seen kids go

up to their parents ask them for a

quarter excitedly come up to the gumball

wizard put that quarter in the slot turn

the crank has a gumball spiraling

experience and then pick up that gumball

throw it away and glass their parents

for another quarter it's it's really

just a slot machine for kids is what it

is but why do we see innovations like

this why is this happening well it's

because of a very fundamental change in

the very fabric of the economy where

we've gone from the green economy based

off of commodities to an industrial

economy based off of goods through a

service economy and what happened in the

service economy is that goods became

come monetized commoditize mean they're

treated like a commodity where people

don't care who makes them they're about

the brand think about the features all

pretty much the same anyway they come to

care about three things and three things

only price price and price that's when

goods have been commoditized and in fact

the the Internet is the greatest force

in commoditization ever invented the

friction of marketplace means that

customers can instant

compare prices from one vendor to

another and it tends to push them down

to the lowest possible price but what we

see now is services increasingly being

commoditized as well long-distance

telephone service sold on price price

price fast food restaurants with all

their value pricing and the Internet can

even commoditize services if you look at

financial services what used to cost

several hundred dollars to buy or sell a

block of shares with a full-service

broker can now cost as low as three

dollars with an internet-based broker

what that means is that fundamentally

goods and services are no longer enough

goods and services are everywhere

becoming mere commodities and that means

it's time to move to a new level of

economic value to go beyond the goods

and services to staging experiences for

your customers now the most important

thing to understand about this

progression of economic value through

remember nothing else from our time

together this morning I want you to

remember this experiences are a distinct

economic offering as distinct from

services as services are from goods

it's basically use goods as props and

services as the stage to engage each and

every individual inherently personally

and thereby create a memory which is the

hallmark of the experience so we're

shifting into an experience economy

that's where growth is going to come

from and jobs in GDP now and in the

future and that is where we need to

innovate we need to innovate in

experiences this hit home for me a

number of years ago and I was in Milan

Italy given a boardroom presentation to

a number of different executives and one

of them was the vice president of

Maxwell house in Italy and he said

something that Florida he said you know

there's been no innovation in the coffee

industry in 15 years I said are you

kidding me have you never heard of

Starbucks because for him innovation

wasn't good there are manufacturers like

he had blinders on we only innovate in

goods totally missing the innovation and

the coffee drinking experience that

Howard Schultz created Starbucks the

irony of course video is actually Milan

Italy that inspired Howard Schultz to

bring back that great coffee experience

that he saw there back to the United

States and now increasingly export

around the world now contrast what

Maxwell House did or

with Nestle and it's Nespresso brand in

the face of Starbucks increasingly

controlling coffee consumption around

the world Nespresso innovated they came

up with this capsule system where that

they say the best cafe is your cafe that

subtext not out there in Starbucks but

the one in your own home and they

innovated the Nespresso machine now yes

this is a physical good but they

designed it in such a way that just

using the Nespresso machine is an

experience and then they innovated their

own experience places the Nespresso

boutiques where you can come in you can

sit down you can be exposed to all the

product they can make a cup of coffee

just for you on the Nespresso machine

knowing that if they get you to

experience the product before you buy it

the chances you will buy it in fact a

lot and they didn't stop there they

innovated in services with a Nespresso

Club where they allow you to

automatically replenish your particular

favorite capsules delivered

automatically to your home and then it

just seems a basic principle of the

experience economy that when you get

into stage and experiences that just

doesn't hurt of George Clooney as your

spokesperson now if you think about

coffee is that it perfectly exemplifies

this progression of economic value that

I'm talking about because coffee at its

core is what right what's coffee right

beans as beans you know it's a commodity

can actually look up the future price of

coffee in the Wall Street Journal every

morning and as you convert that from a

per bushel to a per cup basis in which

coffee cost per cup when you treat it as

a commodity 2 or 3 cents that's so much

of the cost in your cup of coffee is

worth the beans are worth but if you

take those beans you roast em grind em

packaged and put them on a grocery store

shelf like Maxwell House does now you

get 5 10 15 cents per cup of coffee if

you actually brew it for the customer in

a vending machine a corner diner kiosk

Dunkin Donuts or 7-eleven somewhere now

you get 50 Cent's dollar dollar and a

half per cup of coffee but then surround

the brewing of that coffee with the

ambience and theater of a Starbucks and

now how much you pay three four five six

dollars per cup of coffee with only two

or three cents worth of beans in it four

distinct levels of value totally depend

on what business the company thinks it's

in

now Starbucks actually doesn't hold a

record for a cup of coffee had the

opportunity a couple years ago to take

my wife to Venice and there of course we

went to the Piazza San Marco and I

bought her a cup of coffee at the cafe

Florian and then we spent over an hour

there soaking in all the sights and

sounds that most old-world of Italian

cities and then I got the bill Johanna a

cup of plain old black coffee cost at

the cafe Florian 13 and a half euros

thirteen and a half year olds was it

worth it

I salute the man thing if you create a

great experience and your customers are

going to pay you commensurately for that

experience but you need to create a

great experience you need create an

amazing experience a remarkable

experience you need to create a

distinctive experience one of the things

that has happened since the publication

of our book is the entire movement

towards customer experience now one of

the things that most people mean when

they say customer experience they create

a Costas of customer experience most

people not everybody but most people

what do they mean they mean let's make

our interactions with customers nice and

easy and convenient a nice and easy and

convenient are all well and good but

their service characteristics they're

not the characteristics of a true

distinctive experience if you want to

create a true distinctive experience

often the province of a cxo the chief

experience officer then what you need to

do is not just make things nice I mean

nice is nice but nice rarely rises to

the level of memorable and a true

distinctive experience has to be

memorable creating that memory within

people and when we make things easy off

of what we do is and make them easy on

us we root nice things so we make the

same for everybody and that gets in the

way of making things personal

experiences are inherently personal

where do experiences actually happen

inside of us it's our reaction to the

events that are staged inside of us you

need to reach inside the people you do

engage them and make that experience

personal and then convenience

convenience is actually the antithesis

of what I am talking about convenience

means let's get in and out as quickly as

possible spend as little time with a

company as possible and I'm talking

about how do you get your customers to

value that time that they spend with

you write that's key with and experience

you think about it this way and every

one of these economic changes there's

always a gray line being put in there

the differentiates one from another and

the key one between services and

experiences is all about time it's about

time with the service what people are

looking for is time well saved in fact

people increasing what services as well

as goods come monetize so they spend

their hard-earned money and they're hard

to earn time on the experiences that

they want what experiences what you need

to do is you need to provide time

well-spent time well-spent that they

value the time that they spend with you

in the place that you have created now

it doesn't have to be a physical place

you can create an experience even over

the phone line as Zappos does where they

don't measure the average hold time the

reference at which is how measuring how

little time we spend with customer they

in fact every day celebrate the

representative today who got to spend

the most time with a customer over the

phone you know the record is 10 hours 43

minutes with one break that they

celebrate every day because they

recognize that's how you deliver

happiness and notice that what Tony

Hsieh at Zappos wants it is not just

deliver happiness to customers you want

to deliver happiness to employees as

well and that is key if you want your

employees to create to stage a great

experience for your customers that you

need to give them the wherewithal to be

able to do that and it starts in

recruiting and one company does that is

actually the United States Army which

created America's Army calm which is a

downloadable game you download this game

you go on a mission you succeed on it

well then the army lets you download the

second game now it's a multi-user game

now you're getting together with other

people as part of a troop and if you

succeed at that mission well then the

army would like to recruit you over 25%

of people now go into army first

experience dip at America's Army comm

and they cost one-tenth of normal

advertising and once you recruit you

need to train whirlpool has created the

appliance manufacturer has created the

real world program

in Michigan where they bought a house

modeled after MTV's real world program

where you take all these people you put

them in the house and you don't make it

let them leave and you fill them all the

interactions so here you have to stay in

this house during the 10-week program

they don't reimburse for any hotel

expenses you have to cook your own meals

in the house using whirlpool appliances

they don't reimburse for meal expenses

you have to do your own laundry in the

house using whirlpool appliances they

don't reimburse for any laundry expenses

and what they found is that when they

train people in this way creating a true

experience out of it that their

retention rate has skyrocketed over a

number of different years and now in

their 15th year with the real world

program so you recruited you trained

them then you need to create a holistic

experience one that really does give

your employees the wherewithal say

Molina Hospital for example in

California as as the theme of experience

sowing seeds of abundance it's about

sowing seeds of abundance that we want

to give our employees give them abundant

lives so from that abundance they can

create an abundant experience with the

patient's abundant experience with the

family members an abundant experience

for the entire community

they recognize how important experiences

are for their employees right that they

need to create time well-spent for

employees because if you don't do that

then what's going to happen your

employees as they're just going to have

time spent watching the clock that's the

difference now another basic principle

of the experience economy as understand

that when you stage experiences you are

now competing against the world you are

competing against the world for the time

the attention and the money of

individual customers and time is limited

we can only experience things 24 hours a

day seven days a week we have to fit

sleep in there sometime and if somebody

does capture my time where I'm spending

my time with some other company what am

I not doing I'm not spending that time

with you and the same way attention is

increasingly scarce today's media

fragmented world's hard to capture

people's attention with normal

advertising that but if I create

experience I get people to spend their

time with me what would I doing I'm

giving them my attention

what am I not doing is I'm not giving

that attention to you and the same way

money is consumable if I have a dollar

to spend I spent in some other company

in some of the geographic area in some

of their industry what can I do with

that dollar again I can't spend it with

you it's gone gee to understand a basic

principle of the experience economy is

that the experience is the marketing the

experience is the market the best way to

generate demand for your offerings with

an experience so engaging the customers

can't help but spend their time with you

give you their attention and then buy

your offering as a result so if you buy

a grand piano from steinlight it cost

over $100,000 don't be surprised if they

ask you if they can throw a concert in

your own home they ask you for the

friends and neighbors you like to invite

to that concert the night of the concert

they have valet parking outside they

serve wine and hors d'oeuvres inside and

then they hire a professional concert

pianist to play your own piano in your

own home and you know that's the best

that piano is ever going to sound it's

denied that concert and the gentleman

told us about this said that Stein we

did a wonderful job that pianist was

magnificent and after the concert two of

his friends bought pianos for their

homes and that's what I mean the

experience is the marketing and it works

for incredibly high involvement

expensive products it works for

incredibly low involvement and

inexpensive products such as Procter &

Gamble every year putting in Times

Square the Charmin restroom experience

where you go under that awning there you

go up these escalators they have brand

ambassadors that are singing the praises

of Charmin I mean literally singing the

praises of Charmin you wait in queue for

your time to use a restroom where they

have the ultimate restroom experience

they clean it after every use when

you're in there you have your toilet

paper menu you have six different

varieties of toilet papers you can use

when you're done you can sing and dance

with the Charmin mascot you can get your

picture taken on the world's largest

toilet and the first year they did that

they had over 200,000 people exposed

themselves if you pardon the expression

the Charmin toilet paper and sales went

up 14% 14% and you think about Apple I

can still remember when Steve Jobs back

in 2002 announced that Apple's getting

into retail and he got land faster than

the

press but he proved them wrong by

creating not just a store but an amazing

experience now obviously it's predicated

on great products if Apple didn't have

great products when the experience

wouldn't matter so much but you can

buying great products with great

experiences that's when magic can happen

and you see a not just with

manufacturers you can see it with

service companies as well ING Direct for

example came over the u.s. from the

Dutch marketplace with no name

recognition and no branches what they

did instead is they created cafes the

ING Direct cafe where you walk in there

and you get a very european-style Bistro

you order a cup of coffee maybe biscotti

from the financial baristas and that

barista then comes and engages you in

conversation about your financial needs

we're trying to get you to move your

savings account over an ING account to

refinance your mortgage with ing funds

and amazingly it works every time they

open up a new cafe it generates over 200

million dollars and new accounts for I

and G now ING Direct was actually bought

by cap watt and thanks to that and other

purchase is now the fifth largest bank

in the country now this is this is

actually a picture of my family when we

went to Ed opportune to go to Iceland

last year that's me and my wife there

and my daughter's Becca and Lizzie and

then Becca's husband Ryan and this

actually has nothing to do with what I'm

talking about them but my accountant

said if I showed it to you I'll be able

to write it off of my taxes

you

I also have the opportunity to take the

family to Vegas and Vegas of course is

the experience capital of the world

everything is about Vegas and experience

and they use marketing experiences to

generate demand even for their own

experiences such as a Bellagio with a

fountain show that draws people all over

Las Vegas so then they come and

experience Bellagio itself but again it

doesn't have to be done just physically

you can do this virtually as well every

one of these places is an experience hub

online just like Las Vegas is an

experience hub in the world it's why you

have companies like Blendtec that nobody

had ever heard of until the CEO Tom

Dixon started using YouTube to put on

all these videos about will it blend if

you've never seen one of these you need

to see one and and they had over they've

had hundreds of millions of views and

sales went up seven hundred percent and

obviously that is lightning in the

bottle you can't expect that to happen

in your business but that's what can

happen if you create great marking

experiences and whether you do that for

consumers whether you do that for

employees such as marketing recruiting

experiences in that or whether you do it

for business business customers like

Blendtec right you can trade marking

experiences that generate demand in fact

my favorite business to business company

that does this is case construction case

construction is created the tomahawk

experience center in the North Woods of

Wisconsin where they bring customers out

basically to play with the equipment

it's a big sandbox they have rodeos and

contests who can move the most amount

dirt in the shortest amount of time and

they did a study and found out a

customer goes up to a number to a

regular dealer of theirs they have

perhaps a 20% chance to get in their

business they bring much to tomahawk it

goes up to 80% from 20% to 80% because

the experience is the marketing so let

me simply close by saying that you can

stay in the illusory safety of past

practice and keep on doing the same

things you've always been doing well

then mark my words you will be

commoditized or you can shift up this

progression of economics

you to staging experiences for each one

of your individual customers and then

you'll be economically rewarded thank

you for your time this

[Applause]