The experience economy actually consists of companies that provide and sell experiences to their customers. But, what are these experiences?
Let us first start with some theory which Pine and Gilmore discuss in their 1998 article “Welcome to the experience economy.” There are couple of things we think are most interesting from the article, the first one being one sentence which describes the economic value of an experience;
Commodities are fungible, goods tangible, services intangible and experiences are memorable.
Meaning that an experience occurs, and we’re quoting the article now, when a company intentionally uses services as the stage, and goods as props to engage individual customers in a way that creates a memorable event.
Furthermore the article discusses two main dimension experiences have. The first one being customer participation, from passive to active. The other one is connection with the experience. From absorption to immersion. Take a look at the graph.