We continue our run of legendary authors and today, we hang out with one of the smartest people in business, Joe Pine, one of the godfathers of “The Experience Economy.” It’s the 20th anniversary of his seminal work and he is reissuing an updated version of the book
In this episode, we dig deep into the future of experiences and how companies use it to differentiate and create massive competitive advantage. Pay special attention to Joe’s radical insights around building a data flywheel and the big strategic difference between Facebook and Amazon.
From UI to UX
Joe Pine shares with us about the re-release of The Experience Economy, bearing a new preview, that he and his partner wrote. They focused on the subtitle: Competing for Customer Time, Attention and Money. Companies embraced the importance of user interface in the past and now, user experience, or UX.
“When the first book came out, we talked about it as a nascent, an emerging, a forthcoming experience economy and now, we say it’s here. It’s all around us. I used to have to argue with people that this was happening. Now, I just say it: people want experiences. People now say, ‘yeah I get it.’” – Joe Pine
Further, Joe shared how the internet was at infancy back then. The www was just created in 1994 and in 1999, they didn’t have much to say about it. However, later over time, Joe shares they looked at it thoroughly and found the reason why people were on the internet was to surf the web—to have the experience of things that they couldn’t have otherwise.
Christopher shares his insights on how companies achieve category domination today. He shares that a big part of their strategy is getting their data flywheel spinning.
“The data flywheel is a learning relationship. If you cultivate a learning relationship, it grows and deepens over time. You can almost lock your competitors out because you know more about these customers than they do. Even if they switch, they have to teach them all over again what you already know.” – Joe Pine
Further, in the discussion, Christopher remarks about how other companies cannot replicate the “data on customer-intimacy” that Amazon has with its customers. Joe agrees with Christopher as Amazon has yet to sell data to anybody, as they want to use it themselves at the moment.
“From an authenticity standpoint, that corrodes them [Facebook and Apple] from the inside out, because they are selling your data. They’re in it for the data, to sell to somebody else, rather than in it, for your best interest.” – Joe Pine
To hear more about the co-author of “The Experience Economy” Joe Pine, download and listen to the episode.
Co-author of The Experience Economy, Joseph Pine II is an internationally acclaimed author, speaker, and management advisor to Fortune 500 companies and entrepreneurial start-ups alike.
In 1999, Joe and his partner James H. Gilmore wrote the best-selling book The Experience Economy: Work is a Theatre & Every Business a Stage, which demonstrates how goods and services are no longer enough; what companies must offer today are experiences – memorable events that engage each customer in an inherently personal way.
In 2011, The Experience Economy came out for the first time in paperback as an Updated Edition with new ideas, new frameworks, and many, many new exemplars. Each of Mr. Pine’s publications add a wealth of knowledge and experience to the business world, but The Experience Economy has become a quintessential read.
Mr. Pine also co-wrote Infinite Possibility: Creating Customer Value on the Digital Frontier with Kim Korn, Authenticity: What Consumers Really Want with Mr. Gilmore, and in 1993 published his first book, the award-winning Mass Customization: The New Frontier in Business Competition.
Each book details Mr. Pine’s breakthrough thinking as he has accurately charted many structural shifts — from individualizing goods to today’s focus on customer experiences and many other changes in the economy and consumer sensibility.
The economic competitive reality of the future is fast-paced change. Mr. Pine helps clients design strategies to leverage these new economic opportunities and create experiences that drive revenue.
Since revolutionizing the way we should approach and think about business with The Experience Economy, Joseph Pine has continued to be at the forefront as a thought leader. In his speaking and teaching activities, Mr. Pine has addressed the World Economic Forum, the original TED conference, and the Consumer Electronics Show.
A former Visiting Scholar with the MIT Design Lab, he is currently a Lecturer with the Columbia University School of Professional Studies, and has also taught at Penn State, Duke Corporate Education, the University of Minnesota, UCLA’s Anderson Graduate School of Management, and the Harvard Design School.
He serves on the editorial boards of Strategy & Leadership and Strategic Direction and is a Senior Fellow with both the Design Futures Council and the European Centre for the Experience Economy, which he co-founded.
Mr. Pine’s experiences prior to co-founding Strategic Horizons include holding a variety of technical and managerial positions with IBM.
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