From Products to Experiences: The New Value Equation

The Evolution of Consumer Desire

Let's start with a simple idea: what do people actually want these days? As Leonard L. Berry, an expert in relationship marketing, explained way back in 1983:

"For most of history, we didn’t want prepackaged experiences because life itself was the experience. Just staying safe, warm, and fed was adventure enough." - The Future is Faster Than You Think.

But things have changed. Tech has made life easier! We're so used to having cool gadgets, comfortable homes, and all the info we need at our fingertips. Now, experiences— real, tactile, memorable—those are the real treasures!

Think about the evolution of the birthday cake:

• Raw materials (agrarian economy): Flour, sugar, eggs – the building blocks.
• Products (industrial economy): Pre-mixed cake mix – easier, but still work.
• Services (service economy): Buying the whole cake – even easier.
• Experiences (experience economy): The whole party – less hassle, more fun.

And now, businesses are taking it even further! We're entering what's called the Transformation Economy. It's not just about a fun afternoon at a theme park, it's about being changed by that experience.

Examples of Transformation in Action

1. Banking You Don't Have to Think About

   Imagine asking your digital assistant a question like, "Hey Siri, can I afford to go out for dinner tonight?" and getting a personalized answer based on your spending habits, upcoming bills, and even your savings goals! That's the power of contextual banking. In Bank 4.0, Brett King argues that:

   "Banking is no longer somewhere you go, it’s something you do." - Bank 4.0

   It's about weaving banking into your daily life in a frictionless way. Think about apps like Digit or Acorns. They're not just digital piggy banks, they use behavioral algorithms to help you save without even thinking about it. They're not selling you a savings account; they're selling you financial peace of mind.

2. Education That Feels Like a Video Game

   Remember those boring history lectures in school? What if learning about ancient Egypt felt like exploring a virtual tomb alongside your classmates and a world-class Egyptologist? That's what VR is making possible.

   “Virtual reality is not a media experience. When it’s done well, it’s an actual experience.” - The Future is Faster Than You Think.

   In the Global Learning XPRIZE, teams competed to create software that would enable children in remote villages without schools to teach themselves to read and write using only a tablet. The winning teams, Kitkit School and Onebillion, proved that it was possible to deliver high-quality education in a self-directed, engaging way.

3. Food Without the Farms

   Imagine 3-D printing your dinner! Not just any dinner, though, one with ingredients grown in a vertical farm down the street and a plant-based steak that's both ethical and delicious. We're using biotech to make food tastier, healthier, and more sustainable.

   "In a few years, humans will become the first animals that get their protein from other animals without any animals being harmed along the way. Slaughterhouses will become a ghost story we tell our grandchildren." - The Future is Faster Than You Think.

Key Takeaways

So how can businesses leverage this shift?

• Get customer-centric: Understand your customers' needs, wants, and aspirations. Use data, AI, and sensors to learn their behavior and anticipate what they'll want next.
• Design for seamlessness: Make everything frictionless. From purchasing to delivery to usage, remove any unnecessary steps or roadblocks that create frustration.
• Embrace new technologies: Experiment with VR, AR, AI, 3D printing, and blockchain to create truly immersive and engaging experiences.
• Build for agility: Don't be afraid to cannibalize your existing business models. If you don't, someone else will.
• Focus on transformation: Think beyond the product and consider the impact you want to have on your customers' lives. Are you providing convenience, entertainment, education, or a life-changing experience?

The companies that get this right—the ones that harness the power of convergence and design experiences that are not just immersive, but transformative—will be the ones that win in the decades to come.