Join us for the first installment of our six-episode series about the Experience Economy.
What is the Experience Economy? How does it operate? What does it look, and feel like? What do other voices have to say? In this kick-off show we share 10-12 other voices that help us build a foundation of understanding. Once we set the cornerstone, we deliver five additional broadcasts that explore essential ingredients vital to succeeding within this subjective marketplace. We invite you to carve out 5-10 minutes per week for the next month and a half. We are confident these podcasts will be rewardingly fresh, and thought-provoking. Enjoy this series.
Join us for the first installment of our six-episode series about the Experience Economy.
What is the Experience Economy? How does it operate? What does it look, and feel like? What do other voices have to say? In this kick-off show we share 10-12 other voices that help us build a foundation of understanding. Once we set the cornerstone, we deliver five additional broadcasts that explore essential ingredients vital to succeeding within this subjective marketplace. We invite you to carve out 5-10 minutes per week for the next month and a half. We are confident these podcasts will be rewardingly fresh, and thought-provoking. Enjoy this series.
Hello everybody and welcome to the first of six podcasts in a series called The Experience Economy. We hope you stick with us. There are gonna be less than five minutes each, and we're sure you're gonna have a lot of takeaways. We'll see you in a minute.
Speaker 2:All biz show .
Speaker 1:Hello everybody and welcome to the Simple Biz 360 podcast. My name is Jeff Mason and I'm your host for the first of a six part series that looks at the experience economy. You can find us on IGTV YouTube Rumble or 28 audio platforms in each one of these next six episodes, including today is gonna be less than five minutes. And we're really gonna start to look at this concept that I started looking at in 1988. I read this 1985 , uh, government report that I've mentioned a number of times. It was a TARP report and it really kind of got me into this lane that, that really started looking at the experience economy. So I wanted to tee this whole series up by reading you some things from to some of today's voices that'll kind of set the stage for what we're about to talk about in the next six episodes. And check , check some of these things up . 61% of small businesses report that more than half of their revenue comes from repeat customers. That's from BAA Kelsie . It can cost five times more to acquire a new customers than to keep current ones from the National Line Review. A 5% increase in customer retention can increase a company's profitability by 75%. That's from the Bain Company. Reducing your customer defection rate, 5% can increase your profitability. 25 to 125% . That's destination. CRM 82% of companies agree that retention is cheaper to execute than acquisition. That's from econsultancy. 89% of customers begin business with a competitor following a poor customer experience. That's from Oracle. 52% of customers have switched businesses in the past year due to poor customer service. Accenture. It takes 12 positive customers experiences to make up for one negative experiences. That's from Parer . So think about that, right? 12 positive customer experiences to make up for one negative wow. Uh , word of mouth is the primary factor behind 20 to 50% of all purchasing decisions. That's McKenzie . A 2% increase in retention has the same effect as decreasing cost by 10%. Leading on the edge of chaos . Customers are 77% more likely to buy a new product when learning about it from family and friends. That's from Nielsen. 92% of consumers say they trust word of mouth recommendations from friends and family above all advertising. That's from Nielsen. 77% of consumers, like when brands demonstrate their appreciation, that's TD Bank and the last from Accenture. The estimated cost of customers switching vendors due to poor service is $1.6 trillion in this experience economy. That's from Accenture. So we, we, we go through a litany of claims and some statements and some things that, that have percentages connected to them to illustrate the point that this experience economy is hot and heavy right now. However, there's a huge problem with it. The huge problem is it's, it's so subjective that we cannot really pinpoint things that we should be able to pinpoint to, you know, maybe correct some of these numbers. Reverse some of these numbers. It's highly opinionated. It's , it's, it's based on customer feelings. It's based on, you know, what they take away from the whole ball of wax called the transactional experience. There's so many little things that can tip them and tip the scales into a negative , uh, zone. Think about that one statement. You know, 12 positive experiences to erase one negative . I mean, it's, and it's really costly. And, and what we learned in 1988 was 26 outta 27 people who have a bad experience fail to tell the company about it. Why? They just don't believe that anything's gonna happen. They don't believe anybody's gonna fix anything. And then 91% of them they go off and never to be seen again. So the numbers, the , the , the families of statements of claims are so closely related to that 1985 finding. I mean, really w you know, we've been in this experience economy , uh, kind of ever since we came outta the me generation, right? You know , what's in it for me? Man? You know what , you know, I , I'm the important one here. You know what I mean? This, this whole thing. I'm really feeling good or bad about this whole experience. You know, what about the product? Well, you know, the product's great or the product's bad, but you know what, it's , what's even worse is how you guys went about doing it. That's kind of the zone, unfortunately, that we find ourselves navigating in, right? So what we really wanna invite you to do is acknowledge that this highly subjective arena of customer opinions, customer reviews, it hinges on it, is built on top of these sets of feelings these customers get from doing business with us. And that really is the essence of the experience economy. And so we want to take a look at this. We want to give you some takeaways to think about. And we , and the graphic we're gonna have up for this six part series is something to think about. STTA . Yeah. We really want you to g go back to your companies, go back to your boardrooms, go back to your thinking chairs, your cabins on the lake, wherever you go, contemplate things. And really start to assess, you know, the experience economy as it relates to your company. And then we're gonna end every one of these episodes with a song that kind of connects to the whole concept we talked about in the show. And I think that if you acknowledge that the experience economy exists , you know what the song we picked for today is Johnny Nash , uh, 1972. I can see clearly. Now remember that one kind of a catchy tune, we all sung it in the seventies. I can see clearly now. Yes. And we think you can too. Stick with us. We'll see you for episode 2 36 in 100 and what, 68 hours? Yeah. Alright , we'll see you then.