In the experience economy, the experience system occupies a central position

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In a famous article in 1998 Harvard Business Review, B. Joseph Pine II and James H. Gilmore introduced the concept of experience economy to the business world. The theory goes like this: companies have gone through different economic stages—agriculture, industry, and service—in these stages, the nature of the products they sell continues to evolve. For example, the agricultural economy focuses on selling ingredients (they use the ingredients in a cake as an example), while the industrial economy prepackages these ingredients into a complete product (cake mix). Finally, in the service economy, companies that provide a large number of services around these products (bakers that make cakes for you) have emerged. At each step, consumer prices are rising steadily.

At the turn of the millennium, the author accurately predicted a new experience economy, in which products and services are the main event—an adjunct to the Chuck E. Cheese party! In the experience economy, the goal becomes a lasting memory (although some people may not want to remember the entire Chuck E. Cheese experience).

Of course, there is almost no argument that the author is correct. The experience economy quickly gained a foothold and continues to this day. But the fast-growing experience economy has a branch. This new variant of what we call the “digital experience economy” expands this concept even further by offering products and services not only as physical experiences, but as digital experiences (sometimes even completely). In our analogy above, Chuck E. Cheese’s birthday party becomes an online event between your child and a group of friends around the world.

Facebook recently Renamed to Meta, A company focused on creating virtual worlds, makes the prospects of the digital experience economy more possible-and straightforward. But before we enter the “full recall” rabbit hole, let’s take a look at what the actual digital experience economy looks like today and in the near future.

Support the digital experience economy

Bringing the experience economy into the digital realm means data—and a lot of data. According to Pine and Gilmore, a key element of the experience economy is personalization. However, in the digital world, the experience may need to provide further hyper-personalization. Therefore, artificial intelligence and real-time behavioral data are becoming more and more important. In particular, the company not only needs to set up multi-channel access for customers, but also needs to understand all customer interactions in these channels in real time.

The transition to the digital experience economy ultimately requires an in-depth understanding of each customer. With this understanding, the company can provide a hyper-personalized and memorable experience, thereby bringing greater value to customers (internal and external), thereby enabling the company to obtain greater profits. To do so requires a system that can support large-scale knowledge accumulation.

Experience system

So how to support this new digital experience economy? RingCentral registered the “experience system” as a trademark to define a technology that can support the kind of hyper-personalization and knowledge accumulation we discussed above. Broadly speaking, the experience system includes not only the complex big data storage that supports the digital experience economy, but also countless technologies that support the way customers (internal and external) interact with the organization.

In 2018, Gartner discussed Multi-experience development platform, Realizing that although most companies focus on web-based communications (email) to create customer experiences, and recent moves, these platforms alone will not work today. Today’s experience requires video and chat, and the aforementioned augmented/virtual reality will soon appear. Why? Because customers decide which communication method they want the brand to use today, when they don’t get what they want, they will leave. A RingCentral survey found that customers stopped using a product or service an average of four times in a 12-month period due to the following reasons Bad customer service.

But the experience system is not just about multi-channel or even omni-channel communication. The true experience system creates a different experience for each channel based on the unique attributes of each channel. This is the opposite of “one size fits all”. It goes one step further. Although each experience is tailored to each specific channel, these experiences must feel consistent in some way. Why? Because customers want to switch between channels effortlessly. The truth is that inconsistent experiences across channels can hurt your brand.

Signs of the experience system

Although technologies such as artificial intelligence and big data are certainly the foundation of the experience system, for customers, these technologies are of little significance. For them, the signs they experience will revolve around concepts, such as:

  • An immersive experience that combines multiple sensory experiences
  • A sense of community that makes customers feel that they are part of a larger group of like-minded people
  • Let customers enjoy the simplicity of a relaxing experience

Ultimately, the experience system should achieve three main goals:

  1. Increase revenue from existing products for your company
  2. Improve customer experience
  3. Improve employee experience

The last goal, which is to improve the employee experience, is the most often overlooked goal when building experience systems. This is because many companies often ignore the impact of employee experience on the overall customer experience. In short, happy employees bring happy customers. This is not just a catchy phrase. There are numbers to support it.The Gallup poll found that it has a high degree of Dedicated staff Earnings per share are 147% higher than competitors.

One way companies today deal with the connection between employee engagement and customer engagement is to establish a connection between these two experience system components. This makes sense, especially because, for example, customer service teams are calling for this. In the RingCentral survey, nearly 80% of agents said that they must ask customers to pause while searching for information to solve problems every day. They say the problem is that the work process is interrupted.However, unifying customer service and employee engagement systems is a popular solution: 92% said Integrated communication and collaboration solutions-A platform that tightly integrates messaging, video, telephony, and customer experience-will help.

Although the digital experience economy may feel like a natural product of the experience economy, the experience system that supports it requires careful consideration. Cloud communication technology will become a hub for collecting, storing, refining and utilizing interactive data, providing a simple, powerful and consistent experience for your brand. The ability to easily connect these systems with other technologies such as artificial intelligence will also become critical.

This content was produced by RingCentral. It was not written by the editors of MIT Technology Review.

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