What Is the Experience Economy
I think time is the most precious resource a person can have. We usually spend it in exchange for money by working. The money is then most likely spent to save time in other areas of life by buying products and services.
So why on earth would anyone spend money to, not save, but spend their time as well? If you’ve read the title you might get it by now but nonetheless, to explore this question let us briefly talk about the coffee business.
Coffee starts its life as a berry that is harvested by a farmer who is part of the agrarian economy. At this stage, coffee is a natural resource - a commodity.
Next the fresh coffee beans need to be roasted. This processing phase is part of the industrial economy and the processed coffee is now a type of good.
Now the roasted beans can finally be used to make a fresh cup of coffee and served to a customer. All of this is part of the service economy and the coffee is now a service.
But can coffee be anything more than a commodity, a good, or a service? Is it possible to elevate it to new heights?
Let me present you the Starbucks Reserve Roastery.
As you saw in the video, people were literally standing in line in the cold to get inside a coffee shop. You could argue that they weren’t there just to get coffee. They were there for the coffee experience.
So as you can see, coffee can exist in many economic sectors. The more you customize the coffee product the more unique it becomes and finally you’ll end up at something like the Starbucks Reserve Roastery.
However, compared to the other economic sectors the experience economy has a fundamental key difference.
When you buy commodities, goods, or services you are fundamentally aiming to save your time, for example, by not having to grow your own coffee beans, roast them, or brew your own coffee.
But the people lining up to the Starbucks Reserve Roastery in Chicago didn’t seem to be in a hurry.
They were actually spending their money to spend their time as well.
This is the unique aspect of the experience economy and the reason I decided to write about it. As someone who is working in the experience economy myself, the games industry, I can say one of the main reasons I decided to work in this field is the fact that I’m building products that people are actively looking to spend their time with.
For me, it’s an honor that something I have built is worthy of a person’s time - their most precious resource.
Sources:
https://prosumerindex.com/the-experience-economy-authentically-yours/
https://www.youtube.com/watch?v=TOjUxGqh7aA&ab_channel=Qualtrics
https://www.youtube.com/watch?v=_GoRm92XePc&ab_channel=FoodInsider
https://stories.starbucks.com/press/2019/starbucks-reserve-roasteries-around-the-world/
