If you think you are going to get rich in the service industry you’d better get your skates on as it’s dying a fast death.
Customers (you might call them clients, consumers, patients or something else entirely) no longer have to choose your service. Thanks to global connectivity (or, in other words, the internet and telemarketers) the competition for their resources – their time, energy and money – is fiercer than ever before.
In many cases:
- By educating themselves with someone else’s content they might be able to do your service for themselves.
- By shopping around they might will probably find someone cheaper.
- Or by developing themselves they might create an entirely different solution to their problem.
For the past 100 years, service providers have offered products and services that solve peoples’ problems but just as the service revolution ended the industrial revolution (which irrevocably changed the primary products economy) there is a new economy evolving that will mean businesses who wants to make a living selling something will need to think, act and transact differently to thrive.
The new economy is the Experience Economy.
Consumers will pay more and stay loyal longer for better experiences. Staff (also known as internal customers) too will work harder and remain loyal longer to employers who offer them experiences. Tribes will form and follow brands who continue to engage them on- and offline. Organisations who resist this economic evolution risk fading into irrelevancy, will find themselves in unprofitable price competitions and be unable to retain the people who drive their businesses every day.
The easy answer to being part of the future of service is to provide experiences that delight and engage but the problem is that people are not all the same. How do we please them all?
The key to thriving in the experience economy lies in clarity, systems and leadership. Leaders of the experience economy will have clarity on what actions they want their internal and external customers to do and they will use their resources to design and implement systems to consistently encourage and reward those actions.
If you provide a service, or a product to solve problems don’t get left behind in the service economy. Instead, spend resources on the development and deployment of consistent and engaging customer experiences to stay ahead of your competition and out of price wars.