During the first years of the new millennium we entered into what some call the experience economy, where companies need to compete on the basis of memorable experiences. Goods and services were declared no longer enough (Pine & Gilmore, 1999).
Organizations have been forced to adapt to the developments in the environment and to the consequent changes in consumer demands brought by the experience economy. Even big multinational companies, which have been regarded as the paragons of brand building, have stumbled in the beginning of the 21st century. Some have been able to adapt successfully, including Procter and Gamble, Apple, IBM and McDonalds (Doyle 2001, pg 20; Larry Light 2007).
Other brands have not been able to adapt and thus have lost value significantly or become obsolete, such as Kodak, Encyclopedia Britannica and AT&T.
In order not to turn obsolete, companies need to evaluate the impact of the experience economy with regards to their offerings, consumers and the entire management of their brands. Consumers in this new economy take functional features and benefits, product quality, and a positive brand image as a
given (Schmitt, 1999). The degree to which a company is able to deliver a desirable customer experience in products will largely determine its success (Schmitt, 1999).
Forrester Research, the leading research agency within the financial service industry supports this view and recommends in a recent survey that for the bank brands to succeed, they need to focus on their online brand experience. In Denmark, Jyske Bank took this approach further by not only creating an online brand experience, but extended it to additionally include an offline brand experience, where all the branches were reshaped and aligned with the concept. Their concept named “Jyske Forskelle” aims at creating an experience for the customer from the moment he/she steps into a branch.
This is for instance done by shaping the office branches into cozy café’s and by making the products tangible and lined up in packages around the café.
However I question the endurance of these type of concepts by turning to the importance of the underlying processes. As we believe the processes are key to the success, we argue that it is not enough simply to give the business model a make over, but it is essential to change the underlying processes. If not
the concept will only have a short-term effect since the internal processes are the true drivers of the brand.
Evolution and Trends of Brand Management read here
Brand Experience Management read here
Management of Touch-points read here
Brand values read here
Brand innovation management read here
New Research Techniques focused on Consumers as a Consequence of the trends read here
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