Joseph Pine is a well-known American marketer, co-founder of the strategic horizon consulting agency. He recently released a book called The Economics of Impressions, which has become a bestseller: it has been translated into fifteen languages and the world and sold 300,000 copies. About the interesting and fascinating concept that helps in the development of business, says the author of the book Payne himself.
Features of the economy of impressions
The expert says that this term appeared a long time ago, but he did not receive so much attention. Previously, the economy was mainly service, that is, the service sector began to dominate in many countries. Now the competition in the market is huge, so just producing and selling goods is an unprofitable business. People want to get not so much a thing as emotions and impressions. The results of recent surveys eloquently speak about this: customers are willing to pay 16% more for a product or service of the best service and for a pleasant impression of the acquisition.
Advanced sectors
There are three leading industries that have excelled in impression economics. First of all, it is tourism. According to studies, 78% of millennials would rather spend money on travel than buy a tangible thing. Accordingly, this sector is thriving and brings a lot of profit.
The second place belongs to the IT sphere. We all use mobile applications, video programs, etc. These products bring customers a lot of positive impressions and make them spend money on such entertainment.
Third place is the field of medicine. Of course, people are worried about their health, so they spare no money to stay young, full of strength and energy.
Just sellers and manufacturers of goods have a hard time. They exist in conditions of fierce competition, but thanks to the introduction of the economy, impressions remain afloat. Joseph Pine says US firms that pursue this policy have increased revenues by 6.3%. Service companies increased 4.7%. Unfortunately, in Russia there is no such statistics yet, as far as our compatriots know little about the economy of impressions.
Case study
How can one give an impression to a customer if he goes to the store to buy a thing? What emotions are we talking about? The expert claims that everything is possible, there would be a desire, and gives an example of Apple. In 2007, they opened stores that were very different in service from the rest. The sellers did not impose themselves on customers and did not persistently ask the question: “How can I help you?” That is why customers had the opportunity to calmly test the goods in a pleasant environment, even without the help of a specialist, and decide whether to buy it or not.
Later Apple followed suit Samsung. Of the company salons were opened in New York and in Moscow. Everyone could test the phones themselves and even see prototypes of future models.
Do you know what the Bvlgari brand has done? He opened a chain of hotels where they demonstrate the main values of the corporation and the level and lifestyle that you need to maintain. This was done in order to convey to the customers the atmosphere and concept of the brand.
"Clock face"
Unfortunately, among Russian firms it is difficult to name those who have excelled in the economy of impressions. Nevertheless, Joseph Pine singled out one idea that impressed him particularly.This is Cafe Dial, the concept of which is that the visitor does not pay for food or drinks, but for the time spent in the establishment. It just so happened that the idea that appeared in Moscow was picked up and popularized in the UK. Now there are several networks of such institutions, which are better known as “time cafes” or “anticafe”.
Useful Tips
Joseph says Russia has great potential. The main thing is to emphasize our color and identity, to highlight what distinguishes us from a number of other countries. An expert cites the same McDonald's or Starbucks as an example. These institutions are immediately associated with America, in which end of the globe you would not be. They create the presence of their country, being in a foreign territory. This is the secret of popularity.
What needs to be done to implement the economy of impressions? First, innovation is needed. For example, to create products with interesting features that would make a person stay longer in the store. Secondly, you should adapt to the needs of the client, turning the product into a service, and the service into experience. For example, Capital One Bank has opened a whole specialized coffee shop inside its branches. The American cruise company Princess Cruises provides passengers with a device that serves both as a pass to the liner, and a cabin key, and an identifier. It can be worn as a jewelry: bracelet or necklace.
Joseph Pine Experience
Joseph himself works in the field of consulting. It would seem, how can you give customers positive emotions and impressions? Together with his colleague, the expert developed the following scheme: after the seminar, all participants with leaders go on study tours to different stores to evaluate the quality of the services provided. Gift cards and funds for purchases are provided by the organizers. People are given detailed instructions on what to do at each destination. The trip includes visiting several cities at once: Chicago, New York, Las Vegas. Together with leaders, participants in excursions discuss establishments from the prism of the “4E” model, evaluating the aesthetic, educational, entertaining, and exapist aspects. Both successful and unsuccessful examples are considered.