Insights, Trends, News on the Family Entertainment Center Industry
Why the Transformation Economy is the Most Important Trend for FECs
January 3, 2021
Twenty-five years ago, Joe Pine and his partner Jim Gilmore wrote an article in the Harvard Business Review called Welcome to the Experience Economy. They used a birthday cake as an example of the entire evolution of economic progress:
- Commodities – Mothers would bake a birthday cake from scratch, mixing eggs, flour butter, and sugar that cost a few dimes.
- Goods – For a few dollars, all the ingredients could be acquired in a box of Betty Crocker cake mix.
- Services – Busy parents ordered the cake from a bakery or grocery store for ten times the cost of the ingredients.
- Experiences – Chuck E. Cheese and other businesses staged parties as memorable events that cost 100X the cost of the cake mix. In fact, the cake was sometimes thrown in for free.
From Experiences to Transformation
The experience economy has been well-documented. “Experiences over Stuff” has even become an internet meme for millennials. But few people realize there was a future prediction in Pine and Gilmore’s HBR article that a quarter-century later is coming true. They forecast that after the experience economy would begin the Transformation Economy.
As Joe puts it, experiences can be commoditized as well. We’ve seen this happen with video arcade games and is now happening with movies. The next stage of the economy is creating life-transforming experiences.
Consumers want to know their time is well-invested. By adding a transformative aspect to their experience, you can increase the monetary value of their time.
Transformational experiences are a set of experiences that help audiences move towards their desired outcomes. Nike is an example of a company that has grown successfully in the transformation economy. The Nike Run Club promised to transform its members.
What is Means for Family Entertainment
Family entertainment centers need to rethink their entire customer engagement strategies to meet this new consumer need. The good news is there are already examples of successful offerings in our industry.
During each day of ShowUp, we bring the researchers on the leading edge of new consumer trends and entertainment experiences. Joe Pine will be headlining our Learning Carousel on Day 3. You’ll hear the latest insights into the transformation economy. You will also participate in moderated roundtables and reflection sessions. And to wrap up the day, you’ll meet with your personally selected Tribe of Five and integrate the learnings into your business.
Sign up your team today and take advantage of Pay What You Want pricing. You will all learn how to create more engaging, entertaining, and even transformative experiences. It’s time to give your customers plenty of reasons to get off the couch and back into your location.
ShowUp is the new social convention and trade show for family entertainment centers, bowling centers, trampoline parks, cinemas, skating centers, and other location-based entertainment locations.
It's not just another series of webinars. ShowUp brings people together face to face with the latest video networking technology so they can meet, learn, collaborate, and have fun, just like a live trade show.
Join us February 1-3, 2021.
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