competing on experience

Competing on experience

Walt Buchan, Senior Experience Designer Gareth Parry, Director

Optimal Experience exist to stop this kind of thing happening.

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>250

The most popular phone when Optimal Experience was founded.

Technology has come along way since Charles Algernon Parsons invented the steam turbine… back when PwC were founded.

Human Centred Designs… Are based on users, tasks, environments

Involve users throughout Are tested with users

Are iterated based on user insight Consider the whole experience

Are designed in multidisciplinary teams

Spaces Services Products Systems

The experience of spaces, services, products and systems.

World class organisations do not compete on spaces, services,

products, systems, cost, differentiation, or niche.

They compete on experience.

Back in the day… people had personal, intimate, supportive, and relational experiences every day

The industrial revolution marked the beginning of the separation of maker and consumer. Experiences were dehumanised.

Mass production delivered increased standardisation, commoditisation, efficiency, and profit. At the expense of experience.

How were we to tell these products, services and systems apart? Packaging, branding and marketing took the place of human experiences.

The ultimate expression of self-service. A conversation with a computer.

Experience Debt

Over 250 years we’ve accumulated a debt. We’re in the grip of a global experience crisis.

How do we think about competition? Michael Porter introduced the Generic Competition Strategy model in 1980. Other models are available.

Marlboro tried competing on cost instead of perceived experience in 1993. Philip Morris’s stock fell by 26%.

Ryanair, infamously low cost airline, experienced a 32% jump in 2014 first half profits by stopping ‘unnecessarily pissing people off’.

Nokia and Blackberry could have chosen to adopt Android OS rather than differentiating with their own smartphone OS. Look what happened to their stock.

Apples iPad defined a new market in 2011. Experience was at the centre of this differentiation strategy.

24% of US smartwatches are set up with no app notifications. What are these smartwatches being used for? What experience are these watches delivering?

SouthWest Airlines fly niche point-to-point services. The exploit this niche with renowned levels of customer service.

So why does experience matter so much?

#1 The Internet

Cost, differentiation, and niche are no longer enough. On the Internet someone can always do it cheaper, expolit a more refined niche and be different every day.

#2 To make sense of complexity

The world we live becomes increasingly complex. Hardware and software tends to become expotentially more complex, in line with Moore’s law for the exponential increase in chip component density.

#3 The experience debt is due

Millenials and Generation Z’s expectations for great experiences are baked in. Strategies that don’t include experience as a default will fail.

What are the hallmarks of a great experience?

Useful, usable Consistent Irresistible

Human

How does experience impact business goals?

People will forget what you said. People will forget what you did. But people will never forget how you made them feel.

Maya Angelou