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The newest offering from management guru Joseph Pine takes his acclaimed 1999 bestseller \u201cThe Experience Economy\u201d a step further. That book foresaw the rise of consumer experiences as drivers of brand loyalty, more than material goods alone. Certainly such experiences have mushroomed over the last 25 years.<\/p>\n
In \u201cThe Transformation Economy<\/a>,\u201d Pine now argues that experiences are not enough. Consumers want products and services that improve their lives and businesses. According to Pine\u2019s \u201cthe progression of economic value,\u201d agrarian manufacturing led to the industrial economy, which in turn led to services, and finally to experiences.<\/p>\n The Transformation Economy<\/p>\n<\/div>\n Pine contends that people buy<\/a> from companies to reach a goal. Businesses that understand those goals (what buyers hope to improve) can offer greater value. And that value can establish the price, more than the cost of materials or services.<\/p>\n The first chapter defines transformation in the context of what businesses sell. \u201cYou are what you charge for,\u201d Pine asserts.<\/p>\n The second introduces the idea of human flourishing \u2014 \u201cthe true purpose of business\u201d \u2014 in four spheres: health and well-being, knowledge and wisdom, wealth and prosperity, and purpose and meaning. The book cites Equinox Fitness Clubs and Fender Musical Instruments as offering transformation beyond selling gym memberships and guitars. Other examples include Eataly (food products), Burning Man (outdoor festival), the U.S. Army, Princess Cruises, and more, with insights from business leaders.<\/p>\n Pine explains how companies shift from offering experiences to transformations and the types and levels of each, all illustrated with helpful diagrams.<\/p>\n The final two chapters include questions for readers to apply in their own business. The book also includes copious notes and a comprehensive index.<\/p>\n Most of Pine\u2019s ideas fit high-end service businesses such as health and wellness, travel, and finance. Getting to know each customer personally would be a tall order for a company selling groceries or household consumables.<\/p>\n However, Pine\u2019s \u201cjobs to be done\u201d framework \u2014 what customers want to accomplish \u2014 is useful for any company. He states that \u201ccustomers often don\u2019t know what they want, and even when they do, they can\u2019t always articulate it. You need to draw it out of them.\u201d<\/p>\n Pine\u2019s writing is conversational and clear. His \u201cMass Customization,\u201d in 1992, was a best business book<\/a> by both the Financial Times and Library Journal.<\/p>\n He co-authored \u201cInfinite Possibility\u201d in 2011, \u201cAuthenticity\u201d in 2007, and \u201cThe Experience Economy\u201d in 1999. The latter was an instant classic, still in Amazon\u2019s top 10 for the product marketing category after 25 years and two updated editions.<\/p>\n<\/p><\/div>\nWhat Customers Want<\/h3>\n