The Experience Economy. Starbucks, anyone?
"If you had the foresight to know that the economy was going to crash, that you knew that commodity prices were going to go up, you'd do a lot of things differently," the former CEO of Starbucks, Jim Donald shared in a video posted on CNN Money/Fortune last week.
The video entitled "Lessons from the Fall" answers the question of what Donald would have done differently if he had some insight into the future prior to his dismissal in January 2008.
Donald was replaced by the returning Starbucks founder, Howard Schultz, as Starbucks stock plummeted to 50% of it's 52-week high. Schultz immediately ushered in several changes within weeks of his return-- closing every Starbucks for 3 hours to re-train employees on service & the Starbucks experience, introducing Starbucks reward programs with free wi-fi offerings & launching a online community named www.mystarbucksidea.com. Also, Starbucks started grinding coffee beans in the store to enhance the experience by boosting the aroma of coffee.
Donald goes on to say "When you are running a company that is dependent on opening 2,000-2,500 stores a year, you've got to be well out in front of site selection. You can't just naturally slow this growth down. However, if you knew 18 months beforehand, you just might be able to do something about it."
What does Jim Donald & Starbucks have to do with the world of Meetings?
Like Starbucks, our meetings are about THE EXPERIENCE. And all things being equal, people are willing to pay for the experience. Why else would we stand in line so long that we're late to work to pay $5.50 for a Venti non-fat Vanilla Latte when we could go to White Hen, QuikTrip or Wa-Wa & pay 99 cents for an equally-good tasting cup of French Vanilla cappuccino? (Yes, I realize that this is a controversial statement. I am merely trying to make a point.)
Have we forgotten that our attendees DO have many different channels of distribution to educate themselves, capture CEU's or CME's or even share Best Practices? Have we forgotten our silent competitor, the internet serves up on-demand & oftentimes comparable educational content to the innermost recesses of our potential attendee? And usually for a lot less money-- and headaches given the airline travel.
In fact, consider this sobering statement by Roger Dow, President & CEO of the Travel Industry Association: "The air travel crisis has hit a tipping point -- more than 100,000 travelers each day are voting with their wallets by choosing to avoid trips," Dow stated in an CNN article released on May 30. The article was entitled "Americans take 41 Million Fewer Flights, survey shows."
Again, my point you might be wondering?
In light of the current downward direction of our economy & the many different options available to last year's meeting attendees for next year, it wouldn't hurt each of us to pay heed to the words of Jim Donald in the "Lessons from the Fall" video when asked the question "What would you do differently" if you had an 18-month window into the future?
"If you had the foresight to know that the economy was going to crash, that you knew that commodity prices were going to go up, you'd do a lot of things differently.... if you knew 18 months beforehand, you just might be able to do something about it."
Translating this into our world, the question could better be phrased 'What could we do differently in Meetings/Trade Shows/Conferences/Conventions if the economy does NOT correct itself before our next Annual Meeting or Trade Show? (No, I am not a doomsday conspiracist, I have just always subscribed to the theory that one should Expect the Best, however Prepare for the Worst.)
The next few blogs will be geared to that very question-- of what we can do differently in meetings if the economy does not correct itself either BEFORE our next meeting or convention OR stays in a downward trend long enough to re-train our attendees into seeking educational content through the internet.
My good friend, Rick Boale, Vice-President of Meetings with the Advertising Research Federation will be a guest blogger on Branding & Re-Branding your Meeting. (Can you think of ANY better person to share his thoughts about branding than this well-seasoned & prestigious Madison Avenue based meeting executive?")
We'll also look at at least one sexy, AMAZINGLY-priced meeting destinations that I would nearly bet money that you've never considered. (Hint: Watch out San Francisco!) This destinations will drive attendance at your meetings all-the-while offering great value & venues designed to maximize networking & community-building.
Then, we'll take a look at the EXPERIENCE of meetings & how to build buzz around your meetings & conferences. Or how do you "Starbuck-ize" your attendees meeting experience. That is, of course, pre-stock drop experience.
Lastly (but not least), we'll be asking for your feedback in these specific areas. And we'll even make it worth your while to offer your thoughts. But more about THAT next time.
