companies cannot survive by catering only to commoditized or
Compelled to break out from the commoditization trap, companies that offer goods and products are trying to build layers
of service wrappers to differentiate their core offerings. They are
redefining product philosophies, business operating models, and
service engagement patterns to stage memorable experiences
consistently across all the touch points and journeys. For creating
experience-driven offerings, companies are expanding their boundaries from selling products to providing servitized solutions with
complex product-service combinations. Companies are focusing on
the experience their consumers will have during the entire period
they consume or use the products, in addition to the resultant
outcome. In addition to selling base products they are reinventing
themselves to offer a range of services such as supply of spare parts,
help desk support, periodic maintenance, repair, and overhaul.
Asian Paints, an Indian multinational company, is engaged in the
business of manufacturing, selling, and distribution of paints and
coatings. The company has shifted its business focus from selling
paints to the very business of painting. It offers customers a suite
of services, such as color visualizer, color consultancy, painting
services, solutions for waterproofing, and wood solutions, thus
providing experience-based solutions for the specific painting
requirements of each customer.
A fundamental change in customer service is emerging in the
hyperconnected world, with new platinum standard replacing the
age-old gold standard. Any experience qualifies as an experience
only if it is driven by a “segment-of-one” approach—i.e., person-
alized and contextualized. Even the companies that are in the
middle of the goods-services continuum, and offering solutions
that are high in experience qualities, are exploring ways to make
the experiences they sell transcend beyond what is perceptible to
the five senses. They are trying to differentiate their experiences by
providing exclusivity, thematic variations, and personalized services.
For example, Starbucks Corporation has moved far away from
selling what is basically an agrarian product. It has redefined the
way coffee is prepared and served to provide customers with the
best possible coffee experience. Fresh and handmade beverage
(product), provided in specially designed stores (place) where it
is ground fresh in front of the customers (process) and delivered
by extensively trained staff (people), all blending together to give
customers an elevated coffee experience.
Atomization—Way to Experience
For staging experience, companies offering services are exploring
various methods to microfragment or atomize each and every business component, such as market segment, products, and services.
These atomized components are then dynamically fused to create
tailor-made solutions that are driven by the customer, situation,
and outcome and are delivered based on the customer’s preference.
Companies are pursuing various initiatives under the umbrella of customer experience management and are choosing
one dimension of their marketing mix to create personalized and
contextualized products or services in that space. As these trials
are in the early stages, the way companies atomize and bond has
yet to standardize.
To provide a seamless customer experience across multiple
channels, companies are embracing channel atomization by adopting
an omni-channel strategy. Atomizing customer segments is being
extensively done to create individual customer-focused strategies.
Companies such as Spotify and Garanti Bank are seen as pioneers
in atomizing pure services to provide experience.
Spotify, a Swedish music, podcast, and video service company, operates on a freemium model: Basic services are free, while
additional features are offered via paid subscriptions. Spotify
enables access to music through all major operating systems and
channels such as desktop, mobile devices, home entertainment
systems, auto dashboards, and smart TVs. Customers can browse
or search music by artist, album, genre, playlist, and record label.
They can create, edit, and share playlists; share tracks on social
networks; and make collaborative playlists with other users to
create a personalized way of experiencing music.
Garanti, the second largest bank in Turkey, has introduced a
mobile app called iGaranti that has atomized the banking services
into 23 features designed to make managing money easier. It inte-
grates wallet, savings, loans, offers, and other functions to let users
tailor their mobile app according to their needs. Using the app,
customers can make quick payments of bills, transfer money with
Companies are pursuing
under the umbrella of
management and are
choosing one dimension
of their marketing mix to
create personalized and
or services in that space.
Insurance as Experience—A New Paradigm