Traditional marketing methods are becoming less effective, consumers are demanding more and more personalized options, and the need to generate more socially justified commercial offers is growing strongly and steadily.
This model gives rise to new problems in the field of value creation. Managers must deal with emotionally charged social issues and do not have a set of suitable instruments to deal with these new scenarios; In addition, companies do not have any experience with these new types of problems and there are no curricula in business education institutions that trains people on how to face these difficulties.
The growing relationship between “market share – market share” and “heart share – participation in the customer’s heart”, forces companies to have a shared vision: focus simultaneously on information and imagination and on reason and on emotion.
The addition of the emotional component broadens the scope of the competition. Terms such as “Experiential Economics” or “Emotional Economics” should be considered in this context.
Value Creation From A Historical Perspective
We will try to explore the changes in the value creation of society and we will analyze the mechanisms that underlie these changes. Until recently, the concept of value creation was interpreted solely in financial terms.
Until 1750, agriculture was the only sector responsible for creating value in society.
The majority of the employed population – at that time, 90% – operated in the agricultural sector, that is, in the “agricultural economy”, today that percentage has decreased to 5% in Europe and less than 3% in the United States. Joined. During the period of the Industrial Revolution, the majority of the employed population worked in industry (40% at its peak).
Currently, the automation process has reduced this rate to 15%. Today, 80% of the employed population works in the service sector and, consequently, we speak of a service economy. Given the recent evolution of the automation of services taken to the extreme on all fronts, without a doubt, the culmination of this economy has already been reached.
The question is how the economy is going to evolve in the future. The progressive creation of value in the past was from raw materials to products and from products to goods and services; nowadays, according to some authors, it will imply the generation of “Experiences, Perceptions” or, according to other opinions, “Dreams and Stories”.
But in summary, the creation of value in the future will, in fact, be more emotional and immaterial and can take any form or framework: formulas linked to theater or entertainment, aesthetic or learning proposals, stories with a script based on “we care”. by…” linked to social and cultural values.
The term that encompasses all these ideas is Emotional Economy; In line with this evolution, the expectation is that in the future a growing part of the employed population will be engaged in the “emotional sphere”. The keys to the emotional professions are becoming the keys to all professions.
This evolution, moreover, happens at an increasingly dizzying pace.
The agricultural society lasted approximately 10,000 years, the industrial society around 200 years, and the information society, which appears as the result of a reflection of the Experiential or Emotional society, will give rise to a renewed business model and consequently, a model necessarily renewed employment.
Contrary to all previous economies where value creation basically revolved around profit, value creation in the Emotional Economy will be a mixture of two dimensions: the individuality of people and the perceived benefit.
Consequently, it is expected that companies assume their responsibility and operate from this new broad social vision that includes the perceived benefit and uniqueness of each of their customers.
Based on a series of recent publications, it can be stated that the Emotional Economy has been approached from different perspectives:
.The American authors emphasize the aspect of “traditional benefits”. They only talk about an Economic Experience if the client/guest is willing to pay more for a simple service and if, based on an adequate Scenographic Setting, they live sensory experiences.
.The European authors, in addition to the traditional benefits and contrary to the version of the model of the search for profit as the only business objective, take into account the dimension of “the benefits for the individuality of the client/user/guest”. In this case, the starting point is another type of company, the company as a “tribe”, which appeals to stories that have value for the consumer that is born from the values of the social environment where they operate, the offer is aimed at their heart and your feelings. The products/services (tactical or short-term aspect) are subordinated to the story (strategic or long-term aspect).
Traditional marketing methods are becoming less effective. Consumers are demanding more and more personalized options and the need to generate more socially justified commercial offers is growing.
Therefore, a new value creation formula is required and consequently a different employment model.