To think about the previous diagram from an Experience Economy perspective, Pine and Gilmore (1999) provide a theatre example to demonstrate the value created by experiential offerings.  They suggest that the goods you offer could be considered like props in a play.  Similarly, your services could be viewed as the stage where you offer the props and your personnel as actors in their interactions with customers.  All of these elements must work in coordination with each other for the “play” to be a hit! 

Experiences are the highest value creating element when added to other components of your offerings.

Remember, like in a play, all elements of your differentiation strategy must make sense together and hinge on a common theme.  How will your customer experience your goods (props) and services (the stage)?  This approach would require consideration of all details that support your theme.  For example, if your theme involved replication of a 19th century schoolhouse, you would not use a digital clock.  Small details in combination create and support a theme.

It is wise for small firms to find a niche in the market and serve it well.  However, successful differentiation requires that offerings be unique yet complementary to each other and to the theme and memorable experience you aim to deliver. Effective differentiation through experiences requires that small businesses consider their goods (props), services (stage), and personnel (actors), and experiences together.