The Moment Economy - Part 3
The Moment Economy & Value (Experience) Capsules
In the last post of the series, I examined the growing significance of the Moment Economy, which transforms entire business logic, as illustrated in the case of Amazon Kindle services. Flexible structures like apps and pharmaceutical pills already follow the logic of generating value for specific moments. Consequently, consumer interaction through temporality and mobility is on the rise. This trend will continue to expand in the years ahead.
Addressing and accommodating this new behavior involves more than merely concentrating on experiences or the characteristics of a product or service alone. Instead, we must focus on value, consisting of several elements combined into a structure that is delivered and consumed during the Moment of Consumption (Value Moments). I call these Value Capsules, representing a combination of four elements:
The Origin: James Collins refers to it as Core Ideology, while Jeremy Heimans and Henry Timms call it "The Powers." Both concepts depict the nature of the relationship and engagement between the value generator and the perceiver and explain how it was established and is currently managed. An underlying shared value, belief, or interest continually forms the foundation of the relationship. We need to comprehend the reasons behind this relationship and engagement. We should question why our customer willingly connects and experiments with the organization and how we can reinforce that bond.
Access: Access centers around interactions. Experience and value require a platform to materialize within an individual. Access encompasses the functional aspects of a product or service that facilitate interaction between the parties. It also describes the initial value exchange, tangible or intangible, granting access to the platform. We should consider how we connect with customers and the value exchange necessary to enable access to the platform. This understanding can assist us in optimizing the process.
The Experience: Currently, humans lead organizations, meaning their offerings trigger emotional and cognitive responses. These experiences always occur in a specific moment and context, connected with access and the expectations from the initial relationship. As a customer interacts with a product/service or brand, the experience unfolds in the Moment, establishing an emotional and cognitive perception beyond the physical product or logical characteristics. A second value exchange might happen if the experience is positive or neutral, defining organizational sustainability. Thus, we need to pinpoint which bundle of experiences generates what value and which different bundles should form part of the capsule to adapt to various contexts, enhancing the customer experience.
The Value Exchange: The Value Exchange defines the options of values exchangeable to satisfy both parties involved in the "transaction." Without this exchange, no Value Proposition can be sustainable. Therefore, we must determine what makes the transaction sustainable, what we need in return and when, and where and what value transfers occur during Access and Experience. Gaining insights into these aspects can help ensure a mutually beneficial relationship.
By integrating these four facets of value delivery in a specific moment and context, we can design a Value Capsule for that situation. Organizations may have multiple capsules, depending on their touchpoints, offerings, and service moments. They may provide various options for the exact moments to increase the likelihood of customers perceiving a meaningful experience.
Segmenting the complex logic of value into capsules lets us examine the different moments in our offerings more easily and understand how they connect with the overall Value Proposition. This approach enables organizations to adapt to the rapidly evolving Moment Economy and better cater to their customers' diverse needs, ensuring a more resilient and future-ready business.
Question: What does the rise of the Moment Economy imply for business logic and consumer interaction?
Answer: The Moment Economy, characterized by temporality and mobility in consumer interaction, requires a shift in business logic. Companies need to focus on generating value for specific moments beyond product characteristics or experiences.
Question: What are the key components of a Value Capsule in the context of the Moment Economy?
Answer: A Value Capsule represents a combination of four elements: The Origin, which outlines the nature of engagement between the value generator and perceiver; Access, which facilitates interaction between parties; The Experience, which generates emotional and cognitive responses; and The Value Exchange, ensuring a sustainable transaction.
Question: How does 'The Origin' factor in Value Capsules?
Answer: 'The Origin' outlines the relationship and engagement between the value generator and perceiver. It entails understanding why a customer connects with an organization and questioning how to strengthen this bond based on shared values, beliefs, or interests.
Question: How does 'The Experience' contribute to Value Capsules and the sustainability of an organization?
Answer: 'The Experience' encapsulates the emotional and cognitive responses triggered by an organization's offerings in a specific moment and context. Positive or neutral experiences can lead to further value exchange, contributing to organizational sustainability.
Question: Why is 'The Value Exchange' critical to a sustainable Value Proposition in the Moment Economy?
Answer: 'The Value Exchange' ensures the values exchanged satisfy both parties. Understanding what makes the transaction sustainable, when, where, and what values are transferred during Access and Experience can help ensure a mutually beneficial relationship.