Insights 2013 with Exclusive Online Content by sapientnitro

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Insights 2013 offers research, observations and compelling points of view from subject matter experts to students of life, to help us all see the path we're on a bit clearer, so the next step feels a bit more confident.

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									There is nothing so terrible as activity without insight.
                                 –Johann Wolfgang von Goethe
TABLE OF CONTENTS                                                                                                                                       OE   O.E. represents exclusive content which
                                                                                                                                                             is only available in the online version.


5   WELCOME TO INSIGHTS 2013              47 HOW SENSORS ARE CONNECTING                       91 GAMIFICATION AS A DIGITAL STRATEGY         OE         TREND 4
    Alan Herrick                             THE WORLD AND THE IMpLICATIONS                      Mohammed Iqbal, Syed A. Suffiyan                      Globalization: The Global Marketer
                                             FOR ExpERIENCE DESIGN OE                                                                                  and the Rise of the Global Consumer
7   IN-STORE DIGITAL RETAIL:                 Benno Schmidt                                    96 MEDIA-SApIENS: USING SOCIAL INSTINCTS
    THE QUEST FOR OMNICHANNEL                                                                    TO ExpLAIN, pREDICT AND INFLUENCE               165   UNDERSTANDING ECOMMERCE IN CHINA
    Hilding Anderson, Rachel Zinser       52 INVISIBLE BRAND INTERFACES       OE                 DESIRABILITY IN THE DIGITAL AGE                       Robert Wang
    with Rebecca Prettyman, Lauren Egge      Daniel Harvey                                       Melissa Read
                                                                                                                                                 171   FUTURE OF COMMERCE: LIFESTYLE SOCIAL
21 2012 DIGITAL IQ ExCERpT                56 IS THERE A TERMINAL VELOCITY FOR                 101 REBUILDING TRUST: HOW BANKS CAN                      COMMERCE GOES BEYOND pINNING OE
   L2 Think Tank                             YOUTH AND DIGITAL? OE                                RECONNECT WITH CONSUMERS                             Jeff Blais, Sushobhan Mukherjee
                                             Omaid Hiwaizi                                        Chris Baker, James Buchanan, Omaid Hiwaizi
25 TRENDS: FOUR TRENDS SHApING                                                                                                                   175   CHASING THE GLOBAL CHINESE LUxURY
   MARKETING pRIORITIES                   61 RESpONSIVE DESIGN 101:                                TREND 3                                             CONSUMER: A CONNECTOLOGY AppROACH
   Hilding Anderson, Todd Cherkasky,         OpTIMIZING FOR MULTIpLE SCREENS                       Continuous Experiences: How Companies               David Thorpe, Jake Wheeler
   Donald Chestnut                           Dan Israel, Mayur Gupta                               Are Blurring the Online and Offline World
                                                                                                                                                 181   GLOCALISATION AND THE ANTHROpOLOGY
    TREND 1                                  TREND 2                                          109 STORYSCApING: BUILDING WORLDS, NOT ADS               OF GLOBAL MARKETING OE
    Real-Time Control: New Consumer-         predicting Desire: Building the Infrastructure       Gaston Legorburu                                     Megan Bannon
    Oriented Devices and Data                to Anticipate Consumer Needs in Real Time
                                                                                              113 BRAND AS CHANNEL:                              187   FIVE CHALLENGES TO TOMORROW’S
29 FUTURE OF TV                           69 pREDICTING DESIRABILITY—                             TODAY’S “ALWAYS-ON” MESSAGING                        GLOBAL MARKETING LEADERS
   David Hewitt, Lucy Devassy                LESSONS FROM A TEEN GENIUS                           Alan Schulman                                        Hilding Anderson, Freddie Laker
                                             Sheldon Monteiro
35 CUSTOMER ExpERIENCE IS ON THE MOVE                                                         119 ADApTING TO A FRAGMENTED                       190   INTERNATIONAL ECOMMERCE ExpANSION
   Nigel Vaz                              75 THE FUTURE OF BUSINESS INSIGHT                       MEDIA ENVIRONMENT                                    Don Shields OE
                                             Lee Woodard, Chris Handley                           David D’Alleva, Peter Colapietro
39 MOBILE pAYMENTS:                                                                                                                              194   INTERNATIONAL pERSpECTIVES
   THE FUTURE OF MONEY                    81 THE “BIG DATA” ERA:                              124 THE FUTURE OF CONTENT ExpERIENCE                     US
   Perry Chan                                LEARNING TO ACT IN REAL TIME                         AND HOW TO DESIGN FOR IT                             UK
                                             James Buchanan                                       Kevin Nichols                                        Germany
45 THE ECONOMY OF ONE:                                                                                                                                 Russia
   THE CONSUMER AS pRODUCER,              86 DIGITAL LUxURY 101: HOW TO ENHANCE               130 I CAN SEE CLEARLY NOW ...                            India
   INFLUENCER AND pURCHASER       OE         THE CUSTOMER ExpERIENCE OE                           ACROSS THE ENTIRE ExpERIENCE:                        Singapore
   Dan Israel, Perry Chan                    Hazel Reed                                           THE ANALYTICS MATURITY MODEL         OE              Japan
                                                                                                  Jennifer Patterson, Dave Kane                        China
                                                                                                                                                       Australia
                                                                                              136 VALUING FANATICAL ENGAGEMENT
                                                                                                  Scott Petry                                    217   NOTE FROM THE EDITORS
                                                                                                                                                       Hilding Anderson
                                                                                              142 MEASURING GERMAN MULTI-CHANNEL:                      Lauren Nguyen Cohen
                                                                                                  AppROACHES AND IMpLICATIONS OE
                                                                                                  Uwe Tueben

                                                                                              149 THE CMO TOOLKIT: WHAT EVERY
                                                                                                  MARKETER SHOULD KNOW OE
                                                                                                  Gary Shannon, Omaid Hiwaizi

                                                                                              156 RETAIL GOES ROGUE: HOW DIGITAL
                                                                                                  CONVERGENCE WILL REVITALIZE THE
                                                                                                  IN-STORE ExpERIENCE
                                                                                                  Charlie Sayers, Rob Milstead
                      WELCOME TO                                                               “It is the function of creative
                      INSIGHTS 2013                                                             man to perceive and to connect
                                                                                                the seemingly unconnected.”
                      Written by Alan Herrick, President and CEO, Sapient Corporation                          –William Plomer


             When history looks back on this          think about creativity and what can       Or that a ski resort would be one         Our thinking is stretched daily to
             season of robust innovation and          happen to a compelling idea when it’s     of the first to introduce RFID            help bring brand stories to life in
             progress, I think it is likely to        amplified by the scale of technology      technology as a way to enhance their      relevant ways across the consumer
             remember it as one of the most           and personalized by the intimacy of       guest experience on the slopes and        ecosystem. As consumer, retail and
             significant paradigm shifts in, not      human interaction.                        way beyond? We had the honor of           communications landscapes continue
             only daily life, but in the business                                               helping Vail Resorts innovate a way       to stretch and evolve, we will continue
             of relevance in daily life. We are       To that end, we believe that a brand’s    to connect skiers to RFID tagging to      to wake up in the morning propelled
             perpetually challenged to connect        ability to innovate is not just about     social media so that they can track       by the challenge.
                                                      technology. It’s about combining          and share their Vail stories across
                                                      technology with powerful ideas and        their personal networks. The result       In this edition of Insights,
                                                      insightful perspectives on human          was more than 100,000 social photos       SapientNitro thought leaders offer
Our thinking is stretched daily to                    moments to create highly relevant         shared, yielding approximately 12         you approaches and tools that help
help bring brand stories to life in                   ways to connect.                          million social impressions for photos     navigate this completely digitized,
                                                                                                alone, and that’s in just the first       borderless world—to be used as a
relevant ways across the consumer                     Who would have anticipated that one       season. Vail Resorts empowered            flashlight of sorts. It offers research,
ecosystem.                                            of the most esteemed luxury car           150,000 people living the Vail Resorts    observations and compelling points
                                                      brands in the world would create a        story to tell the Vail Resorts story to   of view from subject matter experts
                                                      mobile app that allows consumers          an audience of 12 million? What once      to students of life, to help us all see
                                                      to virtually build their entire car—      might have begun as an ad for a ski       the path we’re on a bit clearer, so the
             the dots between our brands and          from the very first bolt to the last      vacation has become a panorama of         next step feels a bit more confident.
             the daily lives of our consumers in      drop of paint?                            experience that lives in perpetuity.
             meaningful ways.                                                                                                             Thank you for your interest and
                                                      Or that a 125-year-old British sports     It has been our privilege to              support of SapientNitro, and with
             As stewards of brands and purveyors      gaming company would be the one to        participate in these and many             continued resolve, we invite the
             of ideas, we are both humbled            pioneer a combination of analytics,       other breakthrough changes that           challenges of our time, walking
             and exhilarated by the impact of         social media and mobile technology        reinvent the definition of “idea” and     alongside partners connecting in new
             technological innovation on how we       to drive a record surge in betting?       unfetter the boundaries of creativity     and creative ways to their consumers.
                                                                                                for new pathways of connection.
          IN-STORE DIGITAL RETAIL:                                                                                                                                                                                                 KEY THEMES



          THE QUEST FOR OMNICHANNEL
                                                                                                                                                                                                                       The goal of this research was to                                                          Just as ecommerce spurred the
                                                                                                                                                                                                                       evaluate the digitization of physical                                                     evolution of a new type of shopping
                                                                                                                                                                                                                       spaces. Our hypothesis was that                                                           experience, in-store retail is poised to
                                                                                                                                                                                                                       most retailers—particularly in their                                                      undergo the same type of disruptive
                                                                                                                                                                                                                       marquee New York City Fifth Avenue                                                        evolution—transforming itself into
             Written by Hilding Anderson, Sr. Manager Research + Insights, Washington, DC & Rachel Zinser, Sr. Associate
                                                                                                                                                                                                                       stores—would have made substantial                                                        something so different it requires
                    Research + Insights, Chicago, with Rebecca Prettyman, Associate Research + Insights, Chicago                                                                                                       investments, and the investments                                                          a new name: Connected Retail. A
                                   & Lauren Egge, Associate Government Services, Washington, DC                                                                                                                        would have been made here prior                                                           Connected Retail experience2 is a
                                                                                                                                                                                                                       to other cities.                                                                          fully integrated, digitally enhanced                                                  The Adidas store, not part of our formal
                                               Over the past decade, retailers of all                                                    exploring in-store self-checkout with                                                                                                                                   experience that engages the customer                                                  evaluation, included a display obviously
                                                                                                                                                                                                                                                                                                                                                                                                       added onto the in-store experience.
                                               sizes have been driven by disruptive                                                      smartphones.                                                                  We discovered that simply “adding                                                         in both the virtual and the physical
“Of the 71 retailers,                          technologies and the changing                                                                                                                                           digital” is not the answer for retailers—                                                 worlds. It enables stores to exploit
 only 4 emerged with                           consumer to make major investments                                                        To measure the degree to which                                                yet that was an approach too often                                                        and extend their unique advantages
                                               in digital channels, particularly                                                         retailers are successfully building links                                     taken. As you’ll note in the scores,                                                      into the digital realm.
 ‘baseline’ scores.                            ecommerce and mobile platforms.                                                           between their digital and physical stores,                                    brands that simply bolted on a screen
 Effectively, in-store                         But now, more retailers are starting to                                                   SapientNitro independently conducted a                                        or added a tablet did not score well. In                                                  To understand the implications of
                                               embed sophisticated interactive tools—                                                    four-month audit of specialty retailers.
 digital experiences                           from digital displays to interactive                                                      We evaluated the physical locations of 71
                                                                                                                                                                                                                       our view, the retail store must focus on
                                                                                                                                                                                                                       tools that help sell in-store and extend
                                                                                                                                                                                                                                                                                                                 the research, we focused on several
                                                                                                                                                                                                                                                                                                                 questions we expect retailers to ask
 today are only weakly                         exhibits—into the store layout itself.                                                    retailers across 7 key criteria, gathering                                    the visibility of both the customer and                                                   and developed six key findings based
 integrated with in-store                                                                                                                over 500 points of data (See Methodology                                      the sales associate into the digital space:                                               on them.
                                               Ecommerce investments used to be                                                          & Approach).                                                                  product reviews, near-infinite inventory
 goals and activities.”                        focused on simply complementing                                                                                                                                         and a much broader product assortment.
                                               the traditional retail store footprint.                                                   In the end, what we found was
                                               In that world, shoppers would browse                                                      surprising. Of the 71 retailers, only
                                               online, compare prices through their                                                      4 emerged with “baseline” scores.                                                        KEY FINDING 1:
                                               PC and ultimately end up in the store to                                                  Effectively, in-store digital experiences                                                DIGITAL IN-STORE DISpLAYS ARE pOWERFUL
                                               purchase. It was a linear journey.                                                        today are only weakly integrated with                                                    TOOLS—BUT TOO OFTEN pOORLY ExECUTED
                                                                                                                                         in-store goals and activities: The
                                               But increasingly, new ecommerce tools                                                     content and functionality (if it exists at
                                               are able to directly influence the in-store                                               all) of these experiences struggle to                                         When done well, in-store digital                                                          can enhance the experience, it lacks
                                               shopping experience. This is reshaping                                                    support in-store goals and activities.                                        branding added tremendous energy                                                          interactivity. We saw little content
                                               the traditional role of the store: What                                                                                                                                 and engagement to the retail shopping                                                     focused on product information and                                                    One example of well-integrated digital
                                               used to be a key step on the path is now                                                  In most stores, digital has a limited                                         experience. Unfortunately, most digital                                                   utility, and even fewer interactive                                                   merchandising was the Bloomingdale’s
                                               optional on the way to the purchase                                                       effect on the visit—mobile, kiosk or                                          experiences suffered from major                                                           experiences designed around user                                                      in-store in-wall displays. Not interactive,
                                                                                                                                                                                                                                                                                                                                                                                                       they still were well-executed and supported
                                               through a digital platform.                                                               tablet-based ecommerce and digital                                            shortcomings, if they existed at all—                                                     goals and actions.                                                                    the brand goals in the store.
                                                                                                                                         display screens could be removed                                              40 of the 71 retailers evaluated had no
                                               Smartphones have reinforced this                                                          entirely from the shopping process                                            visible digital displays. Interestingly,                                                  What worked: UNIQLO’s in-wall
                                               transient behavior. Now, search and                                                       and there would be little change. Yet                                         many of the best in-store experiences—                                                    screens were tightly integrated with the
                                               price comparison is happening in the                                                      despite the sad state overall, there were                                     Chanel’s sleek runway video and                                                           physical design of the store and visually
                                               store aisles, and a new behavior of                                                       interesting examples that were doing                                          Clinique’s iPad skin evaluation—                                                          compelling. In larger stores, consistent
                                               test-and-buy-elsewhere are becoming                                                       one category very well. For example,                                          appeared to be created in positive                                                        usage of digital display as part of
                                               much more common.1                                                                        Nordstrom, Coach and Crate & Barrel                                           partnerships between vendors or                                                           the brand experience was essential
                                                                                                                                         earned high scores in inventory visibility                                    suppliers and retailers.                                                                  in creating the desired impact. For
                                               In response, retailers are increasingly                                                   and fulfillment, UNIQLO had fantastic in-                                                                                                                               example, Bloomingdale’s had screens
                                               embedding digital experiences into their                                                  store digital displays and merchandising                                      More troubling is that few retailers                                                      throughout the store, which was
                                               physical locations, and applying connected                                                and Bloomingdale’s had great digital                                          embraced the interactive element                                                          in stark comparison to other large
                                               thinking to enable consumers throughout                                                   brand and merchandising examples in                                           of digital. Screens are great, but our                                                    retailers that often had a single, and
                                               their journey with the brand. Examples                                                    the cosmetics section. JCPenney and                                           expectation is that in-store digital must                                                 sometimes difficult-to-find, screen for
                                               include mobile apps with built-in scanners                                                Macy’s also offered distinct Levi’s digital                                   move beyond glorified wall hangings                                                       an entire floor. Digital entertainment                                                LEGO’s in-store augmented reality experience
The Nike Store, while not formally evaluated                                                                                                                                                                                                                                                                                                                                                           has received considerable buzz in the digital
as part of the research, offered some of the   to discourage showrooming, inventory                                                      touchpoints (the Denim Bar and Levi’s                                         and deliver content and functionality                                                     for kids is an interesting concept; both
                                                                                                                                                                                                                                                                                                                                                                                                       space. But like many experiences in our audit,
most immersive digital experiences.            visibility and tools to enable cross-channel                                              kiosk respectively) and sales associates                                      that supports2 users in the shopping                                                      Abercrombie and PS from Aéropostale                                                   lack of support (in this case, the display was not
                                               shopping (e.g., wish list management).                                                    were enabled with iPads.                                                      process. Many of the screens focused                                                      featured digital displays at kids’                                                    operating) hampers the use of these devices.
                                               Retailers such as Walmart are also                                                                                                                                      solely on branded content; while this                                                     heights, which offered a distraction for                                              The LEGO store was not part of our formally
                                                                                                                                                                                                                                                                                                                                                                                                       evaluated retailers.
                                               1
                                                   59% of smartphone owners report having used their phone to find a better price while in-store. InsightExpress, Q1 2012, “Digital Consumer Portrait.” Jan 25, 2012   2
                                                                                                                                                                                                                           For more information on Connected Retail, see “Retail Goes Rogue: How Digital Convergence Will Revitalize the In-Store Experience” in the Trend 3 section of this report.
                                           To measure the degree to which retailers                                                    Retailers’ physical stores were evaluated             weary parents and kept kids engrossed.           video footage, but didn’t add to the visit.

 METHODOLOGY                               are successfully building links between their
                                           digital and physical stores, SapientNitro
                                                                                                                                       across seven criteria: Visibility, Content,
                                                                                                                                       Functionality, Brand Translation, Social
                                                                                                                                                                                             The Levi’s Denim Bar at JCPenney
                                                                                                                                                                                             was well designed and reasonably well
                                                                                                                                                                                                                                              Over and over, we saw stores that
                                                                                                                                                                                                                                              had clearly not thought through the

  & APPROACH
                                           independently conducted a four-month audit of                                               Sharing Integration, Mobile Experience
                                           specialty retailers.                                                                        In-Store and Cross-Channel Inventory                  integrated. Converse—not on our list—            digital, omnichannel environment. We
                                                                                                                                       & Fulfillment (See Methodology Chart).                offered digital tools to allow consumers         encountered many examples of poor
                                           Our research approach consisted of                                                          And ultimately, each retailer received an             to customize their shoes in-store and            placement including a digital display
                                           in-person visits to the physical properties of                                              Omnichannel Score based on its composite              walk out with one of many designs                tucked under stairs and another hidden
                                           71 retailers, focusing on flagship and other                                                score (See Omnichannel Scorecard).
                                                                                                                                                                                             printed on their sneakers. This is a             behind a rack of clothes. One store had
                                           prominent locations in New York City.3
                                           Researchers assessed each store’s digital                                                                                                         strong example of a tool that adds value         seven-foot-high kiosks, which were
                                           offering(s) while equipped with Android and                                                                                                       to the in-store shopping experience, is          both broken and awkwardly placed at
                                           iOS smartphones.                                                                                                                                  relevant to in-store purchasing and can’t        an exit and in the middle of a crowded
                                                                                                                                                                                             be replicated at home.                           clothes section. Another beauty and
                                                                                                                                                                                                                                              skincare store mounted a touchscreen
                                           DEFINITION OF CATEGORIES
   60+              Excellent                                                                                                                                                                What didn’t: In smaller stores, such             computer to the wall, but left the outlet
   50-59            Good                   Visibility: To what degree are digital elements                                              Social Sharing Integration: How well is              as Lindt and Bath & Body Works, large            and cables clearly exposed.
   40-49            Average                clearly visible in the store? Is digital integrated                                          cross-channel or social sharing (e.g., email,        screens behind the checkout displayed
   30-39            Fair                   throughout the shopper’s path?                                                               Facebook, Twitter) enabled?
   29 and           Weak
   below
                                           Top Scores: UNIQLO received a five in this
                                           category—the highest possible rating—for its
                                                                                                                                        Top Scores: Sephora earned a four because
                                                                                                                                        many of its touchpoints supported easy email
                                                                                                                                                                                                KEY FINDING 2:
                                           dynamic, visually stunning store experience.                                                 sharing, and there was some social integration          pOORLY pLANNED DIGITAL IS WORSE
                                                                                                                                        though it was not seamless. Overall, a category         THAN NO DIGITAL AT ALL                                                                                                               Several retailers integrated scanning
Methodology                                Content: Is the content relevant to the brand                                                average of 1.4 out of 5—which excluded the
                                           and its products and services? How well is the                                               40 retailers that received a 0 score—indicates                                                                                                                                               capabilities into their mobile apps, but
                                           content tailored to the in-store experience?                                                 significant room for improvement across                                                                                                                                                      our attempts to scan were mostly
Store Experience                   70%                                                                                                                                                       Digital is a key component of the                What didn’t: JCPenney had great
                                                                                                                                        all retailers.                                                                                                                                                                               unsuccessful. The scanning software
    Visibility               15%
                                           Top Scores: No brand received a five, but                                                                                                         shopping journey, but retailers that             experiences at the Levi’s Denim                                                        usually worked, but the mobile app was
    Content                  20%
                                           Ethan Allen and Sephora secured a four by                                                    Mobile Experience In-Store: Does the retailer        rush to extend digital to the physical           Bar and had iPad-equipped sales                                                        unable to look up the barcode.
    Functionality            20%
    Brand Translation        15%           offering product information and exploration                                                 have a native mobile app with functionality          store experience won’t win the race.             associates, but the overall experience
                                           to support the in-store shopping experience.                                                 relevant to the in-store experience (e.g., push      Retailers must plan for the long-term;           was hampered by broken price-check
Social Sharing Integration         10%                                                                                                  notifications, barcode scanner)?
                                           Functionality: Are digital tools interactive?
                                                                                                                                                                                             this includes technology support and             kiosks and two broken “findmore”
Mobile Experience                                                                                                                                                                            sales associate training in how to use the       touchscreen kiosks. Display errors
                                           To what degree are the functions relevant to                                                 Top Scores: No mobile experience warranted
In-Store
Cross-Channel
                                   10%
                                           shoppers’ goals and the in-store experience?                                                 a five. Most apps were singular in function if
                                                                                                                                        they worked at all. However, Bloomingdale’s
                                                                                                                                                                                             tools and in the value they provide. Staff
                                                                                                                                                                                             shouldn’t be surprised when shoppers
                                                                                                                                                                                                                                              on Guess’ touchscreen overshadowed
                                                                                                                                                                                                                                              any value the content could provide.
                                                                                                                                                                                                                                                                                                                                      Retailers’ Digital
Inventory & Fulfillment            10%     Top Scores: No experience garnered a five,
                                           but Sephora’s digital touchpoints, including
                                                                                                                                        did earn a four; in addition to the product
                                                                                                                                        scanner provided by its Big Brown Bag app,
                                                                                                                                                                                             use smartphones to scan a barcode or             Several retailers integrated scanning                                                   Assets (Content)
Each retailer was scored in each
category from 0 (not present) to 5
                                           the Scentsa fragrance finder, netted the
                                           retailer a four.
                                                                                                                                        the “Bloomingdale’s @ 59th & Lex” app offered
                                                                                                                                        interactive floor maps for its flagship store.
                                                                                                                                                                                             interact with a touchscreen. Floor plans
                                                                                                                                                                                             have to be redesigned for digital displays
                                                                                                                                                                                                                                              capabilities into their mobile apps,
                                                                                                                                                                                                                                              but few worked seamlessly and                                                           Grow More Critical
(best). The scores were weighted to                                                                                                                                                          and interactive elements.                        consistently. Guess’ sales associates
create a composite index, and then         Brand Translation: Is digital well integrated                                                Cross-Channel Inventory & Fulfillment: Does                                                           intercepted us as we tried the style
                                           into the physical space? Do digital                                                          the retailer provide store inventory visibility in                                                                                                                                           “The content owners that will
multiplied by 15 to achieve an easy-to-                                                                                                                                                      What worked: UNIQLO is a prime                   selector, and in American Eagle
read overall score from 0 to 75. See the   touchpoints enhance the brand image                                                          other channels? How well does the retailer                                                                                                                                                    thrive in this digital ecosystem
                                                                                                                                                                                             example of a store designed with digital         Outfitters, the sales associate wasn’t
Omnichannel Scorecard for the results.     and store experience?                                                                        support cross-channel shopping and fulfillment?
                                                                                                                                                                                             in mind, but even stores like Saks Fifth         aware of the mobile app’s barcode                                                       are the ones that understand
                                                                                                                                                                                             Avenue and Ralph Lauren that had fewer           scanner. Even several Sephora                                                           the need to deliver seamlessly
                                           Top Scores: Bloomingdale’s, especially its                                                   Top Scores: Coach, Crate & Barrel and
                                           cosmetics experience, and UNIQLO’s spaces                                                    Nordstrom allowed shoppers to easily check           displays with little to no interaction           employees provided misinformation                                                       across every possible platform.”
                                           were clearly designed with digital in mind,                                                  in-store availability via the website and mobile     executed what they did have well—                about the Beauty Studio tool.                                                                                –eMarketer




                                                                                                                                                                                                                                                                                                                                     80
                                           earning each a five.                                                                         site and offered an option for in-store pickup,      displays were integrated and smooth.
                                                                                                                                        which plays up a physical retailer’s advantage of
                                                                                                                                        immediate fulfillment and no shipping costs.

                                                                                                                                                                                                 KEY FINDING 3:
                                                                                                                                                                                                 IT ISN’T JUST THE HARDWARE:
                                                                                                                                                                                                 CONTENT AND SOFTWARE MATTER
                                                                                                                                                                                                                                                                                                                                                                   %
                                                                                                                                                                                             Great digital signage and interactive            match the hardware. In our research,                                                    Companies that optimize their
                                                                                                                                                                                             digital elements require great material.         we found many examples of large-scale                                                   mobile web content outperform
                                                                                                                                                                                             Nothing emphasized the gap between               runway videos, but were left scratching                                                 those that don’t by 80% in
                                                                                                                                                                                             the promise and the reality better than          our heads about the lack of other                                                       year-over-year increases in
                                                                                                                                                                                             the lack of software and content to              stories. Where were the stories about                                                   web traffic.4
                                           3
                                               71 retailers were audited. Of those, we evaluated one or more locations in New York City for
                                               68 retailers and locations in Chicago for three retailers with limited or no presence in New York City.                                                                                    4
                                                                                                                                                                                                                                              Aberdeen Group “The Business Value of Adapting Web Content For Mobile Devices,” 2011
                                         how a great design came to life? Where       several years, but is a solid tool,
                                         was the product information, or even
                                         promotional material?
                                                                                      delivering personalized product
                                                                                      recommendations based on users’ skin
                                                                                                                                    KEY FINDING 5:
                                                                                      types and key concerns (e.g., acne,
                                                                                                                                    RETAILERS SHOULD FOCUS ON
                                         In fact, Sephora’s tools, Clinique’s         redness). It is integrated with email—        SUppORTING USER TASKS
                                         skin evaluation, Macy’s Levi’s kiosk,        which worked—and usually a printer,
                                         JCPenney’s Levi’s Denim Bar and Ethan        and was a popular tool at Macy’s,          Well-designed, task-based tools               Magic Mirror, which allows shoppers to
                                         Allen’s Express platform were some           Bloomingdale’s, Nordstrom, Saks
“Based on                                of the only software implementations         Fifth Avenue and Lord & Taylor. While
                                                                                                                                 emerged as being few and far between          quickly try on many new glasses styles
                                                                                                                                 in our research. We found that the            while still being able to see the styles
 SapientNitro’s                          focused on in-store tasks. In-store tools    most had the Clinique iPad propped         leading examples included wedding             properly wearing their own.
                                         need to offer more than something a          up in a very basic (likely standardized)
 work in the space,                      shopper can do at home.                      freestanding base, Bloomingdale’s
                                                                                                                                 registry kiosks, mobile barcode scanners
                                                                                                                                 and product explorations like the skin        What worked: Crate & Barrel included
 we have found a                                                                      went a step further to integrate the       evaluation and fragrance finder.              both a wedding registry kiosk and a
 significant increase—                   There are hundreds of potential stories      iPads into a custom counter.                                                             mobile app that allowed users to walk
                                         for strong brands, and digital in-store                                                 But much was left on the table. While         the store and scan items to add to their
 on the order                            tools offer the opportunity to tell them.    What didn’t: Barneys had over a dozen      43% of brands had some sort of                registries. Clinique’s iPad tool delivered
 of 10% to 40% in                        The failure to highlight and feature these   iPads placed consistently throughout       functionality supporting in-store tasks,      personalized product recommendations,
                                         stories is a key gap for many retailers.     the multi-level store, but the content     the majority were digital displays. Even      helping shoppers narrow down the
 additional in-store                     Content needs to be integrated into          was generic dot-com material (typically    fewer (22%) brands had interactive            options at the point of sale. Macy’s
 sales—relative                          the development of digital in-store          linked to the blog “The Window”). ALDO     tools, which support those user tasks.        mobile app included a barcode scanner
                                         experiences, and content is a powerful       was even worse—they mounted tablets        And we saw none of the digital try-on         that worked, although it returned a
 to other stores.”                       tactic within a larger omnichannel           next to the shoes, offered no content      technologies that various publications        higher price online than in-store.
                                         strategy. Content must tell a story          targeted at consumers and even had         have lauded. Not only did we not see
                                         consistent with the brand.                   sales associates scold shoppers when       virtual fitting rooms, but also some          What didn’t: Bath & Body Works’
                                                                                      they attempted to scan the shoes           of the experiences that the industry          mobile app included a scanner, but
                                         What worked: Clinique’s iPad skin            themselves.                                raves about, like iPad kiosks, failed         every attempt to scan a product
                                         evaluation has been out for                                                             to deliver. We also failed to find any        resulted in an error—this issue was
                                                                                                                                 future-thinking examples similar to           common across retailer apps assessed.
                                                                                                                                 Marks & Spencer’s touchscreen co-             Guess’ app also promised to look up
                                            KEY FINDING 4:                                                                       browsing experience (see image to             prices and customer reviews, but also
                                                                                                                                                                               threw an error. And we already noted
                                            THE RIGHT TOOLS GENERATE pOSITIVE ROI                                                the left) recently rolled out in Paris,
                                                                                                                                 or examples such as LensCrafters’             ALDO’s “tablet trap.”
                                                                                                                                                                                                                            New, Creative
                                         One of the key questions to consider         unique advantages: immersion, direct                                                                                                  Retailing Models
                                         prior to in-store digital investment
                                         is ROI. The cost of installing and
                                                                                      support of sales associates, immediacy
                                                                                      and focus, social elements and the
                                                                                                                                     KEY FINDING 6:                                                                         Are proliferating
                                         supporting these tools is significant,       opportunity for fun. It makes sense to
                                                                                                                                     THE OMNICHANNEL BATTLE HAS BEGUN
                                         but the question of a positive return        invest in the channel that represents                                                                                                 “ The highly targeted assortment
                                         is too often unknown. Based on               more than 90% of most retailers’                                                                                                        and short-term leases are a
                                                                                                                                 We awarded three retailers a five in the      channel purchasers. Across the seven           low-risk way for Walmart to
                                         SapientNitro’s work in the space, we         sales (even as ecommerce continues         Cross-Channel Inventory & Fulfillment         categories we evaluated, more retailers
                                         have found a significant increase—on         to grow).                                                                                                                               reach new shoppers and capture
                                                                                                                                 category. This is the only category that      were awarded top scores (4 and 5) in
                                         the order of 10% to 40% in additional                                                                                                                                                shopping occasions it may not
                                                                                                                                 had more than two top-scoring retailer        Cross-Channel Inventory & Fulfillment
                                         in-store sales—relative to other stores.     What worked and what didn’t:               and reflects, we believe, a growing           than in any other.                             otherwise have access to.”
                                         These benefits are primarily due to          Obviously, our audit of in-store           interest in this area and increased                                                        –Instoretrends.com, referring to Walmart’s
                                         decreased lost sales, the ability to ship-   experiences couldn’t determine             retailer awareness of cross-channel           We also examined the flexibility of
                                                                                                                                                                                                                                   2011 Holiday Pop-Up Store Strategy




                                                                                                                                                                                                                            130
                                         to-home, improved in-store shopping          the direct impact of each digital          behaviors. This is the first of a series of   cross-channel shipping. The ability
The Marks & Spencer Paris location       by enabling co-browse with sales             experience. What we’ve found in our                                                      to check store inventory in multiple
offered co-browsing for associates and                                                                                           steps towards omnichannel thinking.
                                         associates, and brand contribution.          work in the space is a significant ROI                                                   channels is highly relevant to the

                                                                                                                                                                                                                                                            %
is a move towards the “endless aisle,”
particularly important in the most
                                         Retailers with a physical presence           increase in well-designed convergent       We assessed how well retailers are            omnichannel shopper. Additionally,
profitable high-traffic, small           need to play up the benefit of in-store      retail tools such as in-store kiosks       facilitating cross-channel shopping           three retailers pushed the bar higher
footprint stores.                        experiences. Quite simply, sales             connected to the right technology on       behaviors, specifically from the web          to support cross-channel fulfillment.
                                         conversion is much higher in the retail      the back end.                              (and mobile web) to the physical              Coach, Crate & Barrel and Nordstrom
                                         store than anywhere else. It also offers                                                store. With the large number of               gave shoppers the option to purchase
                                                                                                                                 consumers that research online and            an item online and then pick it up at          The increase in online sales
                                                                                                                                 buy in-store, retailers have a significant    a nearby store that had the item in            over 3 months after Tesco’s
                                                                                                                                 opportunity to support these cross-           stock. Though it does not offer the            South Korean commuter
                                                                                                                                                                                                                              campaign was 130%.
                                         level of immediacy that in-store pickup                                             usual specs like size or color, as well
                                         provides, some retailers also offered
                                         a ship-to-store service, which, when
                                                                                                                             as “nearby” through which users can
                                                                                                                             set a location and narrow products by
                                                                                                                                                                                                            CASE STUDY: MACY’S
                                         offered for free, might appeal to the                                               store availability.
                                         large number of shipping fee-averse                                                                                                                             Across nine floors and over two million      during our audit. Though the five-
                                         shoppers.5                                                                          What didn’t: Among the surprises were                                       square feet of retail space, the Macy’s      inch LCD screens were not a vision
                                                                                                                             H&M and UNIQLO, which did not have                                          flagship store in Herald Square had          of beauty, the kiosks provided basic
                                         What worked: Crate & Barrel had                                                     ecommerce offerings in the U.S. and                                         more in-store touchpoints than any           product specifications along with price,
                                         clear inventory visibility as well as the                                           provided no visibility into store inventory.                                other store evaluated. Yet it was clear      in which shoppers clearly saw value.
                                         option to see if larger furniture pieces                                            And while several large department                                          it was optimized for an analog world;        There was a missed opportunity to
                                         were on display at a nearby location.                                               stores provided at least some level of                                      digital displays had limited functionality   further engage, cross-sell and delight
                                         They also provided in-store pickup                                                  inventory visibility—including Macy’s,                                      and the visibility of the tools in such a    customers at this already frequented
                                         services as well as an option of free                                               JCPenney, Bloomingdale’s and                                                large store held the retailer back from      touchpoint.                                      The Clinique skin evaluation in Macy’s
                                         shipping to a store. Nordstrom offered                                              Saks—it was a surprise to see a few                                         achieving a “Good” designation.                                                               offered clear instructions and a clean
                                         innovative functionality on its mobile                                              exceptions, including Neiman Marcus                                                                                      Other areas of opportunity included the          interface, but was also featured at most of
                                         site, allowing users to filter by the                                               and Lord & Taylor.                                                          Top experiences included the Clinique        digital branding and merchandising               their competitors.
                                                                                                                                                                                                         skin evaluation iPads—Macy’s most            displays throughout the store, which
Scentsa’s design                                                                                                                                                                                         ubiquitous (available on three separate      weren’t as integrated as, for example,
invited shoppers to try it out.          CASE STUDY: SEpHORA                                                                                                                                             floors) and successful implementation,       Bloomingdale’s. In addition, the single
                                                                                                                                                                                                         although not unique to Macy’s. The           gift registry in the ninth floor luggage
                                                                                                                                                                                                         sleek display of the Levi’s touchscreen      department worked, but seemed
                                         While no brands achieved the                                                        The location made the touchpoint less                                       kiosk in the kids’ department, while         oddly placed. Users could search for a
                                         “Excellent” status in this inaugural                                                inviting to passersby if the station was                                    tucked among the racks in the girls’         registry, but the output was a several-
                                         omnichannel index, Sephora did                                                      in use, but those that ventured to check                                    denim section, drew attention. Users         foot-long, receipt-style printout of
                                         emerge as a leader among its peers.                                                 it out found how-to videos and tips, an                                     could browse very basic product              products.
                                         Sephora had a seemingly well thought                                                overview of available in-store services,                                    information related to kids’ denim
                                         out strategy for digital in its physical                                            social content from Sephora’s networks                                      styles and snap a pic with the digital       As a whole, the Macy’s digital in-store
                                         spaces, in addition to a relevant mobile                                            and more. Shoppers could also share                                         photo booth. Finally, the Macy’s mobile      experience has established several key
                                         offering and cross-channel—both dot-                                                content via email or social networks,                                       app was a strong point with a scanner        pieces of a complete offering: cross-
                                         com and mobile—inventory visibility.                                                though some speed and system issues                                         for price comparison (although it            channel inventory visibility, a mobile
                                                                                                                             were encountered when we attempted                                          returned a higher price than the             scanner and the beginnings of in-store
                                         Inside the store itself, the Scentsa                                                to do the latter.                                                           physical tag) and its “find in-store”        digital content. Developing tools that
                                         touchscreen kiosk served as a                                                                                                                                   function.                                    enhance the brand and truly support
                                         centerpiece in the fragrance space.                                                 Sephora’s mobile app also offered                                                                                        shoppers’ in-store activities remain a
                                         The best-in-class interactive display                                               shoppers a scan feature, providing                                          Price-check kiosks were easy to find         significant opportunity.
 Beauty Studio iPads linked              let visitors explore fragrances through                                             easy access to additional product info                                      and were used frequently by shoppers
 shoppers to tutorials, social           multiple paths, such as by brand or                                                 and reviews, which could help with
 content and available services.         by fragrance note. The touchscreen                                                  purchase decisions.
                                                                                                                                                                                                                                                                                                       The Macy’s Levi’s
                                         was responsive and easy to navigate,                                                                                                                                                                                                                          kiosk was visually striking.
                                         and offered shoppers helpful product                                                Each touchpoint hit the mark across
                                         information. When a shopper found                                                   several criteria, but the overall
                                                                                                                                                                                                                               The Macy’s                                           The Levi’s kiosk
                                         something of interest they could email                                              experience still fell shy of “Excellent.”                                                         mobile app                                               was easy to
                                         it or scan the QR code to pull up the                                               On reflection, we felt Sephora missed                                                              included a                                         use, but product
                                         product on their phone. The screen                                                  making the final strong connection                                                           basic scanning                                           information was
                                         also prominently displayed Facebook                                                 between shoppers’ in-store goals and                                                           capability, as                                                  limited.
                                         links, but didn’t follow through with                                               experience. Scentsa helped shoppers                                                        well as the ability
                                                                                                                                                                                                                              to scan and
                                         social sharing capabilities.                                                        wade through the overwhelming                                                                 add items to a
Sephora offered                          A second touchscreen kiosk, Sephora’s                                               number of fragrances, but after finding                                                              registry.
email through its                        Skincare IQ, offered a very similar                                                 the perfect scent on the screen, how
tools (see email
link in top-right                        experience catered to skincare needs.                                               does it make its way to their cart?
corner of image).                                                                                                            There was no indication of whether
                                         In addition, Beauty Studio iPads were                                               the fragrance was on the shelf at that
                                         positioned along the vanity mirrors at                                              moment and no assistance locating it.
                     In-store scanning   Sephora’s makeover stations.
                     with the Sephora
                     app surfaced
                     helpful reviews.    5
                                             When asked the main reasons they don’t make online purchases, 36% of consumers cited the shipping costs. That made shipping costs the second-most common
                                             reason they balk at buying online, only slightly behind the 37% who prefer to see and touch an item in person before purchasing. (Internet Retailer 2012)
  NASCAR
              The blurring of lines across online and     experience. The opportunity—to be
              offline are not just impacting retailers.
              We work with multiple industries that
                                                          fair, as yet unrealized—is to surface
                                                          great analysis and social conversation,
                                                                                                         CASE STUDY: JCpENNEY

   RACES
              are addressing the same challenges          and to see aspects of the event they
              to their businesses. From travel and        may have missed—without diluting the        JCPenney has the opportunity to be           was entirely unresponsive. The
              hospitality to telecom, most consumer-      intensity of the real-world experience.

 TOWARDS
                                                                                                      among the leaders in relevant digital        promotional material promised
              facing industries are, to some extent,      For example, they are considering           in-store experience, with several strong     media-rich content and social sharing
              facing similar challenges. However,         leveraging digital signage, Jumbotron       experiences. But in practice not only        options, but we saw little of note.
              few have pushed as hard or as fast          integration, in-venue kiosks and            did a majority of digital touchpoints fail
OMNICHANNEL   as NASCAR.

              NASCAR is one of the premium
              professional sports businesses, with
                                                          even mobile ticketing to make the
                                                          experience richer.

                                                          Connecting Digitally at Home
                                                                                                      to impress, too many were inoperative
                                                                                                      or unsupported.

                                                                                                      The first touchpoint encountered was
                                                                                                                                                   A more recent effort—the Levi’s Denim
                                                                                                                                                   Bar—hit the mark across several
                                                                                                                                                   criteria. Relative to the kiosks, visibility
                                                                                                                                                   was improved, with in-store marketing
              massive reach—hosting 17 of the 20          Similarly, while watching at home,          the price-check, a staple in many            messages of “a new way to shop
              most attended sport events—while            second screen viewing can extend and        department stores. Similar to other          for jeans” and a prominent location
              delivering significant results to           increase the richness for consumers.        retailers, the design did nothing to         adjacent to an aisle. The Denim
              sponsors’ products and services. With       Personalized experiences similar to         boost the brand image, but the real          Bar—which was only in the men’s
              over 70 million fans worldwide, it is the   ecommerce platforms in retail can           issue was that the price-check was           department of the location visited—was
              second most-viewed broadcast sport,         allow fans to connect with existing         non-functioning. The kiosk display           well designed, with the feel of a store-
              and has the longest sustained season        media broadcasts (e.g., follow their        indicated that the “Price check              within-a-store. iPads were mounted on
              of any sport.                               favorite driver’s audio or watch pit        system is unavailable. Please see an         the Denim Bar, and the interface was
                                                          row videos), live data feeds (e.g., tire    associate.” This message appeared            smooth and provided shoppers access            iPads at the Levi’s Denim Bar were easy
              Yet their digital channels have             state, fuel state, speed) and education     at seven of the eight kiosks we visited      to basic information such as available         to navigate.
              traditionally been under-emphasized—        and analysis (e.g., history of the track,   throughout the store location.               styles and washes, as well as video and
              with no YouTube channel (until              live analysis), or even enable social                                                    images highlighting the fit.
              recently), substantial conversation         conversation (e.g., Twitter, Facebook)      JCPenney’s “findmore” kiosk offered
              drop-off in the off-season and a fifth      on NASCAR’s own platform.                   a strong visual impression, although         Beyond in-store offerings, JCPenney
              place in online conversation after the                                                  the content and functionality struggled.     provided inventory visibility through
              NFL, NBA, NHL and MLB.                      Building the Brand                          The kiosk essentially brought shoppers       both its dot-com and mobile site, which
                                                          NASCAR fans are some of the most            to the retailer’s website without            supports the omnichannel shopper.
              In addition, their customer base            passionate in the world. Part of the        specifically tailoring the experience to     And though the Levi’s experience
              is evolving. Their biggest fans are         opportunity of digital is to deepen         in-store goals. In terms of functionality,   and inventory visibility resulted in
              increasingly connected consumers            that connection by bringing great           the touchscreen interface on the             a slight lift in scoring, it was still
              who expect to be able to interact with      content about the history of the teams,     first kiosk was largely unusable—the         overshadowed by inoperative kiosks
              their favorite brands, drivers and teams    sponsors, cars and drivers. There is        navigation would rarely respond to           and price-checkers.
              through digital channels.                   incredible richness in the stories, which   touch—and the second kiosk tested
                                                          can be told through these platforms.
              The solution is to reinvent and             And off-season, digital channels offer
              recognize the strategic opportunity         the opportunity to flatten seasonality
              to evolve to a more connected fan           and shape engagement.
              experience that extends before, during
              and after events.                           In summary, just as retail stores
                                                          have started to consider in-store,
              Extending the In-Venue Experience           NASCAR has started to think about
              Analogous to the in-store experience,       in-stadium and at-home digital
              attending races used to be dominated        experiences. Integration with live
              by the cars and a basic scoreboard          television programming allows deeper
              with positions. Yet today, NASCAR is        engagement—and more opportunities
              seeing fans arrive with smartphones         for lifting the lifetime value of fans.                                                                                                 The “findmore” kiosk had a fairly clean
              who expect a platform to extend their                                                                                                                                               look but was not functioning correctly
                                                                                                                                                                                                  during our multiple visits.
                                                                                                                                                                                                                      60+              Excellent
                                                                                                                                                                                                                      50-59            Good
                                                                                                                                                                                                                      40-49            Average
                                                                                                                                                                                                                      30-39            Fair
CONCLUSION                                                                               OMNICHANNEL SCORECARD                                                                                                        29 and
                                                                                                                                                                                                                      below
                                                                                                                                                                                                                                       Weak



Our research teams visited over 70         We did find compelling experiences.                                                                                                 Omnichannel
retailers across New York City. What we    From UNIQLO to the Bloomingdale’s        Rank   Retailer                                                    Category                  Score6      Class      Descriptions
found were major gaps in the in-store      cosmetics section to Sephora’s
                                                                                    1      Sephora                                                      Beauty & Skincare         59         Good      Our #1 for having a variety of useful interactive
digital experience. Substantial pressure   Scentsa, it was clear that some                                                                                                                             tools that enhance the store experience, but
is on retailers to meet the connected      retailers have made the necessary                                                                                                                           there’s still room to push the envelope
consumer’s push for a seamless             conceptual and material investment.
                                                                                    2      Bloomingdale’s                                               Department Store          52         Good      Exemplary use of video screens, delightful 59th @
omnichannel experience, and while it       But too often, we also found major                                                                                                                          Lex app for use in the flagship store and seamless
is inspiring retailers to consider new     problems: broken devices, bolted-on                                                                                                                         execution of Clinique iPads
ways to extend aisles, create adaptive     displays and disconnected experiences.
                                                                                    3      Macy’s                                                       Department Store          46         Average   On the right track with a diverse range of digital
environments and deliver augmented                                                                                                                                                                     touchpoints, but visibility and functionality
packaging experiences, the reality is      Achieving an omnichannel digital                                                                                                                            need a boost
humbling.                                  vision has challenges. Our study found
                                                                                    4      Crate & Barrel                                               Home & Gift               44         Average   Competent implementation of gift registry, but
                                           that much work remains for retailers                                                                                                                        only cross-channel inventory & fulfillment goes
That only two stores—Sephora and           to achieve their vision—but this also                                                                                                                       above and beyond
Bloomingdale’s—achieved a “Good”           means that we are even earlier in this
                                                                                    5      American Eagle Outfitters                                    Apparel                   43         Average   Kids’ section features fun, digital entertainment,
rating in SapientNitro’s Omnichannel       process than in ecommerce or pure                                                                                                                           plus displays and mobile investment
Index reflects the substantial             digital experiences and that, as
                                                                                    6      Nordstrom                                                    Department Store          40         Average   Cosmetics department screens, mobile app and
challenges that remain in developing       a result, more opportunities remain.                                                                                                                        inventory visibility shine but the rest fall flat
a strategy for in-store experiences. In
the end, no retailer received the top      And the retailer who cracks this nut     6      Saks Fifth Avenue                                            Department Store          40         Average   A minimalist approach: branded video screens
                                                                                                                                                                                                       complement the fine-art feel of the store
“Excellent” rating because too few have    will receive a disproportionate share
overcome the underlying challenges of      of the reward.                           8      UNIQLO                                                       Apparel                   36         Fair      Branded video screens around every corner enhance
execution: organizational alignment,                                                                                                                                                                   the store’s high-tech feel but none offer interactivity
clear strategy and an actionable                                                    9      Lord & Taylor                                                Department Store          33         Fair      A sleek cosmetics department bolsters
roadmap with quick wins.                                                                                                                                                                               an otherwise mediocre digital experience

                                                                                    10     Ethan Allen                                                  Home & Gift               32         Fair      Touchscreen kiosk is a strong step in the right
                                                                                                                                                                                                       direction, but location and in-store role need
                                                                                                                                                                                                       attention

                                                                                    10     ZARA                                                         Apparel                   32         Fair      Handful of well-placed digital video screens
                                                                                                                                                                                                       and a smooth mobile scanner, but no visibility into
                                                                                                                                                                                                       store inventory

                                                                                    12     Guess                                                        Apparel                   31         Fair      Solid endeavor with its touchscreen denim finder,
                                                                                                                                                                                                       but system errors bring it down a notch

                                                                                    13     JCpenney                                                     Department Store          29         Weak      Valiant effort, but maintaining tools
                                                                                                                                                                                                       is a must

                                                                                    13     Lacoste                                                      Apparel                   29         Weak      No mobile integration, but bonus points for good
                                                                                                                                                                                                       design and appealing digital video content

                                                                                    15     Barneys New York                                             Apparel                   27         Weak      Mounted ipads look sleek, but deliver only website
                                                                                                                                                                                                       content that shoppers can browse at-home

                                                                                    15     Diesel                                                       Apparel                   27         Weak      iPads and video screens compliment the brand,
                                                                                                                                                                                                       but none blew us away

                                                                                    15     Tourneau                                                     Watches & Jewelry         27         Weak      Unimpressive screens, but online shoppers can
                                                                                                                                                                                                       schedule in-store appointments for an item of
                                                                                                                                                                                                       interest

                                                                                    18     Steve Madden                                                 Accessories & Shoes       26         Weak      Digital video experience is well-branded though
                                                                                                                                                                                                       underwhelming

                                                                                    18     Williams-Sonoma                                              Home & Gift               26         Weak      A basic gift registry kiosk with a print option sums
                                                                                                                                                                                                       up the digital offering

                                                                                    20     Aéropostale                                                  Apparel                   25         Weak      Digital photo booth in kids’ PS store is a fun
                                                                                                                                                                                                       diversion, but limited in functionality and offers no
                                                                                                                                                                                                       sharing capability

                                                                                           6
                                                                                               A retailer’s maximum score is 75. See Methodology & Approach for more detail.
                                                          Omnichannel
Rank   Retailer                     Category                Score       Class   Descriptions                                               The following retailers received an overall score of 0
                                                                                                                                           as all three components evaluated were absent:
20     Bath & Body Works            Beauty & Skincare         25        Weak    Digital falls flat: uninspired marketing video
                                                                                and a mobile scanner that returns only errors              	       •	No	digital	touchpoints	were	visible	in	the	store	location	visited
                                                                                                                                           	       •	No	native	mobile	app	with	relevant	in-store	functionality
20     French Connection            Apparel                   25        Weak    Single video screen behind the cashwrap is
                                                                                integrated and branded well                                	       •	No	store	inventory	visibility	on	the	retailer’s	website	or	mobile	site

20     Ralph Lauren                 Apparel                   25        Weak    Classic but minimal: on-brand video and                                Retailer                       Category
                                                                                well-designed displays, just not many of them
                                                                                                                                                       ALDO                           Accessories & Shoes
24     Ann Taylor                   Apparel                   23        Weak    One poorly mounted screen tucked away
                                                                                in the fitting room that serves up the                                 Cole Haan                      Accessories & Shoes
                                                                                dot-com leaves much to be desired                                      Nine West                      Accessories & Shoes
24     BCBG                         Apparel                   23        Weak    Room for growth: runway videos looped on a                             Tumi                           Accessories & Shoes
                                                                                couple of screens
                                                                                                                                                       7 For All Mankind              Apparel
24     H&M                          Apparel                   23        Weak    Floor-to-ceiling projector screen makes a                              Abercrombie & Fitch            Apparel
                                                                                statement, but still has no ecommerce in the U.S.
                                                                                                                                                       Anthropologie                  Apparel
                                                                                                                                                       Club Monaco                    Apparel
27     Brooks Brothers              Apparel                   20        Weak    No digital to be had except for shoppers seeking
                                                                                a round of virtual golf practice                                       Intermix                       Apparel
                                                                                                                                                       J.Crew                         Apparel
27     Lindt                        Home & Gift               20        Weak    Single screen mounted behind the cashwrap
                                                                                doesn’t grab shoppers’ attentions                                      Juicy Couture                  Apparel
                                                                                                                                                       Lucky Brand                    Apparel
27     Neiman Marcus                Department Store          20        Weak    Meager: Nothing beyond the Chanel runway
                                                                                video screen                                                           lululemon athletica            Apparel
                                                                                                                                                       Rugby                          Apparel
27     Stuart Weitzman              Accessories & Shoes       20        Weak    Branding video facing the street may catch the
                                                                                attention of passers-by, but not of the in-store                       L’OCCITANE en provence         Beauty & Skincare
                                                                                shoppers
                                                                                                                                                       LUSH                           Beauty & Skincare
31     Gymboree                     Apparel                   14        Weak    The small TV encapsulated in protective                                The Body Shop                  Beauty & Skincare
                                                                                plastic may keep the kids entertained,
                                                                                but fails to impress
                                                                                                                                                       Bergdorf Goodman               Department Store
                                                                                                                                                       Dean & Deluca                  Home & Gift
32     bebe                         Apparel                   9         Weak    Mobile scanner and inventory check are the
                                                                                only pluses                                                            Godiva Chocolatier             Home & Gift
                                                                                                                                                       pottery Barn                   Home & Gift
33     Coach                        Accessories & Shoes       8         Weak    Online shoppers can easily check nearby stores’
                                                                                inventory, but won’t find any digital content when                     Restoration Hardware           Home & Gift
                                                                                they arrive                                                            West Elm                       Home & Gift
34     Talbots                      Apparel                   6         Weak    The website and mobile site highlight                                  Cartier                        Watches & Jewelry
                                                                                in-store availability, but the digital offering                        Swarovski                      Watches & Jewelry
                                                                                ends there
                                                                                                                                                       Swatch                         Watches & Jewelry
35     A|x Armani Exchange          Apparel                   5         Weak    Great dot-com inventory check for
                                                                                                                                                       Tiffany & Co.                  Watches & Jewelry
                                                                                in-store pick up, but fails everywhere else
                                                                                                                                                       Zales                          Watches & Jewelry
35     American Apparel             Apparel                   5         Weak    Can check inventory via dot-com, but lacks digital
                                                                                in-store and mobile relevance

35     Banana Republic              Apparel                             Weak    Mobile scanner is the lone bright spot
                                                                                                                                           The following retailers were not evaluated due to limited locations in
                                                              5
                                                                                                                                           the geographies visited or lack of physical retail presence:
35     Express                      Apparel                   5         Weak    Mobile app has a scanner, but it is
                                                                                disappointingly glitchy
                                                                                                                                                       Harry & David                  Home & Gift
35     Urban Outfitters             Apparel                   5         Weak    No in-store touchpoints and does only                                  Blue Nile                      e-tailer
                                                                                dot-com inventory check well
                                                                                                                                                       Bluefly                        e-tailer
40     Gap                          Apparel                   3         Weak    A frustrating mobile scanner is the extent of the
                                                                                                                                                       Net-A-porter                   e-tailer
                                                                                in-store digital experience
                                                                                                                                                       Shopbop                        e-tailer
40     Victoria’s Secret            Apparel                   3         Weak    App with scanner claimed exclusive offers, videos
                                                                                and info, but never delivered

42     Chico’s                      Apparel                   2         Weak    The in-store experience is void of digital and the
                                                                                online offering to ‘find a store’ is riddled with errors

42     White House | Black Market   Apparel                   2         Weak    Store inventory supposedly visible via mobile and
                                                                                dot-com, but worked not once when evaluated
            ExCERPT from the 2012 Digital IQ Index : Specialty Retail
                                                                 ®

            To access the full report, contact membership@L2ThinkTank.com
                                                                                                                                      KEY FINDINGS The Return of E-commerce



WHAT’S OLD IS NEW AGAIN
                                                                                                                                     Brand sites continue to be the primary                                      incremental traffic, is employed by                                               investing more on their sites than
                                                                                                                                     revenue-generation engine online,                                           only 65 percent of retailers. Most                                                in mobile or social platforms.6
                                                                                                                                     however significant low-hanging fruit                                       notably, adoption of live chat fell to
                                                                                                                                     remains. Only 50 percent of brands                                          26 percent, bucking the nationwide                                                Site investments appear to pay off—
Written by Scott Galloway, Clinical professor of Marketing, NYU Stern, Founder, L2                                                   incorporate conversion-enhancing                                            trend5 and suggesting that prestige                                               Genius brands keep users on their
                                                                                                                                                                                                                                                                                                   sites two and a half minutes longer
The brave new world of social media has simmered as it appears that (thus                 Methodology                                user reviews. Similarly, the Facebook                                       retail brands are not seeing ROI on
                                                                                                                                     “Like” API, a valuable source of                                            the technology. However, brands are                                               than Feeble brands do.
far) hype has trumped impact. Meanwhile, 15+ years on, e-commerce has
become the disruptive force first envisioned in the late 1990s. In the first              L2 is a think tank for digital
quarter of 2012, online retail spending in the United States reached $44.3                innovation. SapientNitro has                                                                                                       Site Feature Adoption
                                                                                          partnered with L2 to deliver the                                                                                             % of Sites with the Following Tools
billion, up 17 percent YoY.1 E-commerce is expected to grow at a 13.3 percent             highlights from their 2012 Digital IQ                                                                                                  July 2010–2012
CAGR, reaching $361 billion in the U.S. by 2016.2 With brick and mortar retail            Index®: Specialty Retail study. The
                                                                                                                                                                                                                         2010 n=84            2011 n=64            2012 n=76
flat or declining, the percentage of sales (and growth) traditional retailers             Index measures brands against their
                                                                                          peers on over 675 quantitative and
register online could become the arbiter, sorting winners from losers. Many
                                                                                          qualitative data points, diagnosing
traditional retailers now register more than a quarter of their sales online.             their strengths and weaknesses
                                                                                          across four dimensions:
Size Matters                                 capital in a supply chain marching to        1. Site: effectiveness of brand site and
Scale is beginning to translate online.      same day delivery, it eats away at one       e-commerce operations
For the first time, there is a significant   of the few remaining advantages of                                                                                                                                                                                                                                           26%
                                                                                          2. Digital Marketing: search, display,                                                                                                                         28%                                                                            23%
relationship between the size of a           terrestrial retail—immediacy. Amazon         and email marketing efforts                                         65%                                                                                                                                                             31%
                                                                                                                                                                                     37%
retailer’s business and Digital IQ.          is the retail ocean’s lone Great White       3. Social Media: brand presence,                                                      48%                                                 56%            44%
The relationship strengthens when            Shark, broadening its prey from slow         community size, content, and
looking at the size of retailers’            fat seals to … everything that swims.        engagement on leading platforms
                                                                                                                                                                  product Facebook “Like”                                               User Reviews                                                        Live Chat
online businesses.                                                                        4. Mobile: compatibility, optimization,
                                             Mobile: “I Can’t Believe                     and marketing on smartphones,
Department Stores: Rumors of Their           How Much You’ve Grown!”                      tablets, and other mobile devices
                                                                                                                                                                                                                   Where Retailers Are Investing6
Deaths Are Greatly Exaggerated               What was supposed to take ten                                                                                                                                  % of Retail Executives Prioritizing Investments
                                                                                          This year’s Index ranked the digital
Department stores have found                 years took three. Everyone, including                                                                                                                                  in the Following Media n=100
                                                                                          efforts of 76 retail brands. Based on
sanctuary in the digital domain.             Facebook, has been caught flat-footed
                                                                                          their overall performance, brands
Building on the successes from 2011          by the adoption rate of smartphones,         were classified as either: Genius,                                                                                              59%                                  35%                                   22%
for the first time, the average Digital      which has reached 165 million users          Gifted, Average, Challenged, or
IQ for the category outpaced children        in the U.S. alone.4 M-commerce is            Feeble. More information on the
of the medium, the e-tailers. The top        now the fastest growing retail channel       ranking and methodology can be
                                                                                          found in the full report.
two spots in the 2012 Digital IQ Index®:     in history, and mobile devices are
Specialty Retail were (decisively)           likely influencing more on- and offline                                                                                                                        Site                              Mobile                     Social Networks
captured by Macy’s and Nordstrom,            purchases than traditional broadcast,
respectively.                                let alone an in-store salesperson.        and weaknesses and help brands
                                             E-commerce is now m-commerce.             achieve greater return on incremental                                      “Straight e-commerce sites serve a purpose, but to compete in a digital
Amazon.com: The Great                        Social media is now consumed via          investment. We have modified our
White Shark of Retail                        mobile app. Digital marketing is          methodology, increasing the weighting                                      space a brand’s web presence needs to be more than pictures and a
A peerless e-commerce experience             now centered on mobile search and         of a brand’s site from 30 percent to 40                                    shopping cart. To compete in today’s retail world, the brand needs to create
coupled with a 37 percent share of U.S.      mobile-optimized email.                   percent and decreasing the weighting
m-commerce3 make Amazon.com                                                            of social media from 20 percent to                that personalized, one-of-a-kind, unique online experience, presenting consumers with
the force reshaping retail. The most         Digital IQ = Shareholder Value            10 percent. In addition, we measured              options they didn’t know they had.”                                                                                               – BILL KANARICK, WORLDWIDE CMO, SAPIENTNITRO
recent victims are other e-tailers who       The L2 study attempts to quantify the     each retailer’s order and return
can’t compete. Amazon now has brick          digital competence of 76 global retail    fundamentals, and purchasing and                 1
                                                                                                                                          “comScore Reports $44.3 Billion in Q1 2012 U.S. Retail E-Commerce Spending,                          4
                                                                                                                                                                                                                                                 “Smartphone Adoption Rate Fastest in Tech History,” Stephanie Miot, PC Magazine, August 27, 2012.
and mortar peers squarely in its cross       brands. Our aim is to provide a robust    tracking from three distinct locations.            Up 17 Percent vs. Year Ago,” comScore Press. Release, May 9, 2012.                                   5
                                                                                                                                                                                                                                                 “Live Chat Effectiveness- A Survey of Internet Shoppers 2012,” Bold Chat Research Report.
                                                                                                                                        2
                                                                                                                                          “Apparel Drives US Retail Ecommerce Sales Growth,” eMarketer Press Release, April 5, 2012.           6
                                                                                                                                                                                                                                                 “Website investment still key for online retailers despite the rise of social and mobile,” Maria Wasing,
hairs. As Amazon reinvests cheap             tool to diagnose digital strengths                                                         3
                                                                                                                                          “Amazon To Book $2 Billion In M-Commerce This Year,” Steve Smith, Media Post, September 29, 2011.       Econsultancy, September 3, 2012.
 KEY FINDINGS Red Light, Green Light                                                                                                                                                KEY FINDINGS Movin’ On Up

While Facebook’s stock price may be                                                     emerged as a notable source of both        to retailers. Last year, 14.5 percent of                                                                                           around mobile. Seventy-eight percent
down, the platform is not necessarily                                                   upstream and downstream traffic.           Amazon.com’s 22.3 million hits7             Smartphone penetration is almost                                                       of brands in the 2012 index have a                        their site on the tablet and likely
losing importance. Once again,                                                                                                     on Black Friday came from social            40 percent,9 and tablet adoption                                                       mobile-optimized site, up from a                          don’t want to obfuscate sales by
Facebook is a key traffic driver of                                                     Analysis of traffic to and from            sites, up from 9 percent in 2010 8—         skyrocketed from zero to 25 percent                                                    quarter two years ago.                                    having an app in the equation.
users to retailer sites, representing                                                   Amazon.com and other third party           a powerful force. Overall traffic to        in only two years.10 Sixty-nine percent                                                                                                          Nine brands removed their 2011
10 percent of upstream traffic.                                                         e-commerce sites reveals higher            retailers fell 7.1 percent year over year                                                                                          Brands are building apps for iOS and
                                                                                                                                                                               of mobile users have used their device                                                                                                           iPad applications: Abercrombie &
Conversely, Twitter does not represent                                                  rates of downstream traffic than           while Amazon.com’s already massive                                                                                                 Android, however iPad app adoption
                                                                                                                                                                               to get product information, and 82                                                                                                               Fitch, Banana Republic, Bath & Body
any reportable upstream traffic,                                                        upstream, reinforcing the threat of        traffic rose 13 percent, suggesting                                                                                                dropped from 39 percent in 2011 to
                                                                                                                                                                               percent of smartphone owners use                                                                                                                 Works, bebe, Bergdorf Goodman,
suggesting the medium is not a major                                                    the e-tailer. Facebook and Amazon          it feasts on the traffic cookie while                                                                                              29 percent this year. Many retailers
                                                                                                                                                                               devices to help with shopping in-                                                                                                                Bluefly, Diesel, Tiffany & Co.,
e-commerce driver. Pinterest has                                                        together is an even bigger challenge       everyone else fights over increasingly                                                                                             demonstrate higher conversion from
                                                                                                                                                                               store.11 All signs point to a future built                                                                                                       & Williams-Sonoma.
                                                                                                                                   small crumbs.

                                                                      Referral and Destination Sites for Specialty Retail Sites                                                                                                                                                  Mobile Site Features
                                                                     Upstream and Downstream Traffic to and from the Following Sources                                                                                                                                % of Mobile Sites with the Following Features
                                                                                               July 2012                                                                                                                                                                             July 2012, n=59

                                     % of Upstream Traffic                                                                % of Downstream Traffic                                                                                            44%                                                                                           5%
                                                                                                                                                                                                                                                                         41%                               25%
                                       Average % of traffic to                                                                 Average % of traffic from
                                       brand sites from the                                                                    brand sites forwarding to
                                       following sources:                                                                      the following destinations:



                                                                                                                                                                                                                                           56%                             59%                                75%                              95%
                                                   53%                                                                                     49%
                                      Google                                                                                                        Google                                                                           Product Social                      Mobile Site                    Customer Service                 M-Commerce
                                                                                                                                                                                                                                        Sharing                           Search

                                                   10%                                                                                     14%
                                    Facebook                                                                                                       Facebook
                                                                                                                                                                                                                                                                  Mobile Application Platform Adoption Rates
                                                                                                                                                                                                                                                                                              2010 –2012

                                                   3%                                                                                        3%                                                                                                                            2010 (n=81)          2011 (n=64)      2012 (n=76)
                                                                                                                                                                                                                                      60
                                  Competitors                                                                                                     Competitors
                                                                                                                                                                                                                                                                   51%
                                                                                                                                                                                                                                      50
                                                   2%                                                BRAND SITE                              3%
                                                                                                                                                                                                                                                          45%




                                                                                                                                                                                                              Percent of Retailers
                                                                                                                                                                                                                                                                                                 39%
                                                                                                                                                                                                                                      40
                                     Amazon                                                                                                         Amazon
                                                                                                                                                                                                                                                   28%                                                  29%
                                                                                                                                                                                                                                      30

                                                   1.6%                                                                                      2%                                                                                       20
                                                                                                                                                                                                                                                                                                                                         21%


                                    Pinterest                                                                                                       Pinterest
                                                                                                                                                                                                                                      10
                                                                                                                                                                                                                                                                                         6%
                                                                                                                                                                                                                                                                                                                                3%
                                                                                                                                                                                                                                                                                                                         6%
                                                   0.8%                                                                                      2%                                                                                        0

                              Other E-commerce                                                                                                  Other E-commerce


                                                   0%                                                                                    0.05%                                                                                                           iPhone                                 iPad                           Android


                                      Twitter                                                                                                       Twitter
                                                                                                                                                                               9
                                                                                                                                                                                  “Smartphone penetration in the U.S. from 2010 to 2016,” Statista, 2012.
                                                                                                                                                                               10
                                                                                                                                                                                   “Tablet Shopping Growing, but Retailers Must Keep Up,” eMarketer, June 15, 2012.                                 Download the full ExCERpT of the
 7
     “Retail traffic on Black Friday up 2%,” Experian Hitwise Blog, November 26, 2011.                                                                                         11
                                                                                                                                                                                   “The Retailers Definitive Guide to m-Commerce Success,”
 8
     “Social media helps big retailers drive traffic during the holidays,” internet Retailer, January 30, 2012.                                                                    Cheryl Sansonetti, 5th Finger, May 2012.                                                                         2012 Digital IQ INDEx®: Specialty Retail Study
                                                                                                                                                                                                                                                                                                    http://www.l2thinktank.com/research/specialty-retail-2012/
                                                                                     OvERvIEW OF TRENDS
                                                                                                          We call this “experience-led business transformation.” Brands are increasingly defined by the
                                                                                                          experience—by the sum of the interactions and value exchanged. Today, experience is the brand.

                                                                                                          As we collected the materials for this section of the report, we identified four major trends that
                                                                                                          define our space today and shape the future.




TRENDS
                                                                                                          The four trends are areas where experience is being re-conceptualized. From the consumer’s
                                                                                                          embrace of new devices and real-time control to the increasing global nature of marketing,
                                                                                                          these trends will be driving marketing priorities over the next three to five years.


                                                                                                          TREND 1:                                               TREND 3:
                                                                                                          Real-Time Control: New                                 Continuous Experiences: How Companies
                                                                                                          Consumer-Oriented Devices and Data                     Are Blurring the Online and Offline World
                                                                                                          As the world of experience evolves, one of the         The third trend in the evolution of great
                                                                                                          most critical trends is consumer demand for            experiences is the blurring of the online and
                                                                                                          real-time control of their data, their lives and       offline worlds into one continuous spectrum.
                                                                                                          the world around them.
                                                                                                                                                                 Great brands are increasingly using all their
                                                                                                          While not always met, this expectation, and            assets to reach their customers in the right
                                                                                                          how brands are striving to meet it, is driving         time, place and with the right tools to shape

FOUR TRENDS SHAPING MARKETING PRIORITIES                                                                  some of the most interesting developments in
                                                                                                          marketing today.
                                                                                                                                                                 the purchase decision.

                                                                                                                                                                 A new conception of the story, the role of
                                                                                                          The future of television, the growth of                brand, new strategies for content and new
We are witnessing fundamental changes at the intersection of                                              smartphones, the rise of alternative methods           retail models are all topics our authors
                                                                                                          of payment and the development of new ways             chose to address in this section.
                                                                                                          to deliver content: Our authors have explored
technology, business and customer experience. The collective                                              each of these ideas in detail.                         TREND 4:
                                                                                                                                                                 Globalization: The Global Marketer
impact of “disruptive technologies” on the human experience                                               TREND 2:                                               and the Rise of the Global Consumer
                                                                                                          predicting Desire: Building                            The final trend in the future of experience
                                                                                                          the Infrastructure to Anticipate                       is the increasing globalization of the
is causing chaos for companies. Old business models are                                                   Consumer Needs in Real Time                            marketing environment.
                                                                                                          The second major trend we’re seeing is that
                                                                                                          companies are predicting—and even shaping—             No longer are marketing assets, brands and
failing. Communication and commerce are converging—in                                                     desire among their target customers.                   messages restricted within a single country’s
                                                                                                                                                                 borders. Information travels farther and faster
the home, on-the-go and at the store.                                                                     A combination of new technology, customer changes      today than in the past.
                                                                                                          and business viability is making this possible.
                                                                                                                                                                 To adapt to this world, marketers must
     Written by Hilding Anderson, Sr. Manager Research + Insights, Washington, DC,                        The rise of data warehouses and analytics, the         rethink how they operate. Few regions
                    Todd Cherkasky, VP Research + Insights, Chicago                                       future of mobile data, real-time analysis, the         represent the magnitude of the challenge
                 & Donald Chestnut, Chief Experience Officer, New York                                    use of social networks to monitor and influence        —and the opportunity—as China.
                                                                                                          desirability, and ways banks can rebuild trust
                                                                                                          were all topics our authors chose to explore in        In this section, we posit a new CMO mindset
                                                                                                          this category.                                         necessary to operate in the new marketing
                                                                                                                                                                 environment. In addition, our authors focused
                                                                                                                                                                 on ecommerce and the luxury consumer in
                                                                                                                                                                 Southeast Asia.
                                                                      Future of TV

                            TREND                                       29
                              1                                                             Customer Experience




  REAl-TIME
                                                                                               Is on the Move


                                                                                                  35

  CONTROl
                                                                 Mobile Payments:
                                                                The Future of Money


                                                                     39                              OE

                                                                                            The Economy of One:
                                                                                             The Consumer as
                                                                                            Producer, Influencer
As the world of experience evolves, one of the most critical                                   and Purchaser


                                                                                                   45
trends is consumer demand for real-time control of their
                                                                                                                             OE
data, their lives and the world around them.                               OE
                                                                                                                       Invisible Brand
                                                                    How Sensors Are
While not always met, this expectation, and how brands are                                                                Interfaces
                                                                  Connecting the World

                                                                                                                          52
striving to meet it, is driving some of the most interesting     and the Implications for
developments in marketing today.                                   Experience Design

The future of television, the growth of smartphones, the rise
of alternative methods of payment and the development of
                                                                         47                               OE

                                                                                                    Is There a
                                                                                               Terminal Velocity for
new ways to deliver content: Our authors have explored each                                     Youth and Digital?


                                                                                                      56
                                                                                                                                  OE
of these ideas in detail.
                                                                                                                        Responsive Design
                                                                                                                        101: Optimizing for
                                                                                                                         Multiple Screens


                                                                                                                              61
                                                                                                   TREND
                                                                                                     1                                                   REAl-TIME CONTROl




   FUTURE OF TV
                                                                American teenagers spend an                     Providing content across screens is
                                                                average of 100 hours per month                  the new expectation—and consumers
                                                                watching TV—and that doesn’t                    won’t have it any other way. Take
                                                                include computers, phones or                    Netflix. In June of 2011, the company
                                                                tablets—proving there is something              announced price hikes on existing
                   Written by David Hewitt,                     still special about the in-home TV              subscriptions, followed by plans to
Vice President, Mobile and Multi-Channel Experiences, Atlanta   experience. But that archetype is               split their streaming and mail order
& Lucy Devassy, Sr. Manager, Global Shared Services, Atlanta    about to undergo a massive change.              services into separate brands just two
                                                                                                                months later. The customer backlash
                                                                In the last few years, there has been           was instantaneous and Netflix was
                                                                a substantial wave of new products,             forced to backtrack. Today streaming
                                                                startups and ventures all circling              and mail order still remain under the
                                                                the TV ecosystem. Changes in social             Netflix brand.
                                                                TV, cable companies and satellite
                                                                companies are a direct reflection of the
                                                                crossover between the traditional big
                                                                screen and the growing integration of           We know that people long to watch and
                                                                smart devices. However, the majority            share TV experiences on their schedule
                                                                of innovation has been relegated to
                                                                individual silos with limited success,          and in a social way.
                                                                even though the technology is here
                                                                and consumers are showing record
                                                                engagement with emerging devices.
                                                                                                                We know that people long to watch
                                                                So why is the living room taking so             and share TV experiences on their         ESPN media found that
                                                                long to evolve? Let’s take a look at            schedule and in a social way. And it’s    the average consumer spent
                                                                some underlying dynamics of both the            clear that the one-to-one, on-demand,     just 7 hours a week watching
                                                                industry and consumer behavior and              online environment will continue to       TV, but when a second screen
                                                                their implications.                             take over.
                                                                                                                                                          was used, time spent rose to
                                                                ThE TElEVisiOn is sET TO chAngE                 Evolving consumption                      13 hours. With a third, time
                                                                                                                habits and industry Trends                spent rose to 24 hours—just
                                                                The new, in-control consumer                    Expect to see other big changes—very      by bringing more content
                                                                Consumer behavior has already                   soon. Some shifts that are affecting      touchpoints to the experience.
                                                                changed to a channel-agnostic,                  consumer consumption habits are:
                                                                anywhere, anytime multi-channel
                                                                mentality. No longer are consumers              Product and purchasing lifecycles
                                                                only watching programs on the TV,               Prices for displays are down and
                                                                tweeting on their iPhones or checking           quality of content is up, hence
                                                                scores on an iPad. The second screen            consumers are replacing their TV sets
                                                                needs to help blur the lines instead            more often. This churn will allow the
                                                                of relegating specific tasks to siloed          latest technology to enter the market
                                                                touchpoints.                                    at a faster rate and opens up next
                                                                                                                generation experiences to a larger
                                                                                                                consumer base. The newer sets also




                                                                                                           30
                                     TREND
                                       1                                                                                                                                                   REAl-TIME CONTROl

boast a higher resolution, giving               in an improved experience. The                and take polls. Critical to advertisers,        Those investing in second screen
way for a wider variety of content              mobile application paradigm has               the fanfare buzz and bragging that              include TV networks, cable companies,
and applications.                               already made its way onto the set via         surrounds the content often hits                social media players and media
                                                Samsung, Xbox and Apple TV. Even              before and after the event; what brand          publishers, just to name a few.                how can brands and
connected devices                               with mixed results, it’s clear that           wouldn’t want to extend their name              Web 2.0 giants like Google, cable              industry players best
In the past, the set-top box was king           the simplicity and focus of the small         in those conversations? And the                 company behemoths like Comcast                 prepare for second
and “the web” was confined to a                 screen’s user interface is influencing        second a fan posts a tweet about                and electronics manufacturers from
desktop PC or laptop. That notion is            how big screen content gets traversed.        their favorite show character, that             Samsung to Sony are all making
                                                                                                                                                                                             screen experiences?
disappearing as broadband penetration           Perhaps the greatest innovation               device will ping the cloud and let the          strides to bring interactive to digital.
                                                                                                                                                                                             Ask yourself:
has reached maturity and as emerging            potential is already brewing on               advertiser and producer know who
devices are highlighting the power of a         leading smartphones. When Apple               or what type of consumer is watching            And the more screens consumers
                                                                                                                                                                                             • Does the experience drive
“connected everything.” Even gaming             transformed the phone into an intuitive       their sponsored content.                        use, the more time they spend with
                                                                                                                                                                                               participation? What we do often
consoles are standing in as set-top             communication device and handheld                                                             the content. According to Patrick
                                                                                                                                                                                               stays with us longer than what
boxes for the convenient pairing of             computer, they solved more problems           Format changes                                  Stiegman of ESPN, 85 million
                                                                                                                                                                                               we see. The most impactful
on-demand and entertainment. In                 through detection and fuzzy logic (e.g.,      Bite-sized content continues to                 Americans consume TV and the web
                                                                                                                                                                                               experiences will bring something
addition, smartphones and tablets               the proximity sensor that turns off the       dominate the user-generated content             simultaneously. ESPN media found
                                                                                                                                                                                               more than passive content and
continue to evolve as remotes,                  phone’s keyboard once next to an ear).        universe. Those libraries contain both          that the average consumer spent
                                                                                                                                                                                               leave the consumer with a reason
schedulers and social input                     Samsung has built upon this human             premium and standard broadcast                  just 7 hours a week watching TV, but
                                                                                                                                                                                               to share and come back.
devices, while an ecosystem of                  pattern-based logic. Their new Galaxy         content by way of streaming boxes               when a second screen was used, time
passive sensors will better predict             III phone’s Direct Call feature allows a      and services like Apple TV and smart            spent rose to 13 hours. With a third,
                                                                                                                                                                                             • Does the second screen
our viewing desires and shape an                user to initiate a call by just holding the   TV sets. Amazon and Google are                  time spent rose to 24 hours—just by
                                                                                                                                                                                               experience sync? While there are
advertiser’s media spend.                       phone up to his ear and the Smart Stay        investing in production capabilities            bringing more content touchpoints to
                                                                                                                                                                                               many hurdles, those that provide
                                                feature leverages its camera to ensure        to drive longer-form engagement                 the experience.
                                                                                                                                                                                               a differentiated and connected
Measurement                                     that the screen won’t turn off when           media. Along with those on-demand
                                                                                                                                                                                               real-time experience have a
Smartphones can identify us by a                being viewed.                                 and streaming services, linear                  The traditional publisher is also
                                                                                                                                                                                               big advantage.
phone number, check-in or log-in.                                                             programming will continue to diminish           going after the second screen to
On a PC, visits are cookied and often           Now put this construct in the living          and primetime events will get a boost.          expand media dollars and consumer
                                                                                                                                                                                             • Does the experience gracefully
bookmarked. At the end of the day,              room. Instead of miniature predictive         As engagement options continue                  engagement. Traditional players like
                                                                                                                                                                                               adapt? The experience should be
most digital channels know who is               moments of a smartphone user                  to build, trusted, curated content              The New York Times are starting to
                                                                                                                                                                                               ready for the Android tablet market
interacting with what content and               interface, we now have a collection of        from peers and providers will play              position their staff writers to pick up
                                                                                                                                                                                               and be optimized for leading
brand. This is all in stark contrast            input devices, sensors and displays           a more important role. In addition,             where passive TV is trailing off. During
                                                                                                                                                                                               smartphone platforms.
to the living room’s methods of                 that can work together. TVs could             the mobile app store phenomenon is              the last Oscars, the staff writers crafted
measurement. Expect brands to                   switch to power-saving modes when a           shaping a more purposeful mentality             complementary stories on tablets
                                                                                                                                                                                             • Does the experience support
continue to look for ROI and relevant           person leaves the room or falls asleep.       to proactively dive directly into               that shared supplemental information
                                                                                                                                                                                               an ad model that brands can
targeting with predictable outcomes.            When a baby cries, the TV could let           specialized content and features.               where the program left off. In another
                                                                                                                                                                                               participate in? Brands realize
                                                the broadcast network know to serve                                                           example, The Huffington Post expanded
                                                                                                                                                                                               there is power in messaging
Emerging interfaces                             diaper ads instead of dating ads.             ThE EVOluTiOn OF ThE ExPEriEncE                 from being a news site to a streaming
                                                                                                                                                                                               across multiple touchpoints, so ad
Traditional IPTV access points are                                                                                                            TV network. Soon, many content
                                                                                                                                                                                               platforms and media buys need to
failing the consumer against a bevy             social media                                  second screen Takes the stage                   producers and content-rich brands will
                                                                                                                                                                                               support a connected, consistent
of content options and consumer                 Social interaction and the viewing            The businesses and brands that                  become networks themselves in an
                                                                                                                                                                                               brand experience.
behaviors. Clunky remote controls               experience will be inseparable. Each          best figure out how to dominate the             attempt to capture the magic only the
and program guides are not keeping              user can decide how he or she will            second screen experience will be                big screen can deliver.
up with our 130+ TV channels or on-             socialize, and with whom. It will also        the ones who capture the greater
demand content. Voice and gesture               offer the ability to share content around     consumer mindshare.                             Second screen is perhaps most
tools will replace the remote, resulting        favorite shows, make predictions                                                              effective with real-time content like




                                           31                                                                                            32
                                                                             TREND
                                                                               1                                                                                                                                                      REAl-TIME CONTROl

                                        sports or awards shows; there was                    quarterback who syncs with his team        child for this challenge as so many of its        are vulnerable to nascent customer
                                        a huge spike in second screen use                    and coordinates with coaches to            users are migrating to mobile without a           experiences. The future of TV will
                                        during the 2012 Olympic Games. NBC                   execute the best plays on field.           complementary ad experience.                      reinvigorate the relationship between
content in the cloud                    showed more than 3,600 hours of
                                                                                             This new cloud-centered world will not     So why talk about TV and mobile
                                                                                                                                                                                          brands and consumers into an à la carte
                                        Olympic coverage—a stark contrast to                                                                                                              model that caters to a viewer’s taste
                                        the 2008 Olympic Games when NBC                      only ensure the right content reaches      advertising together? Each has
In the past, we watched snail mail                                                           the right device at the right time and     something to offer the other, especially
                                        was hesitant to live stream anything.
turn into email. We all had one                                                              place, but will also provide the right     as 41% of smartphone and tablet
                                        This gave viewers in the U.S. a more
computer and email account. Now
                                        enjoyable viewing experience with                    analytics to allow brands to spend their   owners are using their devices while              41% of smartphone and tablet owners
we expect to read our email wherever
and whenever. Traditional TV is on
                                        a front row seat through at least                    media dollars in an effective, more
                                                                                             profitable way.
                                                                                                                                        watching TV. Through fingerprinting
                                                                                                                                        technologies, mobile can enhance
                                                                                                                                                                                          are using their devices while watching TV.
                                        one channel.
the same path—it has to be delivered                                                                                                    TV’s measurement capabilities while
to every device while being optimized   Another example is the IntoNow app                   unDErlying FAcTOrs                         some of TV’s premium media dollars
for device form factors and consumer    from Yahoo!, which identifies what                                                              can start to bleed into mobile screens
                                                                                             The TV Advertising Model                                                                     instead of programming bundles that
preferences.                            a consumer is watching, and then                                                                as advertisers look to drive more
                                                                                             The advertising model for both TV                                                            substitute quantity for quality. Brands
                                        looks beyond that content, giving                                                               participation and extend before and               will continue to increase their power and
While Google has largely failed with    her related information she may find
                                                                                             and mobile is broken. While TV is well
                                                                                                                                        after the moment. Samsung’s newest                influence while cable companies and
                                                                                                                                                                                                                                        conclusion
Google TV thus far, it understands                                                           monetized, it isn’t well measured.
                                        interesting as well. Yahoo! has also                                                            sets have cameras built in and soon               telcos struggle to maintain power.
the importance of the cloud whereby                                                          Conversely, consumers are spending                                                                                                         The future of TV remains difficult
                                        announced responsive design capability                                                          advertisers will be able to target based
multiple channels, social tools, user                                                        significant time on mobile, but                                                                                                            to cast. But the changing
                                        with upcoming advertising products,                                                             on age, sex and number of people in               considerations and challenges
accounts and viewing habits get                                                              advertisers haven’t figured out how to                                                                                                     consumer, shifting technology
                                        ensuring optimization across multiple                                                           the room—all capabilities of today’s              for Brand Advertisers
aggregated into one universe—to                                                              best meet them there. This conundrum                                                                                                       and the breakdown of traditional
                                        screens and form factors.                                                                       facial recognition technology. Seem               With all the promise the future of TV
the benefit of both the consumer                                                             is reflective of an advertising model                                                                                                      business models are all resulting
                                                                                                                                        invasive? Don’t forget the millions of            has to offer, there are still some bugs.
and advertiser.                         The shift From smart to Dumb                         that would need to work on a small                                                                                                         in an environment where existing
                                                                                                                                        Facebook users who publically post                Besides the fight for control, multiple
                                        As devices and screens become more                   screen for a time-conscious, place-                                                                                                        players are threatened and
                                                                                                                                        their most personal information.                  screens increase the touchpoints that
Microsoft, Apple and Amazon are         intelligent, the cloud will mature—                  sensitive and task-driven consumer.                                                                                                        new opportunities exist. The
                                                                                                                                                                                          have to be managed. And, fragmentation
all making heavy investments and        unifying everything from storage to                  Quite simply, an effective model has not   The Fight for control                                                                           underlying themes of connectivity,
                                                                                                                                                                                          between devices, platforms and
realizing that the less the content     streaming to personalization. And once               yet emerged; Facebook is the poster        Telcos and cable companies—                                                                     participation, personalization and
                                                                                                                                                                                          networks, as well as a broken model
is tied to any one device, the more     the cloud crosses a threshold                                                                   among others—are vying to own                     for media planning, buying and                prediction sit below many of the
scalable it becomes. In addition, the   of intelligence and ubiquity,             TV                                                    the viewer experience as the                      analytics are adding to the complexity.       emerging trends we see and are
more the consumer personalizes the      it will put pressure back on        42.5%                                                       business model changes.                                                                         bound to change TV forever.
                                                                            42.2%
experience, the more it pays off and    devices to become dumb again.                                                                                                                     For brands considering a new
the less likely they are to move to a                                               Internet                                            Today, cable companies have more                  experience for multiple screens,
competing provider.                     Why is this? When multiple          25.9%                                                       leverage over content companies                   there are additional risks. For one,
                                                                            21.9%
                                        devices try too hard to                                                                         than telcos because many own cable                is the experience complementary,
                                                                                    Radio
                                        “accomplish everything” for the                                                                 stations (e.g., Comcast owns NBC) and             redundant or cannibalizing? Also, how
                                                                            14.6%
                                        consumer, the bigger benefits                                   share of Average Time           have been in the entertainment space
                                                                            10.9%                                                                                                         does a multitude of available second
                                        get lost through the limited                                    spent Per Day With select       decades longer. But telcos have more
                                                                                    Mobile                                                                                                screen experiences (one from the
                                        perspective of any one device.                                  Media by u.s. Adults vs. u.s.   sophisticated IPTV and opportunities
                                                                            10.1%                                                                                                         cable company, network provider and
                                        However, when an orchestrated        0.9%                       Ad spending share, 2011         to dovetail with mobile devices. With             content publisher) get reconciled for the
                                        set of devices feed a centralized           Newspapers          % of total                      emerging technology companies and                 consumer? How do broadcast rights
                                        brain, the devices can work          4.0%
                                                                                                                   Time spent share     complementary dispositions, don’t be              apply to second screen experiences?
                                                                            15.0%
                                        together to feed inputs and                                                Ad spending share    surprised to see more partnerships as             What is the optimal staffing required to
                                                                                    Magazines
                                        deliver on commands—                                                                            players realize the power of combined             support new experiences? And, when it
                                                                            2.8%
                                        not much different than a           0.7%                                                        strength—even the love–hate kind.                 comes to measuring ROI, is it worth the
                                                                                                                                        Both cable companies and telcos                   investment?



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                                                          Just a few years ago, the idea of                While phone and text still dominate
                                                          mobile taking the lead in customer               usage, interactive usage has grown
                                                          experience would have seemed                     significantly in two major areas of
                                                          ridiculous.                                      mobile—Internet and native apps.

                                                          But in 2011, sales of smartphones                People now spend on average 32
                                                          and tablets outpaced those of PCs for            minutes a day using mobile Internet
                                                          the first time ever; in the final quarter        services, and more than 18 billion
                                                          leading up to Christmas, Apple sold              apps have been downloaded from the
                                                          more iPads than any single computer              iTunes App Store alone. Customers
                                                          manufacturer sold PCs. Mobile is                 are also increasingly comfortable
                                                          now significantly more important to              transacting on mobile, which has led
                                                          most brands, and has become an                   to impressive revenue figures. Online
                                                          integral part of their multi-channel             retailer ASOS brings in more than
                                                          experiences.                                     £1 million a month through mobile
                                                                                                           transactions, Amazon brought in
                                                          Within three years, mobile web usage             $1 billion from 2009 to 2010 and
                                                          will outstrip desktop Internet use,              eBay sold $2 billion worth of
                                                          and brands must adapt accordingly.               products last year.
                                                          The brand is the experience and the
                                                          experience is the brand. In the near
                                                          future, mobile will be pivotal to the
                                                          quality of that experience. Brands
                                                          will have to create great customer
                                                                                                           To understand how far mobile can go,
                                                          experiences, and with this comes                 it is important to understand how far
                                                          challenges and questions that must
                                                          be addressed.
                                                                                                           it has come.
                                                          is Mobile Working?
                                                          To understand how far mobile can go,
                                                          it is important to understand how far            The influence of mobile reaches far
                                                          it has come. Mobile ownership is now             beyond just direct sales. Brands are
                                                          nearly ubiquitous. The phenomenal                using mobile to build awareness
                                                          uptake of tablets and smartphones                through advertising and create
                                                          is driving huge change, and the need             affinity through customer care and



  CUsTOMER
                                                          for change, in the ways brands meet              loyalty programmes, and consumers
                                                          consumers.                                       are using mobile to research products
                                                                                                           both at home and in-store. Because




 ExpERIENCE
                                                          Until recently, we were at a stage               mobile devices are carried with the
                                                          where technology was producing                   consumer constantly, they become
                                                          new products and consumers were                  powerful tools for creating multi-
                                                          playing catch-up. We’ve tipped over              channel brand ecosystems that



Is on the Move
                                                          into a space where consumers are                 can deliver real value.
                                                          familiar with the technology and now
                                                          have a greater expectation than ever             The enablement and freedom
                                                          of what is, and should be, possible.             of connection that tablets and smart-
Written by Nigel Vaz, SVP and Managing Director, London


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phones have afforded is changing                the UK jumped 74 percent between           Mobile behaviours should also be         require access to back-end systems
our expectations. Whether in a store,           2010 and 2011. Worldwide tablet sales      considered. This includes filling        such as product catalogues,
airport or hotel, people are more               in 2010 exceeded 17 million units,         spare time, performing small jobs        ecommerce systems and account
used to having mobilised members of             rising to a forecast 60 million-plus for   that are ideally done on-the-go and      information. Too often, companies             The Takeaway
staff engage with them to complete a            2011 and 99 million in 2012.               offering a third screen at home. Then,   do not consider their back-end
transaction without having to queue                                                        the real value comes from detailed       architecture sufficiently. As a result,
at a fixed location. The ways in which          Availability of cheap, fast data. The      understanding of your audience and       mobile experiences that rely on good
people expect to be able to transact            availability of cheap data bundles, the    unveiling key insights.                  access to back-end systems are often
online, without journeys being                  rollout of 3G across the UK and the                                                 delayed or never come to life at all.
broken, on mobile or tablet devices,            launch of LTE/4G in 2014 will mean         craft the right experience. The range
is far greater. We can see evidence             greater mobile broadband speeds            of front-end technology is broad and     Think strategically. When creating
of that in the 20 percent of online             and even more mobile growth.               is changing by the day. They include     consistently great mobile experiences
sales over Christmas that were                  Awareness of mobile services. Many         native apps, hybrid apps, NFC, 3D and    that deliver customer and business
mobile-enabled.                                 mobile solutions fall at the first         good old SMS, to name a few. From        value, strategy matters. The time for
                                                hurdle because firms fail to pay           the business point of view, a deep       one-off mobile experiments has
On the other hand, some mobile                                                             understanding of the technology is       now passed.
services and experiences are far                proper attention to launching their
                                                services. One example? There are           not necessary. What is important is
from perfect: 90 percent of apps are                                                       choosing the right technology. These     The first step is to have a clearly
                                                over 500,000 apps in the Apple App                                                                                               could Mobile lead
deleted after 30 days and 38 percent                                                       decisions have a direct impact on the    defined mobile strategy in place that
                                                Store alone. To compete with the                                                                                                 your customer Experience?
of people are not satisfied with their                                                     consumer. For example, typing in a       includes a roadmap. This needs to
favourite brand’s app. The mobile web           saturation, smart brands are looking
                                                at how to best tag apps, categorise        URL is very different than downloading   be supported by a conviction that            The simple answer is yes. And even
does not fare much better: 25 percent                                                      an app. The end solution may             warrants the growing investment
                                                and drive participation.                                                                                                         if it does not lead, it will without
of people would not revisit a retailer’s                                                   accomplish the same goals, however       required. Many analysts will suggest         doubt play a critical role because
mobile site after a bad experience and          Better technology. In the past few         the consumer expectations can be         that there is no such thing as a “mobile     mobile is the primary channel to
75 percent of the UK top 100 retailers          years, a range of improved technologies    wildly different.                        strategy”—only a multi-channel               create and fulfill demand in real
do not have mobile-optimised versions           such as cloud-enabled, NFC-enabled                                                  strategy. While this is true, mobile         time. There are a a series of
of their website, even though people            and location-based services have           see what the customer doesn’t.           often carries the load for innovation        mountains to climb, but
spend three-and-a-half times longer             started to deliver more complex            Richer mobile experiences frequently     and business transformation.                 consumers are demanding it
and look at three-and-a-half times              experiences. Over the next few years,                                                                                            and the opportunities are huge,
as many pages on optimised sites,               technology will continue to improve.                                                                                             so the time to act in a serious
compared with non-optimised.
                                                can you Meet the challenges?                                                                                                     fashion is now.
Will Mobile continue its rapid Ascent?          Just because the screen is smaller                                                                                               Originally published in Figaro Digital
The demand for mobile services                  doesn’t mean the obstacles are any
and their commercial importance                 less. There are key challenges to
will only increase—and quickly.                 keep in mind.
SapientNitro has identified four areas
that have influenced mobile growth,             Match your offering with your
and will continue to do so.                     audience. Understanding your
                                                audience is the first step. This
rise of the smartphone and tablet.              is particularly important in mobile
Mobile has been propelled by the                as audiences are fragmented by
explosive sales of smartphones and              form factor and usage, which are
tablets that give people a far richer           also heavily influenced by culture
experience. Sales of smartphones in             and geography.




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                                                                            There’s a major transformation                    implications of mPayment that will
                                                                            happening between people and                      reflect regional needs. Below are 10
                                                                            their relationships to their money,               implications to be aware of.
                                                                            a transformation enabled by
                                                                            the arrival of mobile payments                    1. mPayment solutions will
                                                                            (mPayments). The magnitude of this                fundamentally transform consumer
                                                                            change—and the disruption—will                    relationships with money. The notion
                                                                            greatly impact consumers, banks,                  of making a deposit at a branch bank
                                                                            retailers, merchants and wireless                 used to give people a sense that their
                                                                            carriers, among others, and will be               money was being held in a physical
                                                                            felt across the globe. The mPayment               place and a specific destination.
                                                                            landscape is rapidly evolving, with               But with the advent of mPayments
                                                                            many different players, technologies              and mobile wallets, as well as
                                                                            and alliances all fighting to assert their        the emergence of unconventional
                                                                            relevance and control between the                 banks like PayPal and Amazon, the
                                                                            consumer and the future of money.                 perception of money, what it is and
                                                                                                                              where it lives has changed from
                                                                            From entertainment and electronics                money at a physical location to money
                                                                            to train tickets and travel services,             that can live anywhere, anytime,
                                                                            there are virtually no limits to what             and is received, delivered and
                                                                            consumers are using their phones to
                                                                            purchase. In fact, in Japan, it’s already
                                                                            a way of life: 7.6 million consumers
                                                                            have made a mobile purchase in a                   Today, there are approximately 30 million
                                                                            retail or convenience store, 3.2 million
                                                                            have made a purchase from a vending
                                                                                                                               NFC-enabled phones. By 2016, this number is
                                                                            machine, 2.7 million have paid for                 expected to reach a staggering 700 million.2
                                                                            public transport, 2.6 million have
                                                                            made a purchase in a grocery store
                                                                            and 1.5 million have paid a restaurant
                                                                            bill—all using their mobile phone                 transacted through multiple venues,
                                                                            instead of cash, card or check. And               mechanisms and devices.
                                                                            47 million Japanese have adopted
                                                                            tap-and-go phones in the last three               There will be a paradigm shift in how
                                                                            years. East Asians will continue to               money works, and how it’s perceived



MOBIlE pAYMENTs:
                                                                            lead this market.1                                and used, and that will lead to the end
                                                                                                                              of physical currency as we know it.
                                                                            It’s becoming clear that mPayments



the FUtURe oF MoneY
                                                                            will radically change the way                     Since the 1930s, the U.S. began a
                                                                            consumers spend. And in this new                  worldwide effort to end tying currency
                                                                            age of mPayments, retailers, financial            to gold. At that point in time, the
                                                                            institutions, technology companies                notion of money became abstract.
                                                                            and wireless providers will have the              This shift continues today with the
Written by Perry Chan, Creative Director, Experience Innovation, New York   power to deliver it. Across the globe             use of debit cards, credit cards, ATMs
                                                                            we will see different applications and            and pre-paid mPayment services


                                                                                                                                1
                                                                                                                                    IDtecheX (R&M), Feb 2011
                                                                                                                                2
                                                                                                                                    Berg Insight (BGR) - http://www.bgr.com/2012/03/26/shipments-of-nfc-enabled-handsets-reached-30-million-units-in-2011/

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that let consumers access money              from our mobile devices, will this       home. As a result, mPayments                   element that satisfies a desire for
anytime, anywhere. Peoples’                  mean the end of credit cards? How        will challenge, and redefine, long             greater convenience and control.
perception of money is directly              will this impact card service brands?    standing assumptions of how stores             Additionally, it will give consumers
connected to trust—and trust is              How will they redefine themselves        are designed with emphasis on                  unprecedented control of their
fundamental to peoples’ relationships        and their connection to consumers?       product interaction. They will also            finances, in relationship to their
with money and with whom they                Payment terms will be completely         drive retailers to learn new ways              purchases, through real-time
choose to do business with.                  redefined as financial institutions      to connect brands with consumers               and integrated personal financial
                                             will have the power to personalize       through connected experiences like             management. Imagine a customer
2. The meaning of credit cards,              individual terms for every single        geo-fencing, mobile wayfinding, mobile         purchasing a television set, and upon
and the way they’re used, will be            purchase, for every single customer,     checkout, augmented reality, endless           finalizing their payment method,
redefined. As the model of credit            in real time. And with the absence of    aisle shopping and virtual try-on.             sees a notification that says, “You’ve
extension, acquisition and receiving         credit cards, credit card marketing                                                     exceeded your vacation budget by
changes, so does the role of credit          will have to evolve.                     Breakthrough innovations in                    $400. You may want to consider
card services. Consumers, in general,                                                 mPayment services (and the digital             applying $200 towards loyalty points
are sometimes ignorant on how to             3. The customer’s relationship to        wallet) will exploit the unique                and $200 towards Facebook Credits.”
best use and manage credit. Credit           money and commerce will move             advantages of the retail store:                Brands will also be able to individually
cards, for many consumers, have just         from singular moments to an
become another form of payment.              “always-on” relationship. Paying for     • Environments that inspire, adapt,
mPayments and smartphones have               an item used to be simple: Add an          curate and evolve in real time,
the ability to educate customers on          item to your cart and pay at checkout.   • Associates supported with tablet             “There is nothing more imaginary than a monetary
method of payment choices at the             It used be clear: The role of a store      and mobile-based collaborative tools,
point-of-sale to select the right way        was to put product in the hands of the   • Intuitive account information and             system. The idea that we solemnly hand around
to pay.                                      consumer. It used to be easy: Drive        expert product information,                   printed slips of paper in exchange for food and
                                             store traffic, stock the shelves and     • Products with interactively enhanced
For banks, mPayments and                     accept payment.                            merchandising, augmented                      water shows just how trusting and fond of patterned
smartphones provide the ability to                                                      packaging and universal SKU and               behavior we human beings are. So why not take
influence payment method choice              But digital experiences have               inventory access, and
at the point-of-sale versus trying to        created a new age of connected           • Customers who are seamlessly                  the next step? Of course we’ll move to even more
create brand recognition, loyalty,           consumerism. When does “shopping”          connected with virtual and in-store
                                                                                        data that can be mashed,
                                                                                                                                      abstract representations of value.”
affinity, then “hope and pray” at            happen? When does “purchasing”
the moment of truth. Retailers and           happen? Consumers are buying               customized and shared through                –Susan Crawford, Harvard Professor, from the Pew Report on the Future of Money, April 17, 2012

banks may have to compete for                products online but picking them up        personal, wired devices—while still
customers’ payment options for               at the store. Or purchasing an item        shopping in the store.
every individual purchase. A smart           at a store but paying for it two days
delivery mechanism with a screen at          later with multiple payment methods,     5. The arrival of mPayments will               deliver promotions, discounts and
the point-of-sale changes the game           and with unconventional modes like       enable a new generation of real-               incentives customized and contextual
dramatically for both banks and              PayPal credit or Bitcoin, or with        time, insight-driven shopping and              to each individual customer.
customers.                                   micro-lending or “layaway plans.”        financial tools. mPayments will
                                                                                      end the days of the uninformed and             6. There are a variety of hurdles
The emergence of credit card models          4. mPayments will cause a                passive shopper before, during and             for mPayment success, with user
will empower businesses and                  fundamental change in the                after the point-of-sale, giving way            adoption being paramount. The
consumers more than ever before.             retail store experience. Today           to the “empowered” consumer. And               ability to pay by phone will not
With companies like Stripe and               and tomorrow, they will enable           a fundamental shift in consumer                guarantee success. Overcoming
Square leapfrogging credit cards by          the “checkout” process to occur          interaction will occur where each              user adoption will require better
making one-click payment available           anywhere, whether in-aisle or at         offering will be an experiential               inter-operability of systems and




                                        41                                                                                      42
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                                     1                                                                                                                                     REAl-TIME CONTROl

platforms, privacy and security,               this emerging opportunity. Based         According to a source from the Pew        using the service and made more
and government regulations. More               on some formidable challenges,           Report on the Future of Money on          than 405 billion Kenyan shillings
over, there are approximately 2.5              the mobile payment market is             April 17, 2012, “The consumer cannot      worth of person-to-person transfers
billion un-banked adults globally,             likely to evolve along four different    drive the move to NFC payments.           as of March 2010.3 It remains to
17 million alone in the U.S. Also,             trajectories:                            The cost to build the infrastructure to   be seen how the approximately 17
not everyone has a mobile phone                                                         support NFC is too large. Additionally,   million un-banked adults in the U.S.
or a credit card. Other concerns               Wait and see: Experimenting with         the security issues related to passing    will be addressed and served.4
include the potential susceptibility of        limited services in specific markets.    data using NFC outweigh the benefit
NFC (near field communication) to              Fly solo: A visionary player with        of adopting this new technology. If       With opportunities abound, significant
hackers and market fragmentation.              significant market power makes           NFC was able to be used by 85% of         hurdles such as trust, security,
Lastly, mPayments must be as—if not            the required investment.                 the population, and could displace a      ingrained behaviors, addressing
more—convenient and secure than                Joint venture: Various businesses        more costly form of payment it may        predator targeting and lending, and
using cash and credit cards.                   come together to provide payment         have a chance to succeed, but the         creating great experience design will
                                               solutions, share risks and rewards       reality is that cash will always be in    be critical to success. And what about
7. mPayments will enable a whole               and develop harmonized and               the economy, and bank-issued cards        the cash customers? The pre-payers?
new class of merchants and                     defined business models.                 (debit and credit) provide too much       The non-smartphone users? How will
services. From a fisherwoman in                Open federation: Players (financial      profit from them to be displaced.”        they be accounted for?
Kenya to the kid selling lemonade              services, carriers, merchants,
from his lemonade stand to the                 handset makers, chip makers,             10. mPayments will open up access         And without checkout counters,
services industry, mPayments will              application providers, trusted service   to money transactions for the under-      cashiers or tellers, what happens
make it possible for more people to            providers and others) come together      served—those without bank accounts,       to actual store and bank spaces?
participate in the economy-of-one,             to form one standardized, altruistic     access to branches, smartphones           With no need for cash, will ATMs
empowered by increased access to               platform to provide a portfolio of       and financial institutions. Already,      even exist? And what about your
content, data and services anytime,            mobile payment services.                 payment services are underway for the     competitors? You may discover they
anywhere and on their own terms.                                                        un-banked and under-served in Africa,     are whom you least expect and where
                                               It’s likely that no one player will      Afghanistan, Cambodia, the Middle         you least expect them.
The days of mass pricing, terms and            emerge as the sole owner of the          East and other regions. Services like
                                                                                        M-Pesa, launched in 2007 in Kenya,        Are you ready for the revolution?
                                                                                                                                                                           3
                                                                                                                                                                               2011 KPMG Mobile Payments outlook
incentives are numbered. Increasingly,         digital payment ecosystem. Instead,                                                                                         4
                                                                                                                                                                               FDIC national survey of Un-banked and
payment terms and services will be             there will be several players, some      reports having 9.5 million subscribers                                                 Under-banked households, December 2009
driven and dictated by independent             emerging from joint ventures,
merchants and individuals, either              technology companies, merchants,
creating, delivering or demanding              card services, remittance companies,
personalized messaging, pricing and            traditional FS, government, carriers
other incentives.                              and others.

8. The mPayment landscape is                   9. nFc technology will fuel
diverse, and success may come                  mPayment growth, but mPayment
from a wide variety of players. For            success is not dependent on it.
the moment, the players leading the            mPayment adoption is not about any
charge are from the supply side.               specific technology. It’s about the
Companies like Google, V.me from               experience of frictionless, cloud- and
Visa and PayPal, as well as joint              consumer-empowered commerce, in
ventures like ISIS, and the Merchant           ways that make it more convenient,
Customer Exchange (MCX), are all               secure and productive than cash and
trying to vie for the lion’s share of          credit cards are today.




                                          43
    NE iV
          E                                                                                                                                                                                 TREND
                                ThE ECONOMY OF ONE:
  LI us NT
ON xcl TE
 E ON
                                                                                                                                                                                              1
   C
                                                                                                                                              Introducing the Economy of One
                                the ConsUMeR as PRoDUCeR, InFlUenCeR anD PURChaseR
                                                                                                                                              characteristics of the Economy of One:
                                      Written by Dan Israel, Strategy Lead, Mobile Center of Excellence, Atlanta
                                                                                                                                              • It refers to the consumer who is empowered as a producer, influencer and a purchaser.
                                          & Perry Chan, Creative Director, Experience Innovation, New York
                                                                                                                                              • Customers operate in a multi-touchpoint world, often beginning with the smartphone. The consumer has a greater impact on a
     in the past, businesses centrally controlled the                       platforms. These result in, we believe, a new type of               brand than just the initial action of buying a product or service.
     brand message and the customer experience.                             economy: The Economy of One. This new economy                     • Never before have consumers been able to generate a “network effect” as they can today - now, consumers can reach a huge
     But a transformation is now taking place in the                        operates by very different rules — an increasingly active,          audience with lightening-like speed and impact brands, either positively or negatively.
     marketplace driven by four major trends: transparency,                 enabled consumer, and a higher level of expectation in            • Consumer behavior has shifted to “bite-sized” engagements on multiple touchpoints. These touchpoints often become the
     synchronization, optimization and the rise of digital                  the role of brands and the tools they provide.                      primary mechanism of interaction in the long-term relationship with the brand..

                                                                                                                                              cOnTriBuTE                                                                                                       DiscOVEr
                                                                                                                                              let me contribute more than just reviews          Radical
                                                                                                                                                                                             Transparency
                                                                                                                                                                                                of Data
                                                                                                                                                                                                              Real-time
                                                                                                                                                                                                            Synchronization
                                                                                                                                                                                                                              Responsive
                                                                                                                                                                                                                              Optimization
                                                                                                                                                                                                                                                    Digital
                                                                                                                                                                                                                                                               Make my life easier, better and simpler
                                                                                                                                              and comments
                                                                                                                                                                                                                                                  Platforms




                                                                                                                                                                                                                                                               • Anticipate what I want
                                                                                                                                              • Let me analyze, organize and manipulate
                 Radical                                                                                                                                                                                                                                       • Provide tools to let other people discover my content
                                                     Real-time                      Responsive                          Digital                 information about me, your brand, your
              Transparency                                                                                                                      product, your service and more                                                                                 • Enable me to (re)combine existing products
                                                   Synchronization                  Optimization                      Platforms
                 of Data
                                                                                                                                              • Help me understand who is my most                                                                              • Let me share my content to accelerate discovery
                                                                                                                                                important customer
                                                                                                                                                                                                                                                               cOnsiDEr
                                                                                                                                              shArE                                                                                                            shape the experience around me, not you
                                                                                                                                              Enhance our networks together                                      The                                           • Acknowledge and act on the feedback of
    Trend 1:                               Trend 2:                         Trend 3:                        Trend 4:                          • Make me look smart and make                                   Economy                                            me and my network
                                                                                                                                                me look relevant to my networks                                                                                • Let me influence those considering my products
    radical Transparency of Data           real-time synchronization        responsive Optimization         Digital Platforms
                                                                                                                                              • Make me feel included
                                                                                                                                                                                                               of One
                                                                                                                                                                                                                                                               • Deliver a relevant experience and information at
    The ability for consumers              Consumer behavior has            Along with real-time            Digital platforms are                                                                             customer                                           the right time in the right context
    to discover, combine                   changed. Customers               synchronization comes an        everywhere. And with              ExTEnD                                                           Journey                                         • Empower associates so they can better assist me
    and recombine data with                now conduct “bite-sized”                                                                           nurture our relationship beyond
                                                                            expectation for data to be      social tools, analytics, low
                                                                                                                                              selling to me                                                                                                    PurchAsE
    or without the brand’s                 engagements that start on        rendered appropriately on       cost and a high degree
                                                                                                                                              • Let me engage on my terms                                                                                      Offer me everything i am entitled to—the best
    consent has resulted in                one touchpoint, continue         any and every touchpoint        of scalability, these                                                                                                                              prices, terms and points
    transparent access to                  on another and may end                                                                             • Let me pick up the experience where
                                                                            where interaction               platforms now drive new             I left off, be it on a PC, mobile device,                                                                      • Make it easy for me to buy, re-order and ship
    data. This is leading to               somewhere else. Implicit         occurs. But delivering          consumer behavior—                  tablet or other emerging device                                                                                • Integrate my financial life and be cognizant of my
    disruptive innovation across           in this customer journey is      this experience is quite        competition through social        • Enable me to communicate with my                                                                                 purchasing ability
    industries; entire value               the need for all data to be      challenging; thousands          reputation, disruption              best customers                                                                                                 • Let me sell my stuff without massive fees
    chains are being revealed              synchronized in real time.       of content elements must        and disintermediation             • Help me connect with other influencers                                                                           and expenses
    and rearranged.                        Brands that create cloud-        be optimized for context,       of traditional players,                                                                                                                            • Let me optimize the purchase through any device
                                           based solutions for these        screen size and device type.    and simple tools to find,                                                                                                                            for my customers
    Example: The music industry
                                           new customer journeys                                            evaluate and sell products.
    struggles as consumers                                                  Example: Many media firms
    discover and share music               will have an advantage over
                                                                            leverage responsive design      Example: eBay’s storefront,
    socially and in “bite-sized,”          others.
                                                                            techniques and built-in apps    Etsy and Airbnb are all
                                                                                                                                              Implications
    single tracks. Transparency                                             to deliver richer experiences
                                           Example: The Amazon                                              leading this trend. Airbnb is     • Consider rolling out products and services that provide                                      • Consider partnering and amplifying the voices of
    is enabling bands and venues                                            on different touchpoints.
                                           Kindle uses cloud-based                                          particularly strong, based                                                                                                         your best customers (e.g., Vail’s EpicMix)
    to set pricing and availability                                         ABC News, The Wall Street       on their passionate user
                                                                                                                                                new transparency and access between customers,
                                           data, allowing users to switch
    directly.                                                               Journal, The New York Times                                         as well as to customers
                                           between mobile, tablet and                                       base and quality of the user                                                                                                     • Leverage responsive design or other techniques to
                                           PC platforms, while being        and many others optimize        experience. Their platform
                                                                                                                                              • Implement cloud-based storage and synchronization                                              offer your products through all your customers’
                                           updated in real time to the      their tablet experiences to     offers a breadth of services: a
                                                                            include video, while their      personalized calendar, social       of data across touchpoints                                                                     preferred touchpoints
                                           current page or author
                                           highlights.                      smartphone experiences          platform, massive scale and
                                                                            remain more text focused.       full financial integration.
                                                                                                                                              • Reshape your product or services to accommodate
                                                                                                                                                “bite-sized” engagements through multiple touchpoints

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                                                                                   here’s the thing. We are                       context of a familiar device that they
                                                                                   surrounded by sensors.                         become invisible, silently collecting
                                                                                                                                  information.
                                                                                   Your car knows if the car behind it is
                                                                                   too close and warns you. Your office           There are a variety of sensors
                                                                                   knows when you have walked in,                 available to designers: audio, heat,
                                                                                   and turns on the lights. Your phone            input button, light, motion, pressure,
                                                                                   knows where you are and tells your             proximity and image.
                                                                                   friends. With the explosive sales of
                                                                                   smartphones, we are all carrying
                                                                                   sensors with us everyday. More
                                                                                   importantly, we are acclimating
                                                                                   ourselves to sharing personal
                                                                                                                                  With the explosive sales of smartphones,
                                                                                   information with these devices.                we are all carrying sensors with us everyday.
                                                                                   We use geofencing to trigger iOS
                                                                                   reminders that we get when we
                                                                                   arrive at the office, or return home.
                                                                                   We use geolocation to check in on              Obviously, smartphones are the
                                                                                   Foursquare, or geotagging to add               most common consumer device:
                                                                                   location data to a photo on Instagram.         camera, accelerometer, GPS,
                                                                                   As end users, we are at the center of          proximity and magnetometer (digital
                                                                                                                                                                            sensors Are Proliferating
                                                                                   our digital lives, and every day we are        compass) are typical. The Android         Motion Sensors
                                                                                   attaching sensors to ourselves.                platform supports three sensor                Accelerometers
                                                                                                                                  categories. Motion sensors include            Gravity Sensors
                                                                                   For experience designers,                      accelerometers, gravity sensors,              Gyroscopes
                                                                                   incorporating sensors into a digital           gyroscopes and rotational vector              Rotational Vector Sensors
                                                                                   product or online service can give             sensors. Environmental sensors
                                                                                   end users the ability to measure               include barometers, photometers           Environmental Sensors
                                                                                   and analyze themselves in ways                 and thermometers. Position sensors            Barometers
                                                                                   that were previously impossible.               include orientation sensors and               Photometers
                                                                                   The intersection of earlier trends             magnetometers. The diversity of the           Thermometers
                                                                                   in data collection—ubiquitous                  Android ecosystem is mirrored in the
                                                                                                                                                                            Position Sensors
                                                                                   computing, pervasive computing                 types of sensors it offers, which are
                                                                                                                                                                                Orientation Sensors
                                                                                   and the quantified self—has given              included on the phones. Most handset
                                                                                                                                                                                Magnetometers
                                                                                   everyday consumers new, inexpensive            devices and tablets include an
                                                                                   ways of capturing information about            accelerometer and a magnetometer,         Medical Sensors
                                                                                   themselves. We are increasingly                while fewer devices (e.g., the Galaxy        Blood Pressure
                                                                                   wrapped in data—our own                        Nexus) include a barometer or, more



                hOw sENsORs ARE
                                                                                                                                                                               Glucose Measurement
                                                                                   information about ourselves.                   rarely, an external thermometer.             Heart Rate Monitors
                                                                                                                                                                               Scales
                                                                                   sensors                                        But increasingly, however,



              CONNECTINg ThE wORlD
                                                                                   Worn on a belt or embedded                     non-smartphone sensors are                Network Sensors
                                                                                   inside a phone, compact, powerful,             proliferating. Activity monitors like         Bluetooth
                                                                                   personal sensors are more and more             the Fitbit, NikeFuel and Jawbone Up           Wi-Fi
                                                                                   commonplace. These sensors are so              provide another source of personal            Cellular

              anD the IMPlICatIons FoR eXPeRIenCe DesIGn                           small, or so deeply implanted in the



                     Benno Schmidt, Manager of Experience Design, Washington, DC
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data collection, often available               biometric signals sent to a device      The new opportunities also face                healthcare and in other industries—
through an API to third parties.               at the front of the shirt. Breathing    challenges, most notably the                   these sensors represent major
Even more powerful, medical                    rate, heart rate, horsepower and        regulation and legislation of                  new challenges in the storage,
devices (frequently connected to               g-force generated by an athlete are     personally identifiable information            manipulation and consumption
smartphones) include blood pressure,           all tracked.                            (PII) and personal medical                     of data.
glucose measurement, heart rate                                                        information (PMI). While designing
monitors and Bluetooth-enabled                 Another example, Riddell’s Head         with sensors in HCXD may seem like             Tracking time-series data
scales that allow the collection of            Impact Telemetry System (HITS) and      a casual, even trivial, data collection        HCXD teams are creating new
sensitive and personal information at          Sideline Response System (SRS)          problem (e.g., number of steps                 interaction patterns for users to
home. Most also permit the data to             allow sideline monitoring of on-field   climbed), this data can very quickly           review, understand and share this
be uploaded to the cloud.                      head impacts. Sensors built into the    cross over into personal information           data. Great design, information
                                               helmet automatically record impacts     (e.g., weight loss, mood changes)              dashboards and graphics, data feed
                                               and this data can be downloaded         that must follow a very different set          processing and validation become
                                               wirelessly to a computer or collected   of, often legal, constraints. As these         important elements in allowing
                                               in real time.                           designs begin to collect PII and PMI,          big data to be easily interpreted by
                                                                                       design teams must be aware of the              consumers.
                                               implications                            legal and regulatory restrictions that
                                               These technologies raise major          impact their work.                             Multiple vendors and ecosystems
                                               challenges for experience designers                                                    Carriers, device manufacturers and          head impact telemetry was used by the nFl to
                                               and product designers as they           A weight-loss coaching app that                software developers all are factors in      monitor head impacts during the 2011 season.
                                               attempt to take advantage of            prompts the end user to add their
                                               the design opportunities, while         name, age, height, weight and
                                               acknowledging the significant           location, for instance, could be
                                               privacy implications.                   considered collecting PII. As the              Major new healthcare applications for these
                                                                                       weight loss app is enhanced and a
                                                                                       feature to collect blood sugar levels
                                                                                                                                      sensors include tailored reminders for medications,
                                               Healthcare is leading the charge. Few
                                               industries have more experience with    is added, the design team for this             real-time appointment management and
                                               personal information, or have moved     app is now responsible for meeting
                                                                                       the requirements of HIPAA, the
                                                                                                                                      notification and prescription conflict resolution.
                                               so deeply into digital collection, as
Bluetooth itself is actually adapting          healthcare. The ubiquity of these       Health Insurance Portability and
to the needs of these new devices.             sensors is a new opportunity for        Accountability Act of 1996. If the app
The Bluetooth 4.0 standard is                  healthcare experience design (HCXD)     connects to a glucose meter, then              choosing the best delivery platform
gradually rolling out specifications           to help patients and caregivers         the design team may find themselves            for your customers. Designers and
for a new generation of health-                collect information about themselves,   subject to the recently announced              product developers must decide
monitoring wireless devices based              or the people they care for, and then   FDA oversight for mobile medical               which smartphones or stand-alone
on its low-energy capabilities.                share it with clinical care teams.      applications.                                  devices to support, and need to
                                                                                                                                      understand the technical implications
Even more interesting, this                    These applications, coming out of       But the success of initiatives like            of those choices.
technology is being integrated directly        a focus on user-centered design,        the U.S. government’s Blue Button
into our daily lives. Smart clothing,          point to both opportunities and risks   implementation show that patients              cognitive overload
with sensors knitted into the fabric,          in device design using these new        and caregivers want more control               Designers must simplify. The more
is already available; for example, UA          sensors.                                over their personal data.                      data end users capture about
E39, a compression shirt fitted with                                                                                                  themselves, the greater the risk
electronic sensors made by Under                                                       new Design challenges                          that they will be overwhelmed. Is the
Armour, tracks the body motion and                                                     For experience designers—both in               user’s connection to their data




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clear and immediate? Can the end
user see themselves in the data and
                                                 all contribute to the narrative of
                                                 the design.
                                                                                            INVIsIBlE BRAND
                                                                                              INTERFACEs
how the collected data helps them
with their needs and goals? Or are               Task
they overwhelmed to the point where              Design solutions that target specific
they simply abandon the process                  healthcare tasks must be ruthlessly
of collecting data, like a digital               simple and surprisingly pleasant.
shopping cart full of purchases gets             Designers can take advantage of the        Written by Daniel Harvey, Experience Design Director, London
abandoned? End users will reward                 way games have introduced patients
designs that prioritize the most                 to sensor data. Understandably,
important functions and eliminate or             game consoles like the Nintendo Wii
simplify the rest.                               or the Microsoft Kinect use sensors
                                                 to enhance or create new forms of
network management                               game play that can serve as models
Connection to the network becomes                for healthcare tasks.
critical as sensors have very
little data storage, or depend on                conclusion
centralized data shared with a                   Increasingly, we are connected by
community. Don’t assume robust                   a network of sensors that have the
access to the network. An application            potential to track our health, location,
that mines the data collected by a               behavior and preferences.
sensor, and guides the end user
to relevant video information on                 Yet this enormous breadth of
YouTube will fail if the videos                  data and connectivity raises real
cannot load.                                     challenges—both in terms of
                                                 regulatory issues and in terms of
Data management                                  design challenges, not least of which
Looking closely at the lessons                   is making the enormous quantity of
learned in developing applications               information available and meaningful
and services in the financial sector,            for consumers. Hundreds of different
product and service providers must               smartphones—each with their own
be able to show their customers                  sensor suite—and consumers with a
data accuracy, data security, data               wide range of technical ability result
availability and data portability if they        in demands on designers to make
want to build a trusted relationship             simple, yet powerful, interfaces to
with them.                                       allow access to these systems.

narrative                                        Experience design with sensors offers
The end user’s story must be                     an opportunity to build personal
reflected in the design. With so                 relationships with customers and
much information being captured,                 end users, assisting them with their
it’s critical that end users see                 short-term needs and their long-
themselves in the design. Device                 term goals, both in healthcare and
context, content placement and                   other industries.
how personal information is imaged




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Brands are more important than ever.            Keeping Television relevant                understand and measure new insights               Mercedes, GM and Chrysler will be
But the traditional brand interface is          One successful example is IntoNow (a       into engagement and are providing big,            releasing models with “Eyes Free” Siri
changing as products and services are           free iOS and Android app from Yahoo!)      old, slow TV with a real-time feedback            integration.
evolving to take advantage of touch,            that, with a tap of a button, takes a      loop for the first time in its existence.
voice and gestural inputs.                      “sound print” of what a consumer                                                             How will it work? Simple. Mount your
                                                is watching on TV and then provides        Marketing as a service                            iPhone, tap the voice control button
Advertising and marketing have                  complementary information such as          Outside of the second screen and social           on your steering wheel and voila—Siri
historically been invested in the               expanded stats for sports broadcasts       TV space are other examples of this               works for you, answering phone calls,
30-second spot because it dominated             or articles from other news sources.       phenomenon. Nike+ GPS is a great                  posting tweets, sending texts, getting
your primary attention. But now we              The app also affords quick in-app social   example of an app that follows that               sports scores and more—without even
encounter brands increasingly as                chatter so the consumer doesn’t have       pattern in a number of ways. After                triggering the iPhone’s screen, which
interfaces.                                     to worry about toggling over to Twitter    announcing a run via Facebook,                    stays dormant out of obvious necessity.
                                                or Facebook to get into the conversation   whenever someone replies to your                  Your primary attention and your eyes
The ever-increasing presence of                 with friends and peers.                    status, you’re awarded with cheers and
screens in our lives—in our hands,                                                         applause. When you break a personal
strapped to our wrists, resting on our          TalkingTV by Starling is another audio     record, you receive props from a
laps, against our living room walls and         app that lets users talk to people who     celebrity in Nike’s stable. Turning social        “It’s not the nature of the screen that’s
gently glowing on our coffee tables—
have turned primary attention into a
                                                are watching the same TV show. The
                                                creators refer to it as “a one earpiece
                                                                                           data into sensory encouragement that               important, it’s the nature of the attention.”
                                                                                           further motivates you to go harder,
battlefield.                                    experience,” allowing consumers to         go faster and “just do it” is exactly the         –Russell Davies
                                                keep one ear primed for the show           sort of behaviour that makes sense
As a result, there is a new focus on            and the other for friends. They can        for a brand that is all about providing
secondary attention. Savvy creative             also record audio messages for the         “inspiration and innovation to every
types of all stripes have realised that         rest of the audience. It seeks to          athlete in the world.”                            and hands get to stay focused on the
this demands tailored experiences to            replicate watercooler conversations                                                          road and the wheel where they belong.
reach consumers who are only half-              amongst friends in real time while the     Engagement is the thing.                          Your secondary attention, however, can
watching and half-listening, when the           show is airing. Think of it as a social    Staying plugged in even when it doesn’t           leverage your hearing and speech to
glance is worth more than gaze and the          version of the long-lost laugh track,      feel like it. Habituating on the                  help you resolve all those last minute
morsel is worth more than the meal.             an important comparison since the          experience thanks in no small part to             details you need to address before you
                                                laugh track was initially created to       these intangible, seductive hooks. And            get to where you’re going.
When we’re multi-tasking and splitting          make viewers at home feel as if they       it works. Nike+ athletes use various
our focus, designers are forced to              were part of something more.               experiences in the ecosystem an                   This interaction model has more to do
deliver surprise and delight in the                                                        average of three times a week.                    with call and response music than the
corner of our eyes, just out of earshot.        Both experiences are designed to                                                             typical app experience. The experience
They’re trying to make things that are          keep the audience engaged with             Designing for secondary Attention                 isn’t reliant on launching the application
ephemeral and useful—experiences                programming, even when the                 When you move beyond current                      from a screen tap (rather, a button
that reward attention, not demand it.           programming is away for a commercial       experiences, and start to look at                 press in the case of Siri) or clicking or
                                                break. That helps defeat the impulse       new or upcoming products that are                 swiping through menus and sequences
The leaders in this field of ephemeral          to switch channels, check email or         designed with secondary attention in              as you do in most other applications.
and invisible brand interfaces include          become distracted, thereby losing          mind, things get really interesting. Siri         It’s not about all the choices inherent
so-called second-screen experiences.            valuable eyeballs. Networks like           is obviously the tip of the iceberg with          in those kinds of paradigms. Instead,
Some forerunners are striking a                 MTV, USA and IFC have entered into         this phenomenon, its evolution in the
delicate balance between these more             relationships with pioneers in the space   coming year even more so. Within the
active and passive experiences.                 and have created their own stand-alone     next few months, several automotive
                                                experiences. They are trying to better     manufacturers including BMW,




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                          turn Siri on, put the right sounds in,           These broad considerations aren’t
                          and the right sounds come out. It’s just         just the domain of big tech or media
                          that simple.                                     companies, but retailers as well.
                                                                           Walmart’s iPhone app lets you add
                          While the Siri microphone is a clear             items to your shopping cart by voice,
                          piece of brand visual identity, the real         ETRONIKA allows you to use Xbox
                          substantive brand element is the voice           Kinect to bank online and Pillsbury
                          behind the app (which, in the case of            recently launched an interactive TV
                          UK Siri, is also the voice of GPS service        campaign with Shazam that allows for
                          TomTom) itself.                                  second screen integration.

                          The voice controls for the Kinect for            Earphone Bully is another example of a
                          the Xbox work in a similar pattern:              campaign-oriented experience, wholly
                          You address the product (“Xbox”), tell           designed for secondary attention to deal
                          it what you want (“Apps”) and then               with an important social issue. By using
                          what to do (“Play Netflix”). The brand           3D sound technology and roleplay, it



                                                                                                                      Is ThERE A TERMINAl
                          experience in the Xbox is even more              prepares kids and parents for bullies
                          scaled back and reduced. With it, there          and gives them ways to speak up about
                          is no obvious persona, gender or voice           the issue. All you need is the URL and



                                                                                                                          VElOCITY FOR
                          for the device. Rather, your actions are         speakers or headphones. After clicking
                          simply acknowledged by a pleasing                play, the experience is totally aural.
                          “ping.” Here, Microsoft missed an



                                                                                                                       YOUTh AND DIgITAl?
                          opportunity to reinforce an invisible            conclusion
                          brand interface.                                 Creating these kinds of experiences
                                                                           requires clients, technologists,
                                                                           strategists, animators, writers
                                                                           and musicians, as well as visual,
“ You might as well pay attention because                                  interaction and experience designers,         Written by Omaid Hiwaizi, Planning Director, London
                                                                           to think about brands in a way that
  you can’t afford free speech.” –George Clinton                           isn’t locked into the same default
                                                                           thinking that has plagued more
                                                                           traditional branding agencies for the
                          As APIs open and other applications              last few decades.
                          become more integrated, a host of
                          questions about brand hierarchy will             A brand is more than just your logo,
                          need to be addressed. Imagine the                colour palette or tagline lockup.
                          opportunities and challenges when                Those elements were critical in an
                          Foursquare or Facebook are given                 era when the visual spectacle was
                          access to tools like Siri within their           what you had to stand out in, and the
                          own experiences. Will you be asking              gaze was your goal. In an era when
                          Foursquare for help or will Siri still           the glance or echo is every bit as
                          be the preferable choice? What is the            important, you need to consider other
                          experience when brands are layered               triggers and interfaces and stimuli to
                          into one another? Which brand                    provide a robust brand experience.
                          dominates?




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                        social media’s impact on the young              Technology has Always shaped society         Therefore, it appears that our brains              Betsy Sparrow at Columbia University.
                        has long been a cause for discussion.           Technology in the broadest sense has         are like a muscle—the more we use a                On the face of it, this is an example of
                        For example, at a recent talk about             caused societal change throughout            particular part of the brain, the more             our profound adaptability, outsourcing
                        the effects of social media on children         history—from soot markings on cave           neural pathways are developed and                  a skill we’re not brilliant at (e.g.,
                        at a steiner Waldorf school, a teacher          walls to motorised transport to the          the better we become at a skill. We                remembering lots of facts). But are
                        remarked that he believed the                   printing press to television. Naysayers      can therefore rewire how our brains                we in danger of creating a society of
                        onslaught of digital was creating a             theorised about how and when this            operate by practicing particular actions           amnesiacs? And given that what we
                        burnt-out generation—strung out,                world would end.                             throughout our lives, though the effects           know forms our framework for thinking,
                        dead-eyed kids without a real sense of                                                       are most profound before the age of 30.            could this have a negative impact on our
                        themselves or the world.                        In every case, the culture and the pace                                                         ability to conceptualise?
                                                                        of life adapted and life carried on.         MRI scans of the brain ranging from
                        The school has a very limited approach                                                       those ages 4 to 21 show clearly how the            What Are the impacts?
                        towards exposing youth to technology.           The Brain is a “Muscle” —use it or           frontal lobes, responsible for reasoning           Oxford Neuroscientist Baroness Susan
                        It teaches a system where reading and           lose it                                      and problem solving, are established.              Greenfield repeated expressions of
                        writing are not taught until age 7 and          Various studies have shown that              The process appears to follow the                  concern about the effect of technology
                        computers are not introduced until              medical students, mathematicians,            principle of “use it or lose it”—neural            on youth, in particular the immersive
                        age 14. The curriculum emphasises               jugglers, multi-linguists and musicians      connections that get exercised are                 experience of gaming leading to a “yuck
                        emotional development and claims to             all increase the volumes of specific         retained, while those that don’t are lost.1        and wow” mentality:
                        result in more well-rounded individuals.        parts of their brains as they practice
                                                                        their particular skills. A famous            The Effect of Digital on youth                     “… the environment in which that brain
                                                                        University College London (UCL) study        Don Tapscott, the author of “Grown                 is developing will be very much
                                                                        also showed this is true for London taxi     Up Digital,” asserts that by their 20s,            influenced by the kind of features of
What if the continuing increase of speed and                            drivers, whose posterior hippocampi,         today’s youth will have spent more                 that environment. And if, for the first
intensity of modern life, driven by technology,                         the part of the brain they use to recall a
                                                                        mental map and calculate the shortest
                                                                                                                     than 20,000 hours online or playing
                                                                                                                     video games. This coincides with the
                                                                                                                                                                        time—and this is my reasoning—

was somehow hitting a physiological or                                  route from A to B, grow in proportion        period when their brains are developing
psychological barrier?                                                  to the time they spend on “The
                                                                        Knowledge”—the 2 to 4 year process
                                                                                                                     most, and has the effect of changing
                                                                                                                     mental reflexes, habits and the way they
                                                                                                                                                                                                                                                            Brain Development in Our youth

                                                                        where they learn 320 routes and 25,000       learn and absorb information. Playing
                                                                        London streets.                              action video games, for example, helps
                        While this may seem extreme, we                                                              people process visual information more
                        should consider how ubiquitous                  Interestingly, the same brain change         quickly.2 And Internet users develop
                        digital technology has influenced the           does not take place amongst London           new skills in scanning content faster,
                        development of the young, and what              bus drivers, who learn a handful             as well as the ability to read in different
                        digital agencies can do to create               of routes and repeat them turn for           directions and an increased sensitivity
                        enriching and rewarding digital                 turn. There is also evidence that taxi       to visual information. This is particularly
                        experiences.                                    drivers who have taken The Knowledge         profound, given Malcolm Gladwell’s
                                                                        struggle more than others to adapt to        hypothesis that it takes 10,000 hours of
                        But what if there is a terminal velocity        changes in the road network or drive in      practice to be exceptional at something.
                        where youth and digital can go no               unfamiliar cities. Dr. Katherine Woollett,
                        faster, instead heating up and burning          co-author of one study from UCL, said,       The powerful influence of digital is also          neuroscientists have postulated that the
                        out? Are there ways we can keep pace            “The posterior hippocampus is at its full    demonstrated by “The Google Effect,”               changing environment of youth in the developed world -
                        with our changing environment? Or               capacity; it cannot incorporate any more     the shift away from retaining primary              an environment with connections, gaming, and ubiquitous access
                        could there be an evolutionary leap in          of this same type of knowledge because       facts towards a skill for knowing how              to data - must be having an impact on brain development. From “the Google effect”
                        response?                                       it is full.”                                 to search for them, documented by                  (the shift away from primary fact recollection) to the impact of 20,000 hours of videos
                                                                                                                                                                        games, we may be approaching the limits of our adaptability.

                                                                                                                                                                         1
                                                                                                                                                                             the national Institute of Mental health and University of California los angeles
                                                                                                                                                                         2
                                                                                                                                                                             nature, 2003

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                                         that environment has changed in an                  face communication, a third desired       Our hypothesis                                   We have already seen some brands
                                         unprecedented way, if it’s bombarding               time off from the Internet and around     Research has shown that different                begin to realise opportunities
                                         you with boom bang and bang images,                 36% said they wished they “could go       parts of the brain develop in response           to reconnect with customers in
                                         what I call the “yuck and wow” scenario             back to a time when there                 to practicing specific skills, and young         meaningful ways. For example, in a
                                         where every moment you’re having                    was no Facebook.”                         brains become hard-wired towards                 world where there is less physical            What We can Do
                                         something flash up in your face and                                                           the age of 20. So, while youth become            human contact, Unilever developed
                                                                                                                                                                                                                                      Some will try to wind back the clock
                                         bombard your ears. All I’m suggesting is            Research does indeed show that heavy      expert at outsourcing memory (“The               the Share Happy iVend, an interactive,
                                                                                                                                                                                                                                      and pull the young out of the digital
                                         that that might drive brain connections             use of digital communications also        Google Effect”), they also lose an aspect        smile-activated vending machine.
                                                                                                                                                                                                                                      torrent by limiting access, a solution
                                         and drive the configuration of your brain           has a measurably negative impact          of human identity and connection, the            In a world where there’s more bad
                                                                                                                                                                                                                                      that the Steiner Waldorf teacher
                                         cell circuitry into the kind of mindset             on a tween’s social cognition: Their      symptoms of which include an increase            news than good, Coca-Cola’s Longest
                                                                                                                                                                                                                                      would recommend.
                                         that mandates a short attention span.”              ability to read subtle communication      in depressive illnesses.                         Celebration campaign extended
                                                                                             clues gained from face-to-face                                                             moments of the 2010 World Cup into
                                                                                                                                                                                                                                      We disagree, and think the data
                                         She also highlighted that the                       contact is diminished.3 Also, Robin       We have reached a terminal velocity—             a global dance party. And in a world
                                                                                                                                                                                                                                      also gives us a few clues about how
                                         lack of consequence in visceral                     Dunbar (famous for having defined         many young brains cannot keep up                 where most people don’t venture off
                                                                                                                                                                                                                                      to productively move forwards,
                                         gaming environments could mean                      Dunbar’s number) has measured             with the way that technology has sped            the beaten track, Mammut used online
                                                                                                                                                                                                                                      ways to make the work we produce
                                         a generation losing valuable                        increased satisfaction from face-to-      up life. Historically, as technology has         communities to create 150 teams, and
                                                                                                                                                                                                                                      for brands fulfilling and healthy
                                         evaluation skills in real life.                     face communication over other forms.      evolved, so too has the rate of human            inspired them to scale 150 mountains,
                                                                                                                                                                                                                                      experiences for youth:
                                                                                             Interestingly, Skype conversation         cognition. But we may now be at a point          all over the world.
                                         Recent research on U.S. teenagers                   scored higher than the telephone,         of inflexion where human limitations
                                                                                                                                                                                                                                      • Normal behaviour has moved
                                         by Common Sense Media adds some                     which scored higher than email, texting   can result in real challenges for                These brands are starting to use digital
                                                                                                                                                                                                                                        online, so digital should always
                                         detail to the picture: While 90% of teens           and social networking. Even text-based    people, like a loss of connection with           to overcome these limitations through
                                                                                                                                                                                                                                        be part of the mix.
                                         are online, and 75% have social media               communication that used emoticons         friends, with the real world and with            experiences that solve these emerging
                                                                                                                                                                                                                                      • People desire human and social
                                         profiles that they believe positively affect        scored higher than texts without. The     themselves.                                      challenges at the intersection between
                                                                                                                                                                                                                                        connection through channels
                                         their social and mental well being, the             more human the communication is,                                                           life and technology, creating real and
                                                                                                                                                                                                                                        that are nuanced and create deep
                                         majority said they preferred face-to-               the more it makes us feel good.           This isn’t to say that no youth can keep         enduring value.
                                                                                                                                                                                                                                        ties with others—ideally real-world
                                                                                                                                       up; not everyone is the same and some
                                                                                                                                                                                                                                        friendships.
    under or Over use of internet have similar negative Effects                              However, getting the right balance        are better suited to today’s technology-
                                                                                                                                                                                                                                      • People want valuable utility—useful
                                                                                             is key, as has been evidenced by a        driven life. We also know that crises
              2                                                                                                                                                                                                                         experiences embedded into the
                                                                                             University of Lausanne study. It shows    often precede huge shifts—we might be
                                                                                                                                                                                                                                        world around them.
             1.9                                                                             that teens who are heavy users of the     on the cusp of an evolutionary leap, in
             1.8                                                                             Internet (those who are online over       response to our changing environment,
Depressive   1.7                                                                             two hours per day) have considerably      where we develop a different
     scale   1.6                                                                             more incidences of depressive             consciousness, one fully equipped to
                                                                  Girls                      illnesses—perhaps due to a lack of        deal with the new digital world.
             1.5
             1.4                                                                             real-world experiences and deep
                                                                                             friendships. The study also indicates     The Digital Experience connection
             1.3
                                                                      Boys                   that non-Internet users show a similar    The research indicates that technology
             1.2                                                                                                                       is indeed outpacing the abilities of
                                                                                             increase—perhaps because of feelings
             1.1                                                                             of exclusion, as social conversation,     human physiology. However, as much
              1                                                                              content and experiences have              as technology presents a challenge,
                      None            Occasional                     Heavy                   increasingly moved online. Moderate       it also presents an opportunity—an
                                                                                             Internet use appears to correlate with    opportunity for clever brands to use
                                                                                             better mental health. This is the new     digital to help overcome the chasm
                   u-shaped association—none or heavy use of internet
                                                                                             model behaviour.                          between technological possibilities and
                           correlates with depressive illness.
                                                                                                                                       human capabilities.
                                 source: university of lausanne


                                                                                             3
                                                                                                 the Dana Foundation


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                                                                                 For most people in north America,               important for content-heavy sites.



REspONsIVE DEsIgN 101:
                                                                                 Western Europe and vast portions                Also, if no needs exist for certain
                                                                                 of the Asia-Pacific, when they first            mobile phone elements (such as
                                                                                 tried the internet, they didn’t know            access to the camera), content can



oPtIMIzInG FoR MUltIPle sCReens
                                                                                 what to do with it. But just as previous        easily be ported to a variety of mobile
                                                                                 technologies before it—from the                 devices. Additionally, Responsive
                                                                                 telephone to the automobile—                    Design lets a brand maximize SEO.
                                                                                 the more it was used, the more
                                                                                 indispensable and intertwined it                Mobile Web Will
    Written by Dan Israel, Strategy Lead, Mobile Center of Excellence, Atlanta   became in their lives.                          surpass Desktop Web
      & Mayur Gupta, Director, Technology and Marketing Services, Miami                                                          A third of all people on Earth—
                                                                                 The benchmark experience—the                    2.3 billion—access the Internet
                                                                                 “large”-screened UNIX, Mac or                   and roughly 1.2 billion do so via
                                                                                 Windows workstation, PC or laptop—              a mobile device.
                                                                                 defined the Internet since its inception
                                                                                 for most people in North America,
                                                                                 Europe and, debatably, the Asia-Pacific.
                                                                                                                                   Responsive Design is an emerging design
                                                                                 But that is no longer the case. With the
                                                                                 rapid growth of mobile, touchscreen
                                                                                                                                   philosophy that will enable businesses
                                                                                 interfaces and the rise of the global             to design a fantastic, optimized Internet
                                                                                 web, brands see a proliferation of
                                                                                 screen sizes, devices and user contexts.
                                                                                                                                   experience regardless of the size of the
                                                                                 As a result, massive new challenges               screen or the nature of the device.
                                                                                 are being created for businesses.
                                                                                 How do you develop the best possible
                                                                                 experience for the widest possible set
                                                                                 of customers—particularly if those              As smartphones replace feature
                                                                                 customers are as diverse as a middle-           phones, Internet access through
                                                                                 class Indian technology worker with             a mobile device will dramatically
                                                                                 a smartphone, and a rural Eastern-              increase. According to GO-Globe.com,
                                                                                 European farmer with a tablet?                  of the 5 billion mobile phones in the
                                                                                                                                 world in 2012, about 1.08 billion are
                                                                                 One new tool is Responsive Design—              smartphones. Owners of a smartphone
                                                                                 an emerging design philosophy that              consume the Internet at a vastly
                                                                                 will enable businesses to design                higher amount than feature phone
                                                                                 a fantastic, optimized Internet                 consumers—according to Nielsen,
                                                                                 experience regardless of the size of            82% of smartphone owners access
                                                                                 the screen or the nature of the device.         mobile browsers, compared to only
                                                                                 With this method, one platform can              19% of feature phone owners. Sales
                                                                                 deliver the design and content to               of mobile devices already eclipsed
                                                                                 smartphones, TVs, tablets or laptops.           sales of PCs in Q4 of 2010, and
                                                                                 Responsive Design lets you stretch              Morgan Stanley projects that by
                                                                                 the content effectively and easily              2014, mobile web surfing will
                                                                                 across platforms, which is especially           eclipse that of desktop web surfing.




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                              Marketers can now engage consumers              “sacrifice” for the mobile web. Lastly,    When responsive Design                          The “Whys”
                              on their most intimate piece of                 how do you ensure that changes to          May Make sense                                  scalable adaptation. In an ever-
                              technology: their mobile device. But            your “regular” Internet experience do      Brands must ensure that Responsive              evolving digital device landscape,
                              what can be done to preserve the                not negatively impact the mobile web       Design truly fits business needs and            which is hugely fragmented by varying
                              reliability and consistency of the              experience?                                provides clear benefits. To help make           screen sizes, view ports, resolutions
                                                                                                                         this determination, we will examine the         and capabilities, it is almost impossible
                                                                              What is responsive Design                  “Whens” (business considerations) and           to build an isolated experience for
                                                                              Ethan Marcotte first coined the term       “Whys” (benefits) for Responsive Design.        each combination. Responsive Design
Responsive Design is a fundamentally                                          “Responsive Design” in May 2010.                                                           offers a scalable solution that can
                                                                              Simply put, Responsive Design enables      The “WhEns”
different way of envisioning user experience                                  you to design your “regular” Internet      Traffic distribution and targeted
                                                                                                                                                                         adapt to these variations to create
                                                                                                                                                                         a connected user experience; it is a
and web design—a mental shift from thinking                                   experience to fit into practically any     devices. If you want customers to have          design approach based on proportions
                                                                              device with a full browser, be it a        consistent web experiences no matter            as opposed to pixels.
pixels to proportions that requires connecting                                smartphone, a tablet or a TV.              where they come from, and more than
strategic, creative and technology disciplines.                               At its core, Responsive Design “snaps”
                                                                                                                         10% of your web traffic comes from              single source of content and code.
                                                                                                                         non-PC devices, then Responsive                 Responsive Design relies on a unique
                                                                              the regular website into the shape of      Design may make sense.                          feature of HTML5 called “media
                                                                              the browser on any device. Using a mix                                                     queries,” which can apply selective
                                                                              of flexible grids, layouts, images and     content and marketing sites. If your            style-sheets to a page based on
                              Internet experience on devices that
                                                                              intelligence built into the CSS media      web experience and design objectives            the screen size and resolution. In
                              aren’t the standard bearer? And then
                                                                              queries, the website presented will        lean toward content and marketing               essence, only one set of code (e.g.,
                              there are other challenges companies
                                                                              change “on the fly” to accommodate         and less on ecommerce or business               HTML templates, HTML5/CSS3) is
                              have to master.
   320px            768px                                                     for the resolution, image size and         transactions, Responsive Design                 required for all touchpoints, so there’s
                                                                              other factors on the detected device.      may make sense. “Content” includes              no need to create and manage a
                                                                                                                         product information, news, blogs and            separate codebase for different web
                                                                              Considered more a design philosophy
                                                                                                                         marketing materials. Good examples              experiences.
                                        desktop                               than a hard-and-fast set of rules,
                                                                                                                         include Boston Globe, Sony and even
                                                                              the beauty of this system is that the
                                                                                                                         Starbucks.                                      Device-agnostic url. By having
                                                                              creator does not need to create a
                                                                                                                                                                         one URL for mobile, tablet and
                                                                              different design for each medium. This
                            phone




                                                          tablet                                                         consistent behaviors. Consider                  desktop, Responsive Design provides
                                                                              represents a fundamentally different
                                                                                                                         Responsive Design if your customers             simplified access and marketing
                                                                              way of envisioning user experience
                                                                                                                         —whether they access your site on               strategies, with efficiency gains
                                                                              and web design—a mental shift from
                                                                                                                         a PC, a mobile device or some other             in development, QA and launch
           1024px                                                             thinking pixels to proportions that
                                                                                                                         touchpoint—consistently carry out               management processes. In addition,
                                                                              requires connecting strategic, creative
                              How do you avoid creating multiple                                                         the same behavior and activities. In            it removes the risks associated with
                                                                              and technology disciplines.
                              versions of the same webpage for                                                           other words, they do not expect to do           relying on a user agent to detect the
                              different devices? Even if iPhone and           Let’s take a closer look at what           different things on different devices.          device and send the customer to the
                              Android devices are all a brand cares           Responsive Design really looks like.                                                       right template on a server.
                              about, how do you prepare for new               In the illustration on the left we see a   skill matrix. This refers to human
                              devices that will sport Internet access,        prototypical website on a smartphone,      resources. How easy is it for you to            Traffic lift through improved sEO.
                              such as readers, TVs and a host of              PC and tablet. The orange, yellow and      find people with the relevant strategy,         Responsive Design allows incoming
                              emerging products? Also, since screen           red boxes represent the same content,      creative and technology skills to               traffic across all touchpoints to
                              space is at a premium on a mobile               but are displayed or hidden depending      execute Responsive Design solutions?            be directed to a single URL. This
                              device, a company has to triage what            on where the content is being accessed                                                     consolidation enables higher link
                              capabilities and experiences they will          and how it impacts the user experience.                                                    equity that subsequently leads to
                                                                                                                                                                         better ranking than separate desktop,
                                                                                                                                                                         tablet and mobile webpages.


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                                             reduced maintenance risks and                mobile device to scan a 2D bar code, but      web methodology that relies on                conclusion
                                             release cycle times. The more devices        not on a PC. A travel website for a desktop   mobile browsers, while a native app           Responsive Design offers much
                                             and templates you have to support, the       and tablet may focus on search, pricing,      leverages native capabilities of a            promise, and it is being used by
                                             higher the cost of regression testing        competitive analysis and bookings, while a    smartphone device.                            several brands with great success.
 10 considerations                           with each release. With Responsive           mobile interface may cater to completely                                                    We end with two thoughts.
 for responsive                              Design, the code base is identical           different user behaviors like check-ins       Browser compatibility. Older browsers
 Design Execution                            across all devices, making it easier for     and status updates.                           sometimes do not support HTML5                When considering Responsive Design,
                                             developers to pinpoint what changes                                                        code. In turn, designers may have to          brands should avoid the temptation to
1. Identify all viewports and breakpoints,   they made and where a problem may            higher cost, effort, time and risk.           spend development effort to create            “design to respond.” In this scenario,
   and select a progressive (mobile          be lurking.                                  Responsive Design is still in its infancy.    workarounds for these situations.             a team decides to adopt Responsive
   first) versus downward (desktop                                                        The design philosophy lacks advanced                                                        Design even before the idea is
   first) approach.                          Experience optimization across               frameworks, libraries, patterns and           Approach to responsive Design                 conceptualized or desired customer
                                             resolutions. Responsive Design also          standards, which forces some teams            As mentioned, Responsive Design               journeys are created. The decision
2. Define the navigation approach,           enhances experiences for desktop             to go through a steep learning curve.         represents a relatively new design            factor here tends to be based purely
   and decide what the overall navigation    users with large or high-resolution          As an approach, it requires a far more        philosophy. No industry standard              on the number of devices, ignoring the
   structure should be for the different     screens and eliminates the                   collaborative and cohesive effort             blueprint exists. To help you in your         design and functional gulf that may
   breakpoints, which are typically driven   conventional challenge of white space        across design, IA, strategy, content and      assessment of Responsive Design, we           exist between the desktop and mobile
   by functional and content relevance.      and manual resolution adjustments.           technology teams.                             have developed a possible approach            versions of a site. A better approach is
                                                                                                                                        (See 10 Considerations for Responsive         to “respond to a design.” This scenario
3. Define the approach for content                                                                     Performance impact.              Design Execution).                            considers Responsive Design as one
   choreography—what content will be                                                                   Responsive Design relies on                                                    option for consideration to create an
   hidden or displayed on mobile, tablets                                                              content manipulation using       Keep in mind that Responsive Design           optimized and relevant user experience.
   and PCs.                                                                                            media queries and selective      represents a truly collaborative plan,
                                                                                                       style-sheets on the client       and an agile methodology to design.           One thing is for certain—Responsive
4. Set guidelines and standards for                                                                    side. This is different from     As such, establish a team composed            Design is here to stay. And as more
   media queries.                                                                                      web proxy solutions used by      of an information architect, creative         standards and more devices emerge,
                                                                                                       other design approaches,         designer, content strategist and              the need for Responsive Design will
5. Use fluid grids—think proportions                                                                   whereby the experience is        site developer to define the overall          only continue to grow.
   instead of pixels.                                                                                  optimized on the server side.    approach and methodology.

6. Come up with an image and video                                                                   What this means is that the                                                                                             Separate     Responsive
   handling strategy.                        When responsive Design                       same amount of content, images, HTML          Which solution is better for your mobile site?                                      Mobile Site     Design
                                             May not Make sense                           and CSS code delivered across desktops          rEsPOnsiVE DEsign cOnsiDErATiOns
7. Account for display and banner ads.       unique mobile experiences are                (higher memory and processing power)            Lower cost, effort and complexity                                                      3           2
                                             preferred. Consistency is at the             must be sent to a mobile device (limited
8. Optimize for touch versus cursor                                                                                                       Scalable and seamless adaptation across devices and screen sizes                       2           4
                                             heart of the Responsive Design value         bandwidth capacity), leading to potential
   effects; design should be optimized       proposition, but this doesn’t always         performance bottlenecks.                        Consistent experience across digital touchpoints and devices                           2           3
   for both cursor-based (desktops) and      work for all brands. The more functions                                                      Suited for ecommerce, transactional and highly interactive sites                       4           2
   touchscreen usage (mobile, tablets).      and capabilities envisioned in a user        native or hybrid apps. Responsive               Optimized for content driven and marketing sites                                       2           4
                                             journey, the less adaptable and flexible     Design is not meant to replace the need         Higher search engine optimization                                                      2           3
9. Define a creative and performance         Responsive Design can be for the brand.      or capability of a native or hybrid app         Low performance risks                                                                  3           2
   testing strategy.                         For instance, a brand may want               installed on a device. It is a mobile
                                                                                                                                          Easier site maintenance and future release management                                  2           4
                                             customers to access a camera on a
10. Validate SEO.                                                                                                                         Availability of existing design patterns, frameworks and platforms                     3           2
                                                                                                                                          Skill and knowledge level required                                                     3           1

                                                                                                                                                                                        KEy 1 POOR 2 FAIR 3 GOOD 4 BEST


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                                                                           Predicting
                                                                      Desirability—Lessons

                              2
                                                                       From a Teen Genius
                                                                                                       The “Big Data” Era:

                                                                            69                          Learning to Act in




  pREDICTINg
                                                                                                           Real Time


                                                                                                             81

    DEsIRE                                                                          The Future of
                                                                                   Business Insight
                                                                                                                                    OE

                                                                                                                              Gamification as
                                                                                                                             a Digital Strategy




The second major trend we’re seeing is that companies are
                                                                                        75                                        91
predicting—and even shaping—desire among their target customers.

A combination of new technology, customer changes and business                                                    OE

viability is making this possible.                                                                        Digital Luxury 101:
                                                                                                          How to Enhance the
The rise of data warehouses and analytics, the future of mobile                                          Customer Experience


                                                                                                                 86
data, real-time analysis, the use of social networks to monitor and
influence desirability, and ways banks can rebuild trust were all
topics our authors chose to explore in this category.
                                                                                                                                      Media-Sapiens:
                                                                                                                                   Using Social Instincts
                                                                                                                                    to Explain, Predict
                                                                                                                                 and Influence Desirability
                                                                                             rebuilding Trust:                       in the Digital Age
                                                                                              how Banks can
                                                                                                reconnect
                                                                                             With consumers                                96
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                                                                                                         2
                                                                                                                                                                                                        pREDICTINg DEsIRE

                                                                 On July 23, 2012, a Florida teenager             testing and sophisticated response
                                                                 won the google science Fair grand                modeling using regression analysis
                                                                 prize1 for creating an app that helps            and discrete choice algorithms,
                                                                 doctors diagnose breast cancer                   among others. However, prediction
                                                                 with a 99.11% success rate. Brittany             science must advance from segment
                                                                 Wenger, 17, observed that the least              understanding and marketing
                                                                 invasive diagnostic test for the                 mix models to provide real-time
                                                                 disease, called fine-needle aspirate,            intelligence to inform unique
                                                                 is also the least certain one. Often, if         experiences for segments of one. In
                                                                 results aren’t clear, doctors order a            a world of radical price transparency,
                                                                 second biopsy with a bigger needle               showrooming and consumer
                                                                 or even surgery. Brittany wanted                 empowerment fueled by mobility,
                                                                 to boost the less-invasive test’s                search and social media, customers
                                                                 diagnostic accuracy rate.                        demand a relevant, engaging and
                                                                                                                  coherent experience within and
                                                                 She developed a computer program                 across channels.
                                                                 called a “neural network,” which
                                                                 mimics the human brain, and “trained”            Brittany’s inspiring achievement
                                                                 the program with public data from 7.6            applies principles applicable across a
                                                                 million trials. Leveraging mathematics           multitude of “predictive” problems:
                                                                 and statistics, she created program
                                                                 code to convert inputs from the trial’s          1. centralizing intelligence.



    pREDICTINg
                                                                 data to binary 1s and 0s to simulate the         Learning systems build intelligence
                                                                 on and off firing of the brain’s neurons.        as relevant data available to them
                                                                 She deployed her program in the cloud            increases. Brittany encouraged



   DEsIRABIlITY
                                                                 and made it freely accessible to any             physician usage by deploying a
                                                                 doctor, anywhere in the world. Perhaps           central, scalable database in the
                                                                 the most powerful quality of her                 cloud and making her application



       —lessons FRoM
                                                                 program is that its prediction accuracy          available from any browser or
                                                                 trends towards 100% as more doctors              smartphone.
                                                                 use it. Like the human brain, it gets



        a teen GenIUs
                                                                 smarter as it learns new facts.                  2. connected thinking.
                                                                                                                  She applied mathematics, statistics,
                                                                 On the scale of large problems facing            medicine and computer science,
                                                                 humanity, predictive targeting hardly            surpassing results that the individual
                                                                 compares with cancer diagnosis                   disciplines had achieved to that point.
Written by Sheldon Monteiro, Chief Technology Officer, Chicago   and treatment, but within marketing
                                                                 science, few problems are tougher                hOW cAn WE APPly hEr
                                                                 than understanding and predicting                PrinciPlEs TO PrEDicTiVE
                                                                 customer behavior. Marketers                     MArKETing?
                                                                 have leveraged many techniques—
                                                                 statistical surveys, opinion polls,              centralizing intelligence
                                                                 focus groups, ethnographic research,             Digital businesses like Amazon
                                                                 analysis of transaction, demographic             have demonstrated that customer
                                                                 and psychographic data,                          knowledge is foundational to shaping
                                                                 experimental design, multivariate                personalized experiences that help

                                                                                                                     1
                                                                                                                         Google science Fair Project summary: Global neural network Cloud service for Breast Cancer
                                                                                                                         http://goo.gl/z4gB1

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                                    2                                                                                                                                      pREDICTINg DEsIRE

each customer achieve her goals while         engagement, diversion or interaction     cannot keep pace with changing            broadcast media have exacerbated
promoting the firm’s commerce goals.          with other people while watching         customer behavior or fast marketing       the DRIP problem. With channel
                                              TV. Like showrooming, multi-screen       campaigns.                                proliferation, marketers commonly
However, a concept as basic as a              experiences enable the evolution                                                   hire specialist agencies to focus
single view of the customer has               from one-way, mass segment reach         Leading organizations are assembling      on each channel. It’s not unusual
been well described, but has been             to immersive interactions where          the people, technology and processes      to see direct marketing campaigns
elusive to achieve. For instance,             individual customer behavior can be      to prepare their organizations for the    tracked in outsourced promotion
basic contact information forms               studied and enriched in real time.       onslaught of big data. For example, in    databases, web analytics in isolated
the foundation for any customer                                                        an aggressive capability play, Walmart    cloud databases, purchases in line
profiling strategy, but a recent              Today, leading organizations are         has invested more than $500 million to    of business transaction databases,
Experian survey reports that 92% of           adopting two sets of capabilities that   create WalmartLabs—an independent,        social analytics in their own tools and
businesses feel their contact data            build the foundation for centralized     agile organization with big data skills   so on. Firms may pull some of these
is inaccurate in some way, and 66%            intelligence:                            that combines store data with social
of respondents who have customer                                                       media data. Walmart understands that
loyalty programs believe their                a. Agile data. For decades, firms like   an agile data capability will enable
                                                                                       leadership in the next decade of
programs were negatively affected in          American Express and Target have
                                              aggregated customer information          retail innovation.
                                                                                                                                  What’s changed from the last decade is
the last year due to inaccurate data.
Against this backdrop, McKinsey               into data warehouses to out-market                                                  the rate at which new data sources are
                                              their competitors with targeting. But    An agile data capability requires
estimates that firms with more than
1,000 employees across nearly all             dig deeper and what most of these        a strong partnership between               emerging, which drives the variety, volume
                                                                                       marketers and technologists.
sectors in the U.S. economy have at           leaders built their customer insight
                                              on was past transaction information      Data architects, technologists and
                                                                                                                                  and velocity of data.
least 200 terabytes of stored data
(twice the size of Walmart’s data             combined with some external data         marketers embrace agile processes,
warehouse in 1999). Many sectors              such as geo-demographics.                with short, time-bound delivery
had more than 1 petabyte in mean                                                       cycles, high communication, low
stored data per company. With so              Today, we know more about our            documentation and superb talent—          information sources into a central
much data, and such poor data                 customers. If we choose to look,         with the ultimate proof being the         warehouse to seek insights, but
quality, being “data rich and insights        we can view social, reputational,        early delivery of working software        aggregation can seldom address the
poor” is significant enough to                behavioral, transactional and local      yielding actionable customer insights.    data marketer’s Holy Grail: linking
warrant its own acronym—DRIP.                 information, among others. The                                                     each customer touch to a single
                                              sources of this data, whether mobile     b. integrated platforms. Existing         customer record in real-time.
Centralizing intelligence is easier in        or online experiences, in-store          structures for siloed brands and
theory than in practice, particularly         RFID, sensors and kiosks, Facebook
for non-digital customer touchpoints.         and Twitter, Klout and others, are
That’s changing quickly—nearly half           increasing daily.
of all consumers in a retail store
carry around a portable computer              What’s changed from the last decade
equipped with a host of sensors,              is the rate at which new data sources
and will use the said computer if it          are emerging, which drives the
helps them achieve their goals, as            variety, volume and velocity of data.
the “showrooming” phenomenon has              This trifecta, known as the 3Vs, is
demonstrated. That computer—those             commonly referred to as “the big
smartphones and tablets—make each             data challenge.” Existing enterprise
consumer addressable. Beyond retail,          databases have room to scale and
Pew Research found that television’s          address some of these changes, but
solitary screen is being supplemented         they are managed with elaborate
by multi-screen interactivity—half            policy and rigid change controls.
of all adult cell owners (52%) have           Commonly, the speed with which
used their phones recently for                new data sources may be integrated




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  Key Technology    hadoop: Hadoop is a platform for
                    data storage and processing that
                                                                    would be hard-pressed to buy a new
                                                                    laptop without one. Combined with
                                                                                                               A global, multi-brand CPG firm with
                                                                                                               dozens of brands has implemented
                                                                                                                                                              Connected thinking, in theory, sounds
                                                                                                                                                              easy. But many firms struggle with

 Building BlocKs    is scalable, fault-tolerant and open            falling memory prices and multiple         SapientNitro’s managed brand                   it, because the sub-disciplines
                    source. Every click, every friend               core processors, it is now feasible to     platform. Deployed entirely in the             of marketing strategy, creative,

for an agile daTa   request on Facebook or action on                store entire databases in the main         cloud, different brands and their              technology and analytics have
                                                                                                               agencies create digital campaigns—             typically resided in organizational
                    Yahoo! will land in a Hadoop cluster.           memory of powerful servers. Accessing

     compeTency
                                                                                                               microsites, social, sweepstakes and            silos. Marketers may lean towards
                    If you book travel online, there’s a            data from main memory is orders of         mobile—and deploy these to the                 big ideas, or creative excellence,
                    high probability that a Hadoop cluster          magnitude faster than physical disk        managed platform. The customer                 and technology or analytics may
                    helped determine your flight or hotel           drives. In-memory databases are not        database is centralized and captures           be viewed as commodity enablers.
                    options. Hadoop is economical, scales           new, but have been expensive at scale.     all data, behavioral and transactional,        Implicit or explicit favor of some
                    almost infinitely as volumes grow,              Today, the economics are viable for        and associates it with unique visitors.        disciplines over others impedes
                    deals with a tremendous variety of data         larger deployments.                        Correlation with broadcast media activity      collaboration. After overcoming
                    and complements existing enterprise                                                        and search metrics are also integrated         discipline bias, two additional
                    database investments.                           Agile development: Agile                   into this database. Insight enables            ingredients—common language and
                                                                    encompasses a group of software            targeted content and customization             physical and virtual spaces for cross
                                                                                                               across brands. Content processes,              discipline collaboration—must be in
                    graph databases: Compared with                  development methods based on
                                                                                                               shared brand assets, security and              place and widely adopted. For example,
                    traditional databases, graph databases          iterative and incremental development.
                                                                                                               scale are managed centrally, delivering        SapientNitro’s social collaboration
                    are often faster for associative                Requirements and solutions evolve          reliability and trimming costs. The            platform—Vox—is so widely adopted
                    data sets, such as storing complex              through structured collaboration           platform is more than technology—it            and used across the firm that the
                    relationships in a social network. They         between cross-functional teams.            is supported by a customer-centric             technology has become invisible.
                    scale well and can be better suited for         Agile promotes just-in-time planning,      insights team and account managers             Like Google, Vox is more a verb than
                    managing ad-hoc and changing data               evolutionary development and               who work with the brands, their                a platform when a group of our Idea
                    with evolving schemas. Graph-like               encourages rapid and flexible response     agencies and the development team to           Engineers works on anything.
                    questions, such as how many degrees             to change. Agile is sometimes criticized   maximize platform value.
                    you are from another LinkedIn member            for only being applicable to projects                                                     In his popular book, Web Analytics
                                                                                                               Agile data and integrated platforms            2.0, Avinash Kaushik, Analytics
                    are answered with simple queries like           with a small number of developers and
                                                                                                               together provide the centralized               Evangelist for Google says, “When
                    the shortest path between two nodes in          low external dependencies, but leading
                                                                                                               intelligence foundation for delivering         I walk into a supermarket, I don’t
                    the graph.                                      organizations have overcome these          relevant, engaging customer                    expect the employees to recognize
                                                                    challenges and scaled Agile to large       experiences.                                   me or rearrange the store for me. Yet
                    Fast data: About a decade ago, Intel            enterprise programs.                                                                      when I visit an online supermarket,
                    introduced their first 64-bit processor,                                                   connected Thinking                             I am annoyed that on my third visit
                    doubling the bus width, which can (in                                                      Brittany’s other ingredient builds on,         they still don’t know I live in California
                    theory, though not yet in practice, for                                                    and complements, the centralized               and they are not presenting me with
                    memory and architecture cost reasons)                                                      intelligence foundation. Connected             items for sale at my local store.”
                    address about a trillion times more                                                        thinking is looking around corners,            Avinash observes that when people
                    memory than a 32-bit processor.                                                            across silos and asking how techniques         shop online, they have a different set of
                                                                                                               and tools from one discipline can be           expectations.
                    It’s taken a decade, but today, you
                                                                                                               applied and multiplied by those in
                                                                                                               another discipline.                            As more consumer touchpoints
                                                                                                                                                              become digitally enabled, consumer
                                                                                                               For instance, Apple is exemplary               expectations will evolve, but the key to
                                                                                                               at using physics in the design of its          rich contextual experiences will remain
                                                                                                               user interfaces. The fluid motion              consumer insight and the power
                                                                                                               characteristics of the iPhone interface        of prediction, built on centralizing
                                                                                                               are inspired by the laws of inertia            intelligence and connected thinking.
                                                                                                               and momentum.                                  Thanks, Brittany. You inspire us.




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       ThE FUTURE
                                                                         As mobile phones continue to                  Big Digital + Big Telco =
                                                                         grow in sophistication and power,             Big Opportunities
                                                                         marketers are taking note. yet many           Digital and telco services offer




       OF BUsINEss
                                                                         are overlooking one of the most               substantial opportunities for today’s
                                                                         significant implications of these new         businesses. Through their very
                                                                         mobile devices: the fundamental               existence, mobile phone companies




         INsIghT
                                                                         shift that mobile data intelligence           have data that is tremendously deep
                                                                         will enable for businesses. Mobile            and rich. It is a side effect of the
                                                                         Analytics has the potential to change         network that is the backbone of
                                                                         the business intelligence landscape           their business.
                                                                         as fundamentally as ecommerce has
Written by Lee Woodard, Director, Client Services, SapientNitro London   for retail.
     and Chris Handley, Group Head of Mobile Analytics, Vodafone
                                                                         In this paper, we identify three              Between the dawn of civilization and 2003,
                                                                         examples of how rich Mobile
                                                                         Analytics can enable businesses               the human race created 5 exabytes of data.
                                                                         to make better decisions about                Now, we generate that every 2 days. By 2020,
                                                                         investments, and also discuss the
                                                                         privacy and fraud challenges.                 some reports say nearly 20 billion devices
                                                                                                                       will be connected to the Internet.
                                                                         Our understanding of the Internet
                                                                         and mobile is undergoing a
                                                                         transformation that is nearly as
                                                                         important as the invention of the             Telcos have multiple sources of data
                                                                         Internet itself. Digital is causing           that, when combined and cross-
                                                                         fundamental shifts everywhere,                matched, become new assets. Through
                                                                         from marketing and advertising to             a phone’s billing relationship with a
                                                                         business models and organisation              consumer, they know who she is, where
                                                                         structures. Through digital                   she lives, how fast she moves between
                                                                         transformation, brands have the               points and how long she lingers at those
                                                                         opportunity to redefine the way they          places. They also have the ability to
                                                                         interact with their customers.                know what she does on her phone: what
                                                                                                                       she browses, what kind of apps she
                                                                         “Big data” has become a sub-set               buys and more. And network operators
                                                                         of this transformation (and a handy           have large population samples, device
                                                                         buzzword) in recent years—with                data and M2M (machine to machine)
                                                                         good reason. But the opportunity              sources, all generating huge amounts of
                                                                         is to extract meaning from these              raw data.
                                                                         technologies and extract the layers of
                                                                         data to create products and insights          But it’s what is done with all that data
                                                                         for different industries. The power           that is most interesting. The enormous
                                                                         is how this data reveals new ways to          opportunity is the ability to look at the
                                                                         meet consumers’ needs.                        same layers of data and interpret them
                                                                                                                       to create products and insights for
                                                                                                                       different industries and outcomes.




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The real power is how each specific            It’s a crowded marketplace, and          uploaded the campaign parameters,              or promotion data, to help establish
use of that data reveals the base              a competitive one where every            including locations, dates active and          a price elasticity curve that is specific
foundation and therefore reveals new           advantage counts. You are reviewing      the target audience. By mapping                to a time, a day or in relation to
ways to use the data at hand.                  your retail properties. As usual,        network cells to points of interest,           other external events. It is highly
                                               you have top-performing shops            you know if specific locations will be         valuable for a business to know how
Taking Business to the next level              and ones at the bottom in need of        better for specific communications.            they are benchmarking against their
Vodafone, a long-standing client of            improvement. There are some new                                                         competition.
SapientNitro in the UK, is bringing            locations you’ve got your eye on, but    The data tells you how fast people
this vision to reality. Because they           which locations will yield the highest   walked past your ads, what they                Other Applications
have a greater than 20% share of               profits? Is one part of the street       did on their phones immediately                Mobile Analytics will offer the
the market, they have a statistically          better than another?                     afterwards and if they visited a               opportunity to have a fundamentally
representative sample, one that can                                                     competitor. You can then tell the
be extrapolated to give an overview            To find out, open up the web version     CEO you are changing the campaign
of the entire population, and we               of Vodafone Mobile Analytics, choose     at four digital locations and switching
are working to create a customer               your location, upload any specific       spend to three different locations             To paraphrase Nicholas Negroponte from
experience and roadmap that will               data you want to cross-reference         that have better demographics and
form the basis of their Mobile                 (e.g., revenue per square foot of your   dwell times.
                                                                                                                                       1995, “Everything that can be connected will be
Analytics offer.                               best-performing location) and choose                                                    connected,” and mostly, that means wireless.
                                               a timeframe.                             Market share analytics. What if
Imagine the way today’s consumers                                                       you upped your prices 5% in a given
are thinking as a nuclear-powered              Over the map of that location, the       location? Would you gain revenues
steam train. If they’re given                  roads glow red with the footfall of      or lose customers? Your bank might             different interaction with customers,
something too revolutionary, they will         customers. You know that dwell           tell you the former. The Vodafone              not just more targeted mobile ads.
not be able to match their current             times are different for customers        Mobile Analytics app can tell you if           In fact, as soon as the customer
experience to the sophisticated                in different places. You know how        those customers decided to go to the           gets something that is irrelevant or
experience being described. But                far customers have travelled, and        coffee shop down the road instead              unwanted, they will have the power to
if they can relate their current               when the area is most popular. You       or whether you attracted a customer            manage the permission that enabled
experience to improved, evolved ones,          instantly compare three locations        demographic happy to pay a bit                 it to happen. They will have the ability
they can see how their lives can be            and see one is influenced by a new       more. Mobile Analytics allows you              to take advantage of the data
made better.                                   major office block. And you’ve got       to measure multiple locations at the           value exchange.
                                               your answer.                             same time—near real-time market
To that end, Vodafone and                                                               share data.                                    This isn’t just mAdvertising; it’s
SapientNitro have chosen three                 Outdoor media measurement. As                                                           fundamentally more valuable than that.
immediate opportunities that will              a busy CMO, you may love your new        More importantly, market share                 These two applications can illustrate
interest marketers and retailers.              outdoor campaign. It may even be         analytics allow you to see what                the benefit to both society and the
All three are areas businesses                 digital or up for a few awards. But      share of the daily footfall traffic            individual in very powerful ways.
wrestle with. And though some data             Mobile Analytics has the ability, for    you are receiving in comparison
sources are available, much of it is           the first time, to tell marketers how    to the competition. Vodafone can               1. civil planning analytics. When
old, inaccurate or just plain unusable,        their outdoor campaign is really         simultaneously measure the footfall            your local hospital wants to assess
and the real work is in taking those           performing.                              levels for all the businesses within           coverage in a given area to make
sources and trying to decipher                                                          the same vertical, and can then break          sure it’s the right size and shape,
the answer.                                    Imagine you are on your way to a         them down to expose the relative               and that expertise is on hand, Mobile
                                               meeting with the CEO. You grab your      performance levels each market                 Analytics can help decide where the
retail footfall analytics. Imagine             iPad and open the Vodafone Mobile        player is receiving. This can be               hospital should extend its services for
you own a chain of coffee shops.               Analytics app. You had previously        combined with other data, like pricing         maximum coverage and efficiency.




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                                                                                            their permissions and preferences             It won’t be long before customers will
                                                                                            easily, encouraging customers                 expect and demand a value exchange;
                                                                                            to understand and interact with               the network operators will welcome
                                                                                            Vodafone about their data.                    this. Those who do it well and are
                                                                                                                                          transparent about the value exchange
                                                                                            Vodafone and all telcos will not              will attract customers from networks
                                                                                            be able to give customers better              where that isn’t happening.
                                                                                            experiences, or create wider value,
                                                                                            unless they respect customer                  Excited yet?
                                                                                            permissions to use data.                      Your mind is probably racing with
                                                                                                                                          ideas about how Mobile Analytics can
                                                                                            The ability for customers to control          help your business. This isn’t some
                                                                                            their personal data, and understand           future innovation. It exists today. Go
                                                                                            that it has value, is becoming                back to your office, tell your colleagues
                                                                                            more common. As the Millennial                about how to transform the company’s
                                                                                            Generation continue to get older,             business model, create revenue and
                                                                                            their attitudes about sharing personal        create success.
                                                                                            information will change the business
                                                                                            landscape.

2. Fraud prevention. Banks already               revenues, which then fund services
have systems in place for a person               and products that consumers use for
not in the same location as his or her           free. Meanwhile, a network operator
credit card; if the card is swiped, the          has millions of customers that pay
card will be frozen and the purchase             it regularly. Verizon in the U.S. has
will be cancelled. Mobile Analytics              approximately 100 million customers
helps with the “false positives.” You get        and Vodafone has over 400 million
declined, but you are where your card            customers worldwide. No CEO wants
is—Mobile Analytics can ensure this              to upset that revenue by making
doesn’t happen.                                  mistakes. Ultimately, this can be a real
                                                 benefit for customers and, therefore, a
Privacy concerns                                 very effective acquisition strategy.
For all the potential new business
benefits, privacy concerns remain part           Vodafone is very serious about
of the mix. While governments and                protecting data; they realise that
regulators are increasingly wary of              it is the customer’s data. They are
violations of privacy, network operators         leading the industry in their approach
realise that if they scare customers             to this new data-led relationship.
away, they’ll also increase                      They have created a clear and
customer churn.                                  transparent charter that lays out
                                                 the fundamental importance of
The one thing that differentiates                the customer’s permissions and
telcos from the digital giants is direct         preferences. Even more importantly,
revenue. Unlike telcos, companies like           they are rolling out ways for
Google use data to earn advertising              customers to access




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                                                                     The amount of customer data                    2. Think flexibly, and think about



ThE “BIg DATA” ERA:
                                                                     available to marketers is exploding.           the way you think. Balance different
                                                                     We have already seen data-smart                perspectives and continually reflect
                                                                     businesses disrupt the video rental,           on any biases in the way you think.



leaRnInG to aCt In Real tIMe
                                                                     newspaper and retail industries.
                                                                     Marketers need to get on board now             switch From Analysis to Action
                                                                     or fall behind.                                The simplest way to think about
                                                                                                                    data is as feedback from customers.
                                                                     Ironically, the huge potential of data         They click on what they like and
   Written by James Buchanan, Senior Experience Strategist, London   may actually be holding marketers              ignore what they don’t. A smart
                                                                     back. The opportunity is so big and so         business acts on that data, just like
                                                                     fundamental that they want to get it           a smart person stops telling a joke if
                                                                     right, but legacy systems and internal         no one laughs.
                                                                     politics make that almost impossible.
                                                                     Every year, we hear from clients that          Businesses have one huge advantage
                                                                     data is put in the “important” but “too        though. Instead of only trying out
                                                                     hard” box.                                     one joke at a time, a large business
                                                                                                                    can have thousands of interactions
                                                                     This is a mistake. Data does not               in one hour. This speed of learning
                                                                     become valuable by being well                  is important because it allows
                                                                     structured. It becomes valuable when           businesses to adapt and respond
                                                                     it is used to answer questions that            within a time scale that can make a
                                                                     improve the business. The task for             difference.
                                                                     marketers is to spot these questions
                                                                     and work out how to answer them                Examples:
                                                                     before competitors do.                         A. The huffington Post is one of many
                                                                                                                    online newspapers using real-time
                                                                     To step up, marketers need to stop             data to test story headlines. For the
                                                                     worrying about technology and big              first hour of a story’s life, they run
                                                                     analysis, and focus their attention            two headlines. After one hour, they
                                                                     on softer skills like problem solving,         check the figures and switch to the
                                                                     analysis and application, curiosity            headline that has received the most
                                                                     and rigour: the human side of data             attention. If the newspaper had to
                                                                     if you like.                                   wait a week for the report, the data
                                                                                                                    would be interesting but useless.
                                                                     Rather than being scary, we actually           By getting real-time feedback, they
                                                                     think this makes big data the perfect          make a change while it still matters.
                                                                     opportunity for businesses to sharpen
                                                                     up the way they think. To do so, we            B. Dunkin Donuts shows that
                                                                     suggest making two big changes:                real-time data can be used to sell
                                                                                                                    products in physical stores. Digital
                                                                     1. switch from analysis to action.             screens display offers that vary
                                                                     Instead of producing reports, run              minute-to-minute depending on the
                                                                     experiments and find out what works.




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time of day and stock availability. Till        If, for example, salacious headlines      the results have been disappointing.           As an example, most people place
receipts are used to run experiments            are more popular with readers, then       It turns out that predictions, even            far higher value on things they own
on offers and messaging to find                 in just a few cycles what once was        educated predictions, are little better        than things they do not. A person who
out what generates the strongest                carefully curated content can end         than guesswork.                                wants to re-purchase an item she
response. Revenue is up and stock               up like dailymail.co.uk. The instant                                                     once owned will typically only offer
wastage is down.                                response is tempting, but it will often   However, Philip Tetlock and Dan                half the price she originally paid.1
                                                need to be resisted.                      Gardner noted, “...what separated              People also tend to put a high value
c. The pace and excitement of betting                                                     those with modest but significant              on things they are certain to get but
makes ladbrokes the perfect brand               Marketers are increasingly considering    predictive ability from the utterly            dramatically undervalue things they
to act in real time. Last year they             how to design experiments and then        hopeless was their style of thinking.          might get in the future, even if they
became the first betting brand to               how to respond to the results, while      Experts who had one big idea they              are likely to get them.
include live odds in their TV ads.              simultaneously thinking about how         were certain would reveal what was
While this does not make use of                 each small step contributes to the        to come were handily beaten by those
data as feedback, the increase in               overall goal. They need to be short-      who used diverse information and
web and mobile traffic, as well as              and long-term at once.                    analytical models, were comfortable            Marketers need to stop worrying about
in recall and attribution, shows that                                                     with complexity and uncertainty and
real time is engaging in itself. Real-          The question is: How do you find          kept their confidence in check.”               technology and big analysis, and focus their
time data is also used to engage                people who can accomplish that?
                                                                                          To make good predictions, marketers
                                                                                                                                         attention on softer skills like problem solving,
customers in social. TV and press ads           And is it a skill that can be taught?
have encouraged customers to use                                                          need to avoid those who keep trying            analysis and application, curiosity and rigour:
#GameOn in tweets about sports. This            Think Flexibly, and Think                 to explain everything with one over-
                                                                                          arching model. They’re not just going
                                                                                                                                         the human side of data if you like.
has given Ladbrokes a Twitter stream            About the Way you Think
into which they can drop provocative            The accepted view is that businesses      to be impractically perfectionist about
tweets and odds at just the right time.         need to focus on one simple strategy      data—they’re also a lot less likely to
As the results show, it’s working.              above all else. Indeed, in “Good          be right.                                      This suggests that uncertainty itself
                                                to Great,” Jim Collins argues that                                                       will make marketers value short-
These examples all use the speed                businesses need to cultivate the          We also want marketers to be                   term gains even more highly—a worry
of digital communication. It simply             single-minded focus and simplicity        humble. Ideally, they need to                  for any brand trying to pursue a long-
wouldn’t be possible to make                    of the hedgehog rather than the           practice what Jonah Lehrer calls               term plan at the moment.
adaptations as fast in printed media.           flexibility of the fox.                   “metacognition.” That is, reflecting on
And unless data is used quickly, its                                                      the way they think, and understanding          Alternatively, people are also much
value is gone. In addition, none of them        While this may be true in periods         any in-built biases that might affect          more likely to believe something
involve complex analysis. Yes, analysis         of stability, in periods of disruption,   their judgement.                               when they hear others express that
has a role later in understanding the           when consumer behaviour is                                                               opinion. As marketers spend more
activity and improving it, but, at the          changing, it’s suicidal. Instead,         Most marketers know a bit about                time reading social media posts and
time, analysis is quick and directly            businesses need to embrace their          cognitive biases, as, under the                comments, they need to make sure
drives an action.                               foxy characteristics and look at the      heading of behavioural economics,              that they maintain some distance and
                                                world from multiple perspectives.         they’ve been a major topic of                  don’t unconsciously adopt the views
The approach borrows significantly                                                        discussion in the last five years.             they read.
from direct marketing. The difference,          Support for this view comes from          The difference is that now, instead
though, is that the findings are being          Philip Tetlock, a psychologist who        of using the thinking to change
applied to the core brand experience,           has conducted research into peoples’      consumer behaviour, they should try
not mail packs or emails. The brand             abilities to predict the future. Not      turning the spotlight on themselves
cannot afford for the tactics to degrade        a bad proxy for the development of        to see if they can improve the way
the brand.                                      successful strategy. On average,          they think.


                                                                                                                                         1
                                                                                                                                             Dan ariely: Predictably Irrational: the hidden Forces that shape our Decisions, Chapter 7


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                                                                                                                                                 C

                                                                                                                                                  NE iV
                                                                                                                                                        E
These are just two examples among             Get these things right and the details
many. The human mind is not                   and nuances will work themselves
perfectly “rational” and struggles to         out in the future.
value outcomes. Any marketer who
wants to improve the quality of the           This buck stops with the CMO. They
judgement should start by reflecting          need to incentivise action and, if the
on that.                                      climate is too risk-averse, positively
                                              encourage people to be comfortable
Putting it into Practice: creating            failing (sometimes). In terms of
a culture of smart Thinking                   practical steps this means:
Perfect data is a distraction; it’s
what businesses think about and               • Have a formal objective to run a
do with it that counts. This should             test that generates empirical
be tremendously liberating. No one              results. Marketers should not get
has to fit the company’s strategy               through the year without learning
into a top-down programme.                      something empirical about
Instead, strategy is devolved to                their customers.
front-line marketers who know their           • Discuss and share data-driven
businesses and can use data to make             improvements alongside monthly
a difference. Everyone has a mandate            sales figures. After all, the results
and everyone will be rewarded if they           of these experiments drive the
get it right.                                   sales figures of the future.
                                              • Allocate a percentage of time to
But change won’t happen overnight,              data innovation. It can be in groups
and some businesses may struggle                or individually, but everyone must
to make the change at all. The                  show progress on their own
reason is that bottom-up change is,             left-field projects.
by definition, difficult to organise.         • Invest in regular training sessions.
If businesses want people to think              Run war games to test the ability
and act independently, they can’t               of key people to make the right call
tell them what to do; they need                 in real time.
to learn how to recognise good
thinking themselves. At the same              These are not aspirations—they
time, independence must not lead              are rules. Each one requires a big
to anarchy, but for people to think           commitment and a real behaviour



                                                                                        DIgITAl lUxURY 101:
independently in a similar way by             change from everyone on the team.
fostering a culture.                          It is hard to implement and it should
                                              be. The question marketers have to



                                                                                         How to EnHancE tHE
To do that, just like any society or          ask themselves is whether they want
culture, businesses need to reward            to develop the culture first—or leave
behaviour they value and punish               it up to their competitors.




                                                                                        customEr ExpEriEncE
behaviour they reject, while leaving a
grey area for opportunity in between.
Strong cultures are founded on
things that everyone can agree on.


                                                                                            Written by Hazel Reed, Brand Strategist, London

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                    There has been a noticeable growth             about an item’s provenance or design      short film L’Odyssee de Cartier is a             and lifestyle associations—reinforcing
                    in luxury brands’ usage of digital.            ethos has become as much a part of        notable example. The richness of the             its aspirational value, rather than laying
                    After many years of watching from              the value of luxury as the item itself.   film reinforces Cartier’s history, using         bare its transactional value.
                    the sidelines while other brands               In the offline world, luxury brands       cutting-edge special effects to create
                    explored and reaped the benefits of            are able to curate their customers’       a cinematic masterpiece and intense              Exclusivity
                    digital media and technologies, 2010           experiences. However, three of the        emotive responses from viewers.                  Exclusivity has significant implications
                    was the year when luxury marketers             most important values are potentially     Luxury is all about emotion—there                for the adoption of digital among
                    appeared to wake up. The arrival               compromised by digital—quality,           is little rational about it—and luxury           luxury professionals. In fact, the word
                    of the iPad, and its rapid adoption            exclusivity and personal touch.           brands can achieve a more powerful               “luxury” derives from the Latin luxatio,
                    among affluent individuals, was a                                                        impact by taking a cinematic, rather             meaning distance. The democratic
                    significant factor in convincing luxury        Quality                                   than a print-inspired, approach—not              nature of the Internet is often cited
                    marketers that their customers were            In the early evolution of digital, the    just to their video content, but also to         as one of its defining features, and
                    also digital consumers.                        quality required by a luxury brand was    their fixed-web and app offerings.               seems at odds with the concept of
                                                                   was difficult to deliver. The potential                                                    exclusivity and luxury. Indeed, luxury
                                                                   for attention to detail and aesthetic     Maintaining the illusion                         brands have stayed away from TV
                                                                   preeminence was insufficient to           It might be said that Cartier could              advertising because it is too populist       Cartier’s l’odyssee short film delivers
                                                                   capture the dream of the brand in         have made L’Odyssee an even                      a medium, and risks making the               the richness of Cartier’s history.
Luxury brands have always understood that,                         digital format. Furthermore, the          more compelling digital experience               brand too ubiquitous. Luxury brands
more than just the product, their customers                        standardisation and utilitarian nature    by incorporating an element of                   were equally as nervous about digital.
                                                                   of websites did not offer luxury brands   interactivity. However, this is a case in        Luxury brands feared that digital
are buying service, membership of an                               the scope they needed to distinguish      point for where luxury should remain             would not allow them to curate
exclusive club and a shared philosophy.                            themselves from the ordinary. Quality
                                                                   of delivery was also a problem, with
                                                                                                             cautious about following the popular
                                                                                                             conventions of digital. Luxury brands
                                                                                                                                                              access to their brand in a way that is
                                                                                                                                                              necessary to maintain exclusivity.
                                                                   luxury brands unwilling to let the        need to be very careful to preserve
                                                                   success of their brand experience         the spell when creating interactive              Luxury brands are beginning to
                                                                   be dependent on factors such as           experiences.                                     realise that digital does not mean lost
                    For all their early digital                    connection speeds over which they                                                          exclusivity. Luxury brands need to
                    shortcomings, luxury marketers                 were powerless to control.                Gucci’s recent “shoppable” video is              maintain levels of access, and digital
                    have been more advanced than their                                                       a cautionary tale in this respect. It            can help them achieve this in a way
                    non-luxury counterparts in terms               As digital quality has improved, and      is the perfect example of how new                that no other media can. While luxury
                    of understanding the importance of             connectivity and devices have taken       technologies and digital functionalities         customers and fans may be equally
                    customer experience. Luxury brands             quantum leaps forward, luxury             need intelligent application by luxury           passionate about a brand, digital            Gucci’s “shoppable” video is a cautionary tale that
                    have always understood that, more              brands are now able to create digital     brands. The execution of the interaction         experiences need to discriminate             many interactive tools still have some way to go to
                    than just the product, their customers         experiences that match the fidelity of    is visually poor, with crude, over-              between those few who can attain             be seamless and smoothly executed.
                    are buying service, membership                 their products, retail environments       bearing logo hotspots. To compound               the brand, and a much larger group
                    of an exclusive club and a shared              and customer communications.              this, pop-up boxes fracture the                  who desire it.
                    philosophy.                                    Luxury digital experiences need to be     experience, disappointingly showing
                                                                   rich and immersive, conjuring up the      only the item and its price. The main            When it comes to these audiences,
                    Indeed, the focus on experience has            dream of the brand and not allowing       issue here is that luxury should                 brands need to make sure that
                    become even more crucial as Western            the spell to be broken.                   never “sell.” A more sophisticated               their customers and prospects feel
                    luxury consumers have moved away                                                         use of interactivity would have been             closest to the brand, and should be
                    from conspicuous consumption,                  Brand films are a perfect showcase        to enhance the experience by taking              reflected in the customer experience.
                    and their purchase motivations have            for the exceptional quality of content    the customer on a seamless journey               Customers are part of the brand’s
                    become more inner-directed. For                and experience that luxury brands can     of enticement, exploring the item’s              exclusive world, and they enjoy the
                    example, the process of learning               now deliver through digital. Cartier’s    materials, design, styling inspiration           unique privileges that come with this




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                       status. They get to hear news before             customers feel closer to the brand.         brand. Oscar de la Renta recently               of the brand to customers, without
                       anyone else, they have insider access            As part of a series of installations        turned to his fans to help inspire              them needing to come into the store.
                       to the people behind the brand and               enacted for a select local audience in      his creativity, asking them to create           It may be that, as luxury buyers are
                       they get to attend special events. Fan           Shanghai, the brand created a live CGI      Pinterest boards. This is an excellent          decreasingly the traditional leisured
                       support needs to be maintained and               4D spectacular, which brought to life       example of how luxury brands can                classes, and increasingly becoming
                       encouraged, but maintaining some                 London’s Trafalgar Square, featuring        create different levels of experience           infinitely ambitious entrepreneurs,
                       mystique is vital, too; when things              a simulation of all four seasons over       for fans and customers: While                   that time, or lack of it, becomes a
                       seem unattainable, they become even              the course of one day. The result was       fans are given the opportunity to               more important factor in the luxury
                       more attractive.                                 a unique, multi-sensory experience,         indirectly influence the brand’s vision,        experience than genuine human
                                                                        which immersed customers literally          customers might get a call from a               interaction.
                       Audiences and access                             but lyrically in the brand culture.         person on Oscar’s team, telling them
                       Digital channels have an important                                                           about next season’s influential trends.         conclusion
                                                                                                                                                                                                              Burberry invited customers to 25 flagship stores to watch
                       role to play in curating access to               Whereas customers and prospects                                                             The evolution of digital has reached      live streaming of london Fashion Week. they recently
                       luxury brands for different audiences.           should be nurtured with personal            A Personal Touch                                a stage where previous limitations        revamped their stores to make this type of experience
                       This allows the brand to create a                and invitation-only event experiences,      Personal touch, perhaps more                    no longer constrain luxury brands         even more immersive.
                       personal experience for prospects                social media is the perfect media           accurately expressed as the                     seeking to build digital experiences.
                       and customers with exclusive, tailored           for engaging non-buyers. But luxury         “human touch,” continues to                     Digital now offers exceptional fidelity
                                                                        brands shouldn’t feel they have to          cause the biggest headache for                  for luxury brands to convey their
                                                                        mirror the more casual register of          luxury in its increased adoption of             prestige and quality. It enables such
                                                                        language that their fans might use,         digital channels and technologies.              brands to create powerful, emotional
Whereas customers and prospects should                                  or feel intimidated by the real-time        The importance to luxury of the                 connections with admirers and
                                                                        nature of social interaction. In the case   human aspect is most immediately                customers alike.
be nurtured with personal and invitation-only                           of brands such as Rolls-Royce and           evident in luxury products. “Made
event experiences, social media is the perfect                          Chanel, a handful of timeless stories       by hand” and craftsmanship are                  However, luxury brands should
                                                                        and myths have sustained brand              quintessential luxury attributes. The           continue to approach new digital
media for engaging non-buyers.                                          engagement over many decades.               value of an object increases when we            innovation thoughtfully. They should
                                                                        Luxury brands should be reassured           perceive that human skill, effort and           consider carefully how new digital
                                                                        that just because social engagement         imagination have been invested in the           technologies correspond to their
                                                                        may seem instant and reactive, much         work. The same human quality should             brand values and the principles of
                       content. Digital can also enhance the            of the engagement can be planned in         also lie at the heart of the service and        luxury. Luxury brands, and indeed
                       in-store experience, perhaps using               advance. Furthermore, luxury brands’        experience that luxury brands offer             all brands, should think about how
                       tablets to facilitate access to exclusive        heritage and archive content provides       their clients.                                  they can apply digital intelligently,
                       information and content, and to create           a fantastic source of fresh inspiration                                                     and adapt it in a way that reinforces
                       memorable event experiences.                     for social fans.                            It does seem here that an                       the essential integrity of the brand
                                                                                                                    insurmountable divide separates                 experience.
                       British luxury brand Burberry                    In particular, Pinterest has real           luxury and digital, but it is impossible
                       famously invited customers to 25 of              potential for luxury brands, by             to say what the future of digital may
                       their flagship stores to watch a live            allowing them to connect their unique       hold in terms of answers to this
                       streaming of London Fashion Week,                lifestyle, aesthetic vision and values      apparent impasse. Virtual meeting
                       where guests were able to purchase               with fans in a way that goes beyond         technologies are developing at a rapid
                       selected garments via a bespoke                  their manifestation in products. The        pace, so perhaps there will come a
                       companion iPad app. Another British              opportunity is there to invite fans         time when digital can facilitate a one-
                       brand, Dunhill, took a different                 to create their own content that            to-one experience that brings the
                       approach to using digital to make its            represents their appreciation of the        brand representative and the world




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                                                                                     it was not until early 2010 that                This raises questions on the quality of



               gAMIFICATION As
                                                                                     gamification started catching up as a           user data that often underpins huge
                                                                                     mainstream digital strategy. in 2010,           valuation figures. It also raises the
                                                                                     corporations spent $100 million on              question of whether brands should




              A DIgITAl sTRATEgY
                                                                                     gamification, and this number is                invest everything in Facebook pages.
                                                                                     expected to rise to $2.8 billion by the         To counteract this, marketers need
                                                                                     end of 2016.                                    to diversify their digital marketing
                                                                                                                                     activities.
                                                                                     Tracking the trends in shifting digital
               Written by Mohammed Iqbal, Manager—Information Architect, Bangalore   strategies will help to understand              Marketers now realize the need to
                          & Syed A. Suffiyan, Information Architect, Bangalore       the importance of gamification and              transform passive behavior into a
                                                                                     its relevance going forward. Between            dynamic high-end user engagement
                                                                                     1990 and 2004, marketers relied                 and involvement activity. Gamification
                                                                                     heavily on one-way communication; it            and its essential dynamics, coupled
                                                                                     was about making claims and telling             with social networks, is a very
                                                                                     a story. Understanding markets                  powerful tool to enable multiple
                                                                                     and audiences gained importance                 levels of engagement.
                                                                                     while demographics started driving
                                                                                     marketing strategy. Acquisitions                But why games? Games have
                                                                                     and success metrics were taken                  always been an integral part of our
                                                                                     more seriously. There was too much              community, culture and human
                                                                                     reliance on hard selling, resulting in          experience, be it dice, role-play or
                                                                                     an overdose of online promotions and            board games. In fact, 1 out of 10
                                                                                     banner blindness.                               artifacts discovered in the ancient city
                                                                                                                                     of Mohenjo-daro is related to games.
                                                                                     Today, digital marketing strategies             Board games have been discovered
                                                                                     are based more on engagement and                in Iran, Iraq, Egypt and parts of Africa
                                                                                     connections. Customer experience                dating back to 3000 BC.
                                                                                     and persuasion have taken the
                                                                                     dominant position and social is now             gamification =
                                                                                     a crucial part of marketing. Reviews,           (Mastery + De-stress + Fun) x social
                                                                                     “likes,” ratings and comments                   Human behavior studies indicate
                                                                                     have become an integral part of                 that people need to play. We love
                                                                                     information online and marketers                the feeling of achieving mastery in
                                                                                     can now view trends in social                   a game by overcoming obstacles,
                                                                                     forums to identify user needs and               learning, gaining skills and earning
                                                                                     expectations. This has led to several           rewards for our achievements. Games
                                                                                     downsides, as social maturity has               also cater to our need to de-stress by
                                                                                     caused information overload and                 indulging in something pleasant and
                                                                                     network fatigue, resulting in a passive         engaging, and help in esteem-building
                                                                                     consumer audience. Between July                 activities. Playing a game also has
                                                                                     2009 and June 2011, there has been              aspects of entertainment and escape;
                                                                                     a large level of decline in contribution        it allows us to role-play and be a part
                                                                                     and active participation on Facebook.




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                       of a story. The social aspect of playing        • Avatars. Avatars allow gamers to          success like accomplishments,                  through avatars. The target audience
                       increases this fulfillment; social                become immersed into the                  game completion, winners, choices              is generally someone trying to achieve
                       provides competition, bonding and                 storyline by embodying themselves         made and rewards gained.                       health goals or suffering from an
                       multiplies the fun quotient by making it          into a game character. They allow                                                        illness or injury. The game helps these
                       much more real and engaging.                      users to assume a different               gamification in Action                         users by allowing them to motivate
                                                                         identity, even through personas           Now that we have seen the essential            themselves by setting up tasks and
                       What is it that makes playing games               like super heroes or super villains.      mechanics that make a game, lets               goals to achieve things that make
                       so engaging? Every game includes                  An alter ego who can face                 look at some companies that are                them truly happy. In order to do this,
                       gaming dynamics, some of which are                challenges and take risks is              already putting them to use in some            users have to embody themselves
                       described below.                                  limited only by imagination.
                                                                                                                   of their products.                             into avatars, write down the things
                                                                                                                                                                  that make them happy and start doing
                       • Positive reinforcements. A reward             It is important to ask ourselves what
                                                                                                                   health and fitness. One of the most            those things over a period of time.
                         is a form of positive reinforcement           behaviors we want people enacting,
                                                                                                                   recent and best-known examples
                         given or received in recompense               and choose and apply those dynamics
                                                                                                                   of how gamification is being used              Education. Khan Academy has
                         for actions performed or time                 to make the gamification effective.
                         invested in the game. Rewards
                                                                                                                   in the health and fitness industry is          revolutionized the education
                                                                       The gamification Process                    the example of the Nike+ FuelBand.             industry by allowing students to take
                                                                       A behavioral engineering process can        The FuelBand is strapped onto a                self-paced classes and evaluate
                                                                       be applied through three phases of          user’s wrist and uses LED lights               themselves by the number of
“Gamification” is defined as “the use of game                          implementation:                             to form a progress meter—an                    rewards they earn from each class.
                                                                                                                   indicator of how active the user               A reward in the Khan Academy
 design techniques, game thinking and game                             The strategy phase focuses on               has been throughout the day. This              is a token of achievement for
 mechanics to enhance non-game contexts.”                              understanding business and                  visual representation of daily activity        completing the given assignments
                                                                       brand requirements, as well as              hits the conscience of the user                regularly and correctly. Teachers
                                                                       critical success factors. Detailed          and innately pushes him or her to              can also monitor how students
                                                                       user research enables a business            achieve a more active day, in turn             have been performing—whether the
                         for users come in the form of                 to understand its audience and              allowing the user the satisfaction             student is grasping the concepts by
                         points, badges and power-ups.                 determine the behavior we want to           of having achieved the goal of “an             focusing rewards on specific topics
                         Some points can also be used to               affect. Ethnographic and behavioral         active and healthy day.”                       or assignments.
                         buy merchandise and other game-               research techniques are used to
                         related items.                                identify audience behaviors, pain           Financial planning. Mint.com can               social spaces. Foursquare is a
                       • risk mitigation. Risk mitigation              points and motivators. This phase           empower its users to take charge               popular social app that allows
                         is any reinforcement that requires            results in identifying the founding rules   of their financial lives and better            users to virtually own a place. The
                         a minimum activity to avoid                   of the game, and defines the game           manage their money. It does this by            app allows users to check into the
                         negative occurrences (e.g.,                   experience and underlying concepts.
                                                                                                                   allowing its users to see their bank           places they regularly visit and post
                         Farmville crops that die when a
                                                                                                                   accounts all in one place by culling           it amidst their social contacts. When
                         user neglects to water them).                 In the design phase, the operational
                                                                                                                   and organizing the information from            a user checks in often enough, that
                       • The power of “free.” This dynamic             rules are defined—the specific
                                                                                                                   all those accounts. The goal of the            user becomes the location’s mayor.
                         shows users that they can get                 gaming dynamics that define the
                                                                                                                   product is to help its users choose            If one of the user’s social contacts
                         something free from someone                   experience like onboarding and positive
                                                                                                                   how much they want to spend or                 is also a frequent visitor of the
                         else’s actions (e.g., Groupon).               reinforcements.
                       • goals. A goal is a result or                                                              save for the future by allowing                place, that person can look at the
                         achievement towards which effort              The implementation phase is an agile        the user to set definitive financial           leaderboard to try and compete for
                         is directed. For gamers, goals                process, which includes continuous          spending rules.                                the position of mayor.
                         provide a reason to play and a way            testing, analysis and iterations.
                         to feel progression with a sense              Gamification also offers many feedback      lifestyle. SuperBetter is one of               Food and beverage. Unilever’s
                         of accomplishment.                            points from which to measure                the best examples of gamification              Share Happy iVend, the world’s




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                                                                                          MEDIA-sApIENs:
first smile-activated vending                 implications for gamification
machine, offers a unique brand                Gamification is great if done
experience. The vending machine               correctly; otherwise, it has its own


                                                                                         UsInG soCIal InstInCts
makes the experience of eating                pitfalls. For example, it’s motivational
ice cream immersive by using an               and interesting to get a badge for
attractor screen and an interface             completing the user profile, but when


                                                                                         to eXPlaIn, PReDICt anD
that challenges the user to smile.            the whole point of the experience
The smile-o-meter encourages                  is framed around the positive
users to smile more and then allows           reinforcement of earning badges, it
them to select a free ice cream as
a reward. Ultimately, it encourages
people to share life’s small moments
                                              can get boring. Gamification should
                                              be an added layer as a meaningful
                                              motivator around existing content.
                                                                                          InFlUenCe DesIRaBIlItY
                                                                                             In the DIGItal aGe
of happiness.                                 A game can become shallow when
                                              there’s not good content to bolster it.
In addition, Sprite’s #crickwit
campaign brought a unique game of             Using gamification as a quick and
“tweet cricket” to the Indian Premiere        tactile solution can lead to poor
                                                                                                       Written by Melissa Read, Ph.D.
League (IPL) in 2011, where every             engagement and can result in low
                                                                                            Director of Marketing Strategy and Analysis, Atlanta
re-tweet counted as a run and was             ROI. When positive reinforcements
rewarded with a weekly cash prize or          like badges and rewards are used,
the ultimate award of an LED TV. It           when and how they happen are
extended Sprite’s philosophy of fresh         elements that need to be carefully
thinking to people and rewarded               considered and well integrated
consumers who had a novel take                into the site. Gamification solutions
on cricket.                                   should be tested continuously
                                              with end users, feedback should
                                              be analyzed and designs should
                                              be iterated. It is also important to
                                              innovate new techniques; solutions
                                              that lack originality will have a
                                              difficult time.

                                              conclusion
                                              Gamification, when coupled with
                                              social, has tremendous potential
                                              in dynamically engaging users,
                                              and is a strategy marketers can
                                              use to diversify their offerings
                                              in the future. However, it is very
                                              important to understand the process
                                              of gamification and behavioral
                                              engineering to make this endeavor
                                              a success.




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                                                                                                “sometimes it pays to stay in bed on           When marketers come to understand            helpful receiving primitive versions         though, they demonstrate something
                                                                                                Monday, rather than spend the rest             the basic instincts that have guided         of “likes.” Some drawings were so            critical about human instinct: Over
                                                                                                of the week debugging Monday’s                 human social behavior for thousands          desirable that they “went mobile” as         thousands of years, we have been

Ancient Walls                                                                                   code.”1 That’s not something we                of years, they see that today’s strange      they were chiseled off the rocks and         using social media for the same basic          Other
                                                                                                heard a lot growing up, but digital            digital interactions are not really new.     incorporated into ancient tools, like        fitness consequences—survival and              Examples
                                                                                                changed things. life is interactive            They can anticipate the shape of things      knife handles.                               reproduction. These guide what we say
                                                                                                from the time we are born.                     to come and pull the levers in our digital                                                and do. Deconstructing the seemingly
                                                                                                                                                                                                                                                                                        include:
                                                                                                                                               world to drive desirability and influence    Thousands of years ago, cave walls           pointless social communications we             Status update:
                                                                                                Our first computers are our toys and           change. It’s the knowledge of human          and rocks were a powerful kind of            see in social networks can help us             “ Facebook allows me to see what
                                                                                                we usually get them before we can              instincts that inspires the most             media. With them, we could say               understand this. Here are a few                  my life would look like if I had
                                                                                                talk. Technology is an extension of            successful brands to act as catalysts for    something about our status to those          examples of status updates we’ve seen            married my college girlfriend.
                                                                                                ourselves. When we forget our cell             communities, drive social commerce           who weren’t there at the time. We            online and what they really mean:                Dodged a bullet there.”
                                                                                                phones, we feel lost—sometimes                 and amplify the consumer voice.              could check in to say we were OK,                                                           Meaning:
                                                                                                scared, too. And our focus has shifted.                                                     share intelligence that made our             “sitting in a sketchy cab.”                      This is how I feel.
                                                                                                Just because we’re in the same room            Ancient Walls                                community smarter, learn to avoid            This sounds like someone with a little
                                                                                                with another person doesn’t mean               The first wall dates back long before        danger, find food and even gain              too much time, but it may serve as             Status update:
                                                                                                we’ll talk to them. We are often so            Facebook, MySpace and Friendster.            inspiration. Thousands of years ago,         an alarm signal made in the presence           “ You need only two tools. WD-40
                                                                                                digitally immersed that we don’t even          The oldest known wall is El Castillo         we used rocks and walls to share             of a potential threat. It tells us the           and duct tape. If it doesn’t move
                                                                                                notice they are there. We engage in            cave. Over 40,000 years ago, people          culture across time and space. We            approximate location of this person              and it should, use WD-40. If it
Neanderthal crimson hand stencils                                                               “media snacking”—consuming                     drew crimson stencils of their hands on      read “timelines” that connected us to        as well as their comfort level. This             moves and shouldn’t, use
in El Castillo cave2 around 38,000                                                              bite-sized pieces of media throughout          it. There has been great debate about        our ancestors and built upon them to         status is like a white-tailed deer               the tape.”
BC, perhaps representing some of                                                                the day. We engage in “media                   the meaning of these stencils and            connect with generations to come.            flicking up its tail. It increases the         Meaning:
the earliest “check-ins” ever.                                                                  multitasking”—consuming several                many theories. Perhaps the simplest                                                       chances of getting help and of                   I have important insights to share.
                                                                                                bites of media at once.                        is that these paintings are ancient          Walls and rocks were just one of many        survival. From this message, we also
                                                                                                                                               check-ins that say, “I was here.”            forms of social media that allowed           know that we should avoid joining this         Status update:
                                                                                                Some marketers think their targets                                                          humans to connect over time and              person for our own wellbeing. Here,            “ I’m surprised people still ask me
                                                                                                look so different from anything they’ve        Our first drawings were simplistic,          across distances. Telecommunication—         the fitness consequence for both the             if I want to hold their baby given
                                                                                                seen before that they gave them a new          but over time we drew bison, reindeer,       like fires, beacons and smoke signals        communicator and recipient is survival.          the number of times I’ve dropped
                                                                                                name—“media-sapiens.” They don’t               elk and people chasing them. The             —came next, and were followed by                                                              my phone.”
                                                                                                recognize us. We’re like nothing their         simplest interpretation of these scenes      drums, horns and pigeon post.                “if you drink enough, your brain               Meaning:
                                                                                                textbooks have described under the             is, “Here’s me on my big hunt.”                                                           starts photoshopping people.”                    Here’s something you should
                                                                                                previous name homo-sapiens. We’re                                                           Modern cave Walls                            This sounds like someone who’s just              know about me.
                                                                                                in our own category—unfamiliar,                The most fascinating ancient social          Today, digital has brought a drastic         being cute, but this may serve as a
                                                                                                strange, frightening.                          network is perhaps the Nämforsen             change in media inputs and outputs           mating signal to attract a partner. Here,      Status update:
                                                                                                                                               rock art in Sweden, showing animals,         —but past, present and future                the person uses humor, something               “ If they made a movie about
                                                                                                We are a threat to the bottom                  people, rivers and hunting. Many             communication drivers have stayed            others may find attractive. While this           Morgan Freeman, who would
                                                                                                line—a risk to their targets, to their         saw these drawings, adding layers            the same. Be it on a cave or Facebook        comment alone may not be enough                  narrate it?”
                                                                                                budgets, to their livelihoods. But are         of information to them while gaining         wall, we use communication for the           to win a mate, the culmination of              Meaning:
                                                                                                we unpredictable? Perhaps not. Our             intelligence from the original authors.      same reasons.                                comments like these over time may                I want to know about what
                                                                                                behavior has drastically changed with          There are repeated acts of carving,                                                       be enough to attract a partner one               you think.
                                                                                                the evolution of digital media, but our        showing interaction and revisions            At first glance, Facebook status             day. This is similar to a peacock
                                                                                                instincts have remained the same. We           between authors—not unlike                   updates might seem like pointless            fanning its tail. There’s nothing
                                                                                                thrive in communities. We have a tribal        comments on Facebook statuses or             communications that are much                 evolutionarily advantageous about it,
                                                                                                culture. We are collaborative decision-        the collaboration of a “Wiki” article.       different from the hand paintings we         but it does attract attention. Here, the
                                                                                                makers. We are expressive and enjoy            Some of these drawings were more             see on cave walls. Looking closer            fitness consequence is reproduction.
                                                                                                sharing our unique points of view.             helpful than others, with the most

  1
      http://naich.soup.io/post/223460989/top-50-Programming-Quotes-of-all-time50
  2
      http://news.nationalgeographic.com/news/2012/06/120614-neanderthal-cave-paintings-spain-science-pike/

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                      “All girls are DEVil but my wife          these media forms—with strong             Because of the vast variability of               as well as a host of other things like
                      is QuEEn ……… Of all of them :)”           influencers, basic communicators          influence across media, someone can              purchase choice. Marketers who
                      This sounds like someone who’s            and a higher volume of message            be an influencer in one media form               foster a collaborative environment
                      being sarcastic, but it may serve as      recipients. The digital age is only       but not another. This means that                 understand that people need social
                      an ownership signal used to claim         different because new media drives        even if you’re soft spoken and not               commerce to spend, because
                      or defend a mate. This is similar to      a difference in who plays each of         influential offline, you may live a              antisocial commerce is not natural.
                      the low grunts of an elephant, which      these roles and who has the               totally different life online. The cool
                      travel for miles to lure mates and        greatest influence.                       kids look a lot different these days,
                      establish dominance. While the                                                      because looks matter less.
                      fitness consequence is reproduction,      On cave walls, an influencer was
                      this status also serves as an anti-       likely the one who had the best cave      Actionable instincts
                      mating signal for every other woman,      access, could paint the best and had      Marketing media will only continue
                                                                the best painting materials. In the       to evolve with technology. As
                                                                skies, the best smoke signals likely      this happens, our targets will look
                                                                                                          and feel different. Despite these
Despite these changes, marketers can                            came from the one who had the best
                                                                understanding of wind direction and       changes, marketers can continue to
continue to drive relevance if they ground                      the best control of fire. Through         drive relevance if they ground their
                                                                spoken media, the one with the            strategies in connecting people.
their strategies in connecting people.                          greatest influence is typically the       Knowing that survival and reproductive
                                                                most eloquent and educated speaker,       instincts drive human behavior today,
                                                                the most visually appealing, tallest,     just as they did thousands of years
                      which could threaten reproduction.        loudest and most senior. Through          ago, gives us tremendous leverage
                      This kind of social Darwinism shows       digital, the influencers are often the    because these things determine what
                      that people can weed themselves out of    most knowledgeable about the topic,       people say, think, feel, do and buy.             • Amplify consumer voices. Basic
                      the gene pool for what they do and say.   the most socially adept in writing, the   Being relevant in digital marketing              social expression can feel deeply
                                                                fastest typers and best spellers. In      means amplifying and extending the               fulfilling. When people share, they
                      Dorks unite                               digital, your physical characteristics    natural instincts that drive people and          contribute to the intelligence of the
                      The social instincts that drive us        have little impact on your influence—     not creating obstacles that stand in the         community and experience strong
                      have persisted for thousands of           as long as they don’t limit your          way. Here’s how:                                 human connection. They protect
                      years, across multiple media forms.       typing speed.                                                                              themselves from predators and
                      We have lived in networks through                                                   • Be a catalyst for communities.                 connect with potential partners
                                                                                                          Communities and their connections                too. When marketers foster self-
                                                                                                          are critical to human survival and               expression, they not only fulfill a
                                                                                                          reproduction, online and off. In ancient         basic human need in their targets
                                                                                                          times, people who chose to stay with             but also gain critical insight about
                                                                                                          their tribes survived. Those who didn’t          where their targets are coming from.
                                                                                                          perished. Community behavior is so               This intelligence can be used to
                                                                                                          ingrained in us that it is critical for          drive relevance.
                                                                                                          marketers to drive and sustain it.
                                                                                                                                                           Past, present and future marketers
                                                                                                          • Drive social commerce. Humans                  who understand human instinct
                                                                                                          are collaborative decision-makers.               will be able to explain, predict and
                                                                                                          They have long relied on the wisdom              influence digital desirability and
                                                                                                          of crowds. Medieval villagers used               deeply connect with their targets to
                                                                                                          crowdsourcing to learn about                     drive action. The best marketers will
                                                                                                          treatments for the plague. Today,                never define themselves as B2B or
                                                                                                          we continue to use crowdsourcing to              B2C. They will understand that we are
                                                                                                          solve medical problems online,                   all just B2P—Business to People.

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                                                                  Who’d Be a Bank?                                  Time For a Fresh start
                                                                  On top of their daily kicking from                The time has come for banks and
                                                                  newspapers and government, it                     their customers to start afresh;
                                                                  seems that their customers don’t                  surely the “anti-consumer” economic
                                                                  like them either. Banks are, rightly              model of retail banking that makes
                                                                  or wrongly,1 repeatedly and widely                money by punishing customers for
                                                                  blamed for the economic situation                 making mistakes, charging them
                                                                  that much of the world finds itself in            for basic access to their money
                                                                  and are constantly bearing the brunt              and getting them to spend above
                                                                  of protest movements.                             their means, is on borrowed time
                                                                                                                    in today’s world. Instead, banks



REBUIlDINg TRUsT:
                                                                  It is fair to say that banks are far from         need to offer services that their
                                                                  popular, despite delivering services              customers genuinely value. In return,
                                                                  that their customers really could not             customers are going to pay for what



hoW BanKs Can ReConneCt
                                                                  live without, and would be paying                 they get and they will even go as far
                                                                  for in any other industry.                        as to recommend their bank to their
                                                                                                                    friends. This may seem a world away
                                                                  Trust is at an All-Time low,                      from where we are now and its not


    WIth ConsUMeRs
                                                                  and Apathy is lifting                             going to be an easy journey, but by
                                                                  Trust in banks is in free-fall; two-              making some significant changes
                                                                  thirds of UK consumers say their                  it is possible.
                                                                  trust in banks has fallen2 and six
   Written by Chris Baker, Senior Marketing Strategist, London,   out of ten people in the UK fear that             However, now is not the time for
     James Buchanan, Senior Experience Strategist, London         their bank or building society could              banks to feel sorry for themselves—
           & Omaid Hiwaizi, Planning Director, London             collapse in the next year.3 The same              they will be hard pressed to find any
                                                                  is true across the Atlantic; while 65%            sympathy in the current climate.
                                                                  of Americans trusted their banks in
                                                                  2007, now only 35% do.4                           It’s also not the time to continuously
                                                                                                                    look to cross-sell and up-sell
                                                                  As a result of this lack of trust                 every customer they come into
                                                                  and transparency, any mistake or                  contact with. This sort of behaviour
                                                                  scandal, such as those suffered by                is only going to antagonize the
                                                                  NatWest, HSBC and Barclays recently               customer even further and sour the
                                                                  in the UK, is leapt on enthusiastically           relationship. And now is absolutely
                                                                  by all and sundry. It has gotten so bad           not the time to invest millions in ill-
                                                                  that the apathy that banks have relied            founded advertising campaigns that
                                                                  on for so long to keep customers                  attempt to sell the idea of service
                                                                  is showing signs of lifting; 52% of               and a relationship that has long
                                                                  U.S. bank customers would leave                   since expired.
                                                                  their current financial institution
                                                                  for one that offered better money-                Actions speak louder Than Words
                                                                                                                                                              1
                                                                                                                                                                thankfully, apportioning blame is not the purpose of this article.
                                                                  management capabilities5 and the                  Now is the time to “do,” not “say.”       2
                                                                                                                                                                YouGov – July 2012
                                                                  number of people who have actually                Banks won’t regain trust by standing      3
                                                                                                                                                                harris Interactive – July 2012
                                                                                                                                                              4
                                                                                                                                                                Ft.com – January 2012
                                                                  switched banks in the past 12 months              up and shouting from the rooftops         5
                                                                                                                                                                Intuit.com – June 2012
                                                                  has leapt by 25% since 2010.6                     that they’ve changed. This will, at       6
                                                                                                                                                                ConsumerReports.org – February 2012




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                            best, fall on deaf ears or, at worst,          1. Easy peer-to-peer lending             By investing in this service, a bank        a voice and the opportunity to gain the
                            further irritate a disillusioned               Alternative lending models are           would ensure a cut of a growing pie         investment required to get projects off
                            audience.                                      gathering steam as consumers look        and it would go some way to bringing        the ground, creating jobs and value.
                                                                           to avoid the murky dealings of the big   customers back on its side.
                                                                           banks. Zopa is long established in the                                               3. use data for good
                                                                           UK, and France’s first P2P lending       2. crowdfunding                             Banks find themselves in an extremely
                                                                           site, Pret d’Union was launched by       If banks are being blamed for the           privileged position in a customer’s
                                                                           two former bank employees who            downfall of the world economy, then         life; they can see absolutely everything
                                                                           were shocked at the rates charged        the best way to turn around public          that a customer is spending their
                                                                           by banks for short-term loans. The       opinion is to do something to right         hard-earned cash on. But even though
                                                                           site attracted 20,000 borrowers and      those perceived wrongs.                     they sit in this lofty seat, they use this
                                                                           1,000 lenders in its first 12 weeks of                                               information to facilitate cross-sell
                                                                           operation.7                              Taking P2P a step further,                  and up-sell rather than to improve the
                                                                                                                    crowdfunding via sites such as              overall financial position of each of
                                                                           A colourful example is Burnley           Kickstarter have taken off and are          their customers.
                                                                           Savings and Loans, the independent       financing creative and business
                                                                           small bank founded by David              projects that have the potential to         It’s time to put those insights to work
                                                                           Fishwick, which trades as “Bank on       get the economy moving again.               for the greater good. Are they spending
                                                                           Dave!” They act as a channel between                                                 more than average on utilities in the
                                                                           savers and borrowers and take a          If a bank took the lead on this, both       area? Is their mobile bill more than
                            Trust is rebuilt from the bottom up,           commission, with Dave personally         in terms of an initial investment and       double the average monthly spend?
                            one customer at a time, by doing the           underwriting all loans because they      building the platform, they would add       Are they spending more than 50%
                                                                           don’t have a banking license.            structure and credibility to the process.   of their income on restaurants and
                            right thing and genuinely being a                                                       In addition, it would give entrepreneurs    booze? If so, they could benefit from
                            positive force in someone’s life.              With this model gaining traction, it
                                                                           is clear that it’s here to stay. P2P
                            Now is the time for action, to go              lending should not be seen as the
                            back to basics and look at the new             enemy as there is an opportunity to
                            tools that are at a bank’s disposal.           bring them into the conversation.
                            The world and the banking industry             Ultra-cautious consumers are
                            has changed fundamentally and by               increasingly taking the advice of
                            actively embracing these changes,              banks with a pinch of salt, looking
                            it is possible for banks to help               elsewhere for the best plan
                            customers navigate through their               of attack.
                            lives, even in tough economic times.
                                                                           Existing P2P models are a hassle;
                            By becoming useful again, banks can            instead of a one-stop shop,
                            rediscover relevance and actually add          consumers must manage a number
                            value to a relationship that has been          of relationships—and there is the
                            one-way for too long. Let’s explore            inherent uncertainty of the model to
                            five ways banks can become useful              contend with. A traditional bank can
                            and trustworthy to their customers             bring weight to the table and simplify
                            again:                                         the process.




7
    Capital.fr – May 2012


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                                                 receiving information on utility                5. Butler banking                           The Lloyds TSB Money Manager and           refocusing on their reason for being
                                                 switching, better deals on mobile               Life is complicated and is getting          Standard Chartered’s Breeze Wishlist       and putting customer needs at the
                                                 phones and insurance and advice                 more so. As a result of hours at            are merely scratching the surface          core of how they reconnect with their
                                                 about vouchers and promotions that              work, childcare and increasingly            when it comes to the potential of          customers.
                                                 they could be taking advantage of to            ambitious leisure time, more and            these tools. While there are internal
                                                 bring down their spend.                         more consumers are outsourcing              challenges in implementation, by           While not an easy journey, it is
                                                                                                 some of the practical tasks in              delivering a truly useful service to       achievable and potentially very
                                                 All of this, if done sensitively, would         their lives.                                their customers, banks can go a long       profitable for whichever bank succeeds
                                                 be well received as an attempt to help                                                      way to rebuilding the trust that has       in reinventing itself with trust at its
                                                 the modern household manage costs               At the same time, thanks to books           ebbed away.                                core. As we have seen, trust has moved
                                                 (and could allow the bank to set up a           like Nudge, consumers are learning                                                     beyond being simply a hygiene factor
                                                 handy affiliate revenue stream). Bank           that it’s very difficult to balance their   The road Ahead                             to being the ultimate differentiator
                                                 of America recently conducted a trial           day-to-day financial decisions with         We have shared five examples of how        to address the cautious and cynical
                                                 of a Groupon-like service based on              the need to save and contribute to          banks can go about rebuilding trust        mindset that is all too common today.
                                                 their previous spending activity and            a pension.                                  through actions rather than words,
                                                 it will be interesting to see what
                                                 further developments we will see                These two trends are combining to
                                                 in this space.                                  create a group of consumers who will
                                                                                                 pay a small amount to be encouraged
                                                 4. international relations                      to do the right thing. If it works over
                                                 As the world has become more                    the long term, they know it will be
                                                 connected, banking has not kept                 worth it.
                                                 up. More customers than ever
                                                 before need to manage financial                 The butler bank acts as your
                                                 transactions across borders. This               financial conscience. Based on your
                                                 includes students studying abroad               circumstances, it thinks ahead, works
                                                 (the number of international                    out a budget for you and sets those
                                                 students increased from 2.1 million             decisions as defaults. Every time you
                                                 in 2002 to 3.4 million in 2009)8 and            try to change the defaults, or spend
                                                 relatives sending money back home               more than you planned, it offers up
                                                 (international remittances doubled              better suggestions. You’re still in
                                                 between 2004 and 2008).                         control, but you’re being persuaded
                                                                                                 to do the right thing.
                                                 The costs of using bank accounts
                                                 for international transfers drive               This is a service that’s picking up
                                                 many customers to use alternative               steam outside of banks. Mint.com
                                                 providers, such as Western Union                has over 8 million users and Money
                                                 and TransferWise. This is a lose-               Dashboard has launched a similar
                                                 lose situation: Consumers get                   product in the UK. Consumers are
                                                 frustrated and banks encourage their            increasingly looking elsewhere for
                                                 customers to shop around for other              help with their finances when, in
                                                 products in the future.                         reality, banks should be the first
                                                                                                 port of call.




8
    http://www.wes.org/ewenr/12feb/feature.htm

                                                                                           105                                                                                     80
                                                                                  Storyscaping:
                                                                                 Building Worlds,
                                                                                                                   Brand as Channel:
                                                                                     Not Ads
                                                                                                                  Today’s “Always-On”


                            TREND                                                   109                               Messaging



                              3                                                                                       113

CONTINUOUs                                                                                                                                 Adapting to a




ExpERIENCEs
                                                                                                                                        Fragmented Media
                                                                                                    The Future of Content                  Environment
                                                                                                    Experience and How to
                                                                                                        Design For It
                                                                                                                                           119
                                                                                                         124
                                                                                   OE

                                                                            I Can See Clearly
                                                                           Now ... Across the
The third trend in the evolution of great experiences is the blurring of   Entire Experience:
                                                                              The Analytics
the online and offline worlds into one continuous spectrum.
                                                                              Maturity Model
                                                                                                                                           Valuing

Great brands are increasingly using all their assets to reach their
customers at the right time, place and with the right tools to shape
                                                                              130                            OE

                                                                                                     Measuring German
                                                                                                                                          Fanatical
                                                                                                                                         Engagement

the purchase decision.                                                                                Multi-Channel:
                                                                                                      Approaches and
                                                                                                       Implications
                                                                                                                                          136
                                                                                                         142
A new conception of the story, the role of brand, new strategies for
content and new retail models are all topics our authors chose to
address in this section.                                                                OE


                                                                               The CMO Toolkit:
                                                                                                                                OE
                                                                              What Every Marketer
                                                                                 Should Know
                                                                                                                        Retail Goes Rogue:

                                                                                   149                              How Digital Convergence
                                                                                                                    Will Revitalize the In-Store
                                                                                                                            Experience


                                                                                                                            156
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                                                                                                                3                                                      CONTINUOUs ExpERIENCEs

                                                                       Once upon a time, there was a story.                Stories are patterns we use to make
                                                                       That story was read to a child before               sense of the world. And these patterns
                                                                       bed, sent through an email, told                    help us make connections with
                                                                       through a movie or spoken over the                  each other and develop a common                       Ten Emotional Desires
                                                                       phone. it’s no surprise that stories are            understanding.



sTORYsCApINg:
                                                                       all around us and are a meaningful,                                                                        The desire to be taken seriously
                                                                       critical part of our lives.                         There’s a real discipline and craft
                                                                                                                                                                                  The desire for “my place”
                                                                                                                           around storytelling, which often starts




BUIlDInG WoRlDs,
                                                                       However, it can be a struggle to                    with the seven basic plots: comedy,                    The desire for something to believe in
                                                                       create stories in the digital space.                tragedy, overcoming the monster,
                                                                       Next-generation storytelling has                    the voyage and return, the quest,                      The desire to connect
                                                                       evolved. Today, “storyscaping”                      rags to riches and rebirth. But if you



     not aDs
                                                                                                                                                                                  The desire to be useful
                                                                       takes the foundation of the tradition               think about storytelling today, part
                                                                       of storytelling to the next level by                of the storytelling solution involves                  The desire to belong
                                                                       focusing on the experiences, patterns               making decisions about what plot
                                                                                                                                                                                  The desire for more
                                                                       and structures behind them.                         type will best serve the medium. For
                                                                                                                           example, “overcoming the monster”                      The desire for control
Written by Gaston Legorburu, Worldwide Chief Creative Officer, Miami   But storyscaping isn’t just a                       or “the quest” may be best served in
                                                                       philosophy—it’s an approach. We are                 a video game while the “tragedy” role                  The desire for something to happen
                                                                       the authors of story experiences, and               may have a social element to it. Start                 The desire to find love
                                                                       by leveraging stories as catalysts,                 with one basic plot type that everyone
                                                                       we can ultimately drive and shape                   recognizes and relates to, and then
                                                                       consumer behaviors.                                 find the place that story belongs to in
                                                                                                                           the new consumer ecoysystem.
                                                                       The same story
                                                                       The definition of storytelling has                  it’s All in the Mind
                                                                       remained the same for centuries.                    Stories are hard-wired into the human
                                                                       Webster defines it as the sharing of                brain. Because of this, stories can
                                                                       events with words, images, sounds                   create a bond and then drive the
                                                                       and experiences, sometimes with                     behaviors we want. We can use stories
                                                                       improvisation or embellishment. Even                to convince consumers to purchase
                                                                       in its earliest definitions, “experience”           things they weren’t previously thinking
                                                                       has always been a part of the                       about buying, and then tell their
                                                                                                                                                                       Sometimes, stories are built on
                                                                       description. While the words and the                friends to buy them too. Stories can fill   top of other stories, such as this
                                                                       pictures are what make up a physical                that role, using emotions as the pivot      Volkswagen ad, which first ran
                                                                       aspect of a story, in reality it’s a bigger         point to do so.                             during the 2011 Super Bowl.1
                                                                       idea—and always has been.
                                                                                                                           To create a story, we sometimes ride
                                                                       But regardless of the story being told,             on the backs of others. Remember the
                                                                       it’s often the same story—one that                  viral Volkswagen commercial during
                                                                       connects on an emotional level with a               the 2011 Super Bowl? That ad would
                                                                       plot, characters and a narrative point              not have been possible if Star Wars
                                                                       of view, just as songs always have a                didn’t already exist in peoples’ heads
                                                                       chorus and a melody.                                or if those patterns hadn’t already
                                                                                                                           been cemented in our culture.


                                                                                                                                                                       1
                                                                                                                                                                           http://www.youtube.com/watch?v=R55e-uhQna0

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                                                                                    3                                                                                                                                                   CONTINUOUs ExpERIENCEs

                                          But more often, we are the creators of               The experience space is not about           easy to make sense of the storyscape             framework—or a foundation—to arrive
                                          the story. And it’s crucial to do more of            today’s “new and improved” app,             you’ve created.                                  at the best possible solution.
                                          this as we move forward in the industry.             website or company. Next week,
                                          Ask yourself: What is the purpose-                   everything will be new once again. But      3. Think outside the storyline.                  When a construction company builds
in the past,                              driven story for this brand and how                  the story, when done right, will always     It’s impossible to design a workable             a home, a school or a retail store,
marketers have                            should it best manifest itself?                      remain the same. At the end of the          linear experience anymore. Today,                the foundation is arguably the most
                                                                                                                                           consumers can drop into any portion              crucial part—and the same applies
used five experience                      The Five new Experience Dimensions
                                                                                               day, brands shouldn’t have a digital
                                                                                                                                           of a brand’s experience at any time              to storyscapes. Without a strong
                                                                                               strategy and a traditional strategy or
dimensions, or lenses,                    Consumers already have patterns of                                                               or level of engagement, so it can’t be           foundation, a story’s architecture has
                                                                                               any other strategy contingency. There’s
to create stories:                        behavior, and that’s not something we                just one plan, one experience—a             scripted from point A to point Z.                nothing solid to stand on. Storyscapes      The language can become part of the story,
                                          should try to change. The smartest                   communication strategy—that can                                                              take the foundational concept of            such as in John G. Rives’ TED talk. In it, he used
1. Access.                                companies recognize this and look for                                                            An example of this is the Bible. Very            storytelling to the next level.             typography to tell a fairy tale which is “short and
                                                                                               transcend any campaign.                     few people read it cover to cover. But                                                       bittersweet.”2
The ability to reach other people,        the missing pieces that consumers
activities, services, information or      don’t yet have—and may not even                      2. Find an “organizing idea,”               a person can open it to any page and             Another way to think about good
places.                                   know they’re missing. The new story                  not just a big idea.                        get value from what they read. Even              systems thinking is a spider’s web. It’s
                                          experiences should be based on that.                 Today, real is virtual and online           though the Bible contains many pages,            imperative to weave a web in order to
                                                                                                                                           with multiple sections, authors, writing         connect every good story’s individual
2. control.
                                          To create a storyscape, you need to
                                                                                               is offline. The consumer sees no                                                                                                                 conclusion
The degree to which a user can                                                                 distinction and the lines are merging       styles and time periods, it still serves         pieces into a cohesive, immersive
manipulate their experiences.             consider five new experience dimensions:             and blurring. While this can sound          the bigger story—the story system—and            experience. To create successful                     We have the opportunity to be
                                                                                               confusing, it’s really an opportunity       all works together.                              marketing and advertising solutions,                 the new storytellers—the new
                                          1. understand the experience space.
3. Fit.                                                                                        to give brands and businesses a                                                              businesses must think in a very                      storyscapers—of our products and
                                          The experience space is that vast space                                                          Harry Potter is another example of a
The match between a person and                                                                 framework for an approach for how we                                                         real way about how to best use                       services, which can propel brands
                                          between the brand and consumer—it’s                                                              great non-linear brand experience that
their surroundings.                                                                            arrive at a solution—one that takes a                                                        their dollars to give consumers the                  into another dimension.
                                          what ultimately connects them to each                                                            is working. It’s clear that this company
                                                                                               philosophy and develops an approach to                                                       experiences they crave.
                                          other whether that’s word of mouth, a                                                            that has been incredibly successful
4. Vitality.                              viral video or a call center.                        drive it in a real way.                     at building worlds, not just ads. This           5. never use a period, always a comma.               Storyscaping is an evolution, not
The tapping of human powers like                                                                                                           billion-dollar franchise has created an          Remember to close the loop. With a                   a revolution. Instead of thinking
functions and emotions.                   All too often, storytelling in advertising           An organizing idea transcends a
                                                                                                                                           immersive environment that consists              storyscape experience, everything’s                  in entirely new ways, by using the
                                          is just story yelling—brands are just                campaign. It can be as large as
                                                                                                                                           of books, movies, merchandise and                connected.                                           familiar patterns and emotions of
5. sense.                                 trying to break through. But those                   a superstore or as small as 140
                                                                                                                                           games—even a theme park. Because                                                                      stories, we can truly embrace and
The ability to know identity and place,   brands are missing a critical lesson that            characters, but it will always provide                                                       There should be no loose threads, no
                                                                                                                                           Harry Potter uses a well-thought-out                                                                  appreciate today’s craft of marketing,
and where or when one occurs.             the experience space can teach them:                 a consumer the same experience,                                                              dead ends and no pieces that don’t fit
                                                                                                                                           storyscape, it doesn’t matter where a                                                                 advertising and storytelling.
                                          Consumers will learn much more from                  and that experience must serve the                                                           the puzzle. If a consumer begins their
                                                                                               overarching story.                          consumer enters the brand; it’s still
                                          experiences than they will from a story.                                                                                                          experience with a brand on Facebook                  The bottom line is that storyscaping
                                                                                                                                           that core story. And no matter the level
                                                                                               An organizing idea offers consistency.      of immersion, whether it’s bite- or              or on a website or via a digital display,            will solve any business or brand
                                          It’s the difference between watching
                                                                                               As the experiences we create today          super-size, the consumer will always             it should always lead back into the                  need, and it will do so by building
                                          a story and being immersed in that
                                                                                               become more and more complex, the           experience the brand as it was meant             experience as a whole. By thinking in                on the foundations of storytelling to
                                          story. It’s the strength of engagement
                                                                                               story experience we provide should          to be experienced, over an entire                a circular, cyclical way, the consumer               develop an approach that will create
                                          through interaction. The story becomes
                                                                                               become proportionately simple. This         spectrum of engagement possibilities.            will become “lost” in a brand’s story                an experience that will appeal to its
                                          much more powerful if done right,
                                                                                               will allow for a message that is truly                                                       and experience so much more than                     consumers. Storyscaping allows
                                          and once you recognize that, you can
                                                                                               purpose driven, one that doesn’t need       4. Apply “systems thinking”                      words and images.                                    businesses and brands to turn a
                                          build worlds, not just ads. For instance,
                                                                                               to be diluted to fit into the constraints   to connect the story.                                                                                 philosophy into a plan—to take the
                                          telling a story about your first kiss is not
                                                                                               of social media, in-store advertising,      Systems thinking has the ability to                                                                   resources they have and focus their
                                          as powerful as that kiss itself. If you can
                                                                                               ecommerce or mobile experiences.            help us understand how individual                                                                     energy on the right choices for a
                                          feel an experience, and find yourself
                                                                                               When you have a great organizing idea,      items influence each other within the                                                                 connected consumer experience.
                                          caught up in it, it’s an entirely different
                                                                                               everything falls into place, making it      whole structure, and is an approach to
                                          level of interaction.
                                                                                                                                           problem solving that uses a

                                                                                                                                                                                                                                        2
                                                                                                                                                                                                                                            http://www.ted.com/talks/rives_tells_a_story_of_mixed_emoticons.html

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BRAND As ChANNEl:
                                                                                           Quick. There goes your brand                     From the technology side, it’s the
                                                                                           message. Did anyone notice? if they              same as what we call an API or
                                                                                                                                                                                        “Today’s environment
                                                                                           noticed, did they remember it? Did               Application Programming
                                                                                           they remember the story, but not your            Interface—a back-end mechanism
                                                                                                                                                                                         requires persistent and

toDaY’s “alWaYs-on” MessaGInG                                                              brand? Was it compelling enough to               for distributing content persistently        powerful brand messaging
                                                                                           go viral? Will it have enough cultural           through an application.                      —sometimes referred to as
                                                                                           currency to be passed on, remixed,                                                            “Brand as Channel”—a big,
                                                                                           personalized and picked up by the                Think of it as “always-on” messaging         broad, long-lasting, idea-
Written by Alan Schulman, Vice President, Regional Chief Creative Officer, New York City
                                                                                           press? And if so, what do you do                 like a news network.                         based platform or interface.”
                                                                                           for an encore? can you sustain the
                                                                                           momentum?                                        Think Programming, not Publishing
                                                                                                                                            If you’re like most marketers, you’ve
                                                                                           Welcome to brand communication                   probably already become a pro at
                                                                                           at the speed of culture—where                    optimizing your web destinations—
                                                                                           the criteria and key performance                 starting with your brand website and
                                                                                           indicators (KPIs) for brands in today’s          bolting on additional presences on
                                                                                           connected and time-constrained world             Facebook, YouTube and Twitter,
                                                                                           have increased exponentially. ROI                all linked with the myriad Web 2.0
                                                                                           may remain the ultimate metric, but              sharing applications. Perhaps you’ve
                                                                                           the task of preparing for sustainable,           even optimized the pursuit of the
                                                                                           memorable brand communications                   publishing model of the 3 Cs—
                                                                                           requires much more than a joke at                Content, Community and Commerce—
                                                                                           the end of your TV spot or a traditional         across your sites and partner sites. All
                                                                                           “campaign pool” of annual television             of this is essential to the table stakes
                                                                                           and print executions driving to your             of a digital ecosystem in today’s user-
                                                                                           Facebook page—with some                          centric world. But to take the next step
                                                                                           incremental digital media spending               towards “Brand as Channel” requires
                                                                                           to support it.                                   the need to back up your brand platform
                                                                                                                                            and umbrella-selling proposition with a
                                                                                           Today’s most progressive brand                   fundamental question:
                                                                                           marketers have realized that
                                                                                           to remain top-of-mind in this                    Which does your brand have? A
                                                                                           environment requires brand                       campaign tagline written to synopsize
                                                                                           messaging from a much more                       the proposition of an ad campaign? Or,
                                                                                           persistent and powerful platform                 is it a Big Brand Platform idea? One
                                                                                           than a traditional ad campaign—                  that’s wide enough and big enough to
                                                                                           without interruption. This messaging             connect with consumers, understand
                                                                                           is sometimes referred to as “Brand               their human behaviors and adapt to all
                                                                                           as Channel,” a big, broad, idea-based            the devices and channels they use over
                                                                                           platform or interface through                    the long term.
                                                                                           which brand content, services and
                                                                                           multi-channel digital and physical               how do you know?
                                                                                           experiences are continually                      Stress test it. Is the idea big enough
                                                                                           programmed and served.                           that you could iterate or expand on it in




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                                         any channel, to multiple segments,               permission to reveal, in very human         packaged goods, adopting the “Brand      the outset of the effort, GE appears
                                         with any kind of content? In the world           stories, the many ways one can,             as Channel” approach is even more        to have committed tremendous
                                         of paid, earned and owned media                  should and does do the responsible          challenging as low-traffic, owned        resources, both human and capital,
                                         opportunities, can it be remixed,                thing. It features numerous additional      brand sites have given way to            to storytelling through this Big Brand
                                         crowdsourced, socialized, mashed                 categories of persistently provided         Facebook pages, applications and a       Platform. At the organizational level,
                                         up and made whole again? Or is it                and refreshed multi-channel content         paid-media propensity to push price      GE staff includes a Head of Content
                                         just a slogan?                                   across all things text, audio and video—    promotions to drive case shipments.      Programming whose remit transcends
                                                                                          including everything from relationships     Digital ecosystems here take on a
                                         Unfortunately, these are questions               and ethics to pets and animals, sports,     different shape as functional benefits
                                                                                                                                      and product utility often overwhelm
                                         that many traditional, above-the-line
                                         agency partners fail to address when
                                                                                          education and many others.
                                                                                                                                      brand platform possibilities.
                                                                                                                                                                               Creating, curating and programming this
                                         distracted by the largesse and allure            Creating, curating and programming                                                   Brand Channel is no small task and no
                                                                                                                                      But this needn’t be the case if
                                         of the traditional television campaign.
                                         It’s often left downstream for the
                                                                                          this Brand Channel is no small task
                                                                                          and no small investment. Yet, the           marketers and their agencies are
                                                                                                                                                                               small investment. Yet, the opportunity for
                                         digital agency partner to try to make            opportunity for continuous cultural         able to pivot toward a more service-     continuous cultural currency that connects back
                                                                                                                                      oriented content creation mindset
                                         as expansive as possible within the
                                         context of a campaign, rather than
                                                                                          currency that connects back to the
                                                                                          brand is both resonant and evergreen.       around the brand’s functional            to the brand is both resonant and evergreen.
                                         originating it as a content platform.            It’s not a campaign that begins and         category, rather than relying on
                                                                                          ends, but a regularly scheduled             impression-based campaigns that
                                         The general rule is: You know you                persistent platform that is discovered in   focus too heavily on traditional brand   mere website-based content. In
                                         have a Big Idea when it writes itself.           progress.                                   awareness, recall and health measures.   categories ranging from Innovation
                                         What to look for is the opportunity                                                                                                   and Ecomagination to Data
                                         to go beyond the written word and                Multiple Products require                   connected Thinking                       Visualization and Healthy
                                         answer the question, “If this idea               a Moving Platform                           With corporate Messaging                 Imagination, literally dozens of hours
                                         were a cable television channel, could           For marketers with portfolio products       At a corporate marketing level, the      of content are ready to connect to a
                                         we program it 24/7/365?” To go even              in multiple categories, this approach       “Brand as Channel” approach has          variety of audience segments from
                                         further, do the brand’s core values              becomes even more essential.                become an imperative in the digital      the investor, the enterprise, the
                                         and permissions truly resonate with              The alternative ad campaign-based           age. No one seems to know it or          customer and the consumer in the GE
Above, SONY illustrates the action                                                                                                    execute it as well as General Electric   Imagination at Work storyscape. This
                                         this idea? Or is it an inelegant stretch         approach often yields different brand
and spirit of its brand platform and                                                                                                  and their “Imagination at Work”          content is made available through
                                         just to accommodate your desire to               campaigns from different divisions, all
defines it as “uniting imagination                                                                                                    content channel platform. From           multi-channel distribution—not just
                                         draft off of high-traffic consumer               with different selling propositions
and reality, designers and engineers,
                                         content categories like music, movies            competing for the consumer’s attention.
hardware and software, electronics
                                         and games?
and entertainment, Sony and its
                                                                                          For a global brand like SONY, whose
consumers. The dot that links make                                                                                                                                                                               Building a big idea: you know you
                                         Take the Liberty Mutual Insurance                business units and brand architecture
and believe is the place where                                                                                                                                                                                   have a big idea when it writes itself
                                         platform: “Responsibility. What’s your           span multiple categories and
imagination and reality collide. It’s
                                         Policy?” (Shown on next page.) This is           consumer target audiences
this point of ignition that transcends
                                         anything but an advertising campaign.            (consumer electronics, gaming, filmed
reality. The dot is the role of Sony.”
                                         It’s a great big idea-based content              entertainment and music), divisions
                                         platform that features dozens of                 iterate around one big entertainment-
Given the power of a platform this
                                         consumer, cause and community-                   centric content platform: “Make.
broad and extensible, imagine
                                         centric ideals and ethics built around           Believe.” Consider how this SONY
the channel-programming
                                         doing the responsible thing.                     brand platform idea makes itself so
opportunities to iterate around it.
                                         The beauty is that the product—                  extensible for content creation.
                                         insurance—offers the central brand               In certain verticals, like consumer-




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              the corporate site—and provides               First, “paid” media has a critical role      And “earned” media within social             The combination of these offerings
              deep dives into the diversity of GE’s         to play—right along with tactical social     platforms is actively partnering,            is “storyscaping”—the deliberate
              divisional engagements. Importantly,          platforms like YouTube. Marketers            curating and crowdsourcing variations        and measured effort to move from
              the content isn’t presented like              who leverage their paid media to focus       on a theme by the consumer—while             traditional fixed-term, campaign-based
              commercial messaging, but rather as           on intriguing the target audience by         being mindful of adequate backend            thinking to a big brand, content-centric
              unique news and documentaries that            pulling them into the story in a             filtering and appropriate age criteria for   platform idea that serves as a multi-
              function as edutainment.                      disruptive yet alluring manner will          consumer-generated content. These            channel value proposition for your brand.
                                                            out-clickthrough impression-based            “create, customize, share” interactive
                                                            banners that try to tell the whole           content offerings and applications are       For “now showing,” persistent brand
                                                            brand story and typically support            as essential to provide as your library of   communications at the speed of
                                                            traditional mass reach media                 “owned and commissioned” storytelling        culture and evergreen extensibility,
                                                            (consider how successfully Hollywood         content. They should reside in places        there’s only one question that remains:
                                                            studios do this in their teaser trailers).   other than your brand website (e.g.,
                                                                                                         Facebook, Twitter, Pinterest)—where          Can your ad campaign do this?
                                                            The secret is to employ both teaser          the social conversations and creations
                                                            tactics and unbranded headlines that         are actually happening.
                                                            pull the target in without giving away
                                                            the brand. This takes courage for
                                                            marketers who live by effective
                                                            frequency measures that ladder
                                                            purely to brand awareness KPIs. For
                                                            business case proof, one need only
                                                            look to the pre-launch programming
                                                            efforts of HBO to discover the power
                                                            of pure intrigue as a message focus
                                                            to drive interest.

                                                            On the “owned” side of the
                                                            equation, the goal becomes more
                                                            about consumer involvement and
                                                            persuasion. This means providing
The GE Show
              The “Brand as channel” Media                  plenty of brand-centric short- and
              Approach: intrigue, involve, Persuade         long-form storytelling content
              In the “Brand as Channel” approach,           opportunities that will populate your
              once the Big Brand Platform idea is           site, and native application-based
              stress-tested to accommodate both             channels that you commission and
              real-time relevance and evergreen             program. When appropriately linked
              extensibility, the challenge turns to         to click-to-download PDF, RFI,
              overlaying this content-centric               coupon, sample or even purchase
              ecosystem for success around                  functionality, the continuum between
              pre-determined and defined KPIs               brand communications, data capture
              in the paid, owned and earned                 and commerce is closed.
              channel media.




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                                                       Over the past few years, a digitally             It has to do with the particular
                                                       driven revolution has permeated                  audiences being targeted, and the



  ADApTINg TO A
                                                       everything we connect with,                      methods used to connect with those
                                                       resulting in many changes. And                   audiences. As these audiences
                                                       while the media allocation pie                   continue to mature technologically—



FRAgMENTED MEDIA
                                                       itself continues to shift—from one               as has been the case with the growth
                                                       dominated by traditional to one                  and expansion of Millennials—the
                                                       more balanced by digital—so does                 shifting is not so much just about




  ENVIRONMENT
                                                       consumer consumption. This digital               “time shifting” but rather “platform
                                                       era of connected and continuous                  shifting,” particularly as it relates to
                                                       experiences is evolving humans into              video consumption.
                                                       a race of “digital social beings.”
                                                                                                        For businesses and brands that want
   Written by David D’Alleva, Media Director, Boston   Shifting consumer habits, powered                to explore the digital channel further
   & Peter Colapietro, Sr. Manager, Media, New York    by technology, has helped shape a                and attract the Millennial customer, a
                                                       new digital landscape across four                two-prong approach is often the best
                                                       screens—computers, smartphones,
                                                       tablets and televisions. Whether it’s
                                                       sharing, commenting, submitting
                                                       response videos or creating original             “The only constant is change, continuing
                                                       content, the ability for frequent                change, inevitable change, that is the
                                                       interaction on multiple devices is
                                                       fueling organic experiences, and                 dominant factor in society today. No sensible
                                                       brands are trying to tap into them to            decision can be made any longer without
                                                       meet their goals. And as the old phrase
                                                       “the only constant is change” continues          taking into account not only the world as it is,
                                                       to ring true, humans continue to be              but the world as it will be.” –Isaac Asimov
                                                       both enablers and contributors in
                                                       this digitally driven media revolution
                                                       evoking one key question:
                                                                                                        way to accomplish that: Build a plan
                                                       Does the ability to weave content and            with an adaptive media mix measured
                                                       experiences across newer platforms               against goals and use both brand and
                                                       generate new ways to think about                 direct response messages to create
                                                       connecting brands and customers?                 a continuous, trackable experience
                                                                                                        from the top down.
                                                       The rise of “Platform shifting”
                                                       Today, the digital space often applies           For example, TV and radio spots often
                                                       an approach to solving problems that             have trackable URLs that connect to
                                                       is irrespective of medium or channel.            a central landing page. Conversely,
                                                       But finding the perfect media mix is             digital video can be used as a mass-
                                                       still a question that needs answering—           reach vehicle in markets that can’t
                                                       and one size doesn’t fit all.                    afford TV. These digital videos can
                                                                                                        then lead to the same central
                                                       It has nothing to do with merely                 landing page.
                                                       shifting traditional to digital dollars.



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It’s fairly common to pair brand                 specialists. Both, in essence, need       cohesive creative brief for the “super-          Video, for one, is exploding in a big
awareness with traditional media,                to become well acquainted with            user” during production and editing.             way with evolving technology and
while digital media gets aligned                 the limitations and capabilities                                                           faster Internet speeds, enabling a
with direct response because of its              of the other. For instance, media         The video episodes that were                     wide array of video-based placements
inherent interactivity and trackability.         strategists need to become familiar       created were pushed out through                  and inventory. Much of it doesn’t
However, these lines can and should              with the level of effort and production   paid YouTube video placements in                 have the time constraints (i.e., 15- or
be blurred to prevent any medium                 timelines required for different types    conjunction with a significant amount            30-second limits) used exclusively
from ever being pigeonholed.                     of assets in order to prevent building    of earned views coming from the                  in pre-roll. The sweet spot now
Regardless, businesses must build                an impossible plan. And creatives         subscribers of the two “super-users”             hovers around 1 to 2 minutes,
multiple entry points to a single                should be aware of the target             chosen. The video content was                    giving advertisers the opening to
trackable sales funnel while giving              audience, the sites and content that      connected to other paid placements               become content creators in a more
customers reasons to purchase                    audience will see and the context of      outside of YouTube and released over             substantial way and then capitalize on
along the way no matter where they               the environment in order to closely       the duration of the campaign.                    the response.
enter the conversation. This takes               match message and call-to-action.
the emphasis off the need for a                                                            The resulting cost-per-view                      Building out a launch plan, which
conventional “media mix” and shifts              Whether the cross-over of skill sets      on YouTube was very low and                      considers teasers on television that
it to building communications that               is deep or not, creative directors and    complemented Foot Locker’s                       drive to long-form installments
connect from start to finish.                    media strategists should be involved      television impressions in a big                  or continuations of video online,
                                                 at the onset of the planning cycle to     way. Through paid YouTube video                  creates a strong interest platform
not “creative and Media,” but                    trade knowledge while brainstorming       placements, embedded YouTube                     for retargeting. By using a
“creative Through Media”                         plan design. This may not sound           videos and earned views, the co-op               continuous message through
The complexity of communication                  like a new concept, but with the          video content netted over 1.5 million            mediums, marketers can steer
tactics available (whether digital or            rapid fragmentation of the media          views, over 42,000 comments and                  potential consumers to connect
traditional) requires a purposeful and           landscape, it becomes even clearer        nearly 6,000 participants in a six-              digitally in order to pull them in and
diverse set of creative assets to drive          to the end user when this process is      week campaign flight. Through close              then retarget them with another
the conversation to the next logical             undervalued.                              collaboration between media and                  message. Mass-reach vehicles such
checkpoint. Repurposing creative                                                           creative from the beginning, the                 as television, radio and print should
from one channel into another                    The benefits to this process are          brand’s TV spots were augmented                  always have a primary call-to-action
just doesn’t work. It’s wasteful to              seen with Foot Locker’s back-to-          with significant views and exposure              that entices customers to connect
deliver an out-of-place message to a             school campaign that employed their       within digital video online at efficient         digitally. Whether it’s visiting a
potential customer that doesn’t tap              overarching campaign message used         costs. Seeing a positive effect on               “pixeled” website or signing up for
into their current state-of-mind or              in television spots within a co-op        sales during this campaign period                an email, all media should drive to
match the environment it’s displayed             content creation sponsorship with         proved that produced, branded TV                 a connected retargeting platform.
within. Always match the creative                YouTube “super-users”—those with          spots mixed with guided, partner-                Done properly, a pool of potential
content and message to the context               a YouTube channel and significant         produced digital content can be a                customers are acquired, primed and
it’s delivered within and the content            following. The “super-users”              formula for success.                             ready to be exposed to discounts,
it’s surrounded by.                              were selected using inputs from                                                            exclusive offers or other relevant
                                                 SapientNitro’s media and creative         2. Pull customers in with strong                 messaging.
There are three pillars of practice to           teams based on their ability to hit the   content, then retarget them. The
consider in order to mature at the               target audience and how well their        Internet enables instant, widespread             3. create balance between
rate of digital change:                          channel content matched the creative      sharing of an enormous quantity                  advertising and experience. Whether
                                                 tone of the campaign itself. The          of content, so a good amount of                  it’s the publisher or advertiser,
1. cross skill sets. This requires               media team provided the guardrails        ammo is needed to make a lasting                 balancing advertising and experience
a fundamental change in how                      for the program, giving the creative      impression.                                      should be a required consideration for
creative specialists work with media             team the ability to construct a                                                            any launch strategy. With cost-per-




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                                     3
engagement and cost-per-view                   information has always been there.
becoming more prevalent and                    The Pony Express riders began their
scalable, its use should be the center         “speedy” delivery service in 1860, only
of any media spend. Not only does it           to be rendered obsolete a year later
mean you are paying for the people             by the telegraph.
who want to see your ad or content,
but it also means you’re not inhibiting        In the end, it is vital that businesses
or tarnishing the experience either.           and brands place less focus on
                                               the channels themselves and
YouTube’s TrueView product is one              more on the pathway of content
very good example of how this is               communication tied to desired
done right. Advertisers can purchase           outcomes. For many advertisers,
inventory against a desired audience           agencies and publishers, these types
geographically and will only pay               of changes might require a bit of
for a video view if the user doesn’t           restructuring—not only in how teams
choose to skip their ad in the first 29        are set up, but also how business
seconds. If they do skip it, that free         problems are approached to begin
partial impression didn’t impede their         with. Content is the new frontier
experience. It’s all about creating            that’s already here. Harnessing
valuable content and then letting the          its potential and connecting all
user self-select the content they want         the way through the funnel is a
to see.                                        fundamental requirement for any



                                                                                            ThE FUTURE OF
                                               strategy built alongside a media mix
harness the new Frontier                       that is designed to adapt to change.
The strategy of weaving content and            Whatever the medium or message,



                                                                                         CONTENT ExpERIENCE:
sponsorship experiences across                 the matrix of communications
video platforms to generate new ways           should be simple and specific. If it’s
to connect brands with customers               not tracked, retargeted or saying



                                                                                          anD hoW to DesIGn FoR It
works, but it isn’t a new consumer             something of value then get back in
DNA—the need for speed and                     the room and finish road-mapping.



                                                                                          Written by Kevin Nichols, Director and Practice Lead, Content Strategy, Boston




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                                        someday very soon, shopping for                   website or mobile site, and via any         Businesses will encounter even greater          For instance, a search engine will
                                        your daughter’s birthday present will             type of physical communication              challenges to get consumers relevant,           automatically filter through 10,000
                                        look like this:                                   (internal or external to your business)     meaningful and timely content.                  search results to give you what it
Defining content                                                                          within your brand, company or                                                               knows you want to see.
                                                                                                                                                                                                                                                                              Are businesses getting the right
                                        You are at an electronics store                   communication ecosystem. This               Consumer expectations will drive
                                        looking for a tablet. You see one model           includes communication at every                                                                                                                                                     content experiences to their
First, let’s be specific about what                                                                                                   intelligent content solutions; they             More and more regulations over the
                                        you like, pick up the box and scan                customer touchpoint, as well as the                                                                                                                                                 customers? A Havas Media report
we mean by “content.”                                                                                                                 want real-time information delivered            use, collection and sale of consumer
                                        its bar code with your phone. Your                data captured about those customers.                                                                                                                                                surveyed 14 countries and 50,000
                                                                                                                                      at a variety of different moments and           data will unfold. Last year, the
                                        phone immediately retrieves product               In many ways, content is the                                                                                                                                                        consumers in November 2011 and
Ask 10 different people to define                                                                                                     events. Personalization will be a               Privacy, Technology and the Law
                                        information based on what it knows                manifestation of a brand that isn’t                                                                                                                                                 found that “70% of people would
content, and you’ll end up with 10                                                                                                    critical component—like automatic               Senate Judiciary Committee was
                                        you prefer to see; in this case,                  that brand’s actual products or                                                                                                                                                     not care if brands ceased to exist.”1
different perspectives. Usually the                                                                                                   traffic alerts as a customer drives             formed, which monitors data mining,
                                        comparative products and prices.                  services. Think about that for a minute:                                                                                                                                            Though many variables contribute
definitions involve the many types                                                                                                    into a city. For example, a woman               ensures consumer information
                                                                                          In addition to its products and services,                                                                                                                                           to consumers’ perceptions of
of content—audio, text, video and                                                                                                     researches a product at home, then              transparency and suggests new
                                        You quickly compare other tablets                 a brand is actually its content.                                                                                                                                                    brands, content experience
images—what is read to a customer                                                                                                     goes to the store and swipes her phone          laws to protect consumer privacy.
                                        by swiping your phone against other                                                                                                                                                                                                   plays a large role. And consumer
from a support call center                                                                                                            at a kiosk. She’s greeted by name and           Issues like cyber-bullying and
                                        models—never touching the screen—                 Content creates a customer’s                                                                                                                                                        cynicism presents a huge
representative or what a car                                                                                                          the customer representative has all of          increases in plagiarism and misuse
                                        and decide one model and brand is                 experience with brand. As such,                                                                                                                                                     opportunity for businesses
dealer picks up from their auto                                                                                                       her relevant information. So her                of intellectual property will further
                                        perfect. You take a picture of the                you need that experience to be                                                                                                                                                      to differentiate themselves
manufacturer to share with                                                                                                            in-store experience is personally               focus on questions of technology and
                                        tablet with your glasses, send it to your         successful—it’s a brand asset that                                                                                                                                                  through honest, constructive and
customers (or mechanics). But                                                                                                         connected to her needs, regardless              ethics. All of these factors will impact
                                        phone with a simple voice command                 requires much effort to grow, evolve                                                                                                                                                consequential content.
this approach merely defines                                                                                                          of platform. Later, on her birthday,            what businesses can and cannot
content by format; it is much more      and text the image to your daughter               and produce value. When used                she receives an offer and, after that,          do with consumer information and
than that. So let’s try a broader,      with a “happy birthday” message.                  properly, content can become a              updates about the product warranty.             will create new companies in social
more useful definition that can                                                           major part of a brand’s life force. And                                                     media, search and other venues that
encompass them all:                     While you scan your phone over                    it makes a customer’s connection to         In the next few years, many types of            promise “mining-free” and “cookie-
                                        a checkout counter to finalize the                your brand seamless and engaging.           advancements will evolve the format,            free” experiences.                                                                         Content Experience
In the digital landscape, content is:   purchase, you ask your cell whether                                                           medium and consumption of content.                                                                                                          as a Brand Asset
                                        you left the lights on at home—some-              The Future of content                       Wearable technology (eyewear that               New players in social media will
• created by someone to                 thing you just remembered. Your phone             With over 10 billion indexed                captures video, for example), mobile            emerge as “degrees of separation”
  communicate an idea,                  assures you that the lights are off.              webpages, 1 million mobile apps             as a universal remote and wallet,               technology increases. Already
                                                                                          and seemingly endless amounts               and voice command technology will               companies such as Hachi are helping                                                                Customer
• recorded and stored                   Most people assume that incredible                of user-generated content, we’re            all be integrated into our everyday             introduce folks to people they think
  electronically, and                   technologies work together in this                drowning in information. Many               lives. As the virtual reality of gaming         they should know. Social media will
                                        birthday-shopping scene, but it’s                 organizations have little insight into      goes mainstream, consumer demand                leverage semantic technology to                                                                      Trust
                                        actually content that connects all                how much content they possess, what         for immersive content (like 3D and              create even more sophisticated                                                                        With
• consumed by or shared
                                        the elements to create the overall                to do with it or, most importantly,         360-degree video) will spill into other         networking opportunities.                                                                            Brand
  with others.
                                        experience. Several different business            how to meet their customers’ content        parts of their lives and continue to            Knowledge-sharing sites will
                                        units in several different companies              consumption needs.                          advance. 3D printing will be just               continue to emerge, such as Quora,
                                        have, somewhere along the line,                                                               another feature on a printer. Semantic          which allows users to ask any                                                      Product or                   Content
                                        decided to invest in robust and compel-           Over the next five years, we can            technology will evolve given the sheer          question and receive accurate, clear                                                Service
                                        ling content processes and strategies.            expect these challenges to grow             amount of data businesses have on               answers from authoritative sources.
                                                                                          significantly. People will be over-         consumers’ behaviors, creating a                Social shopping will become a
                                        so… What is This                                  loaded with content and, although           whole new market around technology              reality for mainstream consumers
                                        “content Experience”?                             their consumption patterns may              that can predict specific consumer              as customers automatically share
                                        Content includes any material that                evolve, their need to get what they         behavior and respond to it.                     purchases with friends and solicit
                                        you publish on your organization’s                want when they want it won’t change.                                                        their feedback. Finally, peer-to-peer,


                                                                                                                                                                                      1
                                                                                                                                                                                          www.havasmedia.com/2011/11/meaningful-brands-havas-media-launches-global-results/


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                          user-generated content sites for           tangibly measured value; an effective      Just as brands make significant                future success. This model, pictured
                          brand and product evaluation will          content experience translates into         investments in marketing collateral            on the following page, drives
                          create more ways to authenticate           higher conversion rates, stronger          and campaigns, they should                     sustainability. As a business creates
                          customer reviews and increase the          customer loyalty and a more                reprioritize content that serves               content, it continuously evaluates its
                          integrity of responses.                    consistent brand experience across         customer needs: support content,               efficacy and then optimizes or
                                                                     all brand channels, from a product         white papers, thought leadership and           archives it. This process is repeatable,
                          success in the Future                      package to a customer call center,         decision tools to assist the customer          extensible and agile. These steps
                          These present and future challenges        from Facebook to a mobile app to           in finding the right product, just to          are predicated on a solid metrics
                          offer unique opportunities.                the company website. This reality          name a few. If Forrester’s annual              strategy, defining success criteria for
                          Understanding holistic content             may seem like a no-brainer, but even
                                                                     today after all of the “content is king”
                                                                     talk, many businesses don’t put their
                                                                     money behind this concept.

Though many variables contribute to consumers’                       Timely, meaningful and relevant
perception of brands, content experience plays                       content creates a successful
                                                                     customer experience and as such,
a large role. And consumer cynicism presents a                       requires investment to empower
huge opportunity for businesses to differentiate                     its full potential. To engender this
                                                                     practice, a business must measure
themselves through honest, constructive                              and evaluate all areas where content
and consequential content.                                           lives—internally and externally—
                                                                     extending well beyond just web
                                                                     analytics. A strong metrics and
                                                                     measurement strategy will help
                          strategy—connecting timely, relevant       future evolution. It also facilitates
                          content to the right user at the right     another important principle: Just as an
                          time—will only get businesses so           organization cares for its institutional
                          far. Content strategists understand        financial portfolio, content requires
                          the types of content experiences           constant “seeding and feeding.”
                          consumers need, and then determine                                                    reports on customer experience make            content, creating KPIs to measure it,
                          operational and governance processes       The second rule of thumb is that           one point clear, it’s that customer            rolling results up into dashboards
                          to create and maintain those               businesses must understand that            experience embodies the entire                 and reviewing it semi-annually—
                          experiences. Businesses must act           investing in content strategy is only      customer engagement with a brand.              on a program level—to set future
                          upon what content strategy requires        useful if they also invest in creating     High quality content at each point of          priorities.
                          and make an investment of time,            the content itself. Why develop a          exchange has a direct impact on the
                          money and resources in what we             beautiful website or mobile experience     customer’s brand perception. An                The fourth rule of thumb is that
                          outline below.                             sans a robust new content experience       investment in the continuous creation          transparency about what customer
                                                                     to support it and a publication model to   and renewal of meaningful content will         data is collected yields customer
                          The first rule of thumb is that            ensure continued relevance? Content        competitively differentiate a business         trust. This practice will not only
                          businesses that deliver successful         is not inexpensive, so figuring out the    and position it as a superior brand.           increase customer loyalty to the brand,
                          content experiences in the future          type of content experiences you should                                                    but will also position businesses to
                          will do so because they recognize          create must be directed by a long-term     The third rule of thumb is that the            respond to future regulations and
                          content as a strategic brand and           roadmap and strategy.                      development of a closed-loop content           prevent potential litigation.
                          business asset. Content has a                                                         strategy will position a business for




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                                                                                                                                                                                                                                       ON cl TE
                                                                                                                                                                                                                                        Ex ON
                                                                                                                                                                                                                                         LI us NT
                                                                                     3




                                                                                                                                                                                                                                          C

                                                                                                                                                                                                                                           NE iV
                                                                                                                                                                                                                                                 E
closed-loop content                                                                      Step 2:
strategy Model                                                       Step 1:              Plan          closed-loop content
                                                                     Assess                             strategy Model
step 1: Assess
•   Audit content
•   Conduct shareholder interviews/surveys                                     Define
    as needed                                                                Governance            Step 3:
•   Analyze and validate content ecosystems                    Step 5:         Model               Design
    (sites, channels, social, partners)                      Maintain &
•   Analyze competitors’ content experiences                  Optimize
step 2: Plan                                                                           Step 4:
    Set objectives with global stakeholders
•
                                                                                       Create
•   Define measurement plan
•   Determine accountability
•   Create content recommendations
•   Define governance strategy                 A/B testing and multivariate testing,          articles on a mobile device, but that
                                               consumer surveys and the like are all          does not mean that a man on his
step 3: Design
                                               proven mechanisms to measure the               way to work doesn’t want to consume
•   Plan experience and content
•   Define new workflows including loop
                                               efficacy of content solutions and              a white paper on his mobile phone.
•   Prepare staffing recommendations           can help businesses glean much                 Content should be agile so that it
•   Prepare metadata strategy                  information on consumer behavior               can be shared, repurposed and
•   Develop taxonomies                         to guide future content decisions in           easily consumed in many
•   Develop editiorial guidelines              a non-invasive manner.                         different environments.
•   Develop content model
•   Develop content production/migration
                                               The final two rules of thumb are               conclusion
•   Draft editorial calendar
                                               interconnected: Content experience             To quote punk rock goddess Nina
step 4: create                                 is no longer a one-way conversation,           Hagen, “the future is now,” and
•   Create assets and copy                     and customers weigh in on a brand              businesses should appreciate this
•   Input into CMS                             through their own content and                  fact. No matter where the future



                                                                                                                                         I CAN sEE ClEARlY NOw…
•   Localize as necessary                      word-of-mouth experiences. Obviously,          takes us, we have the tools to meet
•   Review and test                            consumers are your most important              its demands. Customer needs should
•   Implement governance model
                                               mouthpieces. Simultaneously,                   drive content experience, investment



                                                                                                                                      ACROss ThE ENTIRE ExpERIENCE:
    and workflows
                                               consumers want more control over the           in respective content and the
•   Finalize editorial calendar
                                               content with which they interact. Make         operational model to support its
step 5: Maintain & Optimize                    content as portable as possible, so            creation, delivery and governance.


                                                                                                                                         tHE analytics maturity modEl
•   Deploy content and application changes     that users can consume, share and              This will keep any business at the
•   Use analytics to determine areas           post information on a variety of               forefront of modernized content,
    of success and failure                     different formats. Always think about          regardless of how technology may
•   Plan periodic audits                       the channels on which content will             evolve, and will enable businesses to
•   Adhere to editorial calendar
                                               be consumed and create content for             meet the future without overreaction      Written by Jennifer Patterson, Sr. Manager Marketing Strategy and Analysis, Birmingham, MI
•   Optimize as necessary
•   Archive unnecessary content
                                               those experiences, but don’t limit it          or afterthought, thereby positioning     & Dave Kane, Manager Interactive Strategy and Analytics, Chrysler Group LLC, Auburn Hills, MI
                                               to that—provide options. You may not           them for differentiated success.
                                               want to immediately serve up long


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imagine being the cEO, cMO or head             work together via analytics across the     important to understand that there             organization. The champion roots for
of sales of a major manufacturing              entire experience is a                     is no cookie cutter checklist to               analytics and takes the initiative to
company with these insights: if                must in order to optimize and              follow that will get you from Phase            share insights and recommendations
your daily website conversion rate             positively impact the bottom line.         I to Phase V (see page 133); rather,           for improvements with all the teams.       The benefits of
declined even half a percentage                                                           it is an organizational change to be           Finding a champion can be tricky;
point, you could accurately predict            There are many common challenges           embraced by your teams and                     this individual may cause the most
                                                                                                                                                                                    cross-channel marketing
millions in revenue would be at risk.          along the path to becoming an                                                             disruption at first. In many cases,        analysis include:
conversely, if it increased, there             organization that uses data to drive       embedded in your projects. Once this           the person that embraces and
                                                                                                                                                                                    • Faster decision-making,
could be a corresponding increase in           meaningful cross-channel experiences.      happens, there will be benefits that           evangelizes analytics is one of the
                                                                                                                                                                                      benchmarks and goals utilizing
your monthly sales.                            This data-driven approach can              begin to pay off quickly.                      savviest because they know the power
                                                                                                                                                                                      consistent success metrics per
                                               definitely be disruptive. It changes the                                                  of data and how to use it.
                                                                                                                                                                                      channel or campaign
Imagine if you could predict the               way we do business, and it does not        The Analytics Maturity Model
number of key marketing activities             happen overnight. By expanding the         This all sounds great, but how do you          You may recognize your champion
                                                                                                                                                                                    • Flexible implementation with
needed to drive marketing campaigns            view of data to span across multiple       really begin to use data and insights          because when you interact with
                                                                                                                                                                                      reduced time to shift media spend
to meet your sales goals, or                   channels and brands, agencies can          to change how your organization                them—when you talk about data,
                                                                                                                                                                                      dollars and tweak marketing
knowing which strategies, channels             understand how marketing initiatives       executes marketing strategies and              insights and testing—their eyes
                                                                                                                                                                                      initiatives mid-campaign—with 360˚
and tactics should be tweaked                  are working together, and that             move towards the next level of cross-          light up. You’ll notice the champion
                                                                                                                                                                                      views of consumers and insights
mid-campaign to meet success                   information can be used to improve         channel continuous experiences?                leaning forward and you can see them
                                                                                                                                                                                      throughout each stage of the
targets. Do you understand those               the consumer’s continual experience.       Start out by gaining acceptance and            thinking about how to use the insights
                                                                                                                                                                                      customer journey
exact marketing initiatives that               This is achievable with stakeholder        striving towards advanced usage of             provided. The champion should have
are impacting your sales, whether              commitment, a champion to drive            the Analytics Maturity Model. This             influence in the organization and
                                                                                                                                                                                    • Organizational alignment around
offline, online or across multiple             it and by following the Analytics          requires three things:                         others should gravitate toward him or
                                                                                                                                                                                      the power of analytics, ensuring
channels? Do you know what is and              Maturity Model roadmap. It is                                                             her for expert opinions. Sometimes,
                                                                                                                                                                                      best practices lay the foundation
is not working, and where the user                                                        1. understand that this is going               this person is already charged with
                                                                                                                                                                                      for future marketing initiatives
experience must be optimized? We               Analytics Must Pull in Data From           to cause disruption. Disruption                owning analytics; other times, this
have the honor of working with many            Across the Entire Experience               sounds scary. No one really wants              person might be part of a different
                                                                                                                                                                                    • Focus on continual improvement
organizations that have analytic                                                          to be disruptive. Be transparent               team. To be most effective, this person
                                                                                                                                                                                      of return on optimization (ROO)
insight and use it to make key                                                            and let your teams know what you               must knock down walls and influence
                                                                                                                                                                                      and return on investment (ROI)
marketing decisions.                                    Website       social              are going to start doing. Give them            changes in marketing strategies and
                                                                                          some time to hear about it, digest it          tactics driven by data and insights.
The Data-Driven Approach                                                                  and understand that this can benefit
Many organizations claim that                    Online                        sales      them. There may be some chaos                  3. leverage the Analytics Maturity
                                               Advertising
they are data driven, but to what                                                         starting down this path; accept it,            Model. Now that the teams have been
extent are they really using data                                                         embrace it and plan for it. You are            forewarned that their world is about
to make decisions to improve                                                              changing the accountability of a team.         to be disrupted and that an analytics
the cross-channel continuous                             TV             search            You must emphasize that by working             champion has been identified, the
experience? Usually, when we hear                                                         together with the same strategies,             organization must figure out where it
an organization claim that they                                                           the results will be markedly more              stands within the Analytics Maturity
are “data driven,” it means they                                                          beneficial for the consumer and the            Model so that the right tools can be
determine success by looking at a                                                         organization.                                  utilized to progress through all of the
few metrics for a specific marketing                         consolidated                                                                stages. Our Analytics Maturity Model
channel or even just straight up                                View/                     2. Partner with a champion to take             is a phased approach for building the
sales. With the rise of cross-channel                         campaign                    ownership. The “analytics champion”            foundation and putting into practice a
                                                               Analysis
experiences, the ability to understand                                                    is one of the most important people            best-in-class marketing optimization
user behavior and how channels                                                            needed to create change within an              organization, based on data-driven




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decisions. The following phases are            People may still be a little resistant                           In this phase, we also start up an A/B                                 Another phase IV stand-out
some of the milestones that are key            in this stage, but they will also be                             and multi-variate testing program.                                     experience was participating
turning points.                                curious. We have gotten past this                                We use the term program because                                        in a SWAT team for a cross-
                                               hurdle across many clients by                                    when fully launched, the experience                                    channel marketing campaign. The
Phase i—reporting                              simply gathering stakeholders and                                will be continually optimizing via                                     campaign kicked off via television
This stage is critical. It sets the            internal team members regularly                                  testing across channels by developing                                  commercial during a major sporting
foundation for the rest of the                 to talk about data and insights.                                 a testing queue, building tests right                                  event. Imagine, from an analytics
model and roadmap. Here, we                    The outcome of these discussions                                 into projects from the brief and                                       perspective, being brought into the
generate simple reports to show                includes getting the teams engaged                               launching major changes via testing.                                   conversations when tactics, across
that data can be leveraged to make             with the analytics teams and                                     Only 26% of organizations use testing                                  the many channels from television,
decisions rather than just being               identifying areas for improvement                                on their websites1 and the number is                                   newspaper, social, search, banner
used to interject numbers into a               and additional investigation.                                    much smaller for those companies                                       ads, email, website, store and sales,
Powerpoint. The champion must                                                                                   testing across channels. This is a                                     were still being developed. Because
set the groundwork. Progress can               Phase iii—Execution                                              great opportunity to be a leader                                       Chrysler was advanced within the
be made by getting relevant data               This is one of the most exciting                                 to anticipate user behavior, tweak                                     Analytics Maturity Model, we were
to each audience by identifying                phases and is usually a turning point.                           experiences based on test results and                                  able to bring in best practices from
and reporting on a few basic key               Execution is where the teams get to                              identify quick wins.                                                   previous and similar campaigns.
performance indicators. We typically           start experimenting and testing across
start this phase by building out a             channels to identify how they work                               Phase iV—strategic                                                     We described how each channel
regular weekly or monthly report to            together. The champion and your                                  The fourth phase is strategic data                                     impacted another, and pulled in data
be monitored in order to understand            marketing teams (especially creative)                            use. We can start tapping into the big                                 around specific channel interactions
baselines and look for areas to dive           can use this data to drive experiences                           data space by compiling data across                                    to help shape the execution of the
into deeper. The first report can be           and design. Best practices on how                                channels and looking at trends and                                     tactics. We also had the ability to
extremely eye opening.                         to execute tactics are identified and                            correlations to see what activities                                    develop objectives and baselines for
                                               shared. Analytics start to be invited                            influence each other. Data modeling                                    each channel individually and as a
As an example, SapientNitro                    to the table as objectives are being                             and predictive analysis are leveraged                                  whole, as well as targets for success.
implemented a monthly report for               devised. Recently, SapientNitro                                  to start creating ROI models and
Chrysler and immediately identified            redesigned websites for Chrysler.                                targets. Marketing initiatives are                                     During the campaign, if we were
that the landing pages for the banner          Since analytics was starting to be                               identified that can be tweaked                                         not meeting targets, we could dial
ads driving traffic to the website             accepted within the organization,                                to deliver successful outcomes.                                        channels up or down to stay on track
needed to be optimized to increase the         we were able to join the project at                              SapientNitro conducted an analysis                                     and perpetuate a positive consumer
rate at which users ventured deeper            the beginning and pull many ad-hoc                               for Chrysler that identified the “mid-                                 experience throughout the multiple
into the site for more information.            reports aimed to answer questions                                level content” that people utilized,                                   channels for the duration of the
                                               about users’ current website                                     which was directly correlated to                                       campaign. Teams involved rallied
Phase ii—Analysis                              behaviors and interactions.                                      buying indicators for demand. Once                                     around the initiative—they were
In this phase, we begin to analyze                                                                              we identified those metrics, via                                       aligned from the beginning and were
reports and encourage recipients               The results were analyzed and                                    statistical correlation, we were able                                  dedicated to the user experience as
to ask questions. We look at                   leveraged by the creative teams as an                            to recommend that those pieces of                                      well as measuring success across all
recent launches and campaigns to               input into their designs, hence data-                            content be served up in online ad                                      the channels.
review performance. We dive into               driven insights. The success of the                              units and surfaced to users on the
user behavior to see if there are              project was not solely based on the                              website in the proper context during                                   Phase V—Analytics competitor
opportunities for improvement. We              analytics by any means, but this data                            the information-gathering steps of                                     This is where analytics are embraced
introduce analysis to the marketers            was a contributing factor towards the                            their journeys.                                                        and utilized throughout the
and the creative teams to discuss              objective success of the redesigned                                                                                                     organization. Once an organization
opportunities found in the data.               websites.                                                                                                                               reaches this phase, key executives

                                               1
                                                   Forrester. “organizing For site optimization,” august 2012   1
                                                                                                                    Forrester. “organizing For site optimization,” august 2012


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                                          invite analytics to the table beyond
                                          marketing initiatives. This maturity
                                          level means that case studies and
Take this quiz:                           ROI stories are shared outside of the
                                          marketing organization. Very few
Ask yourself the following questions.     organizations are truly at this level.
If the answer is unclear, you may be
further behind in data-driven user ex-    conclusion
periences than you thought:               The five phases of the Analytics
                                          Maturity Model may sound
• What is each group’s goal?              overwhelming. Accepting the power
                                          of analytics and leveraging the model
• Where do these goals overlap?           requires organizational support,
                                          executive visibility and commitment
• Are you setting objectives and          across all teams. But ultimately, this
  key performance measures that           approach allows us to understand
  extend beyond the original ask?         consumers across channels so that
                                          we can better shape and optimize
• Do you understand how your online       their experiences throughout
  media is driving sales?                 their journeys with tactics such as
                                          anticipating demand or creating
• Do you understand how your paid         personalized experiences. It will
  search and natural search are           help change the way we market to
  working together?                       consumers across the experience,
                                          setting the stage for breakthrough
• Do you understand how your local        performance, as well as improved
  store event is driving an increase in   ROI and an improved consumer
  your social media buzz?                 experience. So who is going to be the
                                          champion driving this change within
• Do you know how all of your             your organization?
  channels are working together
  to impact the bottom line?




                                                                                         VAlUINg FANATICAl
                                                                                            ENgAgEMENT
                                                                                           Written by Scott Petry, Vice President, Technology, Atlanta



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The fan experience is changing.                explaining the rules of the game and                                                            centralized Experiences
                                                                                                                Seed the places                                                              Socially enabled
no longer is it sufficient to focus on         advocating for the sport or team in                                                                   Microsite(s), Social
                                                                                                               where our fans play                Aggregation & Enablement                  activities and tools
discrete in-venue, broadcast and               social media. And, most importantly
                                                                                                                                                  Extend event to local and
digital experiences, with separate             to the industry, the engaged fan                                                                      out of market fans
revenue streams in each channel.               spends time and money consuming
Disrupted by the connectedness                 content and experiences by buying                                                                Onsite                   Onsite
of fans, sports franchises from                tickets and filling seats in-venue,                                                           experiences              experiences
nAscAr to the Football league (uK)             driving TV ratings and broadcast                                                              3-hours pre              3-hours post
                                                                                                                       PrE-Event                                                        POsT-Event
are taking a hard look at how they             license revenue and generating ad                                   Online activation and                     Event                    Online activation and
                                                                                                                 engagement prior to event                                           engagement post event
engage fans, and how they value that           impressions across every
                                                                                          socially Enabled                                                                                                         socially Enabled
engagement.                                    advertising medium.                        Activities & Tools                                                                                                       Activities & Tools

To respond, these organizations                The experience of the fan has become        Connect with the passionate,                                                                                      Reconnect with fans, enable
                                                                                           engage the “regulars,” seed                                                                                     sharing, extend communication,
are rebuilding their engagement                continuous. Throughout the year,               excitement and buzz                                     Beyond the venue                                              grow fan base
model with digital at the core as a            fans show support for their team or
way to remain connected with fans              their favorite athlete. The fan wants                                                            Distributed Experiences
                                                                                                                 Seed the places                    Social Network, Mobile,                       Seed the places
continuously, and allow fans to                information throughout the offseason                             where our fans play                                                              where our fans play
                                                                                                                                                      Geo-Social, Media
engage more deeply.                            leading up to the next season—about
                                               trades and changes, new rules and
It all starts with the fans. Fans              news and points of view. The fan
by definition are fanatical. They              wants full coverage during each week                                                          The Fan Engagement lifecycle
wear jerseys, paint their faces, buy           of the season—the build up to the
equipment, watch every game and                next event, the event itself from every
                                                                                         sports revenue Models
brag about their team when they win.           perspective and the recap and replay                                                                                    The Value of a Fan
                                                                                         The sports industry has to evolve
Fans have made sports into a $120              of the event. They also want the mid-
                                                                                         to engage this connected fan to
billion industry around the world. Yet         week stories about the preparation                                                                                                                                      Attributable Value of
                                                                                         deliver experiences when and where
the opportunity is even greater for            for the next event and information                                                                                                                                      Attracting New Fans
                                                                                         the fan is ready to engage. Today’s
sports, teams and athletes who can             about the personal lives of their                                                                                                                                       Broadcast Ad Revenue
                                                                                         sports revenue models rely heavily
connect with fans in deeper, more              favorite players. The fan wants a                                                                                                                                       Subscription Content
                                                                                         on advertising, sponsorships and
engaging experiences.                          breakdown of the season at the end—                                                                                                                                     Revenue
                                                                                         broadcast licensing rights. The next
                                               analysis, human-interest stories and                                                                                                                                    Admissions Revenue
                                                                                         biggest revenue source is from direct
The Engaged Fan                                coaching changes. And then the cycle                                                                                                                                    Fantasy &
                                                                                         attendance at events through ticket
The engaged fan is not just a fan.             starts all over again.                                                                                                                                                  Second Screen
                                                                                         sales, concessions and merchandise.                                                                                           Revenue
The engaged fan watches broadcasts,
                                                                                         A third, and significant, source
goes to events, buys better                    During an event, the fan might
                                                                                         of revenue is advertising and                                                                                                 Digital Ad
seats, subscribes to content and               be engaged while in-venue, while                                                                                                                                        Revenue
                                                                                         sponsorships in-venue and on digital
participates in special promotions.            watching the broadcast on TV or while
                                                                                         properties such as websites.
The engaged fan shows off that he              out and about on a mobile device
or she is a fan by wearing branded             or tablet. The fan may be engaged         The most engaging experiences are                         Non-Fan                    Casual Fan              Avid Fan     Time
merchandise, bragging about a                  socially with other fans at an event or   often in-venue, but they reach only a
team and emulating favorite stars              at a party or on Twitter or Facebook.     small percentage of fans. Broadcast
by using sponsors’ products. The               The fan both consumes content and         reaches more fans, but doesn’t
engaged fan teaches other people               creates content. There is no moment       engage them on the same level as live
to be a fan by inviting them to watch          when an avid fan is not engaged.          experiences, and tends to blanket the
the broadcast, taking them to events,                                                    audience with generic advertising.




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                                        understanding Fans                             help us truly understand our fans. A      consider where and how they are                We know from research that creating
                                        We’ve found that the best                      North American motorsports client is      engaging. If a fan is researching              fan engagement, and making
                                        opportunity to balance engagement              building a fan intelligence database in   tickets or parking information, they           fans avid, involves certain specific
                                        and monetization is actually in                their platform to help integrate data     may be planning to go to an event.             behaviors. Attendance at an event
                                                                                                                                 We may be able to identify if they are         has a significant influence, as does
Three categories of Fans                digital channels, where the fan                from many sources with digital fan
                                        can be immersed in an interactive              behavior. The database will be used       already at an event, and even if they          selection of a favorite team or athlete.
                                        experience. Advertising can be                 to segment fans and drive marketing       are hungry or looking for a meeting            With that in mind, the experiences
                                        targeted to the interests of the               and advertising rules.                    point. Or they may want to buy a               we create need to emulate the best
                                        fan, and the channel is always                                                           souvenir. We may be able to identify           aspects of in-venue experiences for
                                        on, creating an opportunity for                The more we understand the fan,           if they are watching the event on              the fan, and they also need to drive
                                        continuous engagement.                         the better we can engage them. In         TV and get them to participate on a            attendance and affinity to a team or
                                                                                       addition to understanding whether a       second screen. They may be blogging            athlete, or a “favorite.”
                                        The first step to engaging fans is             fan is avid or casual, we also need to    or tweeting, or just listening. They
                                        to understand them. Fans of the                learn whether they live near a venue,     could be tracking their fantasy team.          rule number 4: Encourage the fan
                                        largest sports brands cut across most          whether they go to live events and        We also need to determine what type            to attend events, not only through
                                        demographic segments: gender,                  whether they have a favorite team or      of device they are using—whether               advertising tickets, but also through
                                        ethnicity, age, socio-economic status,         athlete. In their digital behaviors, we   phone, tablet, PC or other.                    their sense of nostalgia and their
                                        proximity to major metropolitan areas          need to figure out if they are more                                                      desire to experience the sport at
                                        and others.                                    interested in live content, news,         rule number 3: Engage the fan where            “game speed.”
We think about fans in                                                                                                           the fan plays, and make sure the
                                                                                       blogs, technical content or video
three categories:                                                                                                                experiences align to the fan’s needs.          Let fans feel the competition at every
                                        Best Practices for                             replays, and whether they are willing
                                        cross-channel Engagement                       to produce content.                                                                      point of engagement. Encourage
1. Avid fans love the sport outright.                                                                                            In one solution, for instance, we              them to love one team or player. The
                                        Observing fans is key to understanding
They want detailed statistics and                                                                                                designed a social smack talk                   energy around favorites drives deeper
                                        how different fans want to engage.             rule number 2: Create personalized
technical information about teams,                                                                                               second-screen application for a                engagement and long-term love for
                                        We need to figure out when and                 experiences for fans.
athletes and events.                                                                                                             sports entertainment client to allow           the sport.
                                        where they are engaging, and what
                                        they do. We need to understand what            Personalized experiences built on         fans to support their favorite athlete
2. casual fans enjoy the sport but                                                                                               during events. The ability to support          For example, allow fans to declare
                                        content they are consuming and what            what we have learned about fan
only engage when it’s convenient.                                                                                                athletes and engage in a social                and share their passion points around
                                        experiences they are engaging in. And          behavior need to be incorporated into
They need educational content                                                                                                    conversation about them drives                 one team, and their dislike for others.
                                        we need to understand what content             the engagement strategy. The same
and community support to build                                                                                                   deeper engagement with the sport.              A visit to any digital experience
                                        they create. We need to figure out             motorsports client will offer more
their knowledge and help them                                                                                                                                                   should provide an experience that is
                                        which fans are avid and which are              detailed technical data to avid fans
understand the sport.                                                                                                            In another solution, we leveraged              designed to extend that “fanaticism”
                                        casual, and how their interests vary.          without making them click through
                                                                                       links, but on the same pages they will    Responsive Design (a technical                 through content and design.
3. non-fans don’t engage at all.                                                                                                 solution that allows the same
                                        rule number 1: Build a single,                 provide simplified information with
They need a reason, a personal                                                                                                   content to easily be delivered to              Once the fan is hooked, benefits
                                        cross-channel view of fan behavior.            helpful explanations for casual fans.
connection to the sport, to engage                                                                                               different devices) to support multiple         include more increased fan
                                                                                       In the same way, if they can identify
in the first place.                                                                                                              channels with the primary digital              activations of sponsorships, and
                                        Leverage research and expertise in the         the fan’s favorite athlete, they will
                                        sport to build a deep understanding            offer more content and information        experience, but also offered a second          improved targeting of advertising
                                        of relevant behavioral segments, and           related to that athlete. They will also   screen and social TV application to            impressions. Ultimately, a much
                                        establish the critical components of           leverage these attributes in the on-      enhance broadcast viewing and drive            fuller understanding of each
                                        fan behavior. However, we also need            site advertising the fans see as they     appointment viewing.                           segment—regardless of the channel
                                        to build a measurement framework               engage in the experience, creating a                                                     they prefer to engage with—is
                                        in our digital experiences to observe          more relevant, tailored experience.                                                      revealed.
                                        and track fan behavior. This data will         To truly engage fans, we also must




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        rule number 5: Leverage fan                         As the distribution model in
        intelligence data to highly target                  broadcast is disrupted, sports
        on-site advertising and sponsorships.               management teams will need to be



                                                                                                          MUlTI-ChANNEl:
                                                            able to distribute content digitally,
        By using fan data to target advertising             in addition to working with multiple
        and sponsorships, it’s possible                     broadcast partners—both traditional
        to drive the highest value for                      and non-traditional. Monetization
        impressions, rather than blanketing
        the experience with less targeted
        billboard advertising that reduces
                                                            of sports content is changing, and
                                                            it seems clear that an owned or
                                                            licensed digital platform may have a
                                                                                                         aPPRoaChes anD IMPlICatIons
        fan engagement. For example, a                      role to play.
        European sports league client is                                                                 Written by Uwe Tueben, Head of Digital Commerce Continental Europe, Dusseldorf
        leveraging an advertising engine                    Fans are amazing consumers.
        designed specifically to monetize                   Their passion can be amplified and
        sponsorships and content in a way                   broadcasted through digital channels,
        that enhances fan engagement by                     stretching fan engagement far
        delivering highly targeted advertising              beyond the venue and the broadcast.
        content in a visually appealing way.                Reaching the fan throughout the
                                                            lifecycle of the sport—before, during
        conclusion                                          and after the event, and across
        Digital fan engagement represents                   multiple stages of “fandom”—is an
        the early stages of a massive shift in              enormous opportunity. Improving
        content ownership, distribution and                 fan engagement will deliver deeper
        consumption—perhaps the biggest in                  engagement and also dramatically
        50 years.                                           increase the opportunity to derive
                                                            revenue from the same.




                                Viewing Following Playing learning Advocating
                      Web

                    social

                   Mobile

          second screen

               Broadcast

                 in-Venue


As the customer journeys through the viewing, following, playing, learning and advocating stages, each
channel should be leveraged to engage, educate and enrich the experience and their love of the brand.




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What defines success in multi-                    For some, such as established mail-                with high management attention and                              from 0 to 1,000. In terms of good
channel retailing and how can it be               order companies, this has been a logical           significant marketing spend. Vertical                           customer experience, there is clearly
measured?                                         and natural step as they shifted their             retailers like IKEA and H&M are still                           a lot of potential left to be addressed.
                                                  business from catalog, postcard and                doing well, while the brick and mortar
Even for a very mature multi-channel              call center to the Internet. For others,           generalists tend to struggle to attract
retailer, this question is difficult to           the shift was less clear.                          online visitors.
answer. Yet for much of Europe, the
                                                                                                     conversion: Where the rubber
                                                                                                                                                                     We found that there was a direct
commitment to digital channels—                   For example, traditional brick and
much less multi-channel—remains a                 mortar retailers have made major                   hits the road                                                   correlation between customer
work in progress.                                 online expansion happen only
                                                  recently. And our list of the 25 retail
                                                                                                     One of the most significant findings
                                                                                                     from this survey is an accurate,
                                                                                                                                                                     experience and sales probability.
In order to assess the importance                 stores covers almost every category                survey-based estimate of the sales
of an effective online customer                   from consumer electronics to apparel               probability for major retailers. Most
experience, SapientNitro partnered                to furniture to health and beauty.                 retailers keep conversion rates a
with OC&C Strategy Consultants                                                                       secret, and even publications, such                             Advocacy: True fans are hard to find
to take a closer look at the leading              We believe these retail businesses                 as Internet Retailer, make their own                            Two retailers that focus on customer
multi-channel retailers in Germany                and brands have to be leaders in                   estimates. We wanted to do better                               satisfaction and emotional shopping,
and evaluate their multi-channel                  four areas to be true multi-channel                than that. Through our consumer                                 Ernsting’s Family and Douglas, lead
performance.                                      forerunners:                                       survey, we calculated the “sales                                the pack in this category. The main
                                                                                                     probability” for all our retailers’                             drivers for customers to recommend
First, we found that there was a                  • The attraction of visitors                       digital shopping destinations.                                  a retailer’s online shopping site to
lot of untapped potential amid                    • The conversion of visitors                                                                                       friends are data security and stock
German multi-channel retailers.                     into customers                                   It was also interesting to see that                             availability. It surprised us to see that
In our customer experience score,                 • The ability to convince customers                OTTO, the retailer that scored best in                          the ability to return goods that have
the highest brand—OTTO—scored                       to recommend the shop to others                  terms of customer experience, only                              been purchased online or in a store
just 640 points out of 1,000. We                  • The ability to motivate customers                achieved a score of 640 on a scale                              was the least important factor.
believe this finding is true across                 to buy on different channels
much of Europe, as older retailers                                                                                                 The Top 25 german Multi-channel retailers
grapple with the changing business                In other words, they not only have to                                                   BAsic                    ADVAncED                                        innOVATiOn         POTEnTiAl
landscape.                                        connect with their customers, but they                                      65
                                                                                                                                                                                                 Weltbild
                                                  have to inspire customers to connect                                        60
                                                                                                                                                                                                                       Bonprix
Second, we found that there was a                 in multiple ways, and, where possible,                                      55                                                                                            OTTO




                                                                                                      sales probability (%)
direct correlation between customer               encourage social sharing as well.                                                                                      Neckermann          Conrad Electronic
                                                                                                                              50
                                                                                                                                                         QVC
experience and clickthough or sales                                                                                           45            Schlecker                                       Thalia
probability. We established that there            Attraction: A home run for                                                  40          H&M
                                                                                                                                                   Ernsting’s Family Douglas
were direct financial benefits of                 mail-order giants                                                           35     C&A
                                                                                                                                                                                              Rossmann
higher quality experiences.1                      Based on our survey, we found that                                          30        SportScheck                       s.Oliver
                                                                                                                                                            Gortz Zara
                                                  mail-order giants—a group that                                              25
                                                                                                                                               Strauss
A challenging Time                                included OTTO, Neckermann and                                                     ProMarkt Innovation             Hagebau
                                                                                                                              20                       Karstadt          Euronics
In our search, we noted that online               Conrad—scored well at attracting                                            15                              GALERIA           IKEA
stores represented the largest piece of           and driving visitors to their online                                                                        Kaufhof
                                                                                                                              10                                         OBI
the pie for most of the leading 25 multi-         and offline properties. We believe                                           5
channel retailers in Germany. Yet these           that this is a natural consequence
                                                                                                                               0
companies varied broadly in their use of          of their business shift from offline
multi-channel marketing.                          to online, and goes hand-in-hand                                                                                      Higher customer experience scores correlate with a higher conversion/sales
                                                                                                                                                                        probability, yet even the strongest retailers have room for improvement.


                                                  1
                                                      We evaluated experience across 152 criteria.

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                        Multi-channel: Many roads can lead               evaluated retailers, at least 50% of    (similar to Home Depot). Thalia is a           This profile received high scores in
                        to a purchase                                    surveyed online shoppers said they      fairly traditional bookstore. All have         attraction, conversion and multi-
                        An average of 87% of all online                  also shop offline at that respective    an online shop, but one that is not            channel, yet advocacy scores—
                        customers also use other sales                   retailer.                               sufficiently supported.                        based on their lack of differentiated
                        channels operated by the evaluated                                                       Few of these organizations have                product—tend to be lower. They need
                        retailers. But we do not think this is           Wrapping up: Four Areas, One            a robust multi-channel strategy.               to strengthen their relationships on
                        necessarily good news: We believe                Profile                                 For example, GALERIA Kaufhof                   a social level, perhaps by becoming
                        that such high percentages of multi-             Finally, we wanted to compare the 25    launched a Hybris implementation               more active on social platforms,
                        channel customers can be indicative              leading multi-channel retailers on      of their online store, but chose not           to connect more deeply with the
                        of the retailer’s lacking ability to             the basis of the four success areas:    to support click-and-reserve to                consumers. There is nothing special
                        attract new, pure online customers.              attraction, conversion, advocacy and    pick up the ordered goods in the               about the offering—their products
                        Such online shops serve more as an               multi-channel capabilities. We tried    store. These organizations need to             tend to be commodities, and not
                        additional offer to existing customers.          to find a comprehensive formula         strategically determine the role of            particularly distinctive.
                        With online’s share of the wallet                to compute an overall score and         their digital channels, and then act
                                                                         ranking, but quickly realized that      on the strategy.                               These retailers satisfy their
                                                                         such a one-dimensional comparison                                                      customers through a broad
                                                                         would not have been appropriate         Low scores in attraction, conversion           assortment of merchandise and
Multi-channel opponents claim that each dollar                           given the very diverse nature of the    and advocacy characterize this                 fair prices, but must find a way
(or euro) can only be spent once, regardless of                          competitive landscape.                  profile. Only the multi-channel score
                                                                                                                 is average, leading to the conclusion
                                                                                                                                                                to strengthen the emotional link
                                                                                                                                                                between themselves and their
sales channel. But our evaluation has shown                              We found that each organization         that these retailers mainly address            customers to improve customer
that for many multi-channel retailers, frequent                          could be grouped into one of four
                                                                         major strategic “profiles” (see page
                                                                                                                 their existing customer base with
                                                                                                                 their online shop. We believe that
                                                                                                                                                                loyalty. Two of the evaluated retailers
                                                                                                                                                                didn’t address this challenge
online shoppers often also shop offline.                                 147), each with a set of strengths      these retailers have yet to find out           fast enough: Schlecker went out
                                                                         and weaknesses that represent their     how to adapt their business model to           of business in June 2012 and
                                                                         strategic position in the               the digital revolution.                        Neckermann filed for bankruptcy.
                                                                         multi-channel marketplace.
                        increasing in many categories, we                                                        implication: The retailers have a              implication: Low advocacy companies
                        believe that it is not enough for multi-         Each profile has four success areas.    limited extension of the traditional           with an unfocused product selection
                        channel retailers to defend their market         On each success area axis, we mark      retail model online; the results are           will struggle in a multi-channel
                        shares against Internet pure plays.              the retailer’s relative score in the    lower customer experience scores               environment. The basic weaknesses
                        Established retailers should not be              respective area. The four coordinates   and poor conversion rates.                     lie in the recommendation and
                        satisfied if their online shops are just         enclose a figure—the retailer’s                                                        loyalty aspects. The opportunity for
                        there to serve their customer base.              profile. Each leading multi-channel     Profile 2: Demand fulfillers. In               ecommerce is in maximizing loyalty
                                                                         retailer can be described with one      this profile, relatively low-price             and product recommendations for
                        Channel cannibalization is another               of these profiles:                      fashion retailers such as Bonprix              their customers.
                        interesting phenomenon. Multi-                                                           and OTTO have traditionally fought
                        channel opponents claim that each                Profile 1: Basic multi-channel          it out. They target consumers who              Profile 3: Fan clubs. Similar to
                        dollar (or euro) can only be spent               retailers. This profile includes        desire something fashionable but not           “passion brands,” these profiles tend
                        once, regardless of sales channel.               traditional brick and mortar            expensive. Some are online only, such          to deliver a differentiated shopping
                        But our evaluation has shown that                department stores, which have           as OTTO, while others are traditional          and customer experience, and are
                        for many multi-channel retailers,                typically made only small moves         mail-order giants.                             challenged in bringing that shopping
                        frequent online shoppers often also              into the multi-channel space. OBI                                                      experience online—but they have to
                        shop offline: For 11 out of the 25               and Hagebau are DIY hardware                                                           do even more. They need to reach




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                                                                                           not only people who like the brick              Consistent high scores in attraction,             Final customer Experience scores      scoring Methodology:
       companies      “BASIC MULTI-CHANNEL RETAILERS”
                                                                                           and mortar shopping experience,                 conversion and advocacy, but below        700                                           The model evaluated the customer
               c&A                                 ATTRACTION
                                                                                           but also people who don’t currently                                                                                                     experience in eight main categories:
                                                                                                                                           average scores in multi-channel,
          Euronics
 gAlEriA Kaufhof                                                                           shop online. We saw examples of                 characterize this profile. We don’t       600
                       MULTICHANNEL-USAGE



                                                                                                                                                                                                                                                 navigation




                                                                     SALES PROBABILITY
              gortz                                                                        firms who struggled to bring their              interpret the comparatively low multi-                                                    20%
          hagebau
                                                                                                                                                                                     500                                                         Main navigation
          Karstadt                                                                         experiences online. For example,                channel scores as a sign of weakness                                                                  Filters and sorting
                OBi                                                                        QVC has struggled to transport their            because we believe that these             400                                                         Search
         ProMarkt                                                                          emotions from TV shopping into the              retailers have learned to compete                                                                     Site map
           s.Oliver
                                                                                                                                                                                     300
                                                                                                                                                                                                                                                 Specific functions
     sportscheck                                                                           online world.                                   with the digital pure players in their
strauss innovation
                                                                                                                                                                                     200
                                                                                                                                           respective categories. Still, retailers                                                               Products
             Thalia                             RECOMMENDATION
               Zara                                                                        Top advocacy scores but only average            with this profile need to find ways to    100                                             20%         Text
                                               “DEMAND FULFILLERS”                         scores in attraction, conversion and            motivate their customers to better                                                                    Product details
                                                                                                                                                                                       0
                                                   ATTRACTION                              multi-channel categorize this profile.          leverage the different existing sales                                                                 Pictures and images
                                                                                                                                                                                                                                                 Cross-selling




                                                                                                                                                                                                      Bonprix
                                                                                                                                                                                                          c&A
                                                                                                                                                                                            conrad Electronic
                                                                                                                                                                                                     Douglas
                                                                                                                                                                                            Ernsting’s Family
                                                                                                                                                                                                     Euronics
                                                                                                                                                                                                         gortz
                                                                                                                                                                                                         h&M
                                                                                                                                                                                                     hagebau
                                                                                                                                                                                                         iKEA
                                                                                                                                                                                                     Karstadt
                                                                                                                                                                                            gAlEriA Kaufhof
                                                                                                                                                                                                neckermann
                                                                                                                                                                                                           OBi
                                                                                                                                                                                                         OTTO
                                                                                                                                                                                                    ProMarkt
                                                                                                                                                                                                          QVc
                                                                                                                                                                                                   rossmann
                                                                                                                                                                                                      s.Oliver
                                                                                                                                                                                                    schlecker
                                                                                                                                                                                                sportscheck
                                                                                                                                                                                           strauss innovation
                                                                                                                                                                                                        Thalia
                                                                                                                                                                                                     Weltbild
                                                                                                                                                                                                          Zara
                                                                                           The customer base is devoted to this            channels.
                        MULTICHANNEL-USAGE




         Bonprix                                                                           respective retailer, though they’re
                                                                      SALES PROBABILITY




           OTTO                                                                                                                                                                                                                                  Ordering
     neckermann                                                                            often restricted in size. We believe            implication: Outperformed by their                                                        15%         Consumer basket
       schlecker                                                                           these online shops are often used               attraction, conversion and advocacy                                                                   Checkout
                                                                                           as digital display windows for the              scores, these organizations need                                                                      Shipment
                                                                                           brick and mortar channel. It’s not              to invest more in multi-channel to                                                                    Permissions
                                                                                                                                                                                                                                                 Payments
                                                                                           surprising to find brands like H&M              complete their offer to customers.
                                                RECOMMENDATION                             and IKEA in this category.                                                                                                                            Merchandising
                                                  “FAN CLUBS”                                                                              conclusion                                                                                15%         and campaigns
                                                                                           implication: High-loyalty retailers             We evaluated 25 leading German            Top-scoring, high-performing                                Home page
                                                   ATTRACTION
                                                                                           need to find ways to extend their               multi-channel retailers and evaluated     organizations such as OTTO and                              Themes
                                                                                           customer base online, among other               their performance across four                                                                         Sales and specials
                          MULTICHANNEL-USAGE




Ernsting’s Family                                                                                                                                                                    Bonprix operate across all four
                                                                      SALES PROBABILITY




                                                                                                                                                                                                                                                 Newsletters
         Douglas                                                                           things, through superior customer               categories: attraction, conversion,       categories: attraction, conversion,                         Social commerce
            h&M                                                                            experience.                                     advocacy and multi-channel. We also       advocacy and multi-channel, and                             Miscellaneous marketing
            iKEA
             QVc                                                                                                                           evaluated their customer experience       offer an interesting path for slower-
       rossmann                                                                            Profile 4: Digital champions.                   score on a scale from 0 to 1,000 and      moving retailers in other European or                       Personalization
                                                                                           These firms have made considerable              mapped it to our own estimates of         international markets.                          10%         Closed loop
                                                                                           investments in digital and online                                                                                                                     Activities
                                                RECOMMENDATION                                                                             conversion rates.
                                                                                                                                                                                                                                                 Loyalty program
                                                                                           elements. Attraction, conversion rate                                                     Methodology: “Customer experience” is
                                               “DIGITAL CHAMPIONS”
                                                                                           and advocacy are strong, and the only           We also grouped these retailers into      the sum of all experiences a consumer                       contact
                                                   ATTRACTION                              aspect that is not digital is multi-            four main groups, based on affinity       gathers when he or she interacts with           10%         Country information
                                                                                           channel usage. But they struggle—               and in order to understand what           a multi-channel retailer. Among other                       Contact
                       MULTICHANNEL-USAGE




                                                                                           relative to the other dimensions—in             made each type of retailer effective.                                                                 FAQ
                                                                       SALES PROBABILITY




                                                                                                                                                                                     things, we included the completeness of
conrad Electronic
         Weltbild
                                                                                           the linking of other channels to                                                          payment and shipping options as well as                     layout and Design
                                                                                           digital. These companies are                    What we found was that higher             the availability of customer support over        5%         Structure
                                                                                           learning to compete with pure-play              quality online customer experiences       phone or chat in our evaluation.                            Design
                                                                                           electronic retailers. For example,              correlate to higher conversion rates.                                                                 Creative expression
                                                                                           Conrad has competed effectively                 We also identified four distinct                                                                      Emotion
                                                RECOMMENDATION
                                                                                           with online pure-play electronic                profiles, which reflect different
                                                                                                                                                                                                                                                 Technical
            Source: OC&C/SapientNitro Online-Survey;                                       retailers, but struggles in integrating         strategic modes of retailers.                                                              5%         Screen layout
            OC&C/SapientNitro-Analysis                                                     online and offline profiles.                                                                                                                          Browser support
                                                                                                                                                                                                                                                 Load and wait time




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                                                                          compared to a few years ago, a             marketing. These changes present
                                                                          cMO’s world doesn’t just look              two broad challenges to CMOs:
                                                                          different—it’s barely recognisable.
                                                                          commerce and communications                1. complexity. With a growing number
                                                                          are coming together, data is driving       of channels, consumer behaviour is
                                                                          the multi-channel brand experience         more fragmented. And processes,
                                                                          and the opportunity for connected          organisational structures and required
                                                                          experiences is growing. Marketers          skill sets are more complicated.
                                                                          must become more sophisticated
                                                                          to be a driving force behind the           2. rate of change. What is right today
                                                                          operations of a business and the           is wrong tomorrow, making it difficult
                                                                          products it creates. The cMO is in         to know which investment decisions
                                                                          a better position than ever to take        are future proof and which will be
                                                                          a more central role in driving a           redundant next year.
                                                                          company’s revenue and success.
                                                                                                                     Underpinning this are some
                                                                          Marketing has changed                      fundamental shifts in the focus of
                                                                          The once familiar linear path from         effective marketing. Communications
                                                                          awareness to purchase to loyalty is a      are changing from broadcast of
                                                                          thing of the past. It has evolved into a   message to an always-on, two-
                                                                          multiple touchpoint journey. Potential     way approach. But even more
                                                                          consumers can enter this ecosystem         significant is the shift from creating
                                                                          at any point and take any route—from       communications to creating
                                                                          selecting a product in a store and then    holistic experiences—a landscape
                                                                          using a mobile device to price-check       of experiences that encompass
                                                                          and buy it, to learning about a product    communications, content, services
                                                                          and immediately purchasing it after        and products.
                                                                          chatting with friends on Facebook.
                                                                                                                     There’s a great comparison between
                                                                          It’s difficult to know how to create       the evolution of marketing and the
                                                                          and manage the huge range of               entertainment business. Marketing
                                                                          experiences required for these             used to be like a Hollywood movie              “ The changing marketing
                                                                          multiple consumer touchpoints. It’s        production. It started with a pitch and          lifecycle: what used to be
                                                                          also difficult to isolate and measure      ended in an awards show, and this cycle          a monthly cycle is now a
                                                                          the effect of an individual piece of       was repeated every 12 to 18 months.              daily one.”




               ThE CMO TOOlkIT:
              wHat EvEry markEtEr
                 sHould know
                Written by Gary Shannon, Group Account Director, London
                       & Omaid Hiwaizi, Planning Director, London
                                                                                   TREND
                                                                                     3                                                                                                                                                CONTINUOUs ExpERIENCEs

                                               Today, it’s more like making a TV talk          Paddle Pop: Engagement                     visited a retail store and 41% visited           massive effect on processes, skills
                                               show, starting with a show creation             through entertainment                      an ecommerce website due to                      requirement, organisational shape and
                                               and ending in ratings and viewer                Ice cream is an impulse product that       Sneakerpedia, of which 39% bought from           budget allocation. More marketers
                                               mail—a process that is repeated daily.          competes with all snack foods, so          Foot Locker.                                     are trying to use marketing budgets
                                                                                               gaining loyalty is difficult. Paddle Pop                                                    to fund innovation. Unfortunately, the
                                               ThE hOly TriniTy OF MArKETing                   has developed a new entertainment                                                           annual and quarterly marketing budget
                                                                                               franchise built around the brand                                                            planning cycle is often out of sync with
                                               So how does this change the focus               mascot: Max, the Paddle Pop Lion.                                                           the development cycle of products and
                                               of CMOs? In the past, CMOs had a                At the core of the entertainment                                                            operations, and ROI often has to be
                                               fairly singular focus; they knew what           package is an eight-episode film,                                                           measured over a much longer period
                                               marketing would look like from one              an online gaming portal, a TV show,                                                         than marketing budgets can justify.
                                               year to the next.                               a movie road show and traditional
                                                                                               media support.                                                                              Vail resorts: Digitising the mountains
                                               Today, we are seeing a requirement                                                                                                          The experience at the luxury ski
                                               for CMOs to maintain multiple                   On Cartoon Network India, the Max                                                           destination Vail Resorts is even
        communications,                        focuses. There are three keys silos             movie received higher ratings than                                                          more exciting through the use of
           Experience                          to consider separately and optimise             Harry Potter and an increase of                                                             RF-enabled technology to track runs,
         and commerce                                                                                                                                                                      reward points and produce league
                                               together. Let’s take a look at those            24.4% value growth in the Indian
                                               silos and some businesses and                   market. Across Asian markets,              Products and services                            tables. On-mountain photographers
                                               brands that are doing it right.                 there was an increase of 14% in the        Consumers have more and more                     capture special moments, and add
                                                                                               “Brand Consumed Most Often”                choice over what they see, hear,                 them to visitors’ digital profiles, so
Products and                  Marketing
                                               communications,                                 rating category.                           read and experience. Brands have                 they can re-live their day through
  services                    Technology
                                               Experience and commerce                                                                    to become useful or entertaining (or             photos and stats, and share them with
                                               Brands need to create consistency                                                          both) and deliver real value to be an            friends. This is as much a part of the
                                               of message and experience across                                                           important part of anyone’s life. This is         service as building a new ski lift.
                                               every touchpoint. Instead of creating                                                      especially important if consumers are
 CMos must maintain multiple areas of focus,   a story, marketers must create a                                                           expected to share their personal data
 and optimise them together.                                                                                                              in a more meaningful way than just
                                               “storyscape” that allows people to
                                               join the conversation at any point and                                                     entering a prize draw. And this is the
                                               facilitates their engagement in any                                                        only way we can create storyscapes.
                                               direction they choose. When data is
                                               endless and portable across channels                                                       Brands that follow this principle to its
                                               and platforms, the experiences and                                                         natural conclusion make marketing
                                               actions taken at one touchpoint will            sneakerpedia: collision of                 that goes beyond content and
                                               affect and change the experience at the         community and commerce                     functionality and becomes part of the
                                               next. Not only will the brand recognise         Sneakerpedia, a global community           core product. In effect, we are going
                                               a consumer, it will acknowledge his             of “Sneakerheads” powered by Foot          back to basic principles where the
                                               part in changing that story.                    Locker, provides an online meeting         marketer is creating products that sell
                                                                                               place and drives offline connection.       themselves to engaged audiences. The
                                               Telling stories and creating connected          It enables passionate Sneakerheads         principles of product development and
                                               experiences in this way requires                to gain the social capital they thrive     design are now skills no marketer can            AutoTrader: searching the way people
                                               distinct skills to come together.               on, generate insights for Foot             do without.                                      think
                                               Storytelling, experience design,                Locker and drive consideration and                                                          We developed a playful yet effective
                                               commerce, data and technology                   retail sales: In the first year, 42%       Product development and marketing                method for searching for used cars
                                               need to work as one team.                       of the Sneakerpedia community              need to work in parallel. This has a             whilst on the go, a way of “searching




                                                                                         151                                                                                         152
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                                       3                                                                                                                                          CONTINUOUs ExpERIENCEs

for a car the way you think about                the business (not just marketing) and     Common principles that guide the
a car”—effectively giving potential              report on them accurately is what         vast majority of marketing platforms
customers the ability to buy a car               allows CMOs to speak the language         include, but are not limited to:
when they see one they like on the               of business.
street. The app leverages a phone’s                                                        • Common views of data and CRM
camera to capture an image of a car,             Whether a digital marketing                 across brands and territories
send this information to the DVLA                platform is licensed or bespoke,          • Consistent process and security
(Driver and Vehicle Licensing Agency),           different organisations have different      at scale
determine its make and model, then               requirements and the platform needs       • Creative and technical partners
process a search through Endeca for              to be configured accordingly.               to develop brand experiences
matching cars in AutoTrader.                                                               • Focus on customer experience
                                                 Examples of different brand               • Reduced cost and time to market            network of considerable scale and           An Organising idea Enables
                                                 scenarios that drive different platform     for each experience                        monetisation opportunity.                      convergent Thinking
                                                 set-ups are:                              • Reuse that saves time and money
                                                                                             and reduces technical risk                 chrysler: Multiple brands,
                                                 1. single identical global presence.      • Support of multiple experiences,           experiences and partners
                                                    Identical messages, actions and          brands, geographies, languages             Chrysler’s powerful platform houses                   communications,
                                                                                             and devices                                                                                         Experience
                                                    processes apply worldwide.                                                          multiple brands, experiences, regional
                                                                                                                                                                                                & commerce
                                                 2. globally identical presence                                                         variations, time-based promotions
                                                    with localised content. Identical      Football league interactive:                 and the experience across the dealer
                                                    messages, actions and processes        90 websites produced and                     network. It also drives Uconnect, the
                                                                                                                                                                                                  Organising
                                                    apply worldwide but local              governed from one platform                   in-car media experience.                                     idea
Marketing Technology                                differences such as currencies         One platform hosts the websites
There are a plethora of brand                       and stock lists are needed.            for 90 Football League clubs, all            This has enabled Chrysler to expand        Products &                       Process &
                                                                                           with unique content across three             rapidly into new international              services                       Technology
experiences that need to be delivered            3. Presence with common
across multiple channels and driven                 experience, common components          core templates. This includes pre-,          markets with high growth potential.
by data. This can’t be done at scale                and localised elements.                during- and post-match content,
and with any consistency without                    Consumers recognise the                second screen experiences during             how to Deliver in a converged World
                                                                                                                                                                                   an organising idea centers and defines three
a digital marketing platform that                   brand but it does different things                                                          Organising ideas—not big
                                                                                                                                                                                   key focus areas for CMos, and (below) connects
integrates with internal systems (e.g.,             in different places.                                                                        ideas—define the approach to
                                                                                                                                                                                   the corporate vision with the brand idea.
CRM, supply chain) and third parties             4. Presence with shared components,                                                            brand experiences, product
(e.g., social platforms, retailers).                different local experiences.                                                                development and technology.
At a basic level, these are things                  The same building blocks drive                                                              An effective organising idea
                                                                                                                                                bridges business vision and                        corporate
like infrastructure and security,                   different experiences.
                                                                                                                                                                                                     Vision
but also include analytics, content              5. single geography, single brand                                                              brand ideas.
management, asset management                        One that’s tailored to unique
and data management driving                         requirements of brand, audience                                                               The CMO is uniquely placed
multi-channel experience.                           and geography.                                                                                to deliver the organising
                                                                                                                                                                                                   Organising
                                                                                                                                                  idea and therefore has the                          idea
A digital marketing platform delivers                                                                                                             opportunity to drive real
multiple benefits to the business,                                                                                                                change at a business strategy
not least of which is an enhanced                                                          live games and other unique content.         level, not just marketing strategy.
ability to measure the effectiveness                                                       Aggregating the smaller pools of             Traditionally, a CEO and CFO have set                        Brand
                                                                                           traffic from multiple sites on a             the strategy that is then rolled                              idea
of marketing activity in real time. The
ability to set KPIs that are relevant to                                                   single platform has enabled an ad




                                           153                                                                                    154
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                                     3
out to marketing and IT through the            An effective CMO needs to do three
COO. The changes in the marketing              things to be successful in this
landscape allow the CMO to become              changing world:



                                                                                       RETAIl gOEs ROgUE:
part of the team setting corporate
strategy, but to do so requires much           1. Use organising ideas to align
more operational and technology                multi-channel brand experiences,
knowledge than has ever been


                                                                                       hoW DIGItal ConveRGenCe
                                               data strategy, organisational change
required before.                               and technology.




                                                                                          WIll RevItalIze the
ladbrokes: game On!                            2. View marketing as part of the
Looking at the drivers for gambling            company’s product—not just as
shows a key opportunity in the space           a way of talking about the products.

                                               3. And finally, learn to embrace
                                               operations and technology. Today’s
                                               CMO is just as responsible for them
                                                                                         In-stoRe eXPeRIenCe
                                               as for a television commercial or
                                                                                            Written by Charlie Sayers, Director, Atlanta
                                               print ad.
                                                                                             & Rob Milstead, Vice President, Atlanta
                                               With thanks to: Dan Barnicle, Scott
                                               Petry, Tony Terranova, Alyssa Altman,
                                               Anil Garapati, Jillian Moore




of excitement. The Game On! ad
campaign is the organising idea that
now drives their approach to retail,
communications and the betting
experiences across all platforms—
and the technology platform that
delivers live odds in real time.

conclusion
As we have shown, inspired CMOs in
innovative companies have embraced
the opportunities presented by the
convergence of commerce and
communications and data-driven,
multi-channel experiences. These
CMOs have taken a central role in
shaping not only the marketing of
their brands but also the strategy and
ultimate success of their businesses.




                                         155
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                                                               Before the big boom in online retail,         compare prices and head out to the        Yet despite the continuing success               Most successful ecommerce
                                                               there was a place around the corner           store to examine the product and          and growth of ecommerce,                         experiences enable shoppers to
                                                               we’d all visit to get the latest and          make their purchase.                      mCommerce and social shopping,                   gain greater control over acquiring a
                                                               greatest products we’d heard and                                                        the physical in-store retail experience          product. In contrast, shoppers expect
                                                               read about. We called it a store.             But as ecommerce technologies             continues to command a significant               an in-store experience that is more
                                                               Well, despite all the attention and           advanced and new capabilities to          amount of a shopper’s interactive                interactive and relational.
                                                               excitement around the meteoric                directly influence and control the        attention. In fact, Forrester predicts
                                                               and seemingly limitless rise of               shopping experience emerged, brick-       that brick-and-mortar stores will still          These shoppers are crossing store
                                                               ecommerce, stores are poised to               and-mortar stores saw their role and      command more than 90% of all retail              thresholds with a new and evolving
                                                               make a comeback in a huge, digitally          relevance shift from “the place to buy”   purchases by 2016.                               set of immersive technologies at their
                                                               convergent way.                               to “a stop along the purchase path.”
                                                                                                                                                       With an expected growth rate of
                                                                                                                                                       about 3% per year for the next four                2012 Retail Sales Distribution                     2016 Retail Sales Distribution
                                                               The connected consumer’s push for             The rise of the smartphone and
                                                                                                                                                       years, this means that in-store                                                                                (Projected)
                                                               seamlessly integrated omnichannel             ecommerce mobility further
                                                                                                                                                       sales will expand by more than $88
                                                               experiences is inspiring retailers to         compounded the challenge for
                                                                                                                                                       billion in the U.S. alone—significantly
                                                               go rogue by introducing new ways              retailers. They began to watch a
                                                               to extend aisles, create adaptive             new “see and search” approach to
                                                                                                                                                       outpacing the $13 billion ecommerce
                                                                                                                                                                                                                               7%                                                  9%
                                                                                                                                                       will generate.




                                                                                                                                                                                                             93                                                     91
                                                               environments and deliver augmented            shopping happen before their very
                                                               packaging experiences—all at the              aisles—where showrooming and              retailers Must Do More Than
                                                               point where digital and physical              test-and-buy-elsewhere became
                                                                                                                                                                                                                                      %                                                 %
                                                                                                                                                       use innovative Technology in
                                                               converge.                                     the norm.                                 Traditional Ways
                                                                                                                                                       Responding to the demand and
                                                               It wasn’t that long ago when                  shopping habits have shifted              growing success of ecommerce,
                                                               an ecommerce site simply                      Shoppers no longer have to physically     brick-and-mortar stores have begun
                                                               complemented a retailer’s physical            visit a store for product information,    fighting to regain relevance by adding                   Online                In-store                       Online             In-store
While not at the same pace,                                    store presence. Shoppers would                pricing or purchase. They can create      technology-enhanced touches to their                     $16 Billion           $210 Billion                   $29 Billion        $298 Billion
both online and in-store                                       browse at their leisure, manually             shopping lists on-the-fly, access         physical footprints. They are replacing
sales are growing.                                                                                           expert reviews and consumer reports       print signage with traditional displays,
                                                                                                                                                                                                                soURCe: Forrester Research online Retail Forecast, 2012 to 2016 (Us)
                                                                                                             from any location, generate custom        installing self-service checkout,
                                                                                                             price comparisons or snap a quick         incorporating in-aisle price and coupon
        retail sales growth from 2000 to 2010 (Base: 2000)
                                                                                                             product picture and share it with their   scanning and introducing touchscreen             disposal (and in their pockets). For
                                                                                                             social community for collaborative        way-finding from everything from                 them, there is no store. There is no
500%                                                                            Ecommerce
                                                                                                             evaluation and opinion.                   kiosks to store windows.                         online. There is no mobile. There is
                                                                                                                                                                                                        only that short distance between the
400%
                                                                                                             Today’s shopper has fully evolved         The same underlying expectations                 things they want and all the tools and
300%                                                                                                         into an empowered “omnichanneler”         around access, convenience and                   technologies they use every day to
                                                                                                             with the ability to access and combine    control remain the same whether                  connect to them—with the blended
200%                                                                                                         a wide variety of information—            online or off. But the purpose and               expectation for a greater level of
                                                                                Total retail                 from product-specific to socially         relevant methods to achieve that                 digitally enhanced immersion within
100%                                                                            Excluding                    influenced—through any device,            control are profoundly different.                the physical space.
                                                                                Ecommerce                    anywhere, any time of the day
 0%                                                                                                                                                    But what works online doesn’t carry
                                                                                                             or night.                                                                                  retail’s greatest Opportunity for
                                                                                                                                                       the same level of relevant value to the
                                                                                                                                                                                                        growth lies in connected retail
        2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011                                                                                    physical store where consumers expect
                                                                                                                                                                                                        Just as ecommerce spurred the
                                                                                                                                                       completely different experiences.
        source: Retail Indicators Branch, U.s. Census Bureau                                                                                                                                            evolution of a new type of shopping




                                                                                                       157                                                                                        158
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                                                                                   3                                                                                                                                         CONTINUOUs ExpERIENCEs

                                                                                      g TEchnO
                                                                           A   Blin               lO                                   2. Drive pricing and inventory              Opt-ins in-store, online and mobile can
                                                                        En                           g   y                             management consistency                      easily create redundant information.
                                                                                                                                       Being able to present a single face to      In order to move to a world where the
A connected retail                                                                                                                     the customer across your channels is        customer’s data can improve how
Experience Must Take                                                             environment                                           an important capability that has almost     we market, we’ll need accurate and
                                                                                                                                       become table-stakes in the mind of          complete data.
into Account Four                                                                                                                      the customer. She doesn’t think in
required Aspects:                                                                                                                      channels and it’s next to impossible to
                                                                                  In-store        associate
                                                                   product       experience                                            try and guess her ever-changing needs
• Environments that inspire, adapt,                                                                                                    and expectations. She uses multiple
  curate and evolve in real time                                                                                                       devices in multiple ways at home,
                                                                                     customer
                                                                                                                                       online and in-store and she needs
• Associates who are brand experts,                                                                                                    the same information in all of those
  equipped with mobile-based,                                                                                                          places. Ultimately, this is easier said
  collaborative tools and access to                                                                                                    than done, but it’s important to plan
                                                                         BE                             s
  consumer and inventory information                                          h AV                 hT
                                                                                     iOrAl insig                                       properly to drive towards enterprise-
                                                                                                                                       level views of your inventory as well
• Products that do more than simply                                                                                                    as consistent pricing regardless
  sit on a shelf, but feature           experience, in-store retail is poised to                                                       of channel.
                                                                                            tested, modified and retested—is a
  augmented packaging and digitally     undergo the same level of disruptive                strong one, but it’s very easy to end up
  enhanced merchandising that can       evolution—transforming itself into                                                             3. consolidate sources
                                                                                            with lots of fragmented ideas without
  be activated and viewed through       something so different it requires a                                                           for product information
                                                                                            the right infrastructure and business
  mobile devices                        new name: Connected Retail.                                                                    Typically retailers find themselves
                                                                                            processes to support the new way of
                                                                                            thinking about omnichannel.                in a situation where multiple points
• Customers who are given free reign    Connected Retail goes beyond                                                                   of entry for product data have arisen
  to connect to virtual and in-store    the introduction of cool in-store                                                              either through vendor systems and
                                                                                            Foundational investments in four
  data that can be mashed, customized   technologies. It involves creating                                                             spreadsheets or simply through              connected retail requires a shift in
                                                                                            core areas can make the difference
  and socially shared while still       fully integrated, digitally enhanced                                                           operating at the place of business          Both Perspective and Organization
                                                                                            in building a platform that can ideally
  shopping in-store                     experiences that engage the                                                                    and ending up supporting multiple           Change can be challenging, but
                                                                                            support how retail is evolving.
                                        customer at the intersection between                                                           systems and processes. It’s easy to see     Connected Retail offers huge
                                        the virtual and physical worlds—                    1. integrate your ecommerce engine         how this can spiral out of control with     rewards to retailers. Success will
                                        where breakthroughs in in-store                     and order management                       product set-up, merchandising and           hinge on overcoming the following
                                        innovation will exploit its unique                  What may have originally started           marketing across numerous channels.         obstacles—and taking full advantage
                                        advantages.                                         as just your website’s engine to           Having slightly different systems           of in-store’s unique opportunities—to
                                                                                            drive online transactions has now          and tools to support store, online,         better connect to an enterprise-wide
                                        Building the Foundation for                         fully evolved into being capable to        mobile assortments and others is all        experience strategy.
                                        connected retail                                    act as the hub of your connection          too common. Developing a roadmap
                                        So, how do you approach getting to                  to your customers through order            towards consolidation is a critical step    Establish P&l ownership that
                                        the promised land of retail nirvana?                management that can likely extend          that most brands never take.                can be operationally shared, but
                                                                                            beyond your existing POS. Supporting                                                   departmentally managed. Budgetary
                                        Certainly it’s obvious that retailers are           sales-assisted remote checkout and         4. Develop a single view                    ownership is typically divided between
                                        experimenting with lots of ideas. That              even self-checkout are more critical       of your customer                            multiple stakeholders, by channel
                                        rapid iteration—built on ideas that are             than ever as customer expectations         As your customer engages with your          or by departmental divisions without
                                                                                            are shifting.                              brand through numerous channels,            accurate sales allocation systems.
                                                                                                                                       how do you capture their information?




                                                                                      159                                                                                    160
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                                                            3                                                                                                                                     CONTINUOUs ExpERIENCEs

                      A core set of metrics needs to be              close gaps between                       relevant selection and messaging          thinking and adopt a rogue mentality
                      acquired, shared and maintained                implementation partners.                 and an immersive environment              to redefine—not simply enhance—what
                      so that everyone throughout the                Multiplication of highly specialized     that is less task-based and more          meets and greets shoppers. What
                      organization is working from the               in-store activation companies,           of an event.                              happens in the store no longer stays
                      same pool of data.                             local advertising and in-store                                                     in the store—nor did it necessarily
                                                                     merchandising partners without           It’s not a matter of online versus        begin there.
                      Build consensus on win-win                     a holistic view of a seamlessly          offline, ecommerce versus in-store.
                      approaches to track measurable return.         connected, omnichannel experience        Consumers have made the leap to           Connected Retail offers a unique and
                      Demonstrating ROI across investment            creates inconsistencies in branding      omnichannel. And that leap has a          powerful advantage to design and
                      costs that are shared across                   and operational management.              place and evolved expectation for that    deliver connecting in-store experiences
                                                                     If it affects the store, it affects      quaint store of old. Regardless of the    that will revitalize and redefine the
                                                                     the customer.                            phenomenal growth of online and           role of the store in the omnichannel
                                                                                                              mobile retail, stores are here to stay.   shopping behavior today, and well into
In-store retail is poised to undergo a                               Enterprise collaboration is                                                        the future.
disruptive evolution—transforming itself                             demanding so give it time.
                                                                     Even if there is consensus for change
                                                                                                              Retailers will need to push beyond
                                                                                                              traditional in-store environmental
into something so different it requires a                            throughout the organization, the
new name: Connected Retail.                                          change itself can be time-consuming
                                                                     and difficult to govern. It will take
                                                                     time and a mash-up of perspectives.
                                                                     Your in-store retail team will have a
                      multiple channels and managerial               completely different set of logistical
                      stakeholders is complicated. There’s           challenges than those facing your
                      no silver bullet solution. But by              online retail team. Find the points of
                      leveraging the collective insights and         consensus. Build bridges to connect
                      expertise of your current leadership           not only their experiences, but their
                      to define a consistent approach, a             operational objectives as well.
                      manageable, efficient and profitable
                      system that supports the business              Digital is the Opportunity,
                      and the customer can be designed               not the Threat
                      and implemented.                               Customers want everything.
                                                                     They genuinely believe everything
                      create a behaviorally aware customer           they can do online can be done
                      interaction and analysis system.               in-store, whether that’s rich product
                      Designing and implementing                     information, immediate access to an
                      innovative in-store experiences in a           entire, global inventory, comparative
                      rapidly evolving world of traditional          pricing or social shopping.
                      retail, ecommerce, social, mobile and
                      other channels is a constant battle.           But when they’re in the store, they
                      The same technologies you use to               want even more. They want the
                      connect customers to your in-store             advantages of digitally enhanced
                      experiences should feed your analytic          physical experiences—dynamic
                      engine to enable rapid innovation at           environments, endless aisles,
                      the point of convergence.                      personal service, augmented
                                                                     packaging and displays, locally




                                                               161
                                                                                                                         OE



                             TREND                                                                               Future of Commerce:

                               4
                                                                                                              Lifestyle Social Commerce
                                                                                                                 Goes Beyond Pinning


                                                                                                                    171
                                                                                Understanding




glOBAlIZATION
                                                                              Ecommerce in China


                                                                                  165
The final trend in the future of experience is the increasing globalization
                                                                                                                                          OE
of the marketing environment.
                                                                                                                                Glocalisation and the
No longer are marketing assets, brands and messages restricted within                 Chasing the Global Chinese               Anthropology of Global
a single country’s borders. Information travels farther and faster today                  Luxury Consumer:                           Marketing
than in the past.                                                                      A Connectology Approach

To adapt to this world, marketers must rethink how they operate. Few
                                                                                             175                                    181
regions represent the magnitude of the challenge—and the opportunity—
as China.

In this section, we posit a new CMO mindset necessary to operate in
                                                                                                                                                        OE
the new marketing environment. In addition, our authors focused on
                                                                                                               Five Challenges to                   International
ecommerce and the luxury consumer in Southeast Asia.
                                                                                                               Tomorrow’s Global                     Ecommerce
                                                                                                               Marketing Leaders                      Expansion


                                                                                                                   187                              190
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                                                                                                                           4
                                                                                                                                                                                                                           glOBAlIZATION
                                                                                  china’s ecommerce industry has                      all online retail sales through 2015.
                                                                                  continued to grow at a torrid pace,                 Given the option between Taobao and
                                                                                  reshaping traditional businesses                    Tmall, most big brand owners choose



  UNDERsTANDINg
                                                                                  and changing the digital market                     Tmall as their first ecommerce choice.
                                                                                  landscape. Prior to 2010, annual
                                                                                  growth of chinese ecommerce was                     What’s Different?
                                                                                                                                      Understanding Chinese ecommerce



ECOMMERCE IN ChINA
                                                                                  higher than 100% for several years,
                                                                                  which lead to a 4.3% online penetration             is crucial in understanding how they
                                                                                  rate in 2011, out of the total retail sales         conduct business. There are four big
                                                                                  of consumer goods. And, in 2014, it                 differences that distinguish Chinese
                                                                                  is estimated that ecommerce in                      ecommerce from any other country:
                                                                                  china will reach the same 7 to 8%
Written by Robert Wang, Business Consulting Manager, Planning Department, China
                                                                                  penetration level as the u.s., France
                                                                                  and germany.
                                                                                                                                      In 2011, only 4 of the top 20 online
                                                                                  But not only is China’s ecommerce
                                                                                  growing exponentially, it also employs              retailers had offline businesses in China.
                                                                                  unique business strategies due to their
                                                                                  major ecommerce players, their B2C
                                                                                  growth and the way their consumers
                                                                                  shop and make purchases.                            1. More online-only retailers
                                                                                                                                      In 2011, only 4 of the top 20 online
                                                                                  Who’s Playing?                                      retailers had offline businesses in
                                                                                  In 2011, 76.8% of online retail sales were          China, which is just the opposite
                                                                                  consumer-to-consumer (compared                      of the U.S.; among the top 20 online
                                                                                  with roughly 20% in North America).1                retailers in the U.S., only Amazon,
                                                                                  Taobao Marketplace is by far the most               Newegg, Netflix and CDW don’t have
                                                                                  dominant, with a 90.4% share. With                  offline retail. In addition, few Chinese
                                                                                  more than 800 million product listings,             retailers are providing online and offline
                                                                                  and over 500 million registered users               combined services, such as Zbird.com,
                                                                                  as of June 2012, Taobao Marketplace is              Shopin.net and Walmart.
                                                                                  similar in some ways to eBay, although
                                                                                  the vast majority of products are new,              2. customer behavior:
                                                                                  and sold at a fixed price.2                         Dominance of online chat
                                                                                                                                      Most customers in China do their
                                                                                  Much lower than global practice, the                online shopping during working hours
                                                                                  remaining 23.2% of online retail sales              and most tend to use online chat to
                                                                                  are business-to-consumer. Of this                   solve pre- and post-sale problems,
                                                                                  23.2%, half is from Tmall (Tian Mao).               only using call center services
                                                                                  Next is 360buy with 17.2%. Mecox                    when absolutely necessary. This
                                                                                  Lane and Dangdang, the first two                    phenomenon is especially typical with
                                                                                  China B2Cs that went public in the                  Taobao. In addition, most Chinese
                                                                                  U.S. stock market, only take 0.7% and               like to open a new product page in a
                                                                                  1.9% respectively.                                  different tab or window, meaning they
                                                                                  Although B2C is growing faster than                 use the “go back” button much less
                                                                                  C2C, Taobao is still estimated to                   than their Western counterparts.
                                                                                  represent more than 60 to 70% of

                                                                                                                                        1
                                                                                                                                            Forrester Research, 2005
                                                                                                                                        2
                                                                                                                                            alibaba Company Website. http://news.alibaba.com/specials/aboutalibaba/aligroup/index.html accessed august 7, 2012

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3. Different payment options                   effort to integrate with the existing       Online to offline (O2O)                   options are limited. However, with
and checkout paths                             systems, where language proficiency         The store locator function is weak        an independent website you can
Debit cards are the dominant payment           and business understanding are huge         in China, but physical stores can         customize the marketing and branding
method in China. The credit system is          obstacles to overcome.                      enhance the customer user                 options. In addition, retail function is
not mature enough and credit cards                                                         experience, help sales and offer          not a must with an independent
are not yet widely used or accepted in         Consider Tmall.com. Formerly Taobao         stronger connections with customers.      B2C website.
second- and third-tier cities. Cash on         Mall, Tmall was first introduced by         In addition, offline opportunities are
delivery (COD) is widely used by most          Taobao in April of 2008. It is a site for   huge in certain categories, like          The B2c Plan
B2C companies except Taobao.                   B2C online retail and a platform for        furniture, where store experience         If the former all point to yes, there
                                               local Chinese and international             is very important.                        are four recommended phases
Alipay, a payment processing                   businesses to sell quality goods to                                                   in order to open and sustain a
company, is dominating the online              consumers in China.                         special supply chain                      profitable, successful B2C:
payment business; PayPal has little                                                        management (scM)
influence. But this online payment             There is no doubt that most brands          For some categories like food,
process often leads to problems: In            are suitable for Tmall, but should          logistical services are not always
China, the order is generated before           these retailers open flagship stores        professional in China, and Tmall can’t
                                                                                           satisfy that demand due to constraints.
                                                                                                                                     Prior to 2010, annual growth of Chinese
personal payment information is                on the site? Due to finance problems
supplied whereas, in the U.S., people          in 2011, many retailers did just that,      However, some big retailers already       ecommerce was higher than 100% for
fill in the payment information before         since new customers were relatively         have in-house supply chain teams for
                                                                                           offline business, so expanding that
                                                                                                                                     several years, which lead to a 4.3% online
submitting an order. The average               cheaper to capture in this space.
successful payment rate in China is            These retailers covered almost every        advantage online would be a unique        penetration rate in 2011.
70 to 80%.                                     major category for online retail:           business opportunity.
                                               computers, electronics, apparel, baby
4. Mobile commerce                             products and more. However, the             helping customer relationship
Mobile commerce is less developed              strategy was considered temporary           management (crM)                          Phase 1: strategy
in China than in other commerce                and many retailers provided a limited       O2O businesses can help improve           At the onset, it’s important to consider
counterparts. The few good practices           inventory. For example, the Hong            the CRM greatly, especially for the       the Tmall market size overview,
are not from foreign big brands, but           Kong-based cosmetics retailer               retail industry where CRM is not yet      competitor analysis, Tmall strategy
from local online players such as              Watsons, which has both retail and          available (e.g., apparel). In addition,   and Tmall product and pricing strategy.
Taobao, 360buy and VANCL. The                  private label brands, choose to sell        ROI on CRM is excellent.                  UNIQLO is a good example. Its products,
mobile apps for B2C are still mainly           only the private label on Tmall.                                                      pricing and promotions are consistent
for retail function. Some more                                                             Digital marketing and branding            for online and offline channels. Very few
innovative functions like QR codes             Another obstacle for businesses has         On Tmall, function and design             players have such discipline in China.
and pricing comparisons were first             been money and ROI. The Chinese
copied by 360buy.                              ecommerce market has been hot
                                               since 2010, which has lead to huge
is B2c the right choice?                       expenses in marketing and hiring. So
Since Taobao is dominating the online          large investments and bad returns in
shopping environment, independent              sales have left the independent B2C
B2C websites are having trouble                retailer with a question mark. To
staying afloat, partly because the             answer this question, businesses
building phase of both front-end and
back-end systems are expensive,                must think about what a B2C can
requiring extensive customization.             provide that sites like Taobao can’t:
The local solutions require a great




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                                    4

Phase 2: Building                              commercials and offline billboards
Once the strategy is sorted out, Tmall         are not as worthwhile.
retailers should select vendors (many
large brands choose to outsource               Phase 4: Daily operation
daily operations) and hire a team,             Once you’ve set up the foundation for
from customer service to operations            a B2C, these operations and decisions
to marketing to warehouses. Next, the          should be top considerations as well:
shop can be designed and integrated
with systems like ERP, WMS or CRM to           • Manage your vendor(s) closely
manage and coordinate all resources.           • Decide if you want to support COD
In addition, thought must be given to          • Choose a form of online payment
inventory planning, warehouse setup              (e.g., Alipay, Tenpay, 99Bill)
and financial and legal planning               • Establish brand awareness
among other aspects.                             with SNS tools
                                               • Consider opening more stores
                                                 on other platforms                       • The damage and theft rate is much            for an ICP (Internet Content Provider)
                                                 (e.g., 360buy.com, Amazon.cn)              higher than Western countries.               license, which allows them to
                                               • Consider opening more stores on          • The on-time rate of delivery is              operate an online retail business, and
                                                 group-buying or flash-sale channels        around 80% for a normal courier.             common practice is to have at least
                                                                                          • Only foreign logistic companies              two companies: one for the license
                                               The Warehouse and Delivery                   like FedEx or UPS and local                  and one for retail.
                                               Bottleneck in china                          company ShunFeng, can provide
                                               The logistics industry takes 18% of          solid service, but are much                  However, policies are changing. We
                                               China’s GDP, which is twice as high          more costly.                                 see some foreign brands conducting
                                               as Western countries. For online           • For first- and second-tier cities,           retail online without a license, though
                                               retail businesses, every order is            punctuality is better (1–2 days).            technically they are still illegal.
                                               considered a parcel and can be               In remote areas, 4–5 days                    Unlike Amazon’s better tax treatment
Phase 3: Marketing                             quite expensive, eating up a budget.         are required.                                in the U.S., B2C merchants in China
Tmall is famous for its discounts, so          Average costs for a parcel are:            • Only state-owned company China               have many taxes similar to offline
marketing and promotions are critical                                                       Post (EMS) can cover all rural               retailers. Only C2C merchants can
to success. Discounts are even more            • 5-10 RMB: Normal, low-service              areas, but they have the                     avoid taxes. Invoice issues are quite
important than marketing expenses,               local courier                              worst service.                               complicated in China as well. There
which can be a problem for pricing             • 5-15 RMB: Warehouse cost                 • For some festivals, most third-              are no e-invoices and merchants
strategy. According to a top partner           • 12-20 RMB: Good delivery partner           party logistic companies do not              often don’t give an invoice to a
of Taobao, the average ROI of market                                                        work. And in promotion season                customer if not specifically asked.
expense is around 10 to 15% of                 Even if you can control the expense          (e.g., Double 11), the orders
revenue. The refund rate of Tmall is           well, don’t expect too much on the           back up and it takes a week for              conclusion
lower than the Western standard (the           logistic service level. Most foreign         warehouse and delivery companies             Ecommerce in China is complex,
average refund rate of apparel is less         brands in Tmall perform around               to operate.                                  unlike any other country and
than 10%), and accounts receivable is          industry average. Today, there are still                                                  in a constant state of flux. But
longer, at an average of seven days.           many issues with delivery services:        government Policy and Tax issues               understanding Chinese business
                                                                                          It is illegal for foreign companies to         practices can improve your Chinese
Among all the marketing tools, CRM,                                                       conduct retail online in China. Only           ecommerce strategy—and even your
SEO and SEM have relatively better                                                        100% domestic companies can apply              business strategy at home—immensely.
ROI, while online display ads, TV




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ON xcl TE
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   C                                                                                                                                                                                           glOBAlIZATION



              FUTURE OF COMMERCE:                                                                  social commerce is commonly seen
                                                                                                   as a loop from curation to inspiration
                                                                                                                                                    have is 388 million users who go online
                                                                                                                                                    from mobile and wireless devices.



              lIFestYle soCIal CoMMeRCe
                                                                                                   to shopping. A slew of properties
                                                                                                   like Pinterest and Fancy, which help             When one looks around Asia, online
                                                                                                   consumers create inspirational                   looks distinctly mobile. What does
                                                                                                   pinboards for action, seem to define             social commerce mean in this


                 Goes BeYonD PInnInG
                                                                                                   the territory.                                   mobile world?

                                                                                                   We sought to redefine the arena,                 understanding the Mobile continent
                                                                                                   creating a device-agnostic, cloud-based          Asia accounts for more than half of
              Written by Jeff Blais, Creative Director, Multi-Channel User Experience, Singapore   proof of concept that upends current             the world’s mobile subscribers. That
                     & Sushobhan Mukherjee, Vice President, Strategy, APAC, Singapore              beliefs and has disruptive potential in          means three out of four have a mobile
                                                                                                   how brands, retailers and consumers              phone. Now, imagine almost two
                                                                                                   create profitable connections.                   billion people for whom the mobile
                                                                                                                                                    phone is the first phone, the first
                                                                                                   Pinterest: Making commerce social
                                                                                                   The juxtaposition of “social,”
                                                                                                   “commerce” and “lifestyle” almost
                                                                                                   immediately suggests Pinterest.                  “No one knows for sure what social
                                                                                                   Crowned the fastest-growing
                                                                                                   independent site in history by comScore           commerce will be in the future, but
                                                                                                   and touted as driving more online retail          it’s starting to look a lot like Pinterest.”
                                                                                                   traffic than Google+, LinkedIn, Reddit
                                                                                                   and YouTube combined, Pinterest                   –Tricia Duryee, Technology Writer for AllThingsD (The Wall Street Journal)
                                                                                                   dominates mindshare in the arena of
                                                                                                   social commerce.

                                                                                                   It is not difficult to see why Pinterest         computer and the first private space
                                                                                                   does seem like the future of social              they have had. And with smartphone
                                                                                                   commerce, at least in the U.S. and               prices dropping below 100 USD, half
                                                                                                   UK (the source of most of its early              the phones are already smartphones
                                                                                                   adopters). With the site doing away with         of some hue or the other. This
                                                                                                   invites, one expects its distribution of         phenomenon of entire generations
                                                                                                   users to quickly mimic the distribution          of technologies being skipped is
                                                                                                   and penetration of the larger social             described as leapfrogging.
                                                                                                   networks, Facebook and Twitter.
                                                                                                                                                    For decades, Asia lagged the
                                                                                                   This brings us to Asia. The third and            developed world. Recovering from
                                                                                                   fourth largest nations on Facebook are           the ravages of colonialism, multiple
                                                                                                   India and Indonesia. The second and              military conflicts and fledgling
                                                                                                   third largest nations on Twitter are             economies, most of Asia endured
                                                                                                   India and Indonesia. And China, with             slow economic growth. Japan drew
                                                                                                   538 million people online, the largest           away first, quickly transforming
                                                                                                   population on the net, doesn’t have              itself into the second most
                                                                                                   Facebook or Twitter. But, what they do           powerful economy.




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Sometime in the 70s, the Asian tigers              sTylEBOOK: rE-iMAgining                     Social sharing happens after the                  Stylebook connects people, and their
of Taiwan, Thailand, Singapore and                 liFEsTylE cOMMErcE FOr ThE                  inspiration, both to affirm one’s choice          inspirations and styles, to retailers
Korea broke out. Then it was the turn              MOBilE-FirsT AgE                            and include others.                               and brands that created them in the
of China, followed by India, Vietnam                                                                                                             first place. What a consumer chooses
and Indonesia.                                     insight                                     implementation                                    is a reflection of who he or she is,
                                                   Mobile devices—whether phones,              A working prototype for this mobile               and this makes it a powerful lifestyle
This rapid economic development                    tablets or the intriguing phablet           social commerce experience has been               statement.
coincided with the consumer adoption               (phone+tablet)—are ubiquitous               created using Netbiscuits technology,
of computers. Then, the Internet                   companions. Consumers use them              which is the leading cloud platform for           A working prototype can be seen at
exploded around the same time as the               to view and share content, create           the development and delivery of web               sapientpoc.com/stylebook.
telecommunications infrastructure                  content, socialize, compare, shop and       experiences for multiple screens and
moved to mobility. Technology products             purchase.                                   operating systems.                                A Future Beyond Pinning?
were embraced quickly by a population                                                                                                            This is a demonstration of a “lifestyle
that was young, hungry for aspirational            Ubiquity enables consumers to               collect and capture. People use their             social commerce” experience that
products and driven by a need to flaunt            be spontaneous. Spontaneity lets            phones to capture things they like (e.g.,         enables consumers to discover,
their newfound prosperity through                  consumers seize the moment.                 the design of furniture, the styling of           collect and purchase products
status symbols. Leapfrogging was the                                                           a bar or the design of a showroom).               based on trends, lifestyles and social
result. It still continues.                        Inspiration exists everywhere and           They might capture a bag or dress                 connections.
                                                   strikes unexpectedly. A dress one           they see on the street or capture a
Interestingly, leapfrogging makes                  likes on another or a display in a shop     page in a magazine of certain products            It is built to help brands and retailers
consumers embrace innovation faster,               window or a set in a film—each can be       they want to buy or are interested in             participate in the multi-device,
because they don’t need to unlearn.                an inspiration to enhance oneself and       looking up on the web. They “like”                multi-channel reality of consumers,
The rapid adoption of SMS or MMS                   one’s life.                                 products their friends have posted on             especially rapidly evolving mobile-first
in Asia was perhaps aided by not                                                               other social sites such as Pinterest or           consumers, as seen across Asia.
having landlines or voicemail. Mobile              Ubiquity + Spontaneity + Inspiration =      Facebook. Given a multi-device world,
payments, for example, are aided by low            A strong platform for ideation.             ability to aggregate across a spectrum            It does seem like the future. Until the
penetration of banking and credit cards,                                                       of sources is essential. All these                next innovative idea, that is.
and calalyzed by the inherent need to              ideation                                    collected items are stored in the cloud,
repatriate cross-border earning—and,               Social commerce, currently, is all          so that they may be accessed from
of course, mobile phone penetration.               about reacting to collections that          anywhere.
                                                   others have created. For example,
On Device Research found recently that             one creates a pinboard after                recognize and purchase. Image
38% of Chinese Internet users were                 re-pinning images from other                recognition engines such as Google
mobile only. That number rises to about            pinboards, which were                       Goggles are able to match products
60% in Indonesia. As these numbers                 discovered passively.                       in the cloud to merchants selling
grow, it is increasingly apparent that the                                                     them. At the same time, while the
future of digital is mobile.                       The new and novel idea is to                cloud items shape a user profile,
                                                   transform passive discovery into active     merchants are able to push matching
Which begs the question: Just how                  identification, by collecting whatever      items the user might like. At the end
valuable are desktop, web-based ideas              inspires oneself. Inspiration lies in the   of the process is the connection to
for commerce?                                      eye of the beholder. Capturing these        the merchant, and the mobile social
                                                   inspirations and enabling them to be        commerce experience allows the user
                                                   stored, shared and purchased is the         to buy the items online.
                                                   core of the promise.




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   ChAsINg ThE glOBAl                                                     in the throes of a persistent global
                                                                          economic downturn, the chinese
                                                                                                                           expectations and evolving notions of
                                                                                                                           luxury. The field remains open for



ChINEsE lUxURY CONsUMER:
                                                                          luxury consumer has proven extremely             those with an insightful strategy to
                                                                          resilient. in 2005, Ernst and young              capture the ultimate prize in the luxury
                                                                          predicted china would spend more                 game—the Chinese luxury consumer.
                                                                          than $11.5 billion on luxury goods by


   a ConneCtoloGY aPPRoaCh
                                                                          2015. last year, china spent more than           A luxurious Problem
                                                                          $15.6 billion. china’s “middle” class of         Since the 1980s, European artisans,
                                                                          160 million people—currently 12% of              traditionally low-volume, high-margin
                                                                          the population—is expected to surge              producers noted for timeless style,
          Written by David Thorpe, Vice President, Strategy, Miami        to 74% of the population by 2030, and            quality and craftsmanship, used hi-
     & Jake Wheeler, Creative Director, Global Projects, Shanghai/Miami   $15 billion could be pocket change in a          gloss branding to leverage their status
                                                                          decade or so.                                    and introduce “diffusion” lines in the
                                                                                                                           shape of handbags, lipsticks and
                                                                          So what’s the problem? The belief                perfumes as on-ramps to mass luxury
                                                                          that China today would be to luxury
                                                                          what Japan was in the 1980s and
                                                                          1990s is one assumption Western
                                                                          companies have made in their haste               “Fashion is an odd jumble of contradictions,
                                                                          to see China as the answer to slowing
                                                                          markets back home. The speed of                   of sympathies and antipathies. It exists
                                                                          China’s growth is impressive, but it’s            only by its being participated among a
                                                                          also a complication. In 2012, many
                                                                          established luxury brands reported                certain number of persons, and its essence
                                                                          declining sales, slowed growth or a               is destroyed by being communicated to
                                                                          desire to pull out of mainland China.
                                                                          These figures offer fog as much as                a greater number.”
                                                                          light; business is booming on the                  –William Hazlitt, Table Talk: Essays on Men and Manners (1818)
                                                                          mainland for niche brands such as
                                                                          Roger Vivier and major brands are
                                                                          enjoying uninterrupted success to
                                                                          their global profits.1                           consumption. This “democratization of
                                                                                                                           luxury” was meteorically successful;
                                                                          It seems the appetite is growing but             enormous fortunes were won and the
                                                                          the diet and location are changing.              expectations of the consumer forever
                                                                          A significant part of the Chinese                changed. An array of innovation seeks
                                                                          luxury market2 is not in mainland                to address demand; traditional retail
                                                                          China. This poses a novel challenge:             seasons of spring, summer and winter
                                                                          The traditional luxury model of                  are now augmented with pre-season
                                                                          conspicuous consumption relies on                lines. And today, even supermarkets
                                                                          the relatively static socio-economic             have lines with luxury branding and
                                                                          progression of a culture. It’s not               higher pricing.
                                                                          geared to map a hyper-dynamic
                                                                          “glocal” market or manage diversity              Success comes at a price as high
                                                                          across aspirations, contexts,                    as an Alta Sutura De Morgan Isaac

                                                                                                                                    1
                                                                                                                                        Richemont expects its half-year profits to be up to 40% higher than last year, despite concerns a slowdown in asia could
                                                                                                                                        crimp its earnings. Prada said that in 6 months to July 31, sales rose 36.5%. Financial times, august 7, 2012
                                                                                                                                    2
                                                                                                                                        according to the hurun Wealth Report 2012, China’s millionaires continue to spend heavily despite slower growth in the broader economy.
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                                                                                                                               4                                                                                                                                                       glOBAlIZATION

                                                       gown: Democratization has created                                               ambiguous relationship to luxury itself:   in a concerted effort to reposition itself         The relational nature of Chinese
                                                       a world where luxury is fast losing its                                         Mao, Confucius and Louis Vuitton in        as a premium brand in China.                       society creates a paradox of tighter
                                                       meaning. Traditional luxury brands                                              Tiananmen Square is a conversation                                                            collective binding but also a low-trust
                                                       face competition with high-volume,                                              held in a strange gravity.                 Ways of seeing                                     environment, which explains the
                                                       minuscule margin brands at one end                                                                                         The West, like every culture, has a                importance of rituals and principles
                                                       and high-margin, fashionized brands                                             A Different consumer                       problem: It assumes the way it sees                like “guanxi” and “shai.”7 “Guanxi”
                                                       at the other, not to mention the rising                                         The typical Bentley owner in China         is the “right” way. A culture’s mode of            describes the basic dynamic in
                                                       ranks of newcomers including Chinese                                            is a 30-something Internet-savvy           thinking forms the backbone of how                 personalized networks of influence.
                                                       luxury brands such as Shanghai Tang.                                            entrepreneur—hardly the image of           individuals relate to one another; it              It closes the distance of network ties
                                                                                                                                       a Bentley owner to Westerners.3            informs how we reason and how we                   to reduce risk, a form of insurance in
                                                       To contend with such fierce                                                     Why Bentley over a Rolls-Royce? A          construct meaning. But it also limits              a low-trust environment. In turn, the
                                                       competition, big holding companies                                              Rolls-Royce is too showy, too obviously    the ability to see beyond context.                 principles of “guanxi” are bound by
                                                       acquire forgotten names to                                                      luxury for the Chinese sensibility,                                                           face (“mianzi”) and reciprocity (“bao”),
                                                       reinvigorate their pipeline and push                                            where modesty is valued but held in        Western thought is geared to causality.            subtle acknowledgements of the
                                                       their lucrative ones to create new                                              balance with face and respect.             It rests on a belief that things can
                                                       heights of ultra-luxury (products                                                                                          exist in isolation and are subject to
                                                       made largely inaccessible through                                               Another feature of Chinese growth          governing rules; break something
                                                       price and planned scarcity), which                                              to confound Western observers is           down to its component parts and you                The West, like every culture, has a problem:
                                                       sets the context for a mass market of
                                                       “affordable luxury” diffusion lines.
                                                                                                                                       the “failure” of the middle class to
                                                                                                                                       materialize in the way expected. While
                                                                                                                                                                                  can find the truth. In stark contrast,
                                                                                                                                                                                  the Chinese view this type of thinking
                                                                                                                                                                                                                                     It assumes the way it sees is the “right” way.
                                                                                                                                       relatively easy to bundle Chinese          as inviting extreme and mistaken
                                                       Upping the stakes is a well-trodden                                             consumers into a middle class socio-       conclusions. Chinese thought sees any
                                                       path, but it avoids larger existential                                          economic group, they simply do not         event as embedded in a meaningful                  power dynamic within the network.
                                                       questions: What is luxury in a market                                           exhibit the same aspirations and           whole in which all the elements are                Position in relation to others is loaded
                                                       of a billion people? What must luxury                                           shopping habits of the middle class        constantly changing and rearranging                with meaning, which explains why
                                                       do to meet the promise of China? Can                                            in the West; rather, the Chinese see       themselves.                                        some luxury brands become essential
                                                       it meet the demands of the new global                                           “middle” as a phase on the path to                                                            utilities in belonging to the crowd
                                                       market, its scale and diversity, with a                                         riches. In order to accelerate that        This fundamental difference in                     (e.g., Bentley).
                                                       model born in the 1960s and 1990s?                                              journey, people will save for months       organizing concepts is apparent in our
                                                                                                                                       to purchase a luxury good, whose           cultural storytelling modes. Western               A new phenomena emerging in
                                                       Speed is not only confined to the                                               symbolic power imbues social status        stories describe actions whereas                   social networking sites is “shai”—
                                                       cycle of fashionized product lines.                                             and garners respect. To do so, they’ll     the Chinese equivalent describes                   bragging about possessions is a
                                                       Chinese consumer taste is evolving                                              trade down to discount brands              relationships between people.                      hyperbolic embrace of consumerism
                                                       fast; especially in larger, cosmopolitan                                        elsewhere. Feast and famine live           When given a series of images, an                  and individualism, and it flies in
                                                       cities, the craving for highly                                                  as bedmates.                               Asian child is more likely to group                the face of traditional structures,
                                                       recognizable luxury products appears                                                                                       relationally, pairing a cow with grass             yet it also deeply mimics its rules.
                                                       to be shifting to niche and under-the-                                          Companies that position themselves         because a cow eats grass. A Western                According to the China Youth Daily,
                                                       radar products that will distinguish                                            in the middle place themselves in          child tends to place the cow with a                most brag about “connections”
                                                       their owners from the masses.                                                   no-man’s land.4 When venerable             chicken because they fit into the same             (65.4%), followed by “income” (64.7%)
                                                       This doesn’t fit with notions about                                             British retailer Marks & Spencer took      “taxonomical” category.6 Balancing                 and “consumption” (62.1%). Many
                                                       collectivist cultures. Speed of growth                                          its middle message to China, the           differences in the construction                    attribute the explosion of “shai” to
                                                       and dynamism pose an interesting                                                market and target weren’t interested.      of meaning is crucial when                         a decline in social morality. Hard
                                                       quandary for the traditional model                                              Ralph Lauren5 hit the same void and        “storyscaping” global brand narratives,            to ignore and harness, “shai” is the
                                                       of spectacle and diffusion, further                                             is now buying back its licenses and        from the use of imagery and language               double-edged sword of Chinese mass
                                                       complicated when a culture has an                                               concentrating on select theater retail     to choices in celebrity endorsement.               exposure. The fantasy component

3
    http://www.forbes.com/2008/11/21/car-buyer-types-identity08-forbeslife-cx_jm_1121cars_slide_11.html?thisspeed=25000                                                                                                              6
                                                                                                                                                                                                                                         Richard nisbett, “the Geography of thought”
4
    http://www.businessweek.com/articles/2012-04-16/for-u-dot-s-dot-brands-theres-no-middle-in-chinas-middle-class/                                                                                                                  7
                                                                                                                                                                                                                                         Fei Xiaotong, “From the soil”
5
    http://www.forbes.com/sites/greatspeculations/2012/06/21/if-ralph-lauren-acts-like-coach-in-china-its-stock-will-take-off/
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of “shai” makes it tricky territory for           luxury experience. In a country where      a quarterly journal filled with high-          connecting With the
luxury brands that want to promote                food safety and food sourcing are          end content, and partially authored            chinese luxury consumer
timeless quality.                                 hot button topics, this kind of quality    by key opinion leaders, their strategy         For all its vast potential and
                                                  assurance conveys meaning beyond           aims to build trust within network             opportunity, China is equally complex
For luxury brands, understanding                  1,000 thread count sheets. Fairmont’s      influencers while giving end readers           and idiosyncratic. Perhaps fittingly,
the relational society offers insights            strategy is a manifestation of a           a native-language brand experience             to a Chinese perspective, there are
necessary to tread through the                    broader shift to enhance its in situ       with global themes and quality mixed           answers but there isn’t one answer.
contradictions. Luxury retailers                  experience and seamlessly meld             with local interests.
must remember that the exceptional                place and space, the physical and the                                                     An optimal solution for a brand is
meaning of a luxury good cannot be                digital into a unified value experience.   China’s low-trust environment                  where connected thinking drives
construed in and of itself; rather,                                                          is iterated by a state-controlled              meaning, trust and service for the new
its value is created in terms of its              Evolution of luxury                        mediascape. Service addresses the              Chinese luxury consumer. A brand
influence on and for a person in                  Marketing as service                       pervasive trust issue as does brand            must understand how its unique
respect to their network. It’s not                Despite talk for decades about             editorial over pure advertising. It            service proposition plays out within
enough to say, “This car is the best,”            customer-centricity, brand marketing       took Net-a-Porter’s melding of                 the mechanics of a relational society.
because of external criteria. In a                hasn’t really caught up with oratory.      editorial perspectives with service            For the Chinese luxury consumer,
network society, the standard by                  When perceived as a service, the           to successfully usher premium                  any meaningful solution should be
which something imparts prestige in               realm of marketing activities is           fashion into ecommerce. Editorial’s            native-language, globally portable and
their inner and outer networks is the             liberated from the constraints of          role is to provide a trusted shortcut          connected.
dictum of value for a luxury product.             a bought channel world; it offers          through the maze of choice. But
The engagement of a brand is not just             take-with-you interactive utility. In      when editorial is melded into a                In the end, while messaging will take
in producing spectacle but in adding              a networked society, the traditional       commerce vehicle, there must be                many forms on many devices in many
value to its context; the relationship it         media cascade doesn’t have staying         new assurances to ensure content               languages, and while our target is
has with place is vital.                          power. A shift to service addresses        honors its allegiance to                       fast-moving, rapidly-evolving and
                                                  this deficit. There’s always a role        the customer.                                  transnational, the plan to capture them
Making it Work                                    for what happens at home, but in a                                                        starts in a deceptively simple place—by
For luxury brands, success begins and             digital world you have to be able to let                                                  thinking more like the Chinese.
ends with meaning. Resuscitating                  the value you created “there” pay off
luxury and sustaining its value                   “here”—and to know what’s working
requires pushing a label’s meaning                requires connecting the two.
beyond the label itself. Most often
this occurs as a service or status                When you can buy anything from
to the buyer that has a deeper                    the comfort of your own home, the
resonance. To create resonance,                   physical and personal experience
brand strategies must evolve to be                has to step up. Department stores
in service of their audience and the              like Harrods blaze the trail on social,
relational context of that audience.              local and mobile integration of their
                                                  institution into the cultural fabric of
Take the organic farm at the                      the environment, and Barneys New
Fairmont Yangcheng Lake Hotel.                    York has long integrated cultural
Having an on-premise organic farm                 events into its store experience.
isn’t a harbinger of a local slow-food            In China, TAG Heuer recently
movement in China like it might                   launched an effort to better its
be in the U.S. Rather, it cleverly                penetration and reputation with a
positions hotelier Fairmont as a                  digital editorial approach. Employing




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   C

                                                                                                     A client asks you to employ a global            social scientists in the world have a
                                                                                                     marketing campaign in china, Brazil             grasp on a fraction of these cultures,
                                                                                                     and the u.s. Oh, and they need it in            so how are we expected to design
                                                                                                     six weeks. What do you do?                      products and campaigns that are
                                                                                                                                                     globally consistent, yet locally
                                                                                                     It’s often a mixed reaction. The first          relevant?
                                                                                                     feeling is excitement, but a controlled
                                                                                                     freak-out quickly follows. How do               While we can’t expect to become
                                                                                                     you connect with people in multiple             experts in every market we operate
                                                                                                     countries on a real and relevant level          in, through a “glocalised” approach,
                                                                                                     that will be successful? How do you             we can design successfully on a
                                                                                                     do this under such time constraints?            global scale.
                                                                                                     How many times have brands and
                                                                                                     their agencies failed at this?                  What is glocalisation?
                                                                                                                                                     The term “glocalisation” was first
                                                                                                     On a global scale, it’s not good                coined in the 1990s by British
                                                                                                     enough to simply have a great                   sociologist Roland Robertson
                                                                                                     product or campaign. Just because               (following a long history of discussions
                                                                                                     it works in one region doesn’t mean             on global forces in the marketplace).
                                                                                                     it will work in another. Success for            The term was fanatically discussed
                                                                                                     global brands comes when they                   in social science, economics and
                                                                                                     figure out how their product or
                                                                                                     service culturally fits into peoples’
                                                                                                     lives. In order to form authentic
                                                                                                     connections and breakthrough                    Glocalisation is the act of taking something
                                                                                                     ideas, we have to have a deep
                                                                                                     understanding of people. It takes a
                                                                                                                                                     global and adapting it on a local level.
                                                                                                     truly anthropological approach.

                                                                                                     As globalisation has continued to be            business circles, both practicing and
                                                                                                     fueled by advancing technologies and            academic. It disappeared from the



                   glOCAlIsATION
                                                                                                     the opening of political boundaries,            mainstream scene for a number of
                                                                                                     marketers are forging into territories          years, and now the term’s relevance
                                                                                                     they’ve never gone before. In some              seems to have made a resurgence in



              and tHE ANThROpOlOgY
                                                                                                     senses the world is getting smaller,            the business world.
                                                                                                     but our jobs as marketers are getting
                                                                                                     much, much larger. More and more,               As the name suggests, glocalisation



               of glOBAl MARkETINg
                                                                                                     our clients are global in nature, and,          is the act of taking something on a
                                                                                                     increasingly, so is our work.                   global level and adapting it on a local
                                                                                                                                                     level. McDonald’s is often cited as
                                                                                                     There are approximately 198                     one of the most successful examples,
                                                                                                     countries, roughly 6,500 languages              as they have created local formats
              Written by Megan Bannon, Cultural Anthropologist—Manager Experience Strategy, London   and countless cultures and sub-                 for their restaurants. While globally,
                                                                                                     cultures in the world. So how                   you can get the same Big Mac in
                                                                                                     as marketers do we cope with                    Shanghai that you get in New York,
                                                                                                     globalisation? Not even the best                locally, McDonald’s has




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                       adjusted their menus and restaurant           research findings into successful         seeing the hotel and the inside of the    have real experience in the region you
                       layouts to meet the local tastes and          marketing campaigns on a global           office. Go see where your product or      are working. Ask how they will ensure
                       dietary needs in each of their                scale.                                    service is sold. Observe people. Get      and guarantee quality control.
                       100-plus countries.                                                                     a sense for the context and culture
                                                                     So how do we cope with these              you will be designing for.                3. use locals as your seers. As you are
                       Conversely, we’ve seen brands like            challenges, and make authentic                                                      gathering data and insights in multiple
                       Best Buy fail. Recently, they had to          connections with people around            2. choose your gatekeepers wisely.        regions, you are going to want to
                       close their UK operation because              the globe? While anthropology is          Consolidate the number of third-party     make the most of your time. Schedule
                       their U.S. model just didn’t fit. It          at the heart of the approach, an          vendors you work with. The fewer          regular debriefs and rest that will allow
                       seems they fell into the trap of              interdisciplinary team, distributed       moving parts that need to be managed      you to think about your conversations
                       overlooking the major differences in          across geographies, provides the          the better. For research in particular,   and observations. Conduct debriefs
                       culture between the two markets.              global perspective tempered with key      a single vendor managing recruiting,      with a current local native. As you are
                                                                     local expertise. It’s part methodology,   translation, moderation and facilities    reporting your observations, they will
                       So how do we make it work and                 part tried-and-true experience and a      is ideal. This will reduce the number     help guide your interpretations and call
                       increase global success?                      lot of detail management.                 of dependencies and possible              out nuances that you perhaps didn’t
                                                                                                               mistakes that can be made.                pick up on.
                                                                     Making global Work
                                                                     One of the biggest challenges             Make sure you have fully qualified        go Virtual
Go see where your product or service is                              of working globally is logistics.         partners—they are your gatekeepers        The past few years have seen the rise
                                                                     Managing people, vendors,                 and can hold the keys to your success     of virtual techniques for gathering
sold. Observe people. Get a sense for the                            translation, interpretation,              or failure. Just because they are great   human insights across the globe. Often
context and culture you will be designing for.                       moderation resources, travel              in one region does not mean that they     called virtual ethnography, these tools
                                                                     and time zones can’t be                   will be in another. Wherever possible     and vendors use a series of video
                                                                     underestimated or undervalued.            get references, and make sure they
                                                                     To maintain your sanity:
                       SapientNitro’s Research and Insights
                       department is often at the forefront          1. go native. Plan for time to
                       of experiencing and coping with the           acclimate to new time zones and
                       challenges of working on a global             contexts. Anthropologists spend one
                       level. We are often the first to be           to two years studying a particular
                       deployed to various corners of the            culture. You will likely spend a few
                       world, both physically and virtually,         days to a few weeks. Make sure you
                       to test the waters and report back on         build in time to acclimate to the
                       the hearts and minds of people. Even          places you are travelling. It’s quite
                       though we can, through technology,            a shock to the body and the mind to
                       be in the living rooms of people in           skip ahead or back a number of time
                       Brazil, China and the U.S. all within         zones. You will not do your best work
                       the same day, the freedom and ability         the moment you step off the plane.
                       that this has granted us does not
                       come without its challenges.                  Employ a key tenet of ethnography
                                                                     and conduct participant observation.
                       We are faced with complex issues              There is a lot to be gained
                       of linguistics, customs, symbols,             contextually from experiencing
                       meanings, rites, rituals and laws.            your surroundings. Don’t make the
                       The ultimate challenge is turning             business traveler mistake of only




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                      cameras combined with moderated                  have the time or ability to do this on
                      and un-moderated techniques to get               the spot because the scripts we use
                      into the homes and hearts of people              are static and often translated once.
                      around the world.
                                                                       That’s not to say that virtual
                      There can be some great time and                 techniques are not valuable. They
                      budget benefits to doing research                are—but they should be chosen
                      this way. It can often be ramped up              wisely and with the benefits and
                      fairly quickly and it allows a dispersed         drawbacks in mind.
                      team to participate in the research
                      without having to travel. With some              Bringing it All Together
                      platforms, you may get searchable                In the end, you are tasked with
                      transcripts with accompanying                    creating something that is glocal—
                      videos, which can be great for                   globally consistent and locally
                      analysis and client presentations.               relevant. You have reams of data
                                                                       gathered locally to analyse and
                                                                       turn into a global view. How do you
                                                                       identify those global truths and local
One of the biggest challenges [of remote                               nuances?

ethnography] is evolving discussions as we                             1. Maintain cultural relevance.
learn more and begin to develop and test                               Simple translation of data from a          Typically, we spend at least a
                                                                                                                  week debriefing all of our sessions
                                                                                                                                                                    avoid major marketing gaffs such as
                                                                                                                                                                    linguistic or cultural no-nos.
                                                                       foreign language to English is not
hypotheses. This is much more difficult                                enough. Often, straight translations       and getting the data back out of                  The native perspective can be
remotely than in person.                                               lack context, and much can get lost.       our heads. This is best done in a
                                                                                                                  war room—a room dedicated to
                                                                                                                                                                    found through global colleagues,
                                                                                                                                                                    moderators and consultants in
                                                                       It’s important that what is gathered
                                                                       is not just translated, but interpreted.   immersing the team in the worlds                  the local market, or research
                                                                       This means making sure that                and people being studied. It often                participants. As things progress from
                      However, it’s not without its                    information is not just linguistically     starts in pure chaos, as individual               idea to product, continually check in
                      limitations. The cost for good                   translated, but also culturally            pieces of data get unloaded from our              with these natives to make sure that
                      solutions on the market can be quite             translated, which needs to be done         brains and notes. Over the course of              products and campaigns are still
                      high, and contextually, it can leave             by someone who has local context.          the week, this data becomes more                  culturally relevant.
                      something to be desired. While you                                                          organised, until finally we walk away
                      are talking to people who are sitting            2. Keep the tribe together. Once           with key insights that will help us               Global marketing is not an easy
                      in their living rooms, you are not               you are finished doing fieldwork,          make design decisions.                            feat. While borders are seemingly
                      actually there with them.                        it’s essential to bring everything                                                           disappearing, the need for local
                                                                       together—and this means bringing           3. include the native perspective                 relevance is not. Through an
                      One of the biggest challenges is                 all of the team members together.          throughout the process. Whenever                  anthropological approach that is
                      evolving the conversation. One of the            Each person holds different pieces         possible, include the native perspective.         carefully guided, we can understand
                      most powerful elements of contextual             of context and perspectives that are       By working with people who are                    how products and services can be
                      research is being able to evolve the             going to be key inputs into determining    from—and live in—the markets we                   both globally consistent and locally
                      discussions as we learn more and                 the right glocal approach.                 are studying, we can cross-check                  relevant. This is a step that agencies
                      begin to develop and test hypotheses.                                                       our analysis and make sure that our               and brands alike cannot afford to skip
                      When doing remote research, we don’t                                                        interpretations truly resonate from the           in their global expeditions.
                                                                                                                  native perspective. This will also help




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                                                    cMOs are struggling to adapt to a              flexibility to adapt to and
                                                    world that has fundamentally changed           embrace disruptive technologies              glOBAl MArKETing is MOrE
                                                    over the course of their careers.              and social media-driven,                     iMPOrTAnT ThAn 5 yEArs AgO
                                                    Disruptive digital technologies and            personalized marketing.
                                                    the new expectations of the global                                                          % of respondents who agreed
                                                    consumer are forcing global firms to                                                        or strongly agreed
                                                                                                   2. globally connected consumers
                                                    adjust and innovate.                           A new class of consumers, adept                          43%                               45%     88%
                                                                                                   with and empowered by affordable
                                                    SapientNitro has made a significant            ubiquitous technology, has changed           The importance of managing global campaigns
                                                                                                                                                is greater than it was 5 years ago.
                                                    effort to understand how these                 the marketing rules. Our research
                                                    changes are impacting large global             shows that 82% of senior marketers                         50%                               32%   82%
                                                    organizations. What we found was               feel that interconnected consumers
                                                    surprising: Just 15% of senior                 have broken down the barriers                The interconnectedness of today’s consumer
                                                                                                                                                is breaking down the barriers between global
                                                    marketers feel prepared to deal                between global and local marketing.
                                                                                                                                                and local marketing.
                                                    with the rapidly changing consumer,            Global marketing’s core challenge
                                                    and just 8% believe agencies are               has been to deliver relevant messages        The core challenge for today’s global
                                                    succeeding in their support of                 to the local market, but in an age           marketer: global marketing is recognized
                                                                                                                                                as more important than 5 years ago, even
                                                    global brands.                                 where assets designed for one
                                                                                                                                                as global and local marketing distinctions
                                                                                                   country are rapidly shared around the        break down.
                                                    Our CMO Global Marketing Readiness             world, the challenge is to give global
                                                    Study, a 6-month research study of             consumers a delicate balance of local,
                                                    114 CMO-level marketers, identified 5          regional and global campaigns—
                                                    significant challenges that should act         simultaneously.                              cOMPAniEs ArE sTruggling
                                                    as a wake-up call to global marketers:                                                      TO ADAPT
                                                                                                   3. localization revisited
                                                    1. Disruptive technologies                     Coping with the diversity of “global         % of respondents who strongly agreed
                                                    The proliferation of new                       consumers” who also have strong
                                                                                                                                                   15%
                                                    technologies—from social media                 regional subcultures is regarded
                                                    and mobile apps to in-store digital            as a challenge by 75% of senior              Our global marketing organization is prepared
                                                    experiences and mobile payments—               marketers. A recent Millward Brown           to deal with rapidly changing consumer trends
                                                                                                                                                around digitalization and globalization.
                                                    represents a set of obstacles                  study found that, of ads that tested
                                                    for which senior marketers are                 exceptionally well in one country, just         9%
                                                    ill-prepared. Just 20% consider                over 1 in 10 did equally well in another
                                                    themselves “very knowledgeable”                country—raising real questions               Our marketing activities are fully integrated




 5 ChAllENgEs to
                                                                                                                                                and working together (e.g., digial activities are
                                                    about technology, yet by 2017                  about the cost efficiencies of cross-        in sync with traditional media campaigns).
                                                    these CMOs will purchase more                  border campaigns. Add to this the
                                                    technology than their CIOs,                    growing tensions between local and




toMoRRoW’s GloBal
                                                    according to Gartner. The scale                global roles and authority within the        To survive in the new marketing world,
                                                                                                                                                marketers must be flexible. yet a minority
                                                    of these investments must be at a              organization—challenging for 82% of          of marketers feel prepared to deal with
                                                    global level within the organization,          senior marketers—and what becomes            integrating their marketing activities to reach




MaRKetInG leaDeRs
                                                    yet be mindful of local market                 clear is the need for organizational         these consumers.
                                                    requirements. The challenge points             design and digital platforms that allow
                                                    to a need for a technology-savvy               for a multi-channel, multi-disciplinary
                                                    global CMO with a sensitivity for              mindset across the organization.             source: sapientnitro Q2 2012 online survey to
                                                                                                                                                114 senior marketers with global responsibilities
                                                    local-global relationships and the
           Written by Hilding Anderson,
  Sr. Manager Research + Insights, Washington, DC
    & Freddie Laker, VP Global Marketing, Miami
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                                                                                                                                                     INTERNATIONAl
                                                      4. Multi-channel misses                             to organize efficiently for the new
                                                      A full 37% of senior marketers don’t                global marketing environment. Our
                                                      believe that their marketing activities             research shows that 56% of marketers




                                                                                                                                                       ECOMMERCE
                                                      are fully integrated across digital and             agree coordination between digital
                                                      traditional channels. The opportunity               and traditional marketing teams is
                                                      to grow revenues from multi-channel                 more challenging than five years
                                                      consumers require investments in                    ago—silos and a lack of coordination



                                                                                                                                                       ExpANsION
                                                      digital experiences that are too large              are getting worse just as the need for
                                                      for a single market, but which must                 collaboration is becoming greater.
                                                      provide flexibility for localization. The
                                                      bottom line is that senior marketers                These trends lead us to believe in the
                                                      need to adopt the “global mindset”                  rise of a new breed of marketer with
                                                      that will let them displace strong                  a global marketing mindset. This new       Written by Don Shields, Multi-Channel Strategy Director, London
                                                      organizational silos, specialized                   global CMO should build strategies
                                                      partners and a reliance on traditional              that cross silos and approaches and
                                                      single-channel campaigns in order to                combine the characteristics of a
                                                                                                          traditional marketer with the skills
                  sOciAl MEDiA risEs TO BE A TOP cOncErn—glOBAlly                                         traditionally associated with a CTO—
                                                                                                          and even with the recently created CXO
                                                                                                          offices. A decade ago the ecommerce
                                                       Q: What are the most important global              or digital function would have reported
                                                       trends in marketing that will impact your          to the CIO, but today we’re seeing
                                                       business in the next 3–5 years?
                                                                                                          about 50% report to the CMO—the
                          Explosion of social media           66%                             #1          single largest bucket of C-level
                                                                                                          oversight for digital.
         growing importance of emerging markets              44%                              #2
                                                                                                          Mastering this evolved global marketing
                                                                                                          mindset could be what defines the most
             Blending of offline/online experiences         41%                               #3
                                                                                                          successful brands of the next decade.
                                                                                                          But having a global mindset isn’t just
                                                                                                          for global brands; as businesses look to
                   Managing global campaigns in the new digital world was underlined as
                   a key challenge. in particular, social media and blending offline/online               export their success into other markets,
                   experiences were key global marketing challenges.                                      brands must increasingly defend
                                                                                                          against new global competition.

                                                      realize the benefits of cross-channel               Top performing firms and their agency
                                                      experiences.                                        partners are already addressing the
                                                                                                          obstacles and adopting the new global
                                                      5. Organizational structures                        mindset to successfully build their
                                                      Too often, the three executive                      brands with a worldwide audience.
                                                      branches of CMO, CEO and CTO claim                  Only the best-prepared organizations
                                                      an overlapping interest in the area of              and CMOs who embrace this mentality
                                                      digital experience, leading to a failure            will thrive.




This article is an excerpt of the Global Marketing Series.
For more information and the full research findings, go to bit.ly/Q0RnB8
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                                     Many retailers in both the usA and               overseas, ASOS simply worked with         constrained by the locations where                invest Wisely in your Website
                                     uK are now realising that, with weak             their shipping partners and changed       they had stores, but now they can fulfill         This does not require a major IT
                                     economies at home, their only real               their checkout to accept addresses        orders anywhere in the UK.                        effort in most cases, though it may
What do these                        hope for substantial sales growth is             in other countries. As sales in a                                                           well lead to a major IT effort after
different stories say                from international expansion. But,               country start to grow, they add           Clas Ohlson is not new to international           the international revenue stream
                                     this is not an easy path to tread; there         additional languages to the product       expansion, having shops and websites              has been proven. Marks & Spencer
about successful                     are many tales of failure to be found            descriptions. How does such a young       in both Norway and Finland, but the UK            choose to go with the Software as a
expansion today?                     next to the success stories. What can            company with only a website grow          was a big jump, both geographically               Service (SaaS) provider Demandware
                                     we learn from these stories and what             and expand so quickly? What is their      and culturally. This jump is the only             to launch their French website.
I found five themes in common        do they tell us about international              secret?                                   website where product is picked,                  Their current website is running
amongst the successful expansions:   expansion in the digital age?                                                              packed and shipped from a warehouse               on the Amazon platform. They
                                                                                      These two examples represent two          in the UK. They had to do this to                 were not ready to undergo a multi-
• Do and don’t overthink             International expansion, in the past,            dramatically different approaches to      accommodate the demand for next-                  million pound re-platforming just
                                     would entail lengthy meetings to                 expanding retail internationally. In      day deliveries from UK customers.                 for the French website. The key
• Invest wisely in your website      plan strategy and investigate the best           between these two extremes you find       They have partnered with a third-party            was less is more. The end goal of a
                                     markets for expansion, with multiple             other retail stories.                     logistics provider (3PL) in a shared              French website was not a glorious
• Keep your early costs low          studies done and endless hours                                                             warehouse facility to keep down costs             technological achievement but
                                     of plotting and planning. A recent               One of our largest clients, Marks         as the website builds in popularity.              resulted in a French ecommerce site
• Have the capacity to keep          example being the much-planned                   & Spencer, has reinvigorated their                                                          that could ship products from existing
  customers happy                    and strategised opening of Best Buy              international expansion efforts.          Do and Don’t Overthink                            UK fulfillment centers.
                                     stores in the UK, including years of             They have reentered France a              The key lesson here is from both ASOS
• Let the customers lead you         preparation and meticulous planning              decade after their exit, with a new       and Marks & Spencer: When they
                                     with thousands of hours of new store             shop on the Champs-Elysées and            started their ecommerce international
                                     staff training. They opened beautiful            a new website. This gives them the        expansion, it was by getting an                   “Bolland would not be drawn on further
                                     shops the size of small aircraft                 advantages of a physical location for     international shipping partner and
                                     hangars across the UK, along with                PR and psychological use with press       modifying checkout to accept foreign               European expansion plans but said the French
                                     a brand new website. We look back                and customers, but allows them to         addresses and credit cards. This does              strategy of targeting a major city with stores
                                     now as Best Buy leaves the shores of             deliver products to anyone in France      not require three years of planning
                                     the UK and retreats to the Americas              via the website. This strategy of         and preparation. Reliable shipping                 and covering the rest of the country with a
                                     where it is also suffering a loss of             targeting shops in major cities with an   partners are available in the UK and               website could be replicated elsewhere.”
                                     market share and sales. This is a very           ecommerce website to cover demand         USA that can explain the complexities
                                     cautionary tale. How does a company              in the rest of the country is a very      of international custom laws and other             –guardian.co.uk, Friday, 1 April, 2011
                                     so well known for customer service               interesting approach.                     logistical hurdles. Multiple payment
                                     and attention to detail end up having to                                                   gateways are available that cover
                                     give up and go home?                             Clas Ohlson, a SapientNitro client in     most major countries for credit card              Keep your Early costs low
                                                                                      Sweden, has recently launched their       transactions and offer fraud protection           This is a recurring theme in all the
                                     Then we turn our gaze to a small                 UK website. They have expanded their      services. A simple selection of                   successful stories. The key is to
                                     online clothing retailer, originally             stores to 12 in major metropolitan        shipping partner and global payment               limit up-front investment until the
                                     named As Seen on Screen (ASOS).                  areas around the UK. They have also       can be done with changes to checkout              new international revenue stream is
                                     This company has grown from                      adopted a strategy of placing stores      on a website, and can be up and                   proven. ASOS does not translate their
                                     nothing to expected sales of £1                  in strategic locations and allowing the   running in less than four months. The             website into a native language until
                                     billion by 2015. They started selling            website to fulfill demand outside of      sooner you decide to act, the sooner              sales from that country indicate a
                                     aggressively overseas two years ago,             those areas. This approach will also      you can start collecting revenue from             strong interest in their products. They
                                     and now have more sales overseas                 allow them to pursue more national        international customers.                          currently only offer six languages and
                                     than within the UK. In order to sell             advertising. They were previously                                                           three of those are different versions




                                                                                191                                                                                         192
                                       TREND
                                         4
of English (American, British and                    ordering to help fine-tune their store
Australian). They continue to grow                   ranges.
revenue and keep costs low.
                                                     Those retailers who successfully
Have the Capacity to Keep                            expand their brand internationally are         US
Customers Happy                                      seeing significant sales gains. In July
                                                                                                 195                               GERMANY

                                                                                                                                    201
This is crucial as it is the flip side of            2012, The Financial Times reported
keeping costs low. You have to invest                that, “Shares in ASOS rose more than                                                                                            INDIA
                                                                                                                                                                                    205
enough so if the offer is a success,                 10 percent after the online fashion
you can meet the demand. Marks &                     group posted a solid increase in UK
                                                                                                                    UK                                     RUSSIA

                                                                                                                                                           203
Spencer and ASOS deal with this the                  sales, bucking the trend of dismal
same way—by having a giant pick,
pack and ship capacity for the UK that
                                                     trading figures from the British high
                                                     street. Although ASOS’s year-on-year                       198
also serves international customers.                 UK sales growth of 8 percent was the
This works well for clothing retailers               smallest among its four divisions, the



                                                                                                INTERNATIONAL PERSPECTIVES
where parcel sizes are often small                   figures cheered City investors who
and light. It is the heavier goods, like             have become accustomed to gloomy
tools, electronics and homewares                     news from retailers. ... The figures
that present the real problems. Clas