Havas Group- The future of retail
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The document discusses predictions for the future of retail experiences. It predicts that over the next 10 years, retailers will need to create highly personalized experiences using social and digital data to stay relevant. It also predicts that storytelling and emotional branding will become even more important as people form stronger attachments to meaningful brands. Finally, it suggests the lines between online and offline customer experiences will blur completely as digital technologies continue to merge the two worlds and empower customers to both create and disrupt retail brands.
Havas Group- The future of retail
- 1. From nomads to narcissists - the Future of the Retail Experience
- 2. Working with the trends and technologies that make a difference Research into the impact of digital disruption Workshop and create innovative solutions for brands Supporting meaningful businesses
- 3. In the next 30 minutes I Shop, Therefore I Am – understanding the psychology of shopping Taking us to 2020 and beyond 1. Up close and personal 2. Pressing the story button - making retail mean more 3. Shopping on steroids though digital 4. Customers who make and break
- 4. How can you predict the future? 1. Understand how humans actually behave (they have brains, not just clicks) 2. Know the field – inside out (understand the trends and collect the case studies) 3. Adopt a scientific approach (test and learn, and then test again) 4. Distinguish signal from noise (look for long-term rather than fads)
- 6. What is a consumer? “A shopper, a chooser, a communicator, a character explorer, a pleasure seeker, a rebel, a victim, an activist, and a citizen…A consumer is an artist whose purchases are the brushstrokes of an ongoing cultural process” (Michael Thomas, 2000).
- 7. There’s three things that shoppers always need, now and forever Value for money Strong self-esteem A social experience
- 8. Value for money makes customers feel like they’re in control “When the light starts to flash, mothers sometimes abandon their babies. Shoppers have pushed clerks up onto counter tops and ripped merchandise to shreds.... When they miss a special, some shoppers berate the store's employees. Others steal tagged merchandise from the carts of their more successful rivals. In April, two women vying for discounted jelly beans at Mr. Reed's store began throwing punches. Money and keys "went everywhere," marvels Mr. Reed.” (Wall Street Journal, 1987 referring to K Marts ‘blue-light specials’)
- 9. If you’re regularly boosting self-esteem your customers will think you care “We consume not only to create some impressive exterior, but also to alleviate interior psychological pain.” Cornell university 2010
- 10. And shopping is an inherently social experience… …we ‘mall’.
- 11. And this will only increase as we live more digital lives 0.6% 17.8% 47.7% 46.2% 42.4% 40.1% 37.7% 33.9% 31.9% I get inspired by images of products shared by others I like to get recommendations from friends Social networks help me find out what is current and popular I get special offers on social networks I like to get a second opinion from friends I like to look at brand pages on social networking sites I watch videos of how products or services work You can access good content on social networking sites I like to get recommendations from trusted experts on social networking I like to see what celebrities are wearing/doing/where they are going etc.. Source: Havas Media, September 2013 (342). Why do you use social networks to get ideas and inspiration for purchases? 36.8% 43.3% Other sites
- 12. Create a commerce phenomenon by ticking all the psychological boxes
- 13. Getting up close and personal. Over the next 10 years, data will become the most valuable asset that marketers own. Retailers will need to create the most personal, relevant experiences or run the risk of losing consumer’s interest.
- 14. Social and digital data can get us closer to shoppers than ever before
- 15. Listening to and predicting behaviour is just the start
- 16. Retail brands and robots will learn what you look like, where you go, how you shop…
- 17. Pressing the story button – making retail mean more. John Lewis has taught us of the power of storytelling and the benefits are well documented. But that’s not enough. Over the next five years they’ll need to play a more active role in the personal and collective wellbeing of us all.
- 18. Getting emotional will count even more in the future 3 in 8 people love brands more than they love their spouses or kids (Neuroscientist Dr. Paul Zak, 2014) BBC are busy testing all their content for emotional response to identify the right way to engage viewers Brands like Coors Light are using neuroscience and ‘brain hats’ to work out exactly what type of humour to use OKCupid this year famously conducted experiments with bad matches and honesty levels
- 19. But this is the problem
- 20. Less than 20% of social media stories generate emotional response 16272
- 21. Meaningful brands outperform the stock market by 120% Today Aspirational – highly Creative brands who portray a lifestyle (i.e. TV campaign ‘me styled by me’ Cost-advantage Differentiation Make a difference Tomorrow Functional – driven by price and convenience, little if no brand-building. Relies on DR and PPC activity for salience. Meaningful– increases brand equity and loyalty by making a positive impact to peoples’ lives (i.e. Dine in for a Tenner, Shwapping, Leading Ladies)
- 22. Making an impact on people’s lives , not just their wallets
- 23. Shopping on steroids. There will be no such thing as an ‘online’ or ‘offline’ customer journey… brands will need to act like entertainment brands, and provide fully digitised experiences.
- 24. Digital relationships are evolving Technology has moved from something we used to be scared of, to something we’re scared of living without
- 25. Merging on and offline worlds
- 26. Be the future brand that consumers will store in their memories
- 27. (For good and bad reasons)
- 28. Customers who make and break things Over the next 5 years access to software and iterative hardware will mean that real people will be creating alongside us, and they may have better ideas (and solutions). The retail brands that thrive, will fuel this new form of digital savviness.
- 29. The next big creative innovations are going to come from ‘them’ (not us!)
- 31. And real people are getting better at making and breaking things
- 32. But these are things happening today, so we need to start thinking about tomorrow
Editor's Notes
- #3: Everyone has a lab, but where we like to think we make a difference is through innovation that lasts. There is absolutely zero point in me talking about driverless cars and even Google Glass when these aren’t the innovations that matter to my clients and aren’t even tangible enough for them to work with yet.
- #6: ‘I shop, therefore I am’ –that’s only slightly an introduction to me, more an introduction to the theme of this presentation. This well-used phrase, as often famous quotes are used, has become so flippantly referenced in popular culture that not many people are aware of its original intent. In fact the term was coined by the feminist conceptual artist Barbara Kruger. Much of her work questions the viewer about feminism, consumerism, and individual autonomy and desire – this picture was created ‘to expose and challenge the notion of identity construction through acts of consumption.’ Everything we buy tells a tale of who we are, and who we want the world to think we are. The logo, the bag, the item itself. Deep stuff. Now Barbara would be turning in her grave if she heard what I’m about to say next. If she was dead, she’s not dead, this was only made in 1987, but it’s grave-turning stuff, because I think this is amazing. And now, thanks to social media, this phrase is all the more relevant.
- #19: Oxytocin. The annoying orange doesn’t have a story, he just bleats and gets on your nerves.
- #25: The fact is that people’s relationships with technology have changed, dramatically over the last ten or twenty years. It used to be something we were afraid of, something we put in a corner, and now technology is something we’re afraid of living without. Look at how tech and computers are represented in film – taking over the world versus something we fall in love with. (Her = a documentary about the not too distant future)
- #30: When do we ever allow for people to hack or break our advertising campaigns?
- #32: When do we ever allow for people to hack or break our advertising campaigns?
- #33: What we’re left with, is an always-on, always connected consumer, where being and living digital is the norm.