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Engaging Connected Consumers - Strategies for Brands and Retailers

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Phil Hendrix

This document provides an overview of strategies for brands and retailers to engage connected consumers. It discusses frameworks like the customer experience framework, motivations of consumers, and PEER strategies. Case studies are presented that use location, social media, and mobile to enhance customer experiences. The document also covers topics like digital signals, the 8 layers of location, metaphors for mobile, and the elements of SoLoMo (social, location, mobile). The overall summary is that the document outlines strategies for businesses to better understand customer needs and leverage new technologies like mobile, location services, and social media to improve engagement with connected consumers.

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Engaging Connected Consumers – Strategies for Brands and Retailers November 2013 Dr. Phil Hendrix Director, immr and Gigaom Research analyst www.immr.org 1 (770) 61201488 phil.hendrix@immr.org @phil_hendrix 1 Note: When posting excerpts or citing, please reference “Engaging Connected Consumers,” prepared by Dr. Phil Hendrix, immr and link to www.immr.org Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
About me Research Consultant Research based Strategy for Very New Products and Markets Advisor – Startups • Product Market Fit • Value Proposition • Growth strategy Catalyst • Innovation • Strategy Analyst • Emerging Technologies • Mobile/M Commerce • Location, Context Previously Mercer 2 Diamond Cluster Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
Topics for Discussion Overview, Cases 7 Frameworks CX (Customer Experience) 8 Layers of Location Frictions0Should0Wants SoLoMo Digital Signals M4M (Metaphors for Mobile) PEER (Personalize – Enable – Enhance – Reward) Emerging Applications, Implications 10 Strategies for Brands and Retailers 3 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
Related Reports Engaging Connected Consumers Series 4 Mobile Shopping Series Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
Why is this Important? 5 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
Mobile Driving New Behaviors Mobile Capabilities 9 in 10 Smartphone Owners have their smartphone with them “most of the time” or “always” Source: Edison Research 6 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org 6
Cumulative # of Downloads – Apple App Store 50B 7 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
Case #1 – Coke Happiness Machine Brands Connecting in New Ways 8 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org 8
Case #1 – Coke Happiness Machine “We used free stuff to surprise people but what we gave away was [a dose of] happiness and a smile.” 9 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org 9
Case #2 – Connecting Digitally For Discussion: • What’s in it for the consumer? • Destination(s)/ Applications? • Value to the brand? • Value to the establishment? 10 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org 10
Case #3. Social0Geo Targeting Birds of a Feather do Flock together • Follow/fans • Tweets • Check0ins Foo Fighters 11 CTR Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org 7x 11
Case #4 – “Good Push” Good Push 12 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org 12
Case #5 – “Mobile Concierge” 13 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org 13
Social Networks/Social Media Use Cases Consumer Uses Description Consumer Generated Content Social media make it easy for individuals to “produce” and publish their own content. enormously popular activity. Social Media Individuals spending more of their time on social media, shifting away from the rest*of*the*web. Sentiment Consumers are expressing views on a wide range of topics, including products, brands and their experiences Discovery Social media is making it easier for individuals to discover and “follow” topics of interest, including new products, artists, etc. Influencers SNM makes it easier for individuals to discover others with similar interests, including experts or simply “persons in the know” Wish lists Individuals can post and share products they’re interested in Sharing purchases Individuals are “announcing” plans, purchases they make Coordinating Individuals are using social media to plan, decide what to do Company Uses Description Targeting Using social media content, volume to target campaigns Influencer Analysis Cos are identifying influencers, using to “seed” campaigns Sentiment Analysis Companies are monitoring how they are being discussed Service Recovery Detect problems customers are experiencing, respond Market Research Mining social data to identify ideas, opportunities for new products 14 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
Transparency in Real0time 15 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org 15
Mobile and Engagement 16 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
“The Remote for Our Lives” 17 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
Other Examples 18 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
Business and Consumers “Engaging” 19 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
Wroblewski’s Theorem “Anything that can be connected to the Internet, will be.” Luke Wroblewski Philips Hue Bulbs 20 Nest Learning Thermostat Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
7 Frameworks CX (Customer Experience) Frictions0Shoulds0Wants Digital Signals 8 Layers of Location SoLoMo Metaphors for Mobile PEER (Personalize – Enable – Enhance – Reward) 21 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
Customer Experience 22 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
Customer Experience > Path0to0Purchase Discover Choose Buy 23 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org Use
Key Moments of Truth for Customers 24 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
Stops Along the Consumer Journey 25 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org Source: If Shopping is Broken, Can Mobile Fix It? Dr. Phil Hendrix, immr
Can Mobile Save Shopping? Source: If Shopping is Broken, Can Mobile Fix It? Dr. Phil Hendrix, immr 26 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
Customer Motivations 27 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
What Motivates Consumers Cost Time Annoyances Risk Uncertainty Bad outcomes 28 “Satisfice” Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org “Maximize” Recognition Acceptance Entertainment Food Fun Maximizing Wants Education Social “Good for You” (Resolutions) Savings Avoid, minimize, or eliminate Fitness Enabling Shoulds Green Minimizing Friction
PEER 29 SM Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
From the 4 P’s to PEER Learn† & Adapt Surprise/ Delight Remove Frictions Reinforce † Securely, with full transparency Source: Raising the Bar – How Leading Companies are Boosting Customer Loyalty with Mobile and PEER Strategies, Dr. Phil Hendrix, immr 30 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
SM Examples of Mobile PEER Strategies Personalize Leverage data about consumers and their context to increase the relevance, timeliness and value of communications, offers and customer experiences Enable Help customers complete tasks and accomplish their goals by minimizing the risk, time, and effort as they shop, compare, purchase and use your products Enhance Surprise and delight customers by anticipating and helping them fulfill functional requirements, emotional needs and aspirations Reward Using feedback, encouragement, rewards and social influence, reinforce customers as they engage in behaviors that are mutually beneficial 31 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org Allows airports to tailor info for travelers based on profile, destination Mini owners can detect other owners, share tips Guests can manage experience (FastPasses, reservations, rides, etc.) Allows hotels to personalize rewards, experiences based on guest’s social profile
M4M (Metaphors for Mobile) 32 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
Beyond the Remote – Metaphors for Mobile Source: Raising the Bar – How Leading Companies are Boosting Customer Loyalty with Mobile and PEER Strategies, Dr. Phil Hendrix 33 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
8 Layers of Location 34 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
Corollary – “Everything’s a Pixel” 8 Layers of Location 35 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
Evolving toward Micro0Locations 36 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
Digital Signals 37 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
Consumers’ Digital Signals Location Social History Source: Tuning into Consumers’ Digital Signals, Dr. Phil Hendrix, immr 38 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
Elements of SoLoMo 39 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
The Elements of SoLoMo Mobile Location X 40 Social X Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org 40
Era of Big Data 41 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
Capturing, Sharing Images Which siteO Oreached 10m U.S. monthly unique visitors faster than any independent site in history? O is generating more referral traffic to websites than YouTube, Google+, and LinkedIn combined? 42 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org 42
Social Media Stats – July 2013 Source: http://growingsocialmedia.com/social*media*statistics*and*facts*of*2013*infographic/ 43 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
Data to Grow Exponentially 44 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
Data Tsunami 45 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
The “Data Layer” Source: John Battelle, Web 2.0 Conference, http://map.web2summit.com/#dl 46 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
How Companies Are Using Big Data 47 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
Tuning into Consumers’ Digital Signals Location Social History Source: Tuning into Consumers’ Digital Signals, Dr. Phil Hendrix, immr 48 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
Data Fueling M0Commerce Data Mobile Concierge Mobile Marketing Data Mobile Rewards 49 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org Data Mobile Payment Data
“Big Data” includes Cloud, Algorithms Location Algorithms Social History Search • Auto-complete • Google Instant • Proximity Search • Image Search • Personalized SERs 50 Augmented Reality Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org Messages, Ads, and Offers
Big Data Applications Shown below are illustrative use cases for Big Data, with an app/provider shown for each. While these applications are not unique to mobile, they are especially important in the context of mobile, given small screen sizes, users’ limited attention spans, dynamic and contextual usage, etc. Category Description Audience Profiling and Targeting Ingests large amounts of data, including unstructured, location* based data (photos, place data, event data, digital, social, etc.) Applies ML to extracts patterns from the data Profiles discrete audience segments in terms of “dynamic context” Mobile Advertising Optimization Employs automated, algorithmic solutions to adjust bids in real* time based on the performance of prior impressions Recommendation Engines Automatically uncovers unexpected buying patterns Learn from previous successful/unsuccessful recommendations Content Optimization Shows visitors optimal content, based on interests, viewing behavior, time*of*day and many other variables Audio and Image0 based Search Compares, finds object in a database similar to a given sample (e.g., clip from a song, TV program; image of a product; etc.) Text Analytics/ Sentiment Analysis Analyzes unstructured text, infers meaning Used in wide range of applications, from sentiment analysis to opinion mining, market research and others †Acquired 51 by Walmart Sept. 2011 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org App/Provider
Big Data Suppliers Shown below are leading Big Data vendors, with a brief explanation of their role in the value chain. Category Description Data Sources Companies that aggregate and supply data from social media, demographics, geo*referenced databases and many other sources Cloud computing Provide cloud storage and computing capabilities Offer the flexibility to dynamically scale as demand expands/shrinks, pay on a variable basis Databases Provide databases specifically architected for big data, MPP (massive parallel processing) and speed High0performance Computing Provide computing platforms specifically developed to process and analyze big data Machine Learning/ Algorithms Provide advanced analytics to solve large, complex problems at scale and in (near) real*time Visualization Given the complexity of analyzing and interpreting Big Data, visualization of results, especially for Business Intelligence applications, is important 52 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org Vendors
Strategies for Brands and Retailers 53 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
Are You Tapping into PEER? Learn† & Adapt Surprise/ Delight Remove Frictions Reinforce † Securely, with full transparency Source: Raising the Bar – How Leading Companies are Boosting Customer Loyalty with Mobile and PEER Strategies, Dr. Phil Hendrix, immr 54 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
Are You Helping Customers Accomplish their Goals? Cost Time Annoyances Risk Uncertainty Bad outcomes 55 “Satisfice” “Maximize” Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org Recognition Acceptance Entertainment Food Fun Maximizing Wants Education Social “Good for You” (Resolutions) Savings Avoid, minimize, or eliminate Fitness Enabling Shoulds Green Minimizing Friction
Are You Managing Numerator and Denominator? Wants Loyalty = f Customer Benefits Customer Effort + Shoulds Frictions Source: Raising the Bar – How Leading Companies are Boosting Customer Loyalty with Mobile and PEER Strategies, Dr. Phil Hendrix 56 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
Are you Engaged? Or Merely Engaging? Expectations KnowO What I Like Who I am… Where I am What I respond to What’s Nearby What I’ve bought What’s going On Where I’ve been What I need Where I’m going Source: How SoLoMo is Empowering Consumers, Transforming Shopping and Disrupting Advertising and Retailing, Dr. Phil Hendrix 57 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
Are You Tuned in to Consumers’ Digital Signals? Location Social History Source: Tuning into Consumers’ Digital Signals, Dr. Phil Hendrix, immr 58 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
Are You Engaging by Consumers’ Rules? Personalized Relevant Right0time Rewarding Source: Drive Revenue and Loyalty by Engaging Mobile and Social Consumers, Dr. Phil Hendrix, immr 59 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
Have You Defined Your Role(s) in Customers’ Lives? Align Organization around Role(s) Source: Raising the Bar – How Leading Companies are Boosting Customer Loyalty with Mobile and PEER Strategies, Dr. Phil Hendrix 60 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
Is Your House of Loyalty “Built to Last?” Source: Raising the Bar – How Leading Companies are Boosting Customer Loyalty with Mobile and PEER Strategies, Dr. Phil Hendrix 61 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
Are You Doubled Down on Innovation? Remember… Paul Graham, YCombinator “Returns are concentrated in a few big winners” “Best ideas look initially like bad ideas…” Stage 4 Payoff Stage 3 Stage 2 Stage 1 Keeping Up “There’s an app for that” Mobilizing Processes Connecting to: Internal data External data Platforms Partners Leapfrogging Competitors Marketing Sales Finance Operations Field service HR Legal Support IT Time and Investment Source: Mobilizing the Enterprise, Dr. Phil Hendrix, immr 62 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org Mobile Innovation Agile Development Small bets All in
Are You Making the Right Strategic Bets? Source: Which Mobile Shopping Apps Do Consumers Value Most, Dr. Phil Hendrix, forthcoming 63 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
Are You Hitting on All 8 Cylinders? 12 Social Currency Personalization Customer MOTs Moments of Truth Design (UI/UX/Emotion) User Value Optimization Business Value Security Systems of Engagement Analytics Systems Integration Anticipatory 64 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org Systems of Record
Engaging Connected Consumers – Recap of 10 Strategies 1. Tap into PEER 2. Help Customers Accomplish their Goals 3. Manage Numerator (Wants/Shoulds) and Denominator (Frictions) 4. Focus on Engaging Consumers, not just “Being Engaging” 5. Tune into Consumers’ Digital Signals 6. Define your Role(s) in Customers’ Lives (not just jobs) 7. Construct a House of Loyalty that’s “Built to Last” 8. Double Down on Innovation 9. Make the Right Strategic Bets 10. Hit on all 12 Cylinders (including Emotional Design, Anticipatory) 65 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
The Future of Marketing is Here Hyper0local Audiences Micro0locations Micro Social Networks Mashups Filters Curation Persistent Location Ambient Analytics PEER Yield Management Source: Dr. Phil Hendrix, immr 66 http://www.immr.org/mobile*remaking*marketing*201210.pdf Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org 66
Appendix 67 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
Bio – Dr. Phil Hendrix Dr. Phil Hendrix is the founder and director of immr, a research and advisory firm focused on market opportunities afforded by new technologies, and an analyst with GigaOm Pro. He specializes in helping organizations evaluate and capitalize on opportunities that are new*to* customers and new*to*market. Dr. Hendrix has extensive experience uncovering customer needs, identifying triggers and hurdles to adoption, and developing strategies that unlock market opportunities, both B2C and B2B. Dr. Phil Hendrix Director, immr www.immr.org +1 (770) 61201488 phil.hendrix@immr.org @phil_hendrix As an analyst, Phil focuses on mobile innovation and the implications for companies across industries. He is a regular contributor at leading industry conferences, including GigaOm’s Mobilize, Structure:Data, Street Fight (hyperlocal), ad:tech, iMedia Summit, Social*Loco and others. His current work focuses on mobile and its impact on consumer behavior, especially shopping, M*commerce and mobile payment. As a consultant and advisor, Phil has led significant engagements with startups and Fortune 100 clients in mobile, consumer electronics, and related categories, including financial services, transportation, insurance and others. He works closely with senior management and project teams on key issues, including market sizing, segmentation, positioning, and branding as well as innovation, user experience, and customer retention. Over the course of his career, Phil has helped clients conceive and successfully launch dozens of new products, services and businesses. Before founding immr, Phil was a partner with DiamondCluster (strategy and technology consultancy), founder and head of IMS (Integrated Measurement Systems), and a principal with Mercer Management Consulting (now Oliver Wyman). He has held faculty positions at Emory University and the University of Michigan, where he taught courses in marketing, research, and buyer behavior for MBAs and executives. While at Michigan Dr. Hendrix also held a joint appointment as a research scientist in the Survey Research Center, Institute for Social Research. Additional information on immr perspectives and reports prepared by Dr. Hendrix is available at immr and Slideshare, with additional information available at GigaOm Pro. 68 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
immr – Recent and Forthcoming Reports Innovating Innovation† Which Mobile Shopping Apps Do Consumers Value Most?† If Shopping is Broken, Can Mobile Fix it? Drive Revenue and Customer Loyalty by Engaging Mobile and Social Consumers Engaging Connected Consumers – Strategies for Brands, Retailers and Local Businesses† Raising the Bar – Mobile and Customer Loyalty Social + Location + Mobile: SoLoMo Analytics and the Transformation of Shopping How Consumers Are Using Local Search Mobilizing the Enterprise with Custom Mobile Solutions: Pt. 1 and 2 The Promise of Hyperlocal: Opportunities for Publishers and Developers Tuning into Consumers’ Digital Signals How SoLoMo is Empowering Consumers, Transforming Shopping, and Disrupting Advertising and Retailing Location – the Epicenter of Mobile Innovation 69 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org † Forthcoming

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Engaging Connected Consumers - Strategies for Brands and Retailers

  • 1. Engaging Connected Consumers – Strategies for Brands and Retailers November 2013 Dr. Phil Hendrix Director, immr and Gigaom Research analyst www.immr.org 1 (770) 61201488 phil.hendrix@immr.org @phil_hendrix 1 Note: When posting excerpts or citing, please reference “Engaging Connected Consumers,” prepared by Dr. Phil Hendrix, immr and link to www.immr.org Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
  • 2. About me Research Consultant Research based Strategy for Very New Products and Markets Advisor – Startups • Product Market Fit • Value Proposition • Growth strategy Catalyst • Innovation • Strategy Analyst • Emerging Technologies • Mobile/M Commerce • Location, Context Previously Mercer 2 Diamond Cluster Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
  • 3. Topics for Discussion Overview, Cases 7 Frameworks CX (Customer Experience) 8 Layers of Location Frictions0Should0Wants SoLoMo Digital Signals M4M (Metaphors for Mobile) PEER (Personalize – Enable – Enhance – Reward) Emerging Applications, Implications 10 Strategies for Brands and Retailers 3 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
  • 4. Related Reports Engaging Connected Consumers Series 4 Mobile Shopping Series Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
  • 5. Why is this Important? 5 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
  • 6. Mobile Driving New Behaviors Mobile Capabilities 9 in 10 Smartphone Owners have their smartphone with them “most of the time” or “always” Source: Edison Research 6 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org 6
  • 7. Cumulative # of Downloads – Apple App Store 50B 7 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
  • 8. Case #1 – Coke Happiness Machine Brands Connecting in New Ways 8 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org 8
  • 9. Case #1 – Coke Happiness Machine “We used free stuff to surprise people but what we gave away was [a dose of] happiness and a smile.” 9 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org 9
  • 10. Case #2 – Connecting Digitally For Discussion: • What’s in it for the consumer? • Destination(s)/ Applications? • Value to the brand? • Value to the establishment? 10 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org 10
  • 11. Case #3. Social0Geo Targeting Birds of a Feather do Flock together • Follow/fans • Tweets • Check0ins Foo Fighters 11 CTR Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org 7x 11
  • 12. Case #4 – “Good Push” Good Push 12 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org 12
  • 13. Case #5 – “Mobile Concierge” 13 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org 13
  • 14. Social Networks/Social Media Use Cases Consumer Uses Description Consumer Generated Content Social media make it easy for individuals to “produce” and publish their own content. enormously popular activity. Social Media Individuals spending more of their time on social media, shifting away from the rest*of*the*web. Sentiment Consumers are expressing views on a wide range of topics, including products, brands and their experiences Discovery Social media is making it easier for individuals to discover and “follow” topics of interest, including new products, artists, etc. Influencers SNM makes it easier for individuals to discover others with similar interests, including experts or simply “persons in the know” Wish lists Individuals can post and share products they’re interested in Sharing purchases Individuals are “announcing” plans, purchases they make Coordinating Individuals are using social media to plan, decide what to do Company Uses Description Targeting Using social media content, volume to target campaigns Influencer Analysis Cos are identifying influencers, using to “seed” campaigns Sentiment Analysis Companies are monitoring how they are being discussed Service Recovery Detect problems customers are experiencing, respond Market Research Mining social data to identify ideas, opportunities for new products 14 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
  • 15. Transparency in Real0time 15 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org 15
  • 16. Mobile and Engagement 16 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
  • 17. “The Remote for Our Lives” 17 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
  • 18. Other Examples 18 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
  • 19. Business and Consumers “Engaging” 19 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
  • 20. Wroblewski’s Theorem “Anything that can be connected to the Internet, will be.” Luke Wroblewski Philips Hue Bulbs 20 Nest Learning Thermostat Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
  • 21. 7 Frameworks CX (Customer Experience) Frictions0Shoulds0Wants Digital Signals 8 Layers of Location SoLoMo Metaphors for Mobile PEER (Personalize – Enable – Enhance – Reward) 21 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
  • 22. Customer Experience 22 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
  • 23. Customer Experience > Path0to0Purchase Discover Choose Buy 23 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org Use
  • 24. Key Moments of Truth for Customers 24 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
  • 25. Stops Along the Consumer Journey 25 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org Source: If Shopping is Broken, Can Mobile Fix It? Dr. Phil Hendrix, immr
  • 26. Can Mobile Save Shopping? Source: If Shopping is Broken, Can Mobile Fix It? Dr. Phil Hendrix, immr 26 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
  • 27. Customer Motivations 27 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
  • 28. What Motivates Consumers Cost Time Annoyances Risk Uncertainty Bad outcomes 28 “Satisfice” Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org “Maximize” Recognition Acceptance Entertainment Food Fun Maximizing Wants Education Social “Good for You” (Resolutions) Savings Avoid, minimize, or eliminate Fitness Enabling Shoulds Green Minimizing Friction
  • 29. PEER 29 SM Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
  • 30. From the 4 P’s to PEER Learn† & Adapt Surprise/ Delight Remove Frictions Reinforce † Securely, with full transparency Source: Raising the Bar – How Leading Companies are Boosting Customer Loyalty with Mobile and PEER Strategies, Dr. Phil Hendrix, immr 30 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
  • 31. SM Examples of Mobile PEER Strategies Personalize Leverage data about consumers and their context to increase the relevance, timeliness and value of communications, offers and customer experiences Enable Help customers complete tasks and accomplish their goals by minimizing the risk, time, and effort as they shop, compare, purchase and use your products Enhance Surprise and delight customers by anticipating and helping them fulfill functional requirements, emotional needs and aspirations Reward Using feedback, encouragement, rewards and social influence, reinforce customers as they engage in behaviors that are mutually beneficial 31 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org Allows airports to tailor info for travelers based on profile, destination Mini owners can detect other owners, share tips Guests can manage experience (FastPasses, reservations, rides, etc.) Allows hotels to personalize rewards, experiences based on guest’s social profile
  • 32. M4M (Metaphors for Mobile) 32 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
  • 33. Beyond the Remote – Metaphors for Mobile Source: Raising the Bar – How Leading Companies are Boosting Customer Loyalty with Mobile and PEER Strategies, Dr. Phil Hendrix 33 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
  • 34. 8 Layers of Location 34 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
  • 35. Corollary – “Everything’s a Pixel” 8 Layers of Location 35 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
  • 36. Evolving toward Micro0Locations 36 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
  • 37. Digital Signals 37 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
  • 38. Consumers’ Digital Signals Location Social History Source: Tuning into Consumers’ Digital Signals, Dr. Phil Hendrix, immr 38 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
  • 39. Elements of SoLoMo 39 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
  • 40. The Elements of SoLoMo Mobile Location X 40 Social X Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org 40
  • 41. Era of Big Data 41 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
  • 42. Capturing, Sharing Images Which siteO Oreached 10m U.S. monthly unique visitors faster than any independent site in history? O is generating more referral traffic to websites than YouTube, Google+, and LinkedIn combined? 42 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org 42
  • 43. Social Media Stats – July 2013 Source: http://growingsocialmedia.com/social*media*statistics*and*facts*of*2013*infographic/ 43 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
  • 44. Data to Grow Exponentially 44 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
  • 45. Data Tsunami 45 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
  • 46. The “Data Layer” Source: John Battelle, Web 2.0 Conference, http://map.web2summit.com/#dl 46 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
  • 47. How Companies Are Using Big Data 47 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
  • 48. Tuning into Consumers’ Digital Signals Location Social History Source: Tuning into Consumers’ Digital Signals, Dr. Phil Hendrix, immr 48 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
  • 49. Data Fueling M0Commerce Data Mobile Concierge Mobile Marketing Data Mobile Rewards 49 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org Data Mobile Payment Data
  • 50. “Big Data” includes Cloud, Algorithms Location Algorithms Social History Search • Auto-complete • Google Instant • Proximity Search • Image Search • Personalized SERs 50 Augmented Reality Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org Messages, Ads, and Offers
  • 51. Big Data Applications Shown below are illustrative use cases for Big Data, with an app/provider shown for each. While these applications are not unique to mobile, they are especially important in the context of mobile, given small screen sizes, users’ limited attention spans, dynamic and contextual usage, etc. Category Description Audience Profiling and Targeting Ingests large amounts of data, including unstructured, location* based data (photos, place data, event data, digital, social, etc.) Applies ML to extracts patterns from the data Profiles discrete audience segments in terms of “dynamic context” Mobile Advertising Optimization Employs automated, algorithmic solutions to adjust bids in real* time based on the performance of prior impressions Recommendation Engines Automatically uncovers unexpected buying patterns Learn from previous successful/unsuccessful recommendations Content Optimization Shows visitors optimal content, based on interests, viewing behavior, time*of*day and many other variables Audio and Image0 based Search Compares, finds object in a database similar to a given sample (e.g., clip from a song, TV program; image of a product; etc.) Text Analytics/ Sentiment Analysis Analyzes unstructured text, infers meaning Used in wide range of applications, from sentiment analysis to opinion mining, market research and others †Acquired 51 by Walmart Sept. 2011 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org App/Provider
  • 52. Big Data Suppliers Shown below are leading Big Data vendors, with a brief explanation of their role in the value chain. Category Description Data Sources Companies that aggregate and supply data from social media, demographics, geo*referenced databases and many other sources Cloud computing Provide cloud storage and computing capabilities Offer the flexibility to dynamically scale as demand expands/shrinks, pay on a variable basis Databases Provide databases specifically architected for big data, MPP (massive parallel processing) and speed High0performance Computing Provide computing platforms specifically developed to process and analyze big data Machine Learning/ Algorithms Provide advanced analytics to solve large, complex problems at scale and in (near) real*time Visualization Given the complexity of analyzing and interpreting Big Data, visualization of results, especially for Business Intelligence applications, is important 52 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org Vendors
  • 53. Strategies for Brands and Retailers 53 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
  • 54. Are You Tapping into PEER? Learn† & Adapt Surprise/ Delight Remove Frictions Reinforce † Securely, with full transparency Source: Raising the Bar – How Leading Companies are Boosting Customer Loyalty with Mobile and PEER Strategies, Dr. Phil Hendrix, immr 54 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
  • 55. Are You Helping Customers Accomplish their Goals? Cost Time Annoyances Risk Uncertainty Bad outcomes 55 “Satisfice” “Maximize” Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org Recognition Acceptance Entertainment Food Fun Maximizing Wants Education Social “Good for You” (Resolutions) Savings Avoid, minimize, or eliminate Fitness Enabling Shoulds Green Minimizing Friction
  • 56. Are You Managing Numerator and Denominator? Wants Loyalty = f Customer Benefits Customer Effort + Shoulds Frictions Source: Raising the Bar – How Leading Companies are Boosting Customer Loyalty with Mobile and PEER Strategies, Dr. Phil Hendrix 56 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
  • 57. Are you Engaged? Or Merely Engaging? Expectations KnowO What I Like Who I am… Where I am What I respond to What’s Nearby What I’ve bought What’s going On Where I’ve been What I need Where I’m going Source: How SoLoMo is Empowering Consumers, Transforming Shopping and Disrupting Advertising and Retailing, Dr. Phil Hendrix 57 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
  • 58. Are You Tuned in to Consumers’ Digital Signals? Location Social History Source: Tuning into Consumers’ Digital Signals, Dr. Phil Hendrix, immr 58 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
  • 59. Are You Engaging by Consumers’ Rules? Personalized Relevant Right0time Rewarding Source: Drive Revenue and Loyalty by Engaging Mobile and Social Consumers, Dr. Phil Hendrix, immr 59 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
  • 60. Have You Defined Your Role(s) in Customers’ Lives? Align Organization around Role(s) Source: Raising the Bar – How Leading Companies are Boosting Customer Loyalty with Mobile and PEER Strategies, Dr. Phil Hendrix 60 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
  • 61. Is Your House of Loyalty “Built to Last?” Source: Raising the Bar – How Leading Companies are Boosting Customer Loyalty with Mobile and PEER Strategies, Dr. Phil Hendrix 61 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
  • 62. Are You Doubled Down on Innovation? Remember… Paul Graham, YCombinator “Returns are concentrated in a few big winners” “Best ideas look initially like bad ideas…” Stage 4 Payoff Stage 3 Stage 2 Stage 1 Keeping Up “There’s an app for that” Mobilizing Processes Connecting to: Internal data External data Platforms Partners Leapfrogging Competitors Marketing Sales Finance Operations Field service HR Legal Support IT Time and Investment Source: Mobilizing the Enterprise, Dr. Phil Hendrix, immr 62 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org Mobile Innovation Agile Development Small bets All in
  • 63. Are You Making the Right Strategic Bets? Source: Which Mobile Shopping Apps Do Consumers Value Most, Dr. Phil Hendrix, forthcoming 63 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
  • 64. Are You Hitting on All 8 Cylinders? 12 Social Currency Personalization Customer MOTs Moments of Truth Design (UI/UX/Emotion) User Value Optimization Business Value Security Systems of Engagement Analytics Systems Integration Anticipatory 64 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org Systems of Record
  • 65. Engaging Connected Consumers – Recap of 10 Strategies 1. Tap into PEER 2. Help Customers Accomplish their Goals 3. Manage Numerator (Wants/Shoulds) and Denominator (Frictions) 4. Focus on Engaging Consumers, not just “Being Engaging” 5. Tune into Consumers’ Digital Signals 6. Define your Role(s) in Customers’ Lives (not just jobs) 7. Construct a House of Loyalty that’s “Built to Last” 8. Double Down on Innovation 9. Make the Right Strategic Bets 10. Hit on all 12 Cylinders (including Emotional Design, Anticipatory) 65 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
  • 66. The Future of Marketing is Here Hyper0local Audiences Micro0locations Micro Social Networks Mashups Filters Curation Persistent Location Ambient Analytics PEER Yield Management Source: Dr. Phil Hendrix, immr 66 http://www.immr.org/mobile*remaking*marketing*201210.pdf Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org 66
  • 67. Appendix 67 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
  • 68. Bio – Dr. Phil Hendrix Dr. Phil Hendrix is the founder and director of immr, a research and advisory firm focused on market opportunities afforded by new technologies, and an analyst with GigaOm Pro. He specializes in helping organizations evaluate and capitalize on opportunities that are new*to* customers and new*to*market. Dr. Hendrix has extensive experience uncovering customer needs, identifying triggers and hurdles to adoption, and developing strategies that unlock market opportunities, both B2C and B2B. Dr. Phil Hendrix Director, immr www.immr.org +1 (770) 61201488 phil.hendrix@immr.org @phil_hendrix As an analyst, Phil focuses on mobile innovation and the implications for companies across industries. He is a regular contributor at leading industry conferences, including GigaOm’s Mobilize, Structure:Data, Street Fight (hyperlocal), ad:tech, iMedia Summit, Social*Loco and others. His current work focuses on mobile and its impact on consumer behavior, especially shopping, M*commerce and mobile payment. As a consultant and advisor, Phil has led significant engagements with startups and Fortune 100 clients in mobile, consumer electronics, and related categories, including financial services, transportation, insurance and others. He works closely with senior management and project teams on key issues, including market sizing, segmentation, positioning, and branding as well as innovation, user experience, and customer retention. Over the course of his career, Phil has helped clients conceive and successfully launch dozens of new products, services and businesses. Before founding immr, Phil was a partner with DiamondCluster (strategy and technology consultancy), founder and head of IMS (Integrated Measurement Systems), and a principal with Mercer Management Consulting (now Oliver Wyman). He has held faculty positions at Emory University and the University of Michigan, where he taught courses in marketing, research, and buyer behavior for MBAs and executives. While at Michigan Dr. Hendrix also held a joint appointment as a research scientist in the Survey Research Center, Institute for Social Research. Additional information on immr perspectives and reports prepared by Dr. Hendrix is available at immr and Slideshare, with additional information available at GigaOm Pro. 68 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org
  • 69. immr – Recent and Forthcoming Reports Innovating Innovation† Which Mobile Shopping Apps Do Consumers Value Most?† If Shopping is Broken, Can Mobile Fix it? Drive Revenue and Customer Loyalty by Engaging Mobile and Social Consumers Engaging Connected Consumers – Strategies for Brands, Retailers and Local Businesses† Raising the Bar – Mobile and Customer Loyalty Social + Location + Mobile: SoLoMo Analytics and the Transformation of Shopping How Consumers Are Using Local Search Mobilizing the Enterprise with Custom Mobile Solutions: Pt. 1 and 2 The Promise of Hyperlocal: Opportunities for Publishers and Developers Tuning into Consumers’ Digital Signals How SoLoMo is Empowering Consumers, Transforming Shopping, and Disrupting Advertising and Retailing Location – the Epicenter of Mobile Innovation 69 Permission granted to cite, copy and distribute with attribution @phil_hendrix | www.immr.org † Forthcoming