Engaging Connected Consumers - Strategies for Brands and Retailers
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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
Note:
When posting excerpts or citing, please
reference “Engaging Connected Consumers,”
prepared by Dr. Phil Hendrix, immr and
link to www.immr.org
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� Research ConsultantResearch�based Strategy forVery 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
About me
Mercer Diamond Cluster
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� Overview, Cases
� 7 Frameworks
� Emerging Applications, Implications
� 10 Strategies for Brands and Retailers
Topics for Discussion
� CX (Customer Experience) � 8 Layers of Location
� Frictions0Should0Wants � SoLoMo
� Digital Signals � M4M (Metaphors for Mobile)
� PEER (Personalize – Enable – Enhance – Reward)
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Related ReportsEngaging Connected
Consumers SeriesMobile Shopping
Series
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Why is this Important?
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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
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Cumulative # of Downloads – Apple App Store
50B
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Case #1 – Coke Happiness Machine
Brands
Connecting in
New Ways
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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.”
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Case #2 – Connecting Digitally
For Discussion:
• What’s in it for the
consumer?
• Destination(s)/
Applications?
• Value to the brand?
• Value to the
establishment?
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Case #3. Social0Geo Targeting
Birds of a Feather
do Flock together
• Follow/fans
• Tweets
• Check0ins
CTR ���� 7xFoo Fighters
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Case #4 – “Good Push”
Good
Push
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Case #5 – “Mobile Concierge”
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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
Social Networks/Social Media Use Cases
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Transparency in Real0time
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Mobile
and
Engagement
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“The Remote for Our Lives”
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Other Examples
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Business and Consumers “Engaging”
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Wroblewski’s Theorem
“Anything that can be connected to the Internet, will be.”
Philips Hue Bulbs
Luke Wroblewski
Nest Learning Thermostat
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7 Frameworks� CX (Customer Experience)
� Frictions0Shoulds0Wants
� Digital Signals
� 8 Layers of Location
� SoLoMo
� Metaphors for Mobile
� PEER (Personalize – Enable – Enhance – Reward)
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Customer
Experience
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Discover Choose
Buy Use
Customer Experience > Path0to0Purchase
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Key Moments of Truth for Customers
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Stops Along the Consumer Journey
Source: If Shopping is Broken, Can Mobile Fix It? Dr. Phil Hendrix, immr
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Can Mobile Save Shopping?
Source: If Shopping is Broken, Can Mobile Fix It? Dr. Phil Hendrix, immr
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Customer
Motivations
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What Motivates Consumers
Minimizing
Friction
Tim
e
An
no
ya
nce
s
Un
ce
rta
inty Co
st
Ba
d o
utc
om
es
Ris
k
Enabling
Shoulds
Fit
ne
ss
Sa
vin
gs
So
cia
l
Gre
en
Ed
uc
ati
on
Maximizing
Wants
Fu
n
Fo
od
Ac
ce
pta
nc
e
Avoid, minimize,
or eliminate
“Satisfice” “Maximize”
En
tert
ain
me
nt
Re
co
gn
itio
n
“Good for You”
(Resolutions)
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PEERSM
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From the 4 P’s to PEER
†Securely, with full transparency
Source: Raising the Bar – How Leading Companies are Boosting Customer Loyalty with Mobile and PEER Strategies, Dr. Phil Hendrix, immr
Learn† &Adapt
Remove Frictions
Surprise/Delight
Reinforce
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Examples of Mobile PEERSM
Strategies
Personalize
Leverage data about consumers and their
context to increase the relevance,
timeliness and value of communications,
offers and customer experiences
Allows airports to tailor info
for travelers based on
profile, destination
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 Mini owners can detect
other owners, share tips
Enhance
Surprise and delight customers by
anticipating and helping them fulfill
functional requirements, emotional needs
and aspirations
Guests can manage
experience (FastPasses,
reservations, rides, etc.)
Reward
Using feedback, encouragement, rewards
and social influence, reinforce customers
as they engage in behaviors that are
mutually beneficial
Allows hotels to
personalize rewards,
experiences based on
guest’s social profile
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M4M
(Metaphors for Mobile)
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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
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8 Layers
of
Location
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Corollary – “Everything’s “Everything’s “Everything’s “Everything’s a a a a Pixel”Pixel”Pixel”Pixel”
8 Layers of Location
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Evolving toward Micro0Locations
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Digital
Signals
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Consumers’ Digital Signals
LocationLocation SocialSocial HistoryHistory
Source: Tuning into Consumers’ Digital Signals, Dr. Phil Hendrix, immr
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Elements
of
SoLoMo
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The Elements of SoLoMo
MobileMobile LocationLocation SocialSocial
X X
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Era of Big Data
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Capturing, Sharing Images
Which siteOOreached 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?
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Social Media Stats – July 2013
Source: http://growingsocialmedia.com/social*media*statistics*and*facts*of*2013*infographic/
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Data to Grow Exponentially
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Data Tsunami
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The “Data Layer”
Source: John Battelle, Web 2.0 Conference, http://map.web2summit.com/#dl
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How Companies
Are Using Big Data
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Tuning into Consumers’ Digital Signals
LocationLocation SocialSocial HistoryHistory
Source: Tuning into Consumers’ Digital Signals, Dr. Phil Hendrix, immr
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Data Fueling M0Commerce
MobilePayment
MobileConcierge
Mobile Marketing
MobileRewards
Data Data
Data
Data
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“Big Data” includes Cloud, Algorithms
Search
• Auto-complete
• Google Instant
• Proximity Search
• Image Search
• Personalized SERs
Augmented Reality Messages,
Ads, and Offers
Algorithms
LocationLocation
SocialSocial
HistoryHistory
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Big Data ApplicationsShown 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 App/Provider
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 by Walmart Sept. 2011
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Big Data Suppliers
Shown below are leading Big Data vendors, with a brief explanation of their role in the value chain.
Category Description Vendors
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
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Strategies
for
Brands and Retailers
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Are You Tapping into PEER?
†Securely, with full transparency
Source: Raising the Bar – How Leading Companies are Boosting Customer Loyalty with Mobile and PEER Strategies, Dr. Phil Hendrix, immr
Learn† &Adapt
Remove Frictions
Surprise/Delight
Reinforce
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Are You Helping Customers Accomplish their Goals?
Minimizing
FrictionT
ime
An
no
ya
nce
s
Un
ce
rta
inty Co
st
Ba
d o
utc
om
es
Ris
kEnabling
Shoulds
Fit
ne
ss
Sa
vin
gs
So
cia
l
Gre
en
Ed
uc
ati
on
Maximizing
Wants
Fu
n
Fo
od
Ac
ce
pta
nc
e
Avoid,
minimize,
or eliminate
“Satisfice” “Maximize”
En
tert
ain
me
nt
Re
co
gn
itio
n
“Good for You”
(Resolutions)
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Are You ManagingNumerator and Denominator?
Customer Benefits
Customer EffortLoyaltyLoyalty = ffff
Source: Raising the Bar – How Leading Companies are Boosting Customer Loyalty with Mobile and PEER Strategies, Dr. Phil Hendrix
Frictions
Shoulds
Wants
+
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Are you Engaged? Or Merely Engaging?
What
I Like
Who I
am… Where I
am
What’s
Nearby
What’s
going On
What I
respond to
What I’ve
bought
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
KnowOE
xp
ec
tati
on
s
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Are You Tuned in to Consumers’ Digital Signals?
LocationLocation SocialSocial HistoryHistory
Source: Tuning into Consumers’ Digital Signals, Dr. Phil Hendrix, immr
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Are You Engaging by Consumers’ Rules?
Right0time
Relevant
Personalized
Rewarding
Source: Drive Revenue and Loyalty by Engaging Mobile and Social Consumers, Dr. Phil Hendrix, immr
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Have You Defined YourRole(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
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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
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Are You Doubled Down on Innovation?
Stage 4
Stage 3
Stage 2� Marketing
� Sales
� Finance
� Operations
� Field service
� HR
� Legal
� Support
� IT
Stage 1Connecting to:
� Internal data
� External data
� Platforms
� Partners“There’s an
app for that”
Keeping
Up
Keeping
Up
Mobilizing
Processes
Mobilizing
Processes
Leapfrogging
Competitors
Leapfrogging
Competitors
Mobile
Innovation
Mobile
Innovation
Payoff
Agile
Development
Small bets
���� All in
Time and Investment
Remember…Paul Graham, YCombinator
Source: Mobilizing the Enterprise, Dr. Phil Hendrix, immr
“Returns are concentrated in a few big winners”
“Best ideas look initially like bad ideas…”
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Are You Making the Right Strategic Bets?
Source: Which Mobile Shopping Apps Do Consumers Value Most, Dr. Phil Hendrix, forthcoming
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Are You Hitting on All 8 Cylinders?
SecuritySecurity
Social
Currency
Social
Currency
AnticipatoryAnticipatory
Design(UI/UX/Emotion)
Design(UI/UX/Emotion)
PersonalizationPersonalization OptimizationOptimization
Systems
Integration
Systems
Integration
User Value
Business Value
User Value
Business Value
Customer
MOTs
Customer
MOTs
Systems ofEngagement
Systems ofRecord
Moments of Truth
12
AnalyticsAnalytics
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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)
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The Future of Marketing is Here
Hyper0local Audiences
Micro0locations
Filters
Persistent Location
Ambient Analytics
PEER
Micro Social Networks
Mashups
Yield Management
Curation
Source: Dr. Phil Hendrix, immr http://www.immr.org/mobile*remaking*marketing*201210.pdf
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Appendix
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Bio – Dr. Phil Hendrix
Dr. Phil Hendrix
Director, immr
www.immr.org
+1 (770) 61201488
@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.
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.
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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†Forthcoming