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LITMUS   A RESOURCE INTERACTIVE
         WHITE PAPER




 CASHING IN ON
 EVERYWHERE
 COMMERCE




                     CASHING IN ON EVERYWHERE COMMERCE I ©2011 I WWW.RESOURCE.COM
LITMUS                     CASHING IN ON
                                                           EVERYWHERE COMMERCE




      THIS IS THE FIRST IN AN   CASHING IN ON EVERYWHERE COMMERCE
        ONGOING SERIES OF
 MULTIMEDIA EPISODES THAT
                                Open Branding is the bottom-up consumer imperative of the digital age, and one that
   INVESTIGATE ASPECTS OF,
                                Resource has been advising clients about since the publication of The Open Brand: When
AND STR ATEGIC APPROACHES
                                Push Comes to Pull in a Web-Made World in 2008. Open Branding fosters participatory
TO E VERY WHERE COMMERCE.
                                relationships with consumers, partners and employees based on shared values and interests,
   WE’RE APPROACHING THIS
                                and these are made the basis for everything within a marketing strategy from social media
  WIDE-R ANGING TOPIC WITH      campaigns to corporate social responsibility initiatives. Consumers co-create content,
  EQUALLY E XPANSIVE PL ANS     products, services or experiences and, in doing so, shape new use and exchange value that
   TO TAP OUR NET WORK OF       benefits themselves and the brand.
PARTNERS, THOUGHT LE ADERS
   AND DIGITAL INNOVATORS       Open Branding has been a driving force behind a spate of shopping innovations over the last
    FOR THEIR PERSPECTIVES.     three to four years whose density is unprecedented in the history of consumerism. Collective
    THINK OF IT AS NONSTOP      buying platforms. Swipeable mobile payments. Location-aware promotions. Flash sales.
BR AINSTORMING WITH A BIAS      Barcode scanners. Image recognition apps. Facebook commerce. Most marketers know that
           TOWARD ACTION.       through such a proliferation of digital touch points, shopping tools and platforms, it should
                                theoretically be easier to reach, convert and keep more consumers than ever before. And
                                the numbers would certainly seem to confirm that more is more, that this multiplication and
                                diversification is good for business. Forrester Research predicts ecommerce will be 8% of
                                total US retail sales by 2014, or $248.7 billion, with a 10% annual compound growth rate. But
                                online combined with web-influenced sales will be a staggering 53% of total retail sales by
                                2014. Ecommerce—and its supporting cross-channel cast—is an indisputably solid bet.

                                Yet the burgeoning of digital shopping and brand engagement options also creates
                                complexity in many forms:

                                •	 New	consumer	behaviors	and	needs	emerge	around	everything	from	decision	making	
                                   to impulse shopping

                                •	 New	touch	points’	essential	functions	and	interdependencies	must	be	understood

                                •	 Technology	trends	intelligence	including	adoption	rates	for	new	devices	and	digital	
                                   platforms is needed for reasonable cost/benefit analyses and go-to-market planning

                                •	 Purchase	journey	models	must	be	updated	to	reflect	increased	consumer	
                                   mobility;	social	influence	and	the	effects	of	the	“distributed”	web	of	open	
                                   APIs,	social	widgets	and	integrated	platforms;	and	consumers’	susceptibility	to	
                                   “continuous	partial	shopping”—an	outcome	of	our	hyperconnected	times	

                                •	 New	game	mechanics,	co-creation	and	storytelling-inspired	methods	for	seamless	
                                   and sustained consumer engagement must be invented

                                •	 Measurement	strategies	will	have	to	evolve	in	accordance	with	changes	in	cross-channel	
                                   marketing	and	cover	objectives	ranging	from	engagement	to	incremental	sales




                                CASHING IN ON EVERYWHERE COMMERCE I ©2011 I WWW.RESOURCE.COM                               2
LITMUS                      CASHING IN ON
                                                     EVERYWHERE COMMERCE




    “all	the	world’s	    Managing	such	complexity	starts	with	a	strategy	inspired	by	“everywhere	commerce.”	
                         Everywhere commerce is digitally enhanced commerce undergoing exponential channel
             a	store”    growth and transformation. It is also, when fully	realized,	an	ideal,	“all	the	world’s	a	store”	(to	
                         modify	Shakespeare	a	bit)	end	state	we	can	easily	project	from	the	present	array	of	shopping	
                         technologies. These technologies are, to borrow from tech philosopher Kevin Kelly, moving
                         toward greater ubiquity, diversity and complexity, all of which create more consumer choice,
                         information and convenience.

                         Most of the benefits of everywhere commerce that accrue to the consumer have made
                         her more informed and demanding but also more open to new possibilities. Thanks to
                         developments in social networking, mobile computing and the closely related geo-awareness,
                         many,	if	not	most,	consumers	now	expect	fully	“connected”	experiences	with	their	brands	of	
                         choice. They expect to be digitally connected to their preferred brand via their devices and
                         apps, wherever they are online or on the go. They expect the brand to connect emotionally
                         and practically to their various needs and desires on a consistent basis. And they expect
                         the brand to facilitate social connections, at least with that portion of their social graph that
                         shares interests, expertise or passions relevant to the brand.


        "Connected       For brands and retailers, the historically unprecedented benefit of meeting such daunting
                         consumer expectations is the mere potential to fuse sales and marketing functions at
  brand commerce         every consumer touch point.	This	is	the	result	of	everywhere	commerce’s	profound	and	
 experiences are—        irrevocable	impact	on	the	purchase	journey.	What	was	once	a	heavily	brand-influenced,	mostly	
                         mass media–precipitated linear path to purchase that moved consumer from marketing to
  to the extent that     sales channels is now a custom path through often opportunistically chosen touch points
                         and media, which are increasingly communications-oriented and transactional. To frame this
it’s	technologically	    change historically: Web 2.0 demonstrated the value of making brand assets and activities
        feasible and     shareable,	and	today’s	web—its	technologies,	its	users,	its	new	formats—has	already	revealed	
                         the value of making those assets and activities shoppable as well.
              context-
      appropriate—       The appropriate response to everywhere commerce, the best way to meet and exceed
                         consumer expectations, then, is through a Connected Brand Commerce Experience
three-dimensional        strategy.	Connected	brand	commerce	experiences	are—to	the	extent	that	it’s	technologically	
                         feasible and context-appropriate—three-dimensional experiences: triggered, shareable,
        experiences:     and shoppable, and they not only span and integrate digital touch points such as the web,
           triggered,    social,	mobile,	kiosk,	interactive	TV	and	vending	machine,	but	offline	brand	touch	points	
                         as well, from print to billboards. More importantly, they are experiences that through
      shareable and      either ecommerce enablement or pre-commerce and post-commerce calls to action
         shoppable."     effectively	compress	the	purchase	journey,	eliminating	actions,	basic	barriers	or	shopping	
                         intervals—anything	that	could	be	characterized	as	“friction”,	so	that	a	pressing	need,	
                         triggered inspiration or sheer impulse can immediately be met with purchase satisfaction.
                         Ultimately,	shorter	purchase	journeys	lead	to	more	of	them—more	moments	with	a	brand	
                         or retailer that make shopping in particular more relevant and satisfying than it used to be.




                         CASHING IN ON EVERYWHERE COMMERCE I ©2011 I WWW.RESOURCE.COM                                    3
LITMUS                     CASHING IN ON
                           EVERYWHERE COMMERCE




A CBCE strategy accomplishes the following:

1. Using consumer segment insights and data, and trends intelligence about device and
   digital	platform	adoption	patterns,	a	CBCE	strategy	defines	a	brand	or	retailer’s	essential	
   purchase	journeys,	comprised	of	those	touch	points	and	right-time-right-context	triggers	
   likeliest	to	create	and	sustain	brand	“flow”—the	ultimate	gift	to	a	consumer	in	the	form	
   of	a	psychological	state	of	continuous,	immersive	(not	interruptive)	involvement	with	a	
   brand’s	assets.	Triggered	touch	points	are	more	important	than	ever	as	marketing	noise	
   increases, and should guide any media planning or content distribution initiatives.

2. It devises ways to remove friction by providing either immediate motivation	(e.g.,	
   discounted, limited edition or time-sensitive offers; compelling content; loyalty points;
   simple email reminders to act) or means	(e.g.,	alternate	payment	options,	social	and	
   product decision support, etc.) to buy online or in-store. In this way, the strategy can
   minimize	the	consumer’s	time	and/or	intervals	from	product	discovery	to	purchase—think	
   Facebook commerce and well-executed digital and physical pop-up retail—by maximizing
   the conversion potential of each consumer touch point. Ultimately, each touch point is
   evaluated as a potential triple threat of triggered, shareable and shoppable.

   Triple-Threat Touch Points are:
   Triggered	=	a	touch	point	that	is	hyperaware	of	a	consumer’s	needs/desires;	preferences,	
   past purchases and other digital behaviors; device usage; and immediate context, and/
   or uses this information for delivering maximum impact of a marketing event, even one as
   simple as a reminder
   Shareable = a touch point that enables and encourages high- and low-involvement shar-
   ing	of	consumer	actions	in	order	to	harness	network	effects	and	social	influence	for	the	
   brand
   Shoppable = a touch point that is ecommerce-enabled or contains pre- or post-commerce
   calls to action so that no messaging ever goes without the consumer opportunity to act
   immediately

3. It ensures each touch point has the right mix of On-Demand, Personal, Engaging and
   Networked experiential attributes, using the O.P.E.N. framework.* This framework also
   provides	a	means	of	measuring	consumers’	purchase	intent	and	likelihood	to	recommend,	
   and	a	brand	or	retailer’s	competitive	benchmarks.

4. It outlines a sequential roadmap for success leading from baseline to strategic to visionary
   stages, based on the inherent functional and historic strengths of all consumer touch
   points	and	their	inexorable	drift	towards	multifunctional	“convergence.”




CASHING IN ON EVERYWHERE COMMERCE I ©2011 I WWW.RESOURCE.COM                                 4
LITMUS                           CASHING IN ON
                                 EVERYWHERE COMMERCE




For many, the fragmented nature of the phenomenon of everywhere commerce has
obscured	its	magnitude.	It	may	very	well	be	an	“e-volution”	we’re	in	the	midst	of,	but	
everywhere	commerce’s	impact	on	brands’	and	retailers’	businesses—from	their	growth	
plans to their operational and organizational aspects—will be quite revolutionary. The
business value of a Connected Brand Commerce Experience strategy lies in the fusion
of brand equity–building, social interaction and direct sales that creates bias towards
action for consumers; and the perpetuation of a consumer/brand relationship pre-
and post-purchase through experiences that provide either practical or pleasurable
non-product	values.	The	flip	side	of	this,	the	consumer	appeal	of	connected	brand	
commerce experiences, lies in the near simultaneity of branded inspiration and purchase
possibility—the capacity to buy or come closer to purchase when excitement about
a product or service is highest. It is also for consumers the increasingly converged
nature of their digital experiences that resonates: an appealing blend of socializing,
shopping, self-expressing and self-identifying with those brands and retailers who prove
themselves indispensable and delightful companions throughout their day and lives.

To learn more about Everywhere Commerce, follow our episodes as we delve deeper into the
follow questions:

•	 What	are	the	key	technological	drivers	of	Everywhere	Commerce?

•	 What	specific	consumer	behaviors	are	emerging	that	require	new	ways	of	thinking	and	
   fresh	paradigms,	including	but	not	limited	to	the	“purchase	journey”	and	the	“shopping	
   trip”?

•	 What	are	the	most	pressing	challenges	in	delivering	Everywhere	Commerce	at	scale—
   strategic,	organizational,	technological?

•	 What	do	brand	marketing	executives	need	from	their	agency	partners	to	successfully	
   navigate	this	complex	digital	terrain?


* Introduced in The Open Brand: When Push Comes to Pull in a Web-Made World (New
  Riders: Berkeley, CA, 2008) by Kelly Mooney and Nita Rollins. To inquire about the
  O.P.E.N. framework, contact Melissa Dorko, mdorko@resource.com.




CASHING IN ON EVERYWHERE COMMERCE I ©2011 I WWW.RESOURCE.COM                               5

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Cashing In On Everywhere Commerce

  • 1. LITMUS A RESOURCE INTERACTIVE WHITE PAPER CASHING IN ON EVERYWHERE COMMERCE CASHING IN ON EVERYWHERE COMMERCE I ©2011 I WWW.RESOURCE.COM
  • 2. LITMUS CASHING IN ON EVERYWHERE COMMERCE THIS IS THE FIRST IN AN CASHING IN ON EVERYWHERE COMMERCE ONGOING SERIES OF MULTIMEDIA EPISODES THAT Open Branding is the bottom-up consumer imperative of the digital age, and one that INVESTIGATE ASPECTS OF, Resource has been advising clients about since the publication of The Open Brand: When AND STR ATEGIC APPROACHES Push Comes to Pull in a Web-Made World in 2008. Open Branding fosters participatory TO E VERY WHERE COMMERCE. relationships with consumers, partners and employees based on shared values and interests, WE’RE APPROACHING THIS and these are made the basis for everything within a marketing strategy from social media WIDE-R ANGING TOPIC WITH campaigns to corporate social responsibility initiatives. Consumers co-create content, EQUALLY E XPANSIVE PL ANS products, services or experiences and, in doing so, shape new use and exchange value that TO TAP OUR NET WORK OF benefits themselves and the brand. PARTNERS, THOUGHT LE ADERS AND DIGITAL INNOVATORS Open Branding has been a driving force behind a spate of shopping innovations over the last FOR THEIR PERSPECTIVES. three to four years whose density is unprecedented in the history of consumerism. Collective THINK OF IT AS NONSTOP buying platforms. Swipeable mobile payments. Location-aware promotions. Flash sales. BR AINSTORMING WITH A BIAS Barcode scanners. Image recognition apps. Facebook commerce. Most marketers know that TOWARD ACTION. through such a proliferation of digital touch points, shopping tools and platforms, it should theoretically be easier to reach, convert and keep more consumers than ever before. And the numbers would certainly seem to confirm that more is more, that this multiplication and diversification is good for business. Forrester Research predicts ecommerce will be 8% of total US retail sales by 2014, or $248.7 billion, with a 10% annual compound growth rate. But online combined with web-influenced sales will be a staggering 53% of total retail sales by 2014. Ecommerce—and its supporting cross-channel cast—is an indisputably solid bet. Yet the burgeoning of digital shopping and brand engagement options also creates complexity in many forms: • New consumer behaviors and needs emerge around everything from decision making to impulse shopping • New touch points’ essential functions and interdependencies must be understood • Technology trends intelligence including adoption rates for new devices and digital platforms is needed for reasonable cost/benefit analyses and go-to-market planning • Purchase journey models must be updated to reflect increased consumer mobility; social influence and the effects of the “distributed” web of open APIs, social widgets and integrated platforms; and consumers’ susceptibility to “continuous partial shopping”—an outcome of our hyperconnected times • New game mechanics, co-creation and storytelling-inspired methods for seamless and sustained consumer engagement must be invented • Measurement strategies will have to evolve in accordance with changes in cross-channel marketing and cover objectives ranging from engagement to incremental sales CASHING IN ON EVERYWHERE COMMERCE I ©2011 I WWW.RESOURCE.COM 2
  • 3. LITMUS CASHING IN ON EVERYWHERE COMMERCE “all the world’s Managing such complexity starts with a strategy inspired by “everywhere commerce.” Everywhere commerce is digitally enhanced commerce undergoing exponential channel a store” growth and transformation. It is also, when fully realized, an ideal, “all the world’s a store” (to modify Shakespeare a bit) end state we can easily project from the present array of shopping technologies. These technologies are, to borrow from tech philosopher Kevin Kelly, moving toward greater ubiquity, diversity and complexity, all of which create more consumer choice, information and convenience. Most of the benefits of everywhere commerce that accrue to the consumer have made her more informed and demanding but also more open to new possibilities. Thanks to developments in social networking, mobile computing and the closely related geo-awareness, many, if not most, consumers now expect fully “connected” experiences with their brands of choice. They expect to be digitally connected to their preferred brand via their devices and apps, wherever they are online or on the go. They expect the brand to connect emotionally and practically to their various needs and desires on a consistent basis. And they expect the brand to facilitate social connections, at least with that portion of their social graph that shares interests, expertise or passions relevant to the brand. "Connected For brands and retailers, the historically unprecedented benefit of meeting such daunting consumer expectations is the mere potential to fuse sales and marketing functions at brand commerce every consumer touch point. This is the result of everywhere commerce’s profound and experiences are— irrevocable impact on the purchase journey. What was once a heavily brand-influenced, mostly mass media–precipitated linear path to purchase that moved consumer from marketing to to the extent that sales channels is now a custom path through often opportunistically chosen touch points and media, which are increasingly communications-oriented and transactional. To frame this it’s technologically change historically: Web 2.0 demonstrated the value of making brand assets and activities feasible and shareable, and today’s web—its technologies, its users, its new formats—has already revealed the value of making those assets and activities shoppable as well. context- appropriate— The appropriate response to everywhere commerce, the best way to meet and exceed consumer expectations, then, is through a Connected Brand Commerce Experience three-dimensional strategy. Connected brand commerce experiences are—to the extent that it’s technologically feasible and context-appropriate—three-dimensional experiences: triggered, shareable, experiences: and shoppable, and they not only span and integrate digital touch points such as the web, triggered, social, mobile, kiosk, interactive TV and vending machine, but offline brand touch points as well, from print to billboards. More importantly, they are experiences that through shareable and either ecommerce enablement or pre-commerce and post-commerce calls to action shoppable." effectively compress the purchase journey, eliminating actions, basic barriers or shopping intervals—anything that could be characterized as “friction”, so that a pressing need, triggered inspiration or sheer impulse can immediately be met with purchase satisfaction. Ultimately, shorter purchase journeys lead to more of them—more moments with a brand or retailer that make shopping in particular more relevant and satisfying than it used to be. CASHING IN ON EVERYWHERE COMMERCE I ©2011 I WWW.RESOURCE.COM 3
  • 4. LITMUS CASHING IN ON EVERYWHERE COMMERCE A CBCE strategy accomplishes the following: 1. Using consumer segment insights and data, and trends intelligence about device and digital platform adoption patterns, a CBCE strategy defines a brand or retailer’s essential purchase journeys, comprised of those touch points and right-time-right-context triggers likeliest to create and sustain brand “flow”—the ultimate gift to a consumer in the form of a psychological state of continuous, immersive (not interruptive) involvement with a brand’s assets. Triggered touch points are more important than ever as marketing noise increases, and should guide any media planning or content distribution initiatives. 2. It devises ways to remove friction by providing either immediate motivation (e.g., discounted, limited edition or time-sensitive offers; compelling content; loyalty points; simple email reminders to act) or means (e.g., alternate payment options, social and product decision support, etc.) to buy online or in-store. In this way, the strategy can minimize the consumer’s time and/or intervals from product discovery to purchase—think Facebook commerce and well-executed digital and physical pop-up retail—by maximizing the conversion potential of each consumer touch point. Ultimately, each touch point is evaluated as a potential triple threat of triggered, shareable and shoppable. Triple-Threat Touch Points are: Triggered = a touch point that is hyperaware of a consumer’s needs/desires; preferences, past purchases and other digital behaviors; device usage; and immediate context, and/ or uses this information for delivering maximum impact of a marketing event, even one as simple as a reminder Shareable = a touch point that enables and encourages high- and low-involvement shar- ing of consumer actions in order to harness network effects and social influence for the brand Shoppable = a touch point that is ecommerce-enabled or contains pre- or post-commerce calls to action so that no messaging ever goes without the consumer opportunity to act immediately 3. It ensures each touch point has the right mix of On-Demand, Personal, Engaging and Networked experiential attributes, using the O.P.E.N. framework.* This framework also provides a means of measuring consumers’ purchase intent and likelihood to recommend, and a brand or retailer’s competitive benchmarks. 4. It outlines a sequential roadmap for success leading from baseline to strategic to visionary stages, based on the inherent functional and historic strengths of all consumer touch points and their inexorable drift towards multifunctional “convergence.” CASHING IN ON EVERYWHERE COMMERCE I ©2011 I WWW.RESOURCE.COM 4
  • 5. LITMUS CASHING IN ON EVERYWHERE COMMERCE For many, the fragmented nature of the phenomenon of everywhere commerce has obscured its magnitude. It may very well be an “e-volution” we’re in the midst of, but everywhere commerce’s impact on brands’ and retailers’ businesses—from their growth plans to their operational and organizational aspects—will be quite revolutionary. The business value of a Connected Brand Commerce Experience strategy lies in the fusion of brand equity–building, social interaction and direct sales that creates bias towards action for consumers; and the perpetuation of a consumer/brand relationship pre- and post-purchase through experiences that provide either practical or pleasurable non-product values. The flip side of this, the consumer appeal of connected brand commerce experiences, lies in the near simultaneity of branded inspiration and purchase possibility—the capacity to buy or come closer to purchase when excitement about a product or service is highest. It is also for consumers the increasingly converged nature of their digital experiences that resonates: an appealing blend of socializing, shopping, self-expressing and self-identifying with those brands and retailers who prove themselves indispensable and delightful companions throughout their day and lives. To learn more about Everywhere Commerce, follow our episodes as we delve deeper into the follow questions: • What are the key technological drivers of Everywhere Commerce? • What specific consumer behaviors are emerging that require new ways of thinking and fresh paradigms, including but not limited to the “purchase journey” and the “shopping trip”? • What are the most pressing challenges in delivering Everywhere Commerce at scale— strategic, organizational, technological? • What do brand marketing executives need from their agency partners to successfully navigate this complex digital terrain? * Introduced in The Open Brand: When Push Comes to Pull in a Web-Made World (New Riders: Berkeley, CA, 2008) by Kelly Mooney and Nita Rollins. To inquire about the O.P.E.N. framework, contact Melissa Dorko, mdorko@resource.com. CASHING IN ON EVERYWHERE COMMERCE I ©2011 I WWW.RESOURCE.COM 5