Engaging Connected Consumers - Strategies for Brands and Retailers

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


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


Related Reports
Engaging Connected
Consumers Series

4

Mobile Shopping
Series


Why is this Important?

5


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


6

Cumulative # of Downloads – Apple App Store

50B

7


Case #1 – Coke Happiness Machine

Brands
Connecting in
New Ways
8


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


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


10

Case #3. Social0Geo Targeting

Birds of a Feather
do Flock together
• Follow/fans
• Tweets
• Check0ins
Foo Fighters

11

CTR


7x
11

Case #4 – “Good Push”

Good
Push

12


12

Case #5 – “Mobile Concierge”

13


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


Transparency in Real0time

15


15

Mobile
and
Engagement

16


“The Remote for Our Lives”

17


Other Examples

18


Business and Consumers “Engaging”

19


Wroblewski’s Theorem

“Anything that can
be connected to the
Internet, will be.”
Luke Wroblewski

Philips Hue Bulbs

20

Nest Learning Thermostat


7 Frameworks
CX (Customer Experience)
Frictions0Shoulds0Wants
Digital Signals
SoLoMo
Metaphors for Mobile
PEER (Personalize – Enable – Enhance – Reward)

21


Customer
Experience

22


Customer Experience > Path0to0Purchase

Discover

Choose

Buy

23


Use

Key Moments of Truth for Customers

24


Stops Along the Consumer Journey

25

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


Customer
Motivations

27


What Motivates Consumers

Cost

Time

Annoyances

Risk

Uncertainty

Bad outcomes
28

“Satisfice”


“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


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


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


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


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


8 Layers
of
Location

34


Corollary – “Everything’s a Pixel”

35


Evolving toward Micro0Locations

36


Digital
Signals

37


Consumers’ Digital Signals

Location

Social

History

Source: Tuning into Consumers’ Digital Signals, Dr. Phil Hendrix, immr

38


Elements
of
SoLoMo

39


The Elements of SoLoMo
Mobile

Location

X

40

Social

X


40

Era of Big Data

41


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


42

Social Media Stats – July 2013

Source: http://growingsocialmedia.com/social*media*statistics*and*facts*of*2013*infographic/

43


Data to Grow Exponentially

44


Data Tsunami

45


The “Data Layer”

Source: John Battelle, Web 2.0 Conference, http://map.web2summit.com/#dl

46


How Companies
Are Using Big Data

47


Tuning into Consumers’ Digital Signals

Location

Social

History


48


Data Fueling M0Commerce

Data

Mobile
Concierge

Mobile
Marketing
Data

Mobile
Rewards

49


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


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

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


Vendors

Strategies
for
Brands and Retailers

53


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


Are You Helping Customers
Accomplish their Goals?

Cost

Time

Annoyances

Risk

Uncertainty

Bad outcomes
55

“Satisfice”

“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

Are You Managing
Numerator and Denominator?
Wants

Loyalty = f

Customer Benefits
Customer Effort

+
Shoulds
Frictions


56


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


Are You Tuned in to
Consumers’ Digital Signals?

Location

Social

History

58


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


Have You Defined Your
Role(s) in Customers’ Lives?

Align Organization around Role(s)


60


Is Your House of Loyalty “Built to Last?”


61


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


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


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


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


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


66

Appendix

67


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


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


†

Forthcoming

Engaging Connected Consumers - Strategies for Brands and Retailers

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