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trendwatching.com's SYMPATHETIC PRICING

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Get ready for a wave of imaginative discounts that relieve lifestyle pain points, offer a helping hand in difficult times, or support a shared value.

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trendwatching.com's SYMPATHETIC PRICING

  1. 1. SYMPATHETIC PRICING Get ready for a wave of imaginative discounts that relieve lifestyle pain points, offer a helping hand in difficult times, or support a shared value. GLOBAL TREND BRIEFING June 2014
  2. 2. Brands are constantly telling consumers that they care. Most consumers don’t believe them. When brands claim to care about people and their everyday challenges, or about the shared problems we all face – sustainability, social responsibility, and more – most consumers think they’re just saying that. Sure, that’s a simple characterisation of a complex issue, and it doesn’t apply to all consumers and every brand. But countless surveys, reports and statistics (the below being just one example) all point in the same direction: when it comes to truly caring about consumers, owning a higher purpose and generally being a more HUMAN BRAND, most people think that most brands still don’t get it. SYMPATHETIC PRICING 2www.trendwatching.com/trends/sympathetic-pricing
  3. 3. Just 5% of consumers in the UK and US believe big businesses are very transparent and honest. COHN & WOLFE, OCTOBER 2013 SYMPATHETIC PRICING 3www.trendwatching.com/trends/sympathetic-pricing
  4. 4. Now consumers will challenge brands to put their money where their mouth is. After all, if brands really do care, then there’s a simple way to prove it ;) Amid their deep skepticism, consumers still yearn for HUMAN BRANDS. Now, they’re embracing the few brands that are already trying a bold new approach in the quest to become more HUMAN. One that’s visible, straighforward, and directed at a truly meaningful target: pricing. SYMPATHETIC PRICING 4www.trendwatching.com/trends/sympathetic-pricing
  5. 5. SYMPATHETIC PRICING Flexible and imaginative discounts that help ease lifestyle pain points, lend a helping hand in difficult times, or support a shared value. DEFINITION 1. MESSAGE SATURATION 2. NEW WORLD, NEW EXPECTATIONS 1. PAINKILLER PRICING 2. COMPASSIONATE PRICING 3. PURPOSEFUL PRICING WHY NOW? FEATURED INNOVATIONS SYMPATHETIC PRICING 5www.trendwatching.com/trends/sympathetic-pricing
  6. 6. 1. Message Saturation Consumers have tuned out the white noise issued by a multitude of brands on how much they care about people, society and the planet. Deep skepticism among many consumers still exists after years of brand campaigns, initiatives, and programs intended to demonstrate that the brands in question really care. Often these ‘long-term goals’ and vague promises become white noise: consumers have learned to tune them out, or simply take them as a given. Now, consumers are keen to see brand care and purpose expressed where it really counts. So if brands really are lifestyle assistants, or if they really do care about the Big Problems we face as global citizens, shouldn’t their (flexible) pricing reflect this? WHY NOW? SYMPATHETIC PRICING 6www.trendwatching.com/trends/sympathetic-pricing
  7. 7. According to EUR and US consumers, only 5% and 9% respectively of brands make a meaningful difference in people’s lives. Poll global consumers and that figure rises – to 20%. HAVAS, JUNE 2013 SYMPATHETIC PRICING 7www.trendwatching.com/trends/sympathetic-pricing
  8. 8. 2. New World, New Expectations The online world has primed consumers to EXPECT flexible pricing. And a host of agile startups are both willing and able to deliver. Online, pricing is different. Ultra-flexible, dynamic, personalized and transparent. Now, the online space has primed consumers to bring those expectations with them everywhere. Meanwhile, a new generation of startup CLEAN SLATE BRANDS – lacking the legacy infrastructure of their established competitors – are more able to roll out flexible pricing in an (near) instant. It’s a short walk from consumer expectation of more flexible pricing, to consumer embrace of SYMPATHETIC PRICING. Now check out the Featured Innovations that follow, divided into three categories of SYMPATHY. WHY NOW? SYMPATHETIC PRICING 8www.trendwatching.com/trends/sympathetic-pricing
  9. 9. 1. PAINKILLER PRICING FEATURED INNOVATIONS Discounts that target lifestyle pain points. CONSUMER TREND CANVAS 9www.trendwatching.com/trends/sympathetic-pricing
  10. 10. PAINKILLER PRICING: FEATURED INNOVATIONS Uber Taxi app gives discounts to travelers hit by transport disruption in London and Boston SYMPATHETIC PRICING 10www.trendwatching.com/trends/sympathetic-pricing
  11. 11. PAINKILLER PRICING: FEATURED INNOVATIONS Brahma #Movimento11 Discounts help Brazilian football fans watch the start of the World Cup SYMPATHETIC PRICING 11www.trendwatching.com/trends/sympathetic-pricing
  12. 12. PAINKILLER PRICING: FEATURED INNOVATIONS Noosa International Resort Hotel room discount if it rains on Australia’s ‘Sunshine Coast’ SYMPATHETIC PRICING 12www.trendwatching.com/trends/sympathetic-pricing
  13. 13. PAINKILLER PRICING: FEATURED INNOVATIONS The Wolf & I Free drinks for patrons with parking tickets in Melbourne SYMPATHETIC PRICING 13www.trendwatching.com/trends/sympathetic-pricing
  14. 14. PAINKILLER PRICING: FEATURED INNOVATIONS BGH Discounts on air conditioning for hot apartments in Argentina SYMPATHETIC PRICING 14www.trendwatching.com/trends/sympathetic-pricing
  15. 15. PAINKILLER PRICING: FEATURED INNOVATIONS Otasuke Japanese pub offers discounts to balding customers SYMPATHETIC PRICING 15www.trendwatching.com/trends/sympathetic-pricing
  16. 16. We obviously offer much more than monthly Trend Briefings... Your complete trend and innovation solution. Our Premium Service Find out more 2014 Trend Report Trend Framework Innovation Database Industry Updates Apply Toolkit Monthly Updates 1-page Trend Handouts 1 2 3 4 5 6 7
  17. 17. 2. COMPASSIONATE PRICING FEATURED INNOVATIONS Discounts that offer a helping hand at a difficult time. CONSUMER TREND CANVAS 17www.trendwatching.com/trends/sympathetic-pricing
  18. 18. COMPASSIONATE PRICING: FEATURED INNOVATIONS Community Shop Discounted products for less affluent British consumers SYMPATHETIC PRICING 18www.trendwatching.com/trends/sympathetic-pricing
  19. 19. COMPASSIONATE PRICING: FEATURED INNOVATIONS Pressfolios Service goes free for laid off New Jersey journalists SYMPATHETIC PRICING 19www.trendwatching.com/trends/sympathetic-pricing
  20. 20. COMPASSIONATE PRICING: FEATURED INNOVATIONS Lowe’s Canada Free trees for consumers hit by destructive storm SYMPATHETIC PRICING 20www.trendwatching.com/trends/sympathetic-pricing
  21. 21. COMPASSIONATE PRICING: FEATURED INNOVATIONS Tienda Amiga Shops in Madrid give discounts to the unemployed SYMPATHETIC PRICING 21www.trendwatching.com/trends/sympathetic-pricing
  22. 22. COMPASSIONATE PRICING: FEATURED INNOVATIONS Groupon Discounted onions in response to high onion prices in India SYMPATHETIC PRICING 22www.trendwatching.com/trends/sympathetic-pricing
  23. 23. 3. PURPOSEFUL PRICING FEATURED INNOVATIONS Discounts in support of a shared value or belief. CONSUMER TREND CANVAS 23www.trendwatching.com/trends/sympathetic-pricing
  24. 24. PURPOSEFUL PRICING: FEATURED INNOVATIONS Corendon Dutch airline offers cheaper flights to Russia for gay rights activists SYMPATHETIC PRICING 24www.trendwatching.com/trends/sympathetic-pricing
  25. 25. PURPOSEFUL PRICING: FEATURED INNOVATIONS RATP Free public transport in Paris to combat poor air quality SYMPATHETIC PRICING 25www.trendwatching.com/trends/sympathetic-pricing
  26. 26. PURPOSEFUL PRICING: FEATURED INNOVATIONS Easy Taxi Discounts for solo Filipino women highlight physical assaults SYMPATHETIC PRICING 26www.trendwatching.com/trends/sympathetic-pricing
  27. 27. PURPOSEFUL PRICING: FEATURED INNOVATIONS AnchorFree App to route around internet blocks goes free in Venezuela SYMPATHETIC PRICING 27www.trendwatching.com/trends/sympathetic-pricing
  28. 28. NEXT What does SYMPATHETIC PRICING mean for brands? CONSUMER TREND CANVAS 28www.trendwatching.com/trends/sympathetic-pricing
  29. 29. 1. Event Tie-ups A SYMPATHETIC PRICING play is the perfect opportunity to tie-up with a big event: think sports, TV shows, national holidays and more. Which brand will be first this summer to offer a discount to consumers whose team has just been knocked out of the World Cup? NEXT CONSUMER TREND CANVAS 29www.trendwatching.com/trends/sympathetic-pricing
  30. 30. NEXT 2. Data Driven Sympathy Rising numbers of consumers now measure a range of personal metrics, from steps walked to mood. That opens the door to personalized SYMPATHETIC discounts for consumers having a bad day, or struggling to meet personal goals. CONSUMER TREND CANVAS 30www.trendwatching.com/trends/sympathetic-pricing
  31. 31. NEXT 3. Internal Sympathy In March 2014 Japanese electronics firm Panasonic said it would pay workers in China more to compensate for high pollution levels. Truly forward-thinking brands will be as SYMPATHETIC to their staff as they are to their customers. CONSUMER TREND CANVAS 31www.trendwatching.com/trends/sympathetic-pricing
  32. 32. NEXT 4. Currencies Of Change Of course, discounts aren’t effective only when it comes to pain points or shared values. Another HUMAN play on flexible pricing? Discounts or rewards for positive lifestyle change. CONSUMER TREND CANVAS 32www.trendwatching.com/trends/sympathetic-pricing
  33. 33. NEXT 5. [Insert your own] Pricing The La Petite Syrah cafe in France charges customers less if they say ‘please’: POLITENESS PRICING. Go ahead – invent your own HUMAN pricing play! CONSUMER TREND CANVAS 33www.trendwatching.com/trends/sympathetic-pricing
  34. 34. Our Apply Workshops Want to turn trends into innovations? Find out more SYMPATHETIC PRICING 34www.trendwatching.com/trends/sympathetic-pricing
  35. 35. 1. Our 2014 Premium ServiceOur free monthly Trend Briefings 2. Join the 250,000 subscribers who receive our free monthly Trend Briefings. SuBSCRIBe Me » MORE... If you have any comments, suggestions or questions then please do let us know. Just email: PAUL BACKMAN Chief Client Officer paul@trendwatching.com About us Established in 2002, trendwatching.com is the world’s leading trend firm, scanning the globe for the most promising consumer trends, insights and related hands-on business ideas. Our Premium Service counts many of the world’s leading brands as clients, while our free monthly Trend Briefings go out to over 250,000 subscribers in 180 countries. More at www.trendwatching.com Should you be one of our 1,200+ Premium clients? Now... Enjoyed this Trend Briefing? Want more?