Finger On The Pulse - Trends Briefing

A PULSE TRENDS SPECIAL

Trends Briefing – The Natives Are Coming

WHY ‘THE NATIVES ARE COMING’?

WELL, THE TECHNOLOGICAL LANDSCAPE WAS CREATED BY THESE PEOPLE

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ALL BORN WITHIN A 13 MONTH PERIOD

FEBRUARY 1955 – MARCH 1956

THIS IS WHAT THE WORLD LOOKED LIKE WHEN THEY WERE GROWING UP

THEY USED NEW TOOLS TO RECREATE THE OLD WORLD

LIKE A STORAGE BOX

LIKE A SHOP

But the people creating the new technological landscape (digital natives)…

Grew up in a world that looked like this…

USING THE INTERNET AT SCHOOL

USING MSN MESSENGER RATHER THAN EMAIL

USING WIKIPEDIA FOR INFORMATION

Technology changes quicker than the people who use it

It takes a generational shift for that technology to be used in truly different ways

Digital Natives are using technology to rewrite the rules of how we do things

Their rules look like this…

Come to me don’t make me come to you

Don’t make me pay for content

Don’t make me do one thing at a time

Don’t create borders in my life

‘In 5 minutes time’ means ‘5 minutes too late’

In Realtime Dynamic Pricing

Quantify EverythingWhat’s Your Intention?

BRIC AttackWisdom of One

Game of LifeGive A Little Love

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FLUID

IN REALTIME

REALTIME INTERACTION WITH BUSINESS

REALTIME INFORMATION

Acceptable once, but no more…….

HOT RIGHT NOW?

‘SAUSAGEFEST AVOIDANCE’

THINGS WILL ALSO BE MADE OR BROKEN IN REALTIME

SUCCESS/FAIL?

AND THINGS BREAK THEMSELVES

#FAIL

‘NOT BI-POLAR BUT BI-WINNING’

IN REALTIME – SO WHAT?

•Realtime isn’t new, but expectation of realtime is. •Realtime allows consumers and businesses to make more efficient decisions.•Consumers don’t want old information on businesses, so businesses don’t want old information on consumers. •HOWEVER…It’s not a panacea, nor is it always the right solution. Certain things can’t be interpreted and solved in realtime. And certain things shouldn’t be broadcast in realtime either….eh, Charlie?

DYNAMIC PRICING

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DYNAMIC PRICING

Consumers want to make better decisions based on what is happening RIGHT NOW.

New technologies and services help businesses do the same - 2011 will see much more dynamic pricing.

A single, fixed price is increasingly unable to cater to the needs of customers or businesses.

GROUP FUN

SERVICE-BASED ECONOMY

REALLY?

FLASH SALES

THE THIRD EXAMPLE OF DYNAMIC PRICING IS ONE THAT I THINK WILL SEE A LOT OF SUCCESS THIS YEAR….

LOCATION BASED

WHY WILL FACEBOOK DEALS BE SUCCESSFUL?

• It’s not just for the big boys.

• Anywhere that is listed in Facebook Places can offer a deal.

• There’s no cost to use it, nor does Facebook take any commission from sales.

• Smartphones and Facebook are both genuinely mass-market. They already have scale.

• It can be used to drum up business at quiet times of the day – a deal can be offered for just an hour. Own a café and have made too much food? Offer 50% off all food for the rest of the day.

DYNAMIC PRICING – SO WHAT?

• In the same way that providing realtime information helps businesses and consumers make more efficient decisions, so dynamic pricing helps business to adjust their offer to suit the circumstances.

• It’s flipping retail on its head. Beforehand we knew what we wanted, we went to the shop and we bought it.

•New technologies and a greater acceptance of more fluidity will contribute to the success of dynamic pricing.

•Most importantly perhaps, consumers are far more savvy nowadays – they need to know that they are getting a real deal.





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DATA

QUANTIFY EVERYTHING

INFORMATION PROLIFERATION

“In 2009, more data will be generated by individuals than in the entire history of mankind [up to] 2008.”

Andreas Weigend, former Chief Scientist at Amazon.com

Every day the average person produces six newspapers worth of information compared with just two and a half pages 24 years ago – nearly a 200-fold increase.

Between the dawn of civilisation and 2003, we created five exabytes of data.

We’re now creating that amount every two days

“Data is the New Oil”

Primarily, however, tools tracking data have only been able to tell us what happened in the past.

As the amount of data increases, so the ability to predict future events increases too (with a good

degree of certainty)

BING ‘FARECAST’ - SCREENSHOT ON 25/2/11

SCREENSHOT ON 4/3/11



SEE THE FUTURE

“Why did no one see the crisis coming?”

Measuring how calm the Twitterverse is on a given day can foretell the direction of changes to the Dow Jones Industrial Average three days later with an accuracy

of 87%

QUANTIFY EVERYTHING – SO WHAT?

•The data is there. And it’s growing by the day. •With exponential growth comes exponential possibilities.• It's waiting to be refined. The gaps between businesses that can refine well and those that can’t will grow. •We’re starting to see data used much more in a predictive sense - you can extrapolate a lot from the future out of the present. •How valuable could this be to brands?

WHAT’S YOUR INTENTION?

WHAT’S YOUR INTENTION?

As consumers give up more and more of their information, the opportunity exists to anticipate their purchasing and even bid for their custom.

Rather than having to wait until chosen by consumers, brands are increasingly able to see, interpret and even satisfy consumers' desires and intentions.

WHAT’S YOUR INTENTION – SO WHAT?

• In the same way that business is becoming more transparent, so too are consumers. • It’s flipping the purchasing process on its head in the same way as Dynamic Pricing did. • It’s always been the Holy Grail to be able to offer each individual consumer the best deal based on their circumstances (in the same way that it’s always been ideal to change pricing accordingly) • Just wasn’t possible with technology, but is now.





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Clout

BRIC Attack

China recently overtook Japan as the world’s 2nd largest economy.

Brazil’s middle-class has swelled by 24% in 4 years.

India’s economy is growing at 10% a year (ours is growing at less than 2%).

Developing economies "have accounted for nearly 70 percent of world growth over the past five years".

DESIGNED IN CALIFORNIA, MADE FOR CHINA

Increased wealth and confidence will have the side-effects of greater creativity and entrepreneurialism.

These countries will soon have the largest consumer market for every product.

THE CHINESE ARE COMING

PATENT PENDING

China plans to file 2 million patents a year by 2015.

The U.S currently files 480,000.

BRIC ATTACK – SO WHAT?

•Brands in established markets are used to dealing with established competitors for their share of the pie.•What they’re not used to is totally new brands coming in and wanting their own slice. • It’s unlikely to be a slow process of infiltration – the BRIC countries (and their middle classes) are growing too quickly for this.

WISDOM OF ONE

CELEBRITY MAVENS

WHAT’S YOUR……

WISDOM OF ONE – SO WHAT?

•People are looking more and more for authority – trusted, authoritative sources of advice.•As people look more for authority, so it becomes more important for brands to know who these bastions of authority are.•Not to say that peer reviews are not important – but they will increasingly sit side by side with the Wisdom Of One.

In Realtime Dynanic Pricing

Quantifying EverythingWhat’s Your Intention?



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GIVE A LITTLE LOVE

IN 1983, 90% OF BRITISH PEOPLE BELIEVED THAT BANKS WERE WELL RUN.

IN 2009 THIS HAD FALLEN TO 19%.

HYATT HOTELS: TOTAL = $0.00

HOW HAPPINESS SPREADS

I WANT CANDY

No candy 1 piece 2 piece 1+1 piece10%

12%

14%

16%

18%

20%

22%

24%

19%20%

22%

23%

GIVE A LITTLE LOVE – SO WHAT?

• The public see big business as inflexible and unwieldy – the kind of organisations that take great joy in charging you £30 a day for going a penny over your overdraft limit.

• It’s a great way to make a brand more human, and to grow consumer loyalty. If someone gives you something unexpected, you feel almost obliged to give them your custom again.

• Consumers give up so much more of their own personal information now – the KLM and Interflora examples were good illustrations of how knowing your consumers can allow you to talk to the individual rather than the demographic.

• In a world where brands can feel distant , inflexible and robotic, this gives a brand a human touch.

• However….getting the timing and offer right is crucial. And don’t be creepy!

THE GAME OF LIFE

THE FUN THEORY

SEGA TOYLET

GAME OF LIFE – SO WHAT?

• Taps into the need for self-esteem and achievement – two fundamental human needs.

• Integrates a brand into the daily life of consumers in a way that much branded content doesn’t

• Requires you to interact with content rather than merely consuming it

• It’s hard to stop people’s behaviour by finger-wagging (obesity), and people resent over-regulation. Can help nudge people in the right direction.

• And with the example of the Sega Toylet – it makes a routine exercise fun

8 WORDS TO REMEMBER

•Fluid•Fun • Influence•Generous•BRIC•Efficient•Non-corporate•Quantified

Finger On The Pulse - Trends Briefing

Business

realtime information

realtime dynamic pricing

expectation of realtime

realtime interaction

realtime isnt new

success of dynamic pricing

example of dynamic pricing

businesses dont