Are your clients thinking about how technology is affecting consumer behavior?

Mickey Alam Khan, editor in chief of Mobile Marketer and Mobile Commerce Daily, has written an excellent post on Consumer 2.0: How brands and retailers must anticipate the shopper behavioral shift in five years.

His point is that so much dialogue has been focused on new technologies, that too many marketers are forgetting to discuss the "sea-change in consumer behavior expected in the next three to five years".  I agree wholeheartedly with Mr. Khan.

The traditional sales funnel has been displaced by a new brand decision model that continues in many cases right up to the point of sale.  And with the continuing impact of peer-to-peer influence and the advent of mobile shopping tools, marketers cannot afford to keep their planning focus solely on which is the best technology to use.

He goes on to say that "smartphones and smart televisions and smart cars and smart clothes and smart food will shape consumer behavior in the next three to five years where most marketing fundamentals developed even a decade ago will be rendered obsolete".

I was particularly intrigued with his identification of four growing consumer behavior trends that will greatly influence how customers interact with brands and retailers over the next few years.

Customer impatience will doom many potential sales.  With so many options, consumers will have no tolerance for anything that delays their purchase, online or in-store.  Every element of the customer service response, from page uploads to physical or online/mobile checkout will be scrutinized and only deemed acceptable if there are no delays. It is not seconds, but milliseconds that will matter here.
A frictionless shopping experience will be the goal. The entire searching, shopping, browsing or buying experience has to be devoid of hurdles or pain points. Smooth transactions will be the minimum expectation, and intuitive response to customer overtures will be the norm.
The lowest price will be the deciding factor for most purchases.   We can only blame ourselves for this expectation. We have trained most consumers to shop by price – except in the case of brands that maintained their mystique and value to customers.  Consumers will not always expect cheap, but they do expect affordable.
Brands will need to be connected 24/7. Consumers do not expect brands to have a downtime in any area – be it shopping hours, product delivery, returns, customer-service calls or email or text responses. They expect to access the marketer or retailer on their own terms – always on, always there, always helpful, always friendly, always obliging.

We've all got to keep up with technology changes, but we can't forget how those technologies are impacting the buying decision process.The launch of new devices every year – new tablets, new smartphones, new smart TVs, new applications, new smart appliances, etc. – is forcing consumers to change their ideas about how to buy, when to buy and what to buy.  Are your clients ready for this sea-change?

Don't let your branding strategy get lost in the digital shuffle.

What's happened to branding in the digital marketing era?

It seems like 99 out of 100 posts/articles/reports these days are focused on social media or some other tactical tool that is the next big thing in the world of digital communications.

Recently, I've been seeing more (or maybe it's just my noticing more) on branding.  And that's a good thing.

In his latest book, Brand Relevance: Making Competitors Irrelevant, David Aaker analyzes case studies on dozens of successful brands to offer guidance on how to create or dominate new categories or subcategories and thus make competitors irrelevant.  He stresses the importance of identifying and building new categories and subcategories that contain innovations that customers "must have" and that competitors cannot or don't offer.  He also points our that these customer "must haves" can involve brand characteristics that are beyond attributes or benefits, such as brand personality, organizational values, social programs or self-expressive benefits.

In a recent Marketing News article, he reiterated the importance of establishing brand relevance in a competitive world of me-too products, and  the need to become an "exemplar" of the new category or subcategory in order to stave off competition.  By positioning  your brand as the innovator and quality standard, your brand can define others as imitators and inferior.

The 2012 Brand Keys Customer Loyalty Engagement Index (CLEI), now in its 16th year, was just released, and concludes that emotional engagement factors are driven by the brand’s “values” and the consumer’s brand “experience.” In a post published by MediaPost, Brand Experience, Values Increasingly Drive Loyalty, Robert Passikoff, Brand Keys founder and president,stated that “across most of the 83 product categories studied, we found that consumers’ loyalty now hinges more than ever before on the degree to which a brand has established a clear core value proposition -- a differentiator that goes beyond the basic utility of a product or service.”  H went on to say, “Today, delivering on the ‘rational’ reasons to buy a brand -- good or superior quality and value for the price -- is just the ‘door-opener.’ If that’s all a brand is doing, it’s in grave danger of being commoditized. In fact, it’s not a brand; it’s a category placeholder.”

It's good to see that some folks have not lost sight of the basics.  As we are looking for ways to succeed  in today's digital marketing era, don't lose sight of the importance of a solid brand as the underpinning for your social media and other marketing communication strategies.  The best tools are meaningless unless they are in the right hands!

Looking Ahead - Keep Your Clients and Prospects in Touch with Tomorrow

 If you have been reading my blog for awhile, you know that one of my strongest beliefs is that an agency should be more than just a "creater of ads".  They must help their clients build a bridge between their customers and their brand in all communication areas. 

Clients can be overwhelmed by the pace of change and the impact of new communications technologies.  Smart agencies can help to fill that role, and build client loyalty in the process.

One way to do that is to follow companies that look at future trends, like Trendwatching.com,  an "independent and opinionated (their description) trend firm, scanning the globe for the most promising consumer trends, insights and related hands-on business ideas."

Their monthly Trend Briefings are always fun and thought-provoking, and, from my experience, are usually on the leading edge of consumer behavior trends.Their most recent briefing report was a compilation of trends they have been observing over the past year. Here is a quick summary of what they feel are 12 trends that marketers should be watching closely.

1. Get ready for all-things China.
In addition to dominating manufacturing, Chinese tourists will reach 100 million by 2020. In 2012, department stores, airlines, hotels, theme parks, and museums will roll out the red carpet showering Chinese visitors and customers with tailored services and perks.

2. Consumers get personal about health with DIY monitoring and diagnosis.
During the coming year, expect to see consumers take advantage of new technologies and apps to discreetly and continuously track, manage and be alerted to, any changes in their personal health. New apps are being introduced almost daily designed to help you avoid a trip to the doctor, which may or may not be all that good. But it’s happening.

3. What's the deal?
In 2012, not only will consumers continue to hunt for deals and discounts, but they will do so with increased fervor and pride. Deals are now about more than just saving money: it’s the thrill, the pursuit, the control, and the perceived smartness, and thus a potential source of status that will drive sales in the coming year.

4. Recycling becomes a viable marketing tool.
In times of recession, economic interests have generally tended to overshadow eco-causes, but the quest for a more sustainable lifestyle will remain a pressing issue for years to come. One ‘green’ trend to watch in 2012 are brands helping consumers recycle by taking back all old items from customers, and then actually doing something constructive with them.

A great example is Nike’s trailblazing Reuse-A-Shoe program. Nike has collected and recycled over 25 million pairs of worn-out Nike shoes to-date. Old shoes are sliced, separated and ground up into a material called Nike Grind, which is then used in creating athletic and playground surfaces, as well as a variety of Nike products. Look for other brands to join this trend in 2012.

5. A cash-less society gets closer to reality.
We will continue our march toward a cashless future, as major players such as MasterCard and Google build a whole new eco-system of payments, rewards and offers around new mobile technologies. For consumers, the initial lure will be convenience, but eventually mobile payments will create an entirely new data-driven eco-system of rewards, purchase history, deals, etc.

6. Lower-income urbanites become a new marketing target.
Marketers are finally discovering the global opportunities for brands which cater to the hundreds of millions of lower-income consumers, a heretofore ignored target group. In 2012, expect more lower income consumers to demand innovation tailored to their unique circumstances, from health issues to lack of space to the need for durability.

7. Crowdsourcing will expand as a marketing and communications tool.
In 2012, count on the crowdsourcing trend to continue to shake up business processes and spawn  innovations in new areas. After all, being given a chance to contribute, or to be a part of something bigger than themselves, has always been popular with people.  Expect to see more initiatives in 2012 that make it simple (if not effortless) to contribute to anything, from pinpointing roads in need of repairs to finding signs of extraterrestrial life.

8. Brand transparency, and humanity, will be consumer favorites.
While 2011 saw new levels of consumer disdain at too many business' self-serving actions, stories of businesses doing good (think Patagonia and Ben & Jerry's) remind consumers that personality and profit can be compatible. In fact, in 2012 consumers won't expect brands to be flawless; they will even embrace brands that are are honest about their flaws (think Dominos), and support brands that show some empathy, generosity, humility, flexibility, maturity, humor and dare we say it, some character and humanity.

9. Touchscreen technology becomes “high touch”.
Thanks to the continued explosion of touchscreen smartphones, tablets, and the cloud, 2012 will see new touchscreen technology that is not only more pervasive, but more personal, more immersive and more interactive than ever. In 2012, we see touchscreens as an interface to a world where consumers will care more about the screen and what’s being accessed through it, than the brand.

10. 'Trading in' is the new black in 2012.
It’s never been easier for savvy consumers to resell or trade in past purchases, and unlock the value in their current possessions. In 2012, ‘trading in’ will continue to become an alternative to buying. Consumers have always resold large, durable goods like cars and houses; but in 2012, almost anything is ripe for resale, from electronics to clothes, and even experiences.

11. Risque becomes less risky and more accepted around the globe.
While cultural differences will continue to shape consumer desires, middle-class and/or younger consumers in almost every market will embrace brands that push the boundaries. Expect frank, risqué or non-corporate products, services and campaigns from emerging markets to be on the rise in 2012. Consumers in mature consumer societies have generally been more willing to handle much more honest conversations, more daring innovations, more quirky flavors, more risqué experiences, but in 2012, consumers in emerging markets will increasingly appreciate brands that push the boundaries.”

12. Consumers will demand instant visual information gratification.
The need and expectation for instant information and instant access to everything one wants to know is already deeply ingrained in the today’s consumer. 2012 will see a mix of apps and QR codes bringing information about objects that consumers encounter in the real world instantly. And like some other trends, it’s the rise of the smartphone that will fuel this full-blown access to everything.

As the authors of the latest Trendwatching briefing point out, "We’re not saying there are only 12 consumer trends to track in 2012; there are dozens of important consumer trends worth knowing about and applying at any given time of the year. We merely bring you a selection to get going."

I hope this recap gives you ideas on how to approach your clients and prospects.  Today's information overload and digital technology makes it imperative for someone to take the lead in understanding what changes marketers should be exploring today to be ready for tomorrow.

Is your agency ready to provide that kind of support?