david mattin: perform or perish key consumer trends reshaping digital in 2016 and beyond!

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Consumer trends for 2016 and beyond!

NEXT Conference, Hamburg24/10/15

This session is all about opportunity. I want to run through 10 of the most actionable trends were seeing right now, and hope this session will spark ideas and, ultimately, new successful products, services and campaigns of your own.

If the previous session was all about the next 10 years, think of this as about your innovation efforts across the next 10 months or even 10 weeks!1

A QUICK WARM UP!

Were going to start with a warmup to get you in the consumer trend mindset.

Im going to show you two recent examples from our spotters and ask if you think each is a good idea or a bad idea.2

2 INNOVATIONS:GOOD OR BAD IDEA?

AIRFROVPlatform connects buyers to people travelling overseas

Airfrov is a Singapore-based platform that pairs up frequent travellers who have a little extra luggage space to spare, with shoppers who want to buy specific products from overseas but dont have the luxury to travel for it. Through Airfrov, shoppers get to enjoy their favorite products more frequently, and without the exorbitant shipping fees, while buyers get to make a little profit in exchange for filling the empty spaces in their luggage.

For SG50, Singapores independence day celebrations, Airfrov launched a promotion whereby overseas Singaporeans in selected cities in the UK, China, Taiwan, Hong Kong and Japan can request for iconic Singapore items that they miss.

Link: https://www.airfrov.com4

CATSTACAMPet food brand unveils Instagram device for cats

Q1 2015 saw Whiskas Australia unveil the Catstacam: a device designed to help people get closer to their pets, by allowing cats to take and post their own images to Instagram. Cats wear a small camera around their necks, with motion detector technology taking one image every 20 seconds which is then automatically posted to the animal's own Instagram account. Each image is posted with the caption: I took this photo so you can see the world through my eyes. If you notice any behaviour youre curious about, simply ask a question using the hashtag #askwhiskas. You can see photos from other cats at #Catstacam.

Link: https://www.youtube.com/watch?v=pWofshPDFMA5

2 INNOVATIONS:GOOD OR BAD IDEA?








GOOD OR BAD?LETS VOTE!

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YOU ARENT THE ONLY JUDGE

Its very tempting to look at these kinds of innovations through a lens of our own preferences.

BUT, its not just about your taste

You could dislike it but it may still be a great idea that taps into and meets other consumers needs12

3,000 SPOTTERSTRENDWATCHING INSIGHT NETWORK

13We sit at the centre of this spotting network. Examples come in all the time, and we interrogate them for what they mean for consumer expectation. Its not about our taste!

Trendwatching.coms insight network

3000 business and marketing savvy spottersIn over 90 countries

From students to Creative Directors to retirees. From Moscow to Manila. They provide us with local insights and examples for our global trends.

www.trendwatching.com

We have nothing to do with whats fashionable!

We dont mind ugly things as long as they are innovative.

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Economic trends15

#

Not about what is trending online16

A consumer trend is a new manifestation among people in behavior, attitude, or expectation of a fundamental human need, want or desire.TRENDS

Remember our definition of a trend, and the model that underpins it.

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CHANGE

We live in a world of constant, perpetual, relentless change. Savvy and switched-on business professionals constantly ask whats changing?, and look at how it might possible to service peoples basic human needs and wants in novel, exciting better ways.

To analyze change, think in terms of Shifts and Triggers.

Shifts are the long-term, macro changes (such as urban transition, aging populations and climate change) that play out across years or even decades. While not consumer trends themselves, these shifts do and will continue to shape both the nature and direction of consumer trends.

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CHANGE?

On the other hand human nature does not change much over time. Human beings are motivated by a set of core needs and wants safety, security, value, excitement, and many more that are pretty stable over time.

Our model says that new consumer trends emerge when external change unlocks new ways of serving these age-old human needs and wants.

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INNOVATIONS

The last element of our model is innovations. This is the idea that we can see new trends emerging when we look at niche and game-changing innovations from startups and big brands.

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EMERGING EXPECTATIONS

The three fundamental elements basic needs, external change and innovations will help you understand trends. But sensing where and how these come together to form new levels of customer expectation will help you act on trends. Thats because identifying what the people embracing the brands, products and services that embody the trend now want and even expect is the best way to spot the potential opportunities within a trend.

An example of emerging expectations is evident around online piracy of media content. In 1999, Napster took advantage of faster and more widespread internet access (a prolific driver of change) to set expectations around infinite choice and free access to media. It took until 2008 for Spotify to offer customers a legitimate outlet for that expectation, finally supported by a music industry willing to tolerate free streaming. Netflix axed its limit on the volume of content its subscribers could stream the same year. It had taken nearly a decade to resolve the tension and resulting expectations that digital distribution and (illegal) file-sharing had created. Clearly there are many factors at work (others tried to launch streaming services during that decade). But identifying an unmet customer expectation will make it clear which points of tension you should focus on resolving.

What if you cant see any innovations that are catering to the new customer expectation youve identified? You might just be close to the holy grail of trends: when it is your innovation that starts a trend by setting a new level for customer expectations that other innovators have to work to meet! 21

Take these trends and examples, learn from them, adapt them, and launch innovations of your own!READY TO RUN

So today well run through ten trends and lots of innovations. Your job is to strip out the underlying lessons for you. What do these examples mean for the evolution of customer expectations? What do they mean for YOU?

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LIGHTBULB MOMENT

Look for that lightbulb moment where you see an example that you have to take back to your team, share, and innovate around!

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VisionNew business conceptsNew products, services, experiencesMarketing, advertising, PR

WHERE

How will consumers LIVE?

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SHARING ECONOMY?

For my second trend, I want to start with a trend that DOES have a clear human need at its heart. The Sharing Economy is all about making better use of resources, and we all want to get our hands on more stuff and leverage the value of the stuff we have.

The trouble with the Sharing Economy so far is that the mechanics have been unworkable or incovenient. How in practical terms can I share my car or my bike with others? How do I arrange that? 26

INTERNET OF SHARED THINGS

Now, the internet of things is unlocking new ways for the sharing economy to operate. This is unlocking the promise of the Sharing Economy: a truly revolutionised relationship with the physical resources around us. This is the INTERNET OF SHARED THINGS.

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Acquity Group, August 2014of consumers cite lack of perceived value as the main barrier to purchase for in-home IoT devices.36

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The Internet of Things meets the Sharing Economy. That means smart devices and digital services that help users share physical resources.INTERNET OFSHARED THINGS

This is about digital services making intelligent decisions and contextual understanding to solve real human problems.29

AUDIScheme allows car to be shared among five friends

Announced in October 2014,Audi Uniteenables customers in Sweden to share a car in a private network of up to five people (friends, colleagues or neighbors). Via the app, users can view the location and availability of the car, and can access the vehicle using a smart key fob. Depending on the agreement, drivers are charged either a usage-based or fixed monthly fee.

Link: https://www.audiunite.com/se/service/en_unite.html30

Breather App lists urban spaces available to rent for meetings or relaxation

Launched in Montreal and New York during Q4 2013, Breather allows people to find urban spaces to rent for short periods of time. After downloading the free mobile app, users can view nearby properties which can be booked for time periods from 30 minutes up to a whole day. After paying, users' cellphones are granted temporary access to unlock the property via the NFC keyless entry system. All rooms are equipped with wifi, heating and a telephone line, as well as furniture to accommodate anything from taking a nap or holding a meeting, to practicing yoga. Breather's rental prices start from around USD 20.

Link: http://breather.com/31

BitLock Bluetooth-powered system allows cyclists to unlock their bike with a cellphone

Reaching its Kickstarter funding target during November 2013, the BitLock is a US-designed device which allows cyclists to use a cellphone to lock their bike. Via an accompanying app and a Bluetooth connection, the BitLock bike lock verifies their identity when they are nearby; by pressing a button on the bike lock, the bicycle is then automatically unlocked. As well as tracking statistics (such as distance and CO2 emissions saved), the BitLock app enables users to view the location of their bike and unlock it for others. The system costs USD 119.

Link:http://bitlock.co/32

UMBRELLA HEREDevice signals when users are willing to share their umbrella

Hong Kong-based group Umbrella Here created a USD 28 donut-shaped Bluetooth device that fixes onto the top of umbrellas. When it rains, owners can use the companion app to signal (via color LEDs) to nearby strangers they are willing to share. Users who meet this way and share a journey can log their walk online via the Umbrella Here site. When kept at home, the gadget blinks to warn if it is a rainy day. The device ships in January 2015.

Link: http://www.umbrellahere.com/33

INTERNET OF ? THINGS

By the way, if you want to coin your own trend right now, simply insert a key human need or want into the INTERNET OF THINGS.

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BAIDUSmart chopsticks help diners avoid contaminated food

INTERNET OF CARING THINGS

In September 2014, Baidu unveiled a set of smart chopsticks which can detect food contamination. The Chinese online service company's prototype electronic chopsticks measure the freshness of cooking oil as well as pH levels, temperature and calories. Data is then relayed to a connected mobile app in real-time.

Link: https://www.youtube.com/watch?v=BChk6WOBjsA35

LIGHTBULB MOMENTAre your IoT discussions centered around a real human need, want or desire?

If youre talking Internet of Things, remember to also be talking basic human needs! The same goes for all discussions of tech!

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How will consumers SHOP?

a compelling brand is still about FEELINGS!

Weve talked about technological change. But no matter how advanced technology becomes, human beings in the end are irrational beings motivated by feelings and emotions.

That has implications for so many of the areas we track inside the consumer arena.

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Amazon Dash Button Connected button brings 'Buy Now' functionality to the physical world

Launched in March 2015, the Amazon Dash Button lets consumers re-order household products such as washing powder, toothpaste, or razor blades with a single click and without the need to use a smartphone or laptop. The branded buttons are set up using the Amazon smartphone app, can be affixed to various surfaces, connecting via wifi. Once clicked, the buttons send a repeat order to Amazon for the specified product. Dash Buttons are available free on an invitation-only basis to US-based Amazon Prime subscribers.

Link: https://www.amazon.com/oc/dash-button40

TWO-WAY TRANSPARENCY

One area in which feelings are key: customer service. Yes, a drone may soon be delivering your pizza. But in the end good customer service is about feeling thought about, cared for, etc. That will never change.

One counter-intuitive opportunity were seeing in customer service now? Turn the tables back on consumers and cause them to submit to being rated and reviewed. Yes, this is about rating customers for their behaviour, demeanour, reliability, etc.41

P2P services such as Uber, where customers are rated by their drivers, have primed consumers to realize that when they are rated this can result in a better experience for everyone.

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In 2016, enlightened consumers fresh from Uber and Airbnb will embrace brands and organizations that want to rate them. TWO-WAY TRANSPARENCY

SAVANNAYes, its the Uber for haircuts

As the on-demand economy spreads (yes, were talking Uberfication) wed expect to see the idea of customer ratings spread, too. This is the Uber for haircuts, launched in Boston, USA, in April 2015.

Link: http://www.gosavanna.com/

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Art serieshotelGuests reviewed online by hotel in exchange for discounts

In April 2015, Australia's Art Series Hotel Group launched Reverse Reviews: a promotion giving guests the chance to obtain discounts and upgrades in return for being reviewed. People staying at any of the group's boutique hotels could opt in to take part for free, with their behavior and demeanor being ranked based on a points system and reviews then published online. Any guests who starred ratings over four stars were rewarded with complimentary food and beverages, stays or upgrades.

Link: http://www.artserieshotels.com.au/reversereviews/45

Stefans HeadPotential customers vetted via social media before allowed to purchase

Launched in the US during March 2015, Stefan's Head is an etailer and fashion brand operating via SMS only. In order to be eligible to purchase limited edition apparel from the brand, customers need to send an SMS to a cellphone number, and then receive a reply asking for details of their social media accounts in order to be vetted by the company. Those who are deemed worthy receive an SMS with links to purchase limited edition products every few weeks, with the site automatically saving sizing and credit card information.

Link: http://stefanshead.com/46


WHERE

This trend is a great example of the way that trends can be applied at different levels of your business. For Uber, TWO-WAY TRANSPARENCY is fundamental to the business model. Stefans Head built their entire vision around the idea of TWO-WAY TRANSPARENCY. Meanwhile, for the Art Series Hotel Melbourne the trend was applied to create a fun and eyecatching campaign.47

PRET Staff given freebie allowance to use on customers they like

In April 2015, Pret CEO Clive Schlee revealed that at Pret staff are given a freebie budget that allows them to give free coffee to customers they really like. So we see how Pret has encoded customer ratings deep into its culture. This helps Pret stores be a friendlier place and that means a better experience for everyone.

Link: http://www.thisismoney.co.uk/money/markets/article-3048961/Staff-Pret-Manger-hand-free-coffees-customers-fancy-says-boss.html

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LIGHTBULB MOMENTHow can you turn transparency on your customers?

How could you turn TWO-WAY TRANSPARENCY on your customers? How could you use ratings and reviews of customers to improve the experience for everyone?49

How will consumers MAKE?

The old models of customer segmentation are increasingly inadequate & not fit for purpose. 50

INSTANT SKILLS

Youve heard a lot about status today. Where next for this crucial motivator of consumer behaviour? I could have chosen so many trends to show you, but this one is really actionable. INSTANT SKILLS is about making it easier, or effortless, for consumers to gain a new skill, to produce expert-level output.

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We all know where the expectation of INSTANT SKILLS came from. Instagram turned users into expert art house photographers years ago.

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In a consumer arena in which status is ever-more about who I am rather than what I have, customers will embrace services that remove all barriers to producing amazing output.INSTANT SKILLS

HEXO+ Intelligent drone follows and films people autonomously

Announced in June 2014, HEXO+ is an intelligent drone that follows and films its users autonomously. Once people have entered the perspective from which they wish to be filmed, the drone follows their every move, automatically moving around to maintain the desired framing. Developed in the US, the HEXO+ raised over USD 750,000 on Kickstarter in only six days, with the device costing USD 499 to buy.

Link: https://www.kickstarter.com/projects/sqdr/hexo-your-autonomous-aerial-camera54

SEEDSHEET Plug and plant serviceallows gardeners to orderpre-seeded turf

Crowdfunding during November 2014, the Seedsheetoffers aspiring gardeners a simple plug and plant approach. The service enables customers to enter the location of their garden (to identify which plants will thrive), and plan their bed using the online garden-building software. A custom Seedsheet is then despatched, which can just be unrolled onto soil and watered.

Link: https://www.kickstarter.com/projects/86203544/the-seedsheet-the-future-of-fresh55

Absolut BoozeboxAutomated beverage machine mixes perfect cocktails every time

March 2015 saw Pernod Ricard launch the Absolut Boozebox: a drinks printer that makes beverages automatically. Introduced in bars across So Paulo, the Boozebox can store over 200 recipes and, according to Pernod Ricard, make cocktails faster and up to 15% more efficiently than a bartender. Users can select personal preferences - sweetness and temperature for example - via a touchscreen interface.

Link: http://www.boozebox.com.br/56

Meitu XiuxiuBeautiful image app maker launches smartphone with auto-enhancing front camera for selfies

The answer we get this example you saw earlier!

Chinese mobile developer Meitus photo-retouching app Meitu Xiuxiu is one of the most popular in China, with over 400 million users worldwide. In April 2015, the company launched its latest smartphone, the M4. The phone features are focused on helping users take better selfies including a 13 mega pixel front camera and a pre-installed suite of image enhancing apps.

Link: http://www.meitu.com/

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FOREO MODA Device applies pre-selected makeup look in 30 seconds

In March 2015 Swedish beauty company Foreo launched the MODA, the worlds first digital makeup artist. Users can upload any picture to a smartphone app to select a makeup look, and the MODA will replicate it. The device uses facial scanning technology to ensure the makeup is applied correctly in around 30 seconds.

Link: http://www.foreo.com/moda/

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LIGHTBULB MOMENTWho and what are your customers trying to be, and how can you help?

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How will consumers PLAY?

Yes, FUN is a basic human need too!

But fun is a serious business. You know as innovators that its very difficult to create new experiences that are genuinely fun. And you know that expectations around what fun even means are always changing.

Here are a couple of actionable opportunities.60

QUANTIFIED SELF?

Endeavour Partners,January 2014of people who buy a wearable device for self-tracking give up on the device within six months.33

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CURRENCIESOFCHANGE

Consumers will embrace brands that reward them for constructive, healthy, self-improving behaviours.CURRENCIES OFCHANGE

TencentIn-game rewards awarded for real-world exercise

August 2014 saw Chinese online media brand Tencent team up with gaming hardware company Razer in a deal designed to incentivize healthy behavior. The collaboration allows fans of Tencent's popular Timi Run Everyday game to purchase in-game rewards using exercise data recorded by Razer's activity-tracking smartband.

Link: http://www.tencent.com/65

Intersport esk republikaSportswear brand rewards runners with discounts

March 2015 saw Intersport esk republika introduce Run the Logo: a campaign rewarding exercise with discounts on running apparel. After uploading a completed route in the shape of the brands logo to Facebook using the hashtag #bezimproslevu participants could claim a 1% discount for each completed kilometer. There was no cap on the discount that could be claimed.

Link: https://www.facebook.com/INTERSPORT.CZ66

Pocket Points Students earn discounts for avoiding cellphone use in class

Launched at California State and Penn State universities during Q4 2014, Pocket Points is a free mobile app rewarding students when they avoid using their cellphone in class. When a class begins, students open the app, lock their cellphone and set it to one side, automatically amassing points for every 20 minutes that it remains untouched. The app is location-aware, and more students using the app in a specific class or school results in everyone running Pocket Points earning more points. Any points awarded can be spent with participating local businesses on products such as food or apparel.

Link: https://pocketpoints.com/67

PWC, October 2014of Millennials would be strongly motivated to use a wearable device if it rewarded those who frequently use it with loyalty points. 37

37% of Millennials would be strongly motivated to use a wearable device if it rewarded those who frequently use it with loyalty points; a figure that rises to 52% if the rewards were monetary (PWC, October 2014)

Link: http://www.pwc.com/es_MX/mx/industrias/archivo/2014-11-pwc-the-wearable-future.pdf

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FITBITConsumers burn calories to give food to citizens in need

In February 2015 the makers of the activity tracker Fitbit partnered with hunger-relief charity Feeding America to launch the FitforFood campaign. Any user of a Fitbit device can opt in to the programme, which will see every calorie they burn go towards a goal of 1 billion calories burned by all participants. If the target is hit, the 1 billion calories will buy 1.5 million meals for US citizens in need. Participants have until 3 March to hit the goal.69

ICUKOO Charitable donations made with each snooze

Available to download from Q4 2014, iCukoo is a free mobile alarm clock helping people to support charities. Once users have downloaded the app, they can set an alarm and choose which UK charity they wish to support, before selecting how much each 'snooze' is worth. When users press snooze, the app takes note and once a threshold of GBP 1 has been reached, an SMS is sent asking if they wish to donate to their chosen cause.

Link: http://icukoo.com/70

How can YOUR campaigns help consumers become the people they want to be?LIGHTBULB MOMENT

If youre talking Internet of Things, remember to also be talking basic human needs! The same goes for all discussions of tech!

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Just the tip of the iceberg

The trends Ive shown you are just the tip of the iceberg. But I hope youve drawn out some actionable opportunities for your business.72

How will MOVE and WORK?Come and say HI!

A framework for understanding

But beyond these 10 TRENDS Ive given you a framework for harnessing the innovation onslaught you see around you. Think change, human nature and the way innovations set new customer expectations.

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CHANGE

The world is changing all the time. Technological, social, attitudinal change, and more.75

CHANGE?

The fundamental drivers of human behaviour dont change that much over time: safety, excitement, value, status and more.

Consumer trends emerge when external change unlocks new ways to serve these basic human needs.76

INNOVATIONS

We can see new trends emerging when we look at the way innovators are leveraging external change to serve basic human needs in know ways. Thats why spotting and thinking about innovations is such a crucial part of the TrendWatching methodology.77

APPLY! APPLY! APPLY!

Trends are USELESS if you dont take the ingishts and and APPLY them to create your own INNOVATIONS.78


WHERE

www.trendwatching.com/trends/consumertrendcanvasWORKSHOP AT 4PM TODAY!

THANK YOU!And happy [email protected]

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david mattin: perform or perish key consumer trends reshaping digital in 2016 and beyond!

Lifestyle