tag:econsultancy.com,2008:/topics/customer-experience Latest Customer Experience content from Econsultancy 2018-01-16T13:30:00+00:00 tag:econsultancy.com,2008:BlogPost/69728 2018-01-16T13:30:00+00:00 2018-01-16T13:30:00+00:00 New E.U. regulations could make it easier for fintechs to operate across the bloc Patricio Robles <p>It's a global trend. Cities and countries around the world, from Stockholm to Singapore, are aiming to become fintech hubs and for good reason: while entrenched financial institutions, namely major banks, aren't going away any time soon, observers like McKinsey &amp; Co. <a href="https://thefinancialbrand.com/54662/mckinsey-banking-fintech-competition/">believe</a> fintech upstarts could eventually divert trillions of dollars in business from them. So the regions that successfully court fintechs could seen their own fortunes grow.</p> <p>That isn't lost on what is already one of the most economically powerful regions in the world, the European Union.</p> <p>But the E.U. faces some unique challenges as it battles to keep other regions from dominating fintech. One of the biggest: many fintechs located in an E.U. member state often can't easily operate in other E.U. member states.</p> <p>That's because some member states have applicable laws that are more stringent than E.U. laws, meaning that fintechs wanting to operate in those member states have to deal with the local rules. As a result, many fintechs choose to operate only in major E.U. markets, or their home market only, because the time, money and effort required to operate across the E.U. would be too great.</p> <p>As Valdis Dombrovskis, E.U. Commission vice-president responsible for financial services, told the Financial Times, “We still don't have this digital single market...and that's why we see many European fintechs then going to the US or Asia to scale up.”</p> <p>In an effort to ensure that the E.U. doesn't cede its fintech opportunity to other countries and regions, the European Commission is reportedly prepping draft legislation that would let fintechs in the peer-to-peer lending and crowdfunding spaces obtain pan-E.U. licenses that eliminate the need to deal with the headaches caused by local regulation. Pan-E.U. licenses for other fintech markets could be added at a later date.</p> <p><a href="https://www.ft.com/content/a340b96a-e727-11e7-8b99-0191e45377ec">According to</a> the Financial Times, the draft legislation will also provide for “regulatory sandboxes” that allow fintechs to experiment with new services without having to deal with excessive regulation.</p> <h3>Not all bad news for established players </h3> <p>While the kind of regulation the E.U. is reportedly preparing to pursue will obviously give fintechs a new advantage as they continue their march to dethrone established financial institutions, it's not all bad news for large, established financial services firms, including big banks.</p> <p>That's because these players are increasingly investing in, partnering with and even acquiring fintechs that show promise and/or are related to their business. In other words, the behemoths of finance are leveraging their capital and playing a strong “if you can't beat em, join em” card.</p> <p>From this perspective, pan-E.U. licenses for fintechs might actually benefit entrenched players, allowing them to more easily and rapidly take advantage of the innovations these upstarts are bringing to market. For example, a major bank that operates across the E.U. might today have to partner with multiple fintechs that serve the same function, or limit their partnerships to fintechs in certain countries, because those fintechs don't operate in all E.U. member states.</p> <p>If and when that changes, both fintechs and the established financial institutions that they're frenemies with, could benefit significantly, ushering in a new phase of fintech's rise in Europe.</p> tag:econsultancy.com,2008:RoundtableEvent/921 2018-01-11T14:32:58+00:00 2018-01-11T14:32:58+00:00 Customer Experience <p style="border: 0px; vertical-align: baseline;">Many companies are undergoing a transition from a product-led strategy to a customer-led strategy. As the focus on customer experience (CX) intensifies, marketers must ask what this means in practice. This roundtable discussion will cover a number of topics pertinent to CX, including:</p> <ul style="border: 0px; vertical-align: baseline;" type="disc"> <li style="border: 0px; font-weight: inherit; font-style: inherit; vertical-align: baseline; font-variant: inherit;">Instilling a culture of design, from boardroom to office space</li> <li style="border: 0px; font-weight: inherit; font-style: inherit; vertical-align: baseline; font-variant: inherit;">Designing your organisation around your customer</li> <li style="border: 0px; font-weight: inherit; font-style: inherit; vertical-align: baseline; font-variant: inherit;">Mapping the customer journey</li> </ul> tag:econsultancy.com,2008:TrainingDate/3392 2018-01-05T12:31:10+00:00 2018-01-05T12:31:10+00:00 Multichannel Marketing and the Customer Journey <p>Consumers don’t see “channels”. They only see brands to facilitate their needs in the moment. Yet despite this, businesses are often structured, resourced and budgeted around individual marketing channels, which can lead to a disconnect between consumers and brands….or even within businesses themselves.</p> <p><a name="h.c2ixnqwvr8bh"></a>This is no chalk and talk session. Using a case study throughout the day, this practical one-day course provides you with the strategic planning tools to take a compelling campaign proposition to market, with a multichannel marketing strategy that ensures you can deliver the right content, to the right person, through the blend of channels they prefer.</p> <p>Having mapped out the multichannel activation plan for your brand, you will then gain an understanding of the key measures and how to bring these together in a meaningful context.</p> tag:econsultancy.com,2008:BlogPost/69698 2018-01-05T11:35:00+00:00 2018-01-05T11:35:00+00:00 Why the ‘working backwards’ method is key to a superior customer experience Nikki Gilliland <p>Take the Apple Store, for instance, where the customer experience is arguably as innovative and important as the products themselves. If it had the atmosphere of Curry’s, it might prove less appealing...</p> <p>Why? This all stems from Steve Jobs himself, who once said that “you have to start with the customer experience and work backwards towards the technology”.</p> <p>So, why is this method so effective when it comes to creating an effective CX strategy? Let’s discuss.</p> <h3>What does it mean?</h3> <p>The ‘working backwards’ method is defined by a focus on the customer need. Instead of starting with the technology, this means beginning with the benefits of the technology for the customers, and the problem it will solve in their lives.</p> <p>Let’s take the <a href="https://econsultancy.com/blog/69043-the-15-biggest-moments-in-marketing-since-the-launch-of-the-iphone" target="_blank">new iPhone</a> 8 as an example. While features like faster charging and a front-facing camera might sound impressive when described in terms of the technology used, the customer might still question why these features exist. However, when you start with the need - for instance, ‘I need a full battery quickly’ or ‘I want to take selfies more easily’ – the benefits immediately become more obvious, and the product sounds much more appealing.</p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">More freedom. Fewer tangles. </p> <p>Here's how to wirelessly charge your iPhone X, iPhone 8, or iPhone 8 Plus.<a href="https://t.co/CrZAsO6K1o">https://t.co/CrZAsO6K1o</a></p> — Apple Support (@AppleSupport) <a href="https://twitter.com/AppleSupport/status/947226276393377792?ref_src=twsrc%5Etfw">December 30, 2017</a> </blockquote> <p>Essentially, working backwards means that features or products will always hold intrinsic value to the customer, as they will be rooted in solving a specific and tangible problem.</p> <h3>How is it done?</h3> <p>So, is working backwards all that easy? Perhaps not, otherwise every company out there would offer a brilliant CX. Then again, it’s not all that difficult to implement when you take into consideration these key points.</p> <h4>Channel Oprah</h4> <p>Amazon is another example of a brand that works backwards, particularly when it comes to <a href="https://www.quora.com/Amazon-company-What-is-Amazons-approach-to-product-development-and-product-management" target="_blank">developing or updating new products</a>. One part of its strategy is to first write an internal press release describing the end product, largely basing it around a specific customer problem. This ensures that throughout development, Amazon has something to constantly refer back to and improve upon.</p> <p>One important element of the press release is that it is written in so-called ‘Oprah-speak’. Or in other words, a way that is easy to understand. This essentially allows Amazon to cut through tech-jargon and any descriptions that would only confuse the customer, in order to deliver a mainstream product.</p> <p><img src="https://assets.econsultancy.com/images/0009/1463/Amazon_CX.JPG" alt="" width="760" height="419"></p> <h4>Care less about the competition</h4> <p>Amazon also believes that “although leaders pay attention to competitors, they obsess over customers.” This is particularly pertinent when it comes to positioning a company within a certain market, as it can often be easy to focus on top-level features like low prices or flashy marketing in order to beat the competition.</p> <p>Instead, as we can see from the <a href="https://econsultancy.com/blog/68683-what-can-marketers-learn-from-amazon-go-s-customer-experience" target="_blank">likes of Amazon</a>, the companies that position themselves as offering the best CX often tend to win out. Attributes like fast customer service, seamless interactions, and easy navigation all fall under this umbrella.</p> <h4>Dig into data </h4> <p>When it comes to figuring out the customer need, data is an obvious but surprisingly underused resource. Research has <a href="https://www.cio.com/article/3134048/artificial-intelligence/align-intelligence-ux-and-data-to-power-exceptional-customer-moments.html" target="_blank">found that 80%</a> of companies' data remains untouched. However this perhaps has more to do with issues relating to skills and barriers to technology than the recognition of its importance. </p> <p>For the biggest companies then, this naturally remains less of a problem, and it is through utilising this customer data that they are able to truly build on brand or product innovation.</p> <h3>What are the benefits?</h3> <p>It’s clear that the 'working backwards' approach can result in a superior CX, but let’s finish by delving deeper into this, and what it means overall.</p> <h4>It builds empathy</h4> <p>Brands that take a 'working backwards' approach to CX are often more empathetic than those who do not, with a far deeper understanding of the customer’s needs, as well as the contextual circumstances in which they interact with their product or service. </p> <p>In turn, this makes it far easier for the customer to feel affinity with a brand, and this can translate into better conversion rates and audience scale.</p> <h4>It effectively communicates the product</h4> <p>One of the most important lessons a writer or marketer can learn is to always show, not tell. This applies to product descriptions and general brand copy, but it’s also a vital point to remember when creating a CX strategy. </p> <p>If brands think about <em>why</em> a product is important as opposed to just <em>what</em> it is, they are then able to place themselves in the customers' shoes. As a result, they will be in no doubt as to the benefits of the product or service in question.</p> <h4>It creates loyalty</h4> <p>A final benefit of a 'working backwards' approach is that it can ultimately increase loyalty and retention. By showing greater awareness of the customer’s needs and pain points, brands are able to create an emotional connection with an audience rather than a purely transactional or functional one.</p> <p>So, instead of choosing a brand based on logic or functional need, customers might also do this because of a brand’s overall values or the greater sense of affinity they feel towards it.</p> <p><strong><em>More on CX:</em></strong></p> <ul> <li><em><a href="https://www.econsultancy.com/blog/69269-17-stats-that-show-why-cx-is-so-important" target="_blank">17 stats that show why CX is so important</a></em></li> <li><em><a href="https://www.econsultancy.com/blog/69107-three-risky-customer-experience-cx-initiatives" target="_blank">Three risky customer experience (CX) initiatives</a></em></li> <li><em><a href="https://econsultancy.com/blog/67430-what-does-improving-customer-experience-mean/" target="_blank">What does 'improving customer experience' mean?</a></em></li> </ul> tag:econsultancy.com,2008:BlogPost/69690 2018-01-04T09:30:00+00:00 2018-01-04T09:30:00+00:00 What is cross-channel marketing and why do you need it? Nikki Gilliland <p>So, what are the benefits exactly? Here’s what you need to know.</p> <h3>What’s the difference between multi-channel and cross-channel?</h3> <p>Before we get into it, let’s think about what cross-channel marketing actually means, as it can often be confused with another common practice - multi-channel marketing. </p> <p>There are a key few differences. The first is that multi-channel means to have a presence on one or more channels – let’s say a website and a mobile app. On the other hand, cross-channel means to provide a seamless experience across a combination of several different channels.</p> <p>For example, perhaps a customer might browse on the web, before being targeted via an email that they read on their mobile device. In this sense, cross-channel takes the basic theory of multi-channel and elevates it to create an overriding and seamless brand experience – as opposed to a one-off or fractured brand message.</p> <p>So, what are the real benefits of a cross-channel approach?</p> <h3>Increasing engagement</h3> <p>Communicating with consumers on a single marketing channel might generate a certain level of success, but it also means that you are relying on a certain type of user behaviour. Checking your email when you wake up, for instance.</p> <p>In contrast, using multiple channels means you are able to reach consumers at different times of the day and also at different points of the purchasing cycle. For example, while an email might drive click-throughs, an email combined with a delayed push notification might be enough to remind a consumer to follow through on a purchase.</p> <p>Research suggests engagement levels are marginally increased with cross-channel messaging too. <a href="http://downloads.digitalmarketingdepot.com/BRZ_1712_CrosChaDif_landingpage.html?utm_source=sel&amp;utm_medium=newspost" target="_blank">Braze found</a> that when customers received outreach in two or more channels, levels of engagement were 166% higher than a single-channel rate and 642% higher than for customers who received no messages whatsoever.</p> <h3>Improving loyalty</h3> <p>As customers engage with a brand on a more regular basis, the chances of them becoming and ultimately staying loyal to that brand also increases. This is largely due to the consistency in messaging – one of the main features of cross-channel marketing.</p> <p>Unlike multi-channel, which treats each platform differently (and is therefore likely to be inconsistent in terms of tone of voice or the message it is sending) – cross-channel places all platforms under one umbrella. When it comes to ecommerce, for example, this level of consistency means that common pain points can be avoided, such as seeing a social media advert for a sale, only to find out that it has ended on the brand's website.</p> <p>Regardless of the environment they are in, a cross-channel approach ensures that customers will have the same experience across the board. In turn, this is likely to increase satisfaction and lead to repeat interactions and engagements.</p> <p><img src="https://assets.econsultancy.com/images/0009/1336/john_lewis.JPG" alt="" width="380" height="480"></p> <h3>Aligning with consumer behaviour</h3> <p><a href="http://www.mediaoceanuk.com/tags/cross-channel-buying" target="_blank">According to MediaOcean</a>, 53% of all UK adults now ‘media multi-task’ on a weekly basis, with the average user spending seven hours per day consuming media across multiple screens. This, combined with the growth in webrooming and showrooming (whereby consumers research on mobile before shopping in-store, or vice versa) proves that user behaviour is more fractured than ever before.</p> <p>As a result, one of the most effective forms of cross-channel marketing is when brands are able to create cohesion between online and offline behaviour – and even better when this is personalised.</p> <p>One good example of this is Under Armour, which allows users to find out product information by scanning barcodes via its app in-store. On the back of this data, it is then able to retarget customers based on browsing and purchasing behaviour, which also contributes to increased engagement and loyalty. </p> <p><img src="https://assets.econsultancy.com/images/0009/1335/under_armour.JPG" alt="" width="600" height="325"></p> <h3>Barriers to overcome</h3> <p>While an increasing number of brands are beginning to recognise the benefits of a cross-channel marketing strategy, there can still be big barriers when it comes to implementation. </p> <h4>Breaking down silos</h4> <p>One of the biggest obstacles can be existing siloes within organisations. A brand might have one team for email, another in charge of social media, and another dedicated to ecommerce or customer engagement – with each team focused on a different set of goals and outcomes. According to Experian, this is the case for <a target="_blank">58% of UK brands</a>. The solution is therefore to try to break down these siloes, and to establish a single set of KPIs that all teams work towards – only then can overall success be measured.  </p> <h4>Lack of single customer view</h4> <p>As a result of silos within organisations, siloed data can also occur. This means that it will then be impossible to achieve a <a href="https://econsultancy.com/blog/65425-what-is-the-single-customer-view-and-why-do-you-need-it" target="_blank">single customer view</a> - a vital step for delivering a consistent and personalised customer experience (often referred to as 'omnichannel'). Without a SCV, customers are likely to be met with a fractured (and differing) experience at various touchpoints, rather than a seamless one. </p> <h4>Limitations in technology</h4> <p>Finally, marketers might also struggle to achieve a single customer view due to a lack of technology – and/or the skills required to interpret and act on data. Problems can also occur when new channels come into the mix, meaning that fresh technology will need to be integrated and new processes learnt. </p> <p><strong><em>Related reading:</em></strong></p> <ul> <li><em><a href="https://econsultancy.com/blog/68760-five-key-takeaways-from-our-cross-channel-marketing-in-australia-new-zealand-report/" target="_blank">Five key takeaways from our Cross-Channel Marketing in Australia &amp; New Zealand report</a></em></li> <li><em><a href="https://econsultancy.com/blog/68903-three-steps-to-a-consistent-cross-channel-customer-experience" target="_blank">Three steps to a consistent cross-channel customer experience</a></em></li> </ul> tag:econsultancy.com,2008:Report/3008 2017-12-27T11:33:00+00:00 2017-12-27T11:33:00+00:00 Internet Statistics Compendium Econsultancy <p>Econsultancy’s <strong>Internet Statistics Compendium</strong> is a collection of the most recent statistics and market data publicly available on online marketing, ecommerce, the internet and related digital media. </p> <p><strong>The compendium is available as 11 main reports across the following topics:</strong></p> <ul> <li><strong><a href="http://econsultancy.com/reports/advertising-media-statistics">Advertising</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/content-statistics">Content</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/customer-experience-statistics">Customer Experience</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/web-analytics-statistics">Data and Analytics</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/demographics-technology-adoption">Demographics and Technology Adoption</a></strong></li> <li><strong><a href="http://econsultancy.com/uk/reports/ecommerce-statistics">Ecommerce</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/email-ecrm-statistics">Email and eCRM</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/mobile-statistics">Mobile</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/search-marketing-statistics">Search</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/social-media-statistics">Social</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/strategy-and-operations-statistics">Strategy and Operations</a></strong></li> </ul> <p>Updated monthly, each document is a comprehensive compilation of internet statistics and digital market research with data, facts, charts and figures. The reports have been collated from information available to the public, which we have aggregated together in one place to help you quickly find the internet statistics you need - a huge time-saver for presentations and reports.</p> <p>There are all sorts of internet statistics which you can slot into your next presentation, report or client pitch.</p> <p><strong>Sector-specific data and reports are also available:</strong></p> <ul> <li><strong><a title="B2B Internet Statistics Compendium" href="http://econsultancy.com/reports/b2b-internet-statistics-compendium">B2B</a><br></strong></li> <li><strong><strong><a title="Financial Services and Insurance Internet Statistics Compendium" href="https://econsultancy.com/reports/financial-services-and-insurance-internet-statistics-compendium/">Financial Services and Insurance</a></strong></strong></li> <li> <strong><a title="Healthcare and Pharmaceuticals Internet Statistics Compendium" href="https://econsultancy.com/reports/healthcare-and-pharmaceuticals-internet-statistics-compendium/">Healthcare and Pharmaceuticals</a></strong><strong> </strong> </li> <li><strong><a title="Retail Statistics Compendium" href="https://econsultancy.com/reports/retail-statistics-compendium/" target="_self">Retail</a></strong></li> <li><strong><a title="Travel Statistics Compendium" href="https://econsultancy.com/reports/travel-statistics-compendium/" target="_self">Travel</a></strong></li> </ul> <p><strong>Regions covered in each document (where data is available) are:</strong></p> <ul> <li><strong>Global</strong></li> <li><strong>UK</strong></li> <li><strong>North America</strong></li> <li><strong>Asia</strong></li> <li><strong>Australia and New Zealand</strong></li> <li><strong>Europe</strong></li> <li><strong>Latin America</strong></li> <li><strong>MENA</strong></li> </ul> <p>A sample of the Internet Statistics Compendium is available for free, with various statistics included and a full table of contents, to show you what you're missing.</p> tag:econsultancy.com,2008:BlogPost/69677 2017-12-20T15:00:00+00:00 2017-12-20T15:00:00+00:00 The best experiential marketing campaigns of 2017 Nikki Gilliland <p>So, what has wowed us in 2017? Here’s a quick run-down of some of the most innovative experiential marketing examples, as well as the reasons why they worked.</p> <h3>29 Rooms by Refinery 29</h3> <p>29 Rooms was first launched in 2015 to celebrate <a href="https://econsultancy.com/blog/69436-how-new-media-brand-refinery29-achieved-international-growth" target="_blank">Refinery 29’s</a> 10th anniversary. It is an annual interactive exhibition made up of – you guessed it – 29 rooms, each one individually designed and created by retail brands, artists, and other creative types.</p> <p>The theme for 2017 was ‘Turn It into Art’, and the brands involved ranged from Clarins and Marc Jacobs to Dyson and Dunkin Donuts.</p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">LA Marc Jacobs Fragrances is bringing <a href="https://twitter.com/hashtag/MJDaisy?src=hash&amp;ref_src=twsrc%5Etfw">#MJDaisy</a> to life at <a href="https://twitter.com/Refinery29?ref_src=twsrc%5Etfw">@Refinery29</a>’s <a href="https://twitter.com/hashtag/29Rooms?src=hash&amp;ref_src=twsrc%5Etfw">#29Rooms</a> Los Angeles. Come experience the world of our most iconic fragrance through December 14th! <a href="https://t.co/X5sWU9jL2t">pic.twitter.com/X5sWU9jL2t</a></p> — Marc Jacobs (@marcjacobs) <a href="https://twitter.com/marcjacobs/status/939570360567054336?ref_src=twsrc%5Etfw">December 9, 2017</a> </blockquote> <p>With tickets selling for just $19, the event has proven to be a hit with fans of Refiney29. Essentially, it is an interactive art exhibition packed with pop culture references and creative technology. It’s also a ready-made social media feed, with each room offering visitors the perfect Instagram opportunity – and a ton of <a href="https://econsultancy.com/blog/67547-10-excellent-examples-of-user-generated-content-in-marketing-campaigns" target="_blank">user generated content</a> for both Refinery29 and the brands involved.</p> <p>29 Rooms is also cleverly timed to coincide with New York Fashion Week, which increases visibility of the event, and makes brands even more keen to add their name to the list.</p> <p><img src="https://assets.econsultancy.com/images/0009/1195/29rooms.JPG" alt="" width="780" height="371"></p> <h3>Lush Creative Showcase</h3> <p>On the other side of the pond, cosmetics brand Lush once again ran a number of Creative Showcases this year to promote its new products and efforts in digital innovation. </p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">Who’s at the Lush Creative Showcase today?? We’re so excited to see all the sneaks!! <a href="https://t.co/UtQ2ulT4Vq">pic.twitter.com/UtQ2ulT4Vq</a></p> — LUSH Leeds Spa (@LushLeedsSpa) <a href="https://twitter.com/LushLeedsSpa/status/904645210549968896?ref_src=twsrc%5Etfw">September 4, 2017</a> </blockquote> <p>Again, it is a ticketed event, meaning Lush fans from all over the world are able to attend to immerse themselves in the brand’s glittery and ever-so-sweet smelling world.</p> <p>I was lucky enough to go to the London event myself, and was suitably impressed with the <a href="https://www.econsultancy.com/blog/69401-how-lush-delights-customers-with-brand-marketing-strong-values-and-digital-innovation" target="_blank">level of creativity on show</a>. With giant slides and wobbly stages, it was very much an interactive event, also allowing visitors to test out new products and partake as much as possible.</p> <p>Lush stores already aim to give a hands-on retail experience, with staff very keen to offer demonstrations and samples in stores. The creative showcase enables the brand to do this but on a much bigger scale, fostering the love and loyalty often shown by fans.</p> <p><img src="https://assets.econsultancy.com/images/0009/1194/lush_creative_showcase.JPG" alt="" width="760" height="483"></p> <h3>David Lloyd’s ‘Run for your Bun’ café</h3> <p>As well as full-on events, pop-up experiences remain a popular way for brands for raise awareness and coverage of a particular cause or product.</p> <p>David Lloyd, the gym and fitness club, launched its very own pop-up café earlier on in the year which sold food and drink in exchange for exercise. Once they had ordered their lunch, guests were required to do a high intensity 10 minute workout in order to receive it.</p> <p><img src="https://assets.econsultancy.com/images/0009/1192/david_lloyd.JPG" alt="" width="600" height="393"></p> <p>The pop-up was used as a general promotional tool for the brand, created to highlight how regular exercise and nutritional food should be part of a balanced and healthy lifestyle. Its central London location was also deliberately chosen to target a specific audience, namely office workers who could be encouraged to work-out during the day rather than stay glued to their desks.</p> <p>In 2017, David Lloyd’s experiential activity didn’t stop with the café. It also launched a ‘nap-ercise’ class, in which treadmills were replaced with beds. On the back of research that found 86% of parents suffer from fatigue, it was an opportunity for consumers to recharge, helping the brand to highlight the role of sleep and promote its overall dedication to well-being.</p> <p><img src="https://assets.econsultancy.com/images/0009/1193/napercise.JPG" alt="" width="600" height="386"></p> <h3>M&amp;M’s ARcade</h3> <p>Technology is often a big part of experiential marketing, with many brands going to great lengths to dazzle and delight visitors. <a href="https://www.econsultancy.com/blog/69455-five-new-and-innovative-examples-of-augmented-reality-in-retail-apps" target="_blank">Augmented reality is one popular tool</a>, allowing consumers to become heavily immersed in a brand’s world.</p> <p>Earlier this year, M&amp;M’s used AR for an experiential campaign to launch its new range of caramel chocolate candy. It set up an augmented reality games arcade (or ARcade) in New York’s Times Square, giving the opportunity for passers-by to use their phones to turn static billboards into vintage arcade games.</p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">We did it big yesterday for the <a href="https://twitter.com/hashtag/UnsquareCaramel?src=hash&amp;ref_src=twsrc%5Etfw">#UnsquareCaramel</a> M&amp;M'S ARcade in Times Square! Check out the photo recap! <a href="https://t.co/GggprebkZD">pic.twitter.com/GggprebkZD</a></p> — M&amp;M'S® Brand (@mmschocolate) <a href="https://twitter.com/mmschocolate/status/863050917213593602?ref_src=twsrc%5Etfw">May 12, 2017</a> </blockquote> <p>Alongside the opportunity to create a memorable interaction with individuals (and therefore increase the chances of turning them into customers) this campaign also allowed M&amp;M to access valuable data, which could then be used for retargeting.</p> <p>The campaign also cleverly involved consumers outside of New York too, allowing them to scan a barcode on packs of M&amp;M’s to access the games on their mobile devices. </p> <p><img src="https://assets.econsultancy.com/images/0009/1190/M_M.JPG" alt="" width="600" height="403"></p> <h3>GE Healthymagination</h3> <p>Experiential marketing is not just an effective tool for B2C brands. It can also be a great way for <a href="https://econsultancy.com/blog/69396-three-ways-b2b-marketers-can-drive-more-traffic-to-their-sites" target="_blank">B2B companies</a> to offer insight into their products or services, as well as get people talking. </p> <p>GE’s Healthymagination showcase is just one example – an event to illustrate how the brand’s healthcare technology is helping people in developing countries.</p> <p><img src="https://assets.econsultancy.com/images/0009/1191/GE_healthymagination.JPG" alt="" width="600" height="337"></p> <p>In partnership with agencyEA, it involved specially-made ‘movie sets’ designed to represent different healthcare environments, including an accident and emergency room and a rural clinic in Africa. Doctors gave presentations, telling stories about how GE’s technology has helped played a key role in these settings. </p> <p>By adding context and storytelling, visitors were given much greater insight into the product – far more than just a standard presentation or trade show might deliver. What’s more, while B2B events like this have the potential to feel corporate or overly sales-driven, the educational and inspirational approach meant that it provided greater value to potential clients.</p> <p><iframe src="https://player.vimeo.com/video/130578189" width="640" height="360"></iframe></p> <h3>Ministry Does Fitness</h3> <p>Finally, an example that demonstrates how brands are starting to create experiential events for more than just marketing purposes.</p> <p>Ministry of Sound, which is an entertainment business better known for its clubs and music events, has recently ventured into the world of experiential fitness.</p> <p><img src="https://assets.econsultancy.com/images/0009/1189/ministry_does_fitness.JPG" alt="" width="729" height="405"></p> <p>While exercising and clubbing might seem like activities on the opposite end of the spectrum, ‘Ministry Does Fitness’ aims to bring them together with music-fuelled work-out sessions – complete with celebratory cocktails once you’ve finished.</p> <p>With its foray into health and fitness, Ministry of Sound appears to be recognising the demand for experiences beyond the norm. This means that instead of standard gym sessions, consumers want to experience something different – and that also means giving them something they’ll want to repeat and talk about with their friends.</p> <p><iframe src="https://www.facebook.com/plugins/post.php?href=https%3A%2F%2Fwww.facebook.com%2Fministrydoesfitness%2Fphotos%2Fa.695866363911014.1073741828.635536366610681%2F863794307118218%2F%3Ftype%3D3&amp;width=500" width="500" height="595"></iframe></p> <p><strong>Seen any better campaigns? Let us know below..</strong></p> tag:econsultancy.com,2008:BlogPost/69679 2017-12-19T15:00:00+00:00 2017-12-19T15:00:00+00:00 Luxury brands must focus on digital experiences to fight the discount trend Patricio Robles <p>According to research firm Edited, more than a quarter of luxury items were discounted by 26% to 50%. For comparison, items sold by premium and mass-market brands saw discount volumes of 24% and 20%, respectively.</p> <p>As Bloomberg's Lisa Wolfson and Stephanie Hoi-Nga Wong <a href="https://www.bloomberg.com/news/articles/2017-11-27/holiday-markdowns-deepen-despite-brands-push-for-higher-prices">noted</a>, “Though heavy promotions and specials are a hallmark of the holiday season, the data from Edited suggests that the labels still have a way to go before getting customers to shell out top dollar.”</p> <h3>Could an EU court ruling help luxury brands?</h3> <p>While luxury brands have turned to hefty discounting this year to drive sales, <a href="https://quartzy.qz.com/1148881/luxury-brands-can-stop-sales-of-their-goods-on-amazon-in-europe-court-rules/">a court ruling</a> could help them better control digital distribution of their products, and thus potentially reduce their reliance on discounting, at least in the EU. </p> <p>Coty, which owns brands including Calvin Klein, Marc Jacobs and Covergirl, had sued its authorized German distributor, Parfumerie Akzente, for selling Coty brand products through Amazon and other online retailers. The company argued that such sales hurt the image of its luxury brands.</p> <p>While Parfumerie Akzente countered that its use of platforms like Amazon adhered to requirements intended to “[preserve] the luxury image” of the brands, the European Court of Justice sided with Coty and wrote in its decision that a prohibition on sales through certain online channels “is appropriate and does not, in principle, go beyond what is necessary to preserve the luxury image of the goods.”</p> <p>The Court elaborated:</p> <blockquote> <p>The Court notes in this context that the quality of luxury goods is not simply the result of their material characteristics, but also of the allure and prestigious image which bestows on them an aura of luxury. Therefore, any impairment to that aura of luxury is likely to affect the actual quality of those goods.</p> </blockquote> <p>The Computer &amp; Communications Industry Association, which represents companies like Amazon, eBay and Rakuten, obviously alarmed and issued a statement that read in part, “This judgment is bad news for consumers, who will face fewer choices and also less competition when they want to shop online.”</p> <p>Luxury brands, of course, will hope that this court ruling will help them strengthen the pricing power their holiday shopping discounts make clear they are struggling to retain. But they would be wise to consider the possibility that limiting sales on popular platforms will only do so much because other factors are likely contributing to luxury brands' hefty discounts.</p> <h3>Other factors contributing to luxury brand discounts</h3> <p><strong>Lack of product differentiation.</strong> As luxury consultant Milton Pedraza told Bloomberg, “There are too many luxury and premium brands selling very similar products.” To the extent that luxury brands aren't producing products that potential customers view as unique if not trendsetting, they are obviously going to struggle to maintain pricing. Unfortunately, the proliferation of fast fashion, fashion startups offering made-to-order products, and counterfeits makes life much more difficult for luxury brands.</p> <p><strong>Digital experience challenges.</strong> Luxury customer experience is one of the reasons luxury customers are willing to pay top dollar for luxury products. Of course, replicating the in-store luxury customer experience online is tough and an inability to do so could in some cases make it harder for luxury brands to convince online shoppers – especially those who haven't experienced the in-store hand-holding – to pay full price.</p> <p><strong>The mainstreaming of luxury.</strong> Luxury isn't what it used to be. Thanks in large part to social media, luxury brands are more mainstream than ever. On one hand, that's a good thing. On the other, it can contribute to the perception that luxury brands' products are less exclusive. In fact, <a href="https://econsultancy.com/reports/the-new-face-of-luxury-maintaining-exclusivity-in-the-world-of-social-influence">this is one of the biggest challenges luxury brands have faced in adopting influencer marketing</a>.</p> <p>For these reasons, luxury brands should recognize the need to double down on customer experience and specifically, how they craft <a href="https://econsultancy.com/blog/69000-what-farfetch-s-store-of-the-future-tech-says-about-the-state-of-luxury-retail">online experiences</a> that convince consumers their products are indeed worth top dollar. </p> tag:econsultancy.com,2008:BlogPost/69680 2017-12-18T11:00:00+00:00 2017-12-18T11:00:00+00:00 Fintechs and banks to partner in 2018 thanks to Open Banking Patricio Robles <p>The product of the Competition and Markets Authority (CMA), which determined that the UK's biggest banks were too dominant, Open Banking requires the UK's nine largest banks to make their data available to vetted fintechs via APIs.</p> <p>According to the CMA, the value proposition of open banking to consumers is significant: “open banking will mean reliable, personalised financial advice, precisely tailored to your particular circumstances delivered securely and confidentially.”</p> <p>It elaborated, “With Open Banking, apps could use your transaction information to find the current account which suits you best. If you run a small business, apps could find the best deals for your business accounts and loans. Apps could even help you avoid overdraft charges by moving cash into your account when it dips into the red.”</p> <p>For the banks subject to Open Banking, the new rules present a huge challenge. While much has been made of the technological and customer experience innovations fintechs are bringing to market, large banks have been able to use their ownership of customer data to defend their positions in the market.</p> <p>As of mid-January, they will no longer have the ability to keep fintech upstarts from accessing that data, potentially giving fintechs a powerful weapon that can help them <a href="https://www.econsultancy.com/blog/69634-six-ways-fintech-startups-could-hurt-incumbent-banks">disrupt banks</a> even more than they already have.</p> <p>So what will banks do?</p> <h3>If you can't (or don't want) to beat them, partner with them</h3> <p>One hint as to how that question will be answered comes in the form of news that London and Johannesburg-listed specialist banking firm Investec has partnered with UK fintech MarketInvoice.</p> <p>As <a href="https://www.ft.com/content/ca687536-e03e-11e7-a8a4-0a1e63a52f9c">detailed by</a> the Financial Times (FT), “Under the partnership MarketInvoice, which manages small-company loans online, will provide digital invoice finance and business loans services for the specialist bank, handling the underwriting and payment processing for its customers.”</p> <p>As part of the tie-up, Investec will fund £50m in invoice finance transactions.</p> <p>Partnerships between large banks and fintechs are not new. For example, last year <a href="https://www.kabbage.com/blog/kabbage-santander-uk-partner-accelerate-smb-growth/">Santander teamed up with Kabbage</a> to use Kabbage Platform for business loans. Kabbage Platform is an online lending platform that the fintech licenses to banks. But the Investec-MarketInvoice deal is notable because as the FT notes, it's “the first move by a bank to outsource the provision of some of its client-facing banking services to a technology platform.”</p> <p>In other words, unlike past partnerships between established players and fintechs, Investec is effectively allowing a fintech to own the <a href="https://econsultancy.com/blog/69219-why-fintech-disruption-isn-t-just-about-the-technology">customer experience</a>, not just provide the technology behind its own branded customer experience.</p> <p>2018 will almost certainly see similar deals being struck, as Open Banking will mean that banks can no longer hold their customers' data hostage. While such deals are not without risk, there's an argument to be made that under Open Banking, banks will have no choice but to rethink how they serve their customers because realistically, they either won't be able to innovate fast enough to compete with fintechs, or won't have the desire to, specifically in product categories that only contribute modestly to profits.</p> <p>With this in mind, banks would be wise to consider that a marketplace model, under which they connect their customers to fintechs they've partnered with, will become far more common than the model they're used to, which is built on the notion that they can and should provide all things to all customers.</p> tag:econsultancy.com,2008:BlogPost/69640 2017-12-11T15:00:00+00:00 2017-12-11T15:00:00+00:00 Three benefits of making employees spend time in the trenches Patricio Robles <p>Lyft's move comes at a key time: the company has seen its fortunes rise as its chief competitor, Uber, dealt with <a href="https://www.econsultancy.com/blog/68865-will-bad-pr-lead-uber-to-destruction">bad headline after bad headline in 2017</a>, denting its reputation with customers. But Lyft isn't the only company that is seeking to capitalize by requiring its employees to work on the front lines of the business.</p> <p>For example, Automattic, the company behind the popular WordPress open-source content management system, requires all of its new employees to start in customer support. Matt Mullenweg, Automattic's CEO, once explained:</p> <blockquote> <p>All new employees work with the dedicated support team before starting their primary job. Making everyone work in support forces everyone to take customers seriously, which we should since they pay our salaries. Despite my distaste for it, the idea of making all employees participate in support, regardless of their distaste, was fantastic.</p> </blockquote> <p>While requiring employees to serve time in the trenches has been most commonly seen at startups, companies of all shapes and sizes should consider the virtues of this approach. Here are potential benefits of it:</p> <h3>Employees gain empathy for customers, their colleagues and other key stakeholders.</h3> <p>More and more organizations are applying human-centered approaches to how they develop their products and services and operate their businesses. <a href="https://econsultancy.com/blog/68503-what-is-design-thinking/">Design thinking</a>, for instance, is increasingly popular.</p> <p><a href="https://econsultancy.com/blog/68942-why-systems-and-empathy-is-the-future-for-agencies">Empathy</a>, for obvious reasons, is a foundational component of virtually all human-centered methodologies and requiring that all employees serve on the front lines of the business can be a highly effective way to help them develop empathy for customers, their coworkers and other key stakeholders who are either served by the business or impacted by it. After all, this makes a reality of the idea that you can't truly understand (and thus empathize with) another person until you've walked a mile in his or her shoes.</p> <h3>Employees gain insight into the business and its operations.</h3> <p>In many companies, especially those that have more than a handful of employees, it's very easy for employees to become isolated from the rest of the business and its operations. They come to work each day, perform a handful of specific functions and rarely have exposure to the parts of the business they don't touch.</p> <p>This can be detrimental for a variety of reasons. For instance, when employees don't have a good sense of how the functions they perform affect other employees – in other words, they can't see the forest for the trees – it can result in inefficiencies such as redundancy.</p> <h3>Employees have the opportunity to help improve the business.</h3> <p>Great ideas often come from unexpected places and in the context of a business, every employee has the potential to be source of great ideas. Unfortunately, many companies don't take full advantage of their employees' brain power.</p> <p>Putting all employees on the front lines can change that as it not only gives employees – many of whom will have fresh eyes – the opportunity to see the business from a different perspective but also invites them to think about their experience and contribute the ideas they generate through it.</p> <p><em><strong>Further reading:</strong></em></p> <ul> <li><a href="https://www.econsultancy.com/reports/how-marketers-learn">How marketers learn</a></li> </ul>