New rules for a new reality

NEW RULESfor aNEW REALITY

Nathan Watts Creative Director, FITCH

@FITCHdesign

But..

NEW REALITY?..what is thenew

TV Print

Radio

DM

Email

Social

SiteRetail

Screen Search

Mobile CC

Customer

Omnichannel

+

How do weAdapt?5 to thrive..

#1

Stop thinking consumer

Start thinking people

Online is an unforgiving..

The moment choice wasoffered.. People

startedchoosing

..

Shift ourperspective

Consumers..Victims of marketing plans

Respond in predictable ways

Fit neatly into segments

Rationally buy

Follow linear journeys

Can always buy more goods

People..Call the shots

Change behaviours frequently

Have mosaic identities

Emotionally buy

Do not follow prescriptive paths

Seek experiences more than goods

Remedy:Spend 1 day/month speaking to people

#2

Don’t count onloyalty

Start earninggratitude

Rewarding visits

Vs Rewarding A visit

Forbes 25 mostdisruptive companies

2/ Airbnb 3/ Facebook 4/ Red Bull

5/ Snapchat 6/ Alibaba 7/ Netflix

8/ Under Armour 9/ Instagram 10/ Apple

11/ CVS 12/ Taylor Swift 13/ Google

14/ Warby Parker 15/ Chipotle

16/ 72andSunny 17/ SoulCycle

18/ Rent the Runway 19/ Houzz

20/ Waze 21/ DraftKings

22/ Coke 23/ Eataly

24/ Birchbox

25/ Virgin America

#3

Stop chasing spend

Start encouragingdwell

Happy people stay longerand spendmore

>1hr 1-2hrs 2-3hrs 3-4hrs

Represents relative spend

Source: Business insider, Intu research 2012

807060504030

NPS

1.3%

increase in dwell

increase in spend

1%

Some numbers..

Rise of the shopping resort

Retail LeisureLeisure

Leisure

Retail Retail

Traditional10% Leisure

Fast food court

Cinema

Conventional25/35% Leisure

Casual dining

3+ attractions

Shopping resorts>35% Leisure

8+ attractions

Many flagships

Barbour &Parlour

#4

Don’t be led by omni-channel

Lead with peaks of emotion

RockyRacing up the Philadelphia Museum of Art steps

The concluding battle against Apollo

AvatarFirst walk through the bioluminescent forest

Attack on the Treeof Souls

Loosingfocus.. TV Print

Radio

DM

Email

Social

SiteRetail

Screen Search

Mobile CC

Customer

Peak End

Pleasure

Time

Most favoured experience Least favoured experience

Comparing two experiences

Psychological theory developed byDaniel Kahneman and Barbara Fredrickson

Find focus:Peak EndRule

McLarenThe car is the star

Amazon Go

Just walk out

#5

Be lessarchitect

Be morestage director

Capex has dictated thepace of change

Exp

erie

nce

Minor Refurbishment

Customer Expectatory Satisfaction

1 2 3 4 5 6 7Years

‘Bricks & mortar’

Traditional retail process

People demandchange in ‘Internettime’

K11Shanghai

1. Start thinking people 2. Start earning gratitude 3. Start encouraging dwell 4. Lead with peaks of emotion5. Be more stage director

Alasdair Lennox Executive Creative Director EMEA, FITCH

@isawthismorning @FITCHdesign

Mind-states, Moments and MemoriesThat will drive revenue inthe future omnichannel retail ecosystem.

THANK YOU

Nathan Watts Creative Director, FITCH

@FITCHdesign