From nomads to narcissists - the

Future of the Retail Experience

Working with the trends and technologies that

make a difference

Research into the

impact of digital

disruption

Workshop and create

innovative solutions

for brands

Supporting

meaningful

businesses

In the next 30 minutes

I Shop, Therefore I Am – understanding the psychology of shopping

Taking us to 2020 and beyond

1. Up close and personal

2. Pressing the story button - making retail mean more

3. Shopping on steroids though digital

4. Customers who make and break

How can you predict the future?

1. Understand how humans actually behave (they have brains, not just clicks)

2. Know the field – inside out (understand the trends and collect the case studies)

3. Adopt a scientific approach (test and learn, and then test again)

4. Distinguish signal from noise (look for long-term rather than fads)

What is a consumer?

“A shopper, a chooser, a communicator,

a character explorer, a pleasure seeker,

a rebel, a victim, an activist, and a

citizen…A consumer is an artist whose

purchases are the brushstrokes of an

ongoing cultural process” (Michael

Thomas, 2000).

There’s three things that shoppers always need, now and forever

Value for money Strong self-esteem A social experience

Value for money makes customers feel like they’re in control

“When the light starts to flash, mothers

sometimes abandon their babies.

Shoppers have pushed clerks up onto

counter tops and ripped merchandise

to shreds.... When they miss a special,

some shoppers berate the store's

employees. Others steal tagged

merchandise from the carts of their

more successful rivals. In April, two

women vying for discounted jelly beans

at Mr. Reed's store began throwing

punches. Money and keys "went

everywhere," marvels Mr. Reed.” (Wall

Street Journal, 1987 referring to K

Marts ‘blue-light specials’)

If you’re regularly boosting self-esteem your customers will think you care

“We consume not only to

create some impressive

exterior, but also to alleviate

interior psychological pain.”

Cornell university 2010

And shopping is an inherently social experience… …we ‘mall’.

And this will only increase as we live more digital lives

Source: Havas Media, September 2013 (342). Why do you use social networks to get ideas and inspiration for purchases?

0.6%

17.8%

31.9%

33.9%

36.8%

37.7%

40.1%

42.4%

43.3%

46.2%

47.7%

Other

I like to see what celebrities are wearing/doing/where they are going etc..

I like to get recommendations from trusted experts on social networkingsites

You can access good content on social networking sites

I watch videos of how products or services work

I like to look at brand pages on social networking sites

I like to get a second opinion from friends

I get special offers on social networks

Social networks help me find out what is current and popular

I like to get recommendations from friends

I get inspired by images of products shared by others

Create a commerce phenomenon by ticking all the psychological boxes

Getting up close and personal.

Over the next 10 years, data will become the most valuable asset that marketers own.

Retailers will need to create the most personal, relevant experiences or run the risk of losing

consumer’s interest.

Social and digital data can get us closer to shoppers than ever before

Listening to and predicting behaviour is just the start

Retail brands and robots will learn what you look like, where you go, how you shop…

Pressing the story button – making retail mean more.

John Lewis has taught us of the power of storytelling and the benefits are well

documented. But that’s not enough. Over the next five years they’ll need to play a more active role in the personal and collective wellbeing of

us all.

Getting emotional will count even more in the future

3 in 8 people love

brands more than

they love their

spouses or kids

(Neuroscientist Dr.

Paul Zak, 2014)

BBC are busy testing all

their content for emotional

response to identify the right

way to engage viewers

Brands like Coors Light are

using neuroscience and

‘brain hats’ to work out

exactly what type of

humour to use

OKCupid this year

famously conducted

experiments with bad

matches and honesty

levels

But this is the

problem

Less than 20% of social media stories generate emotional response

16272

Meaningful brands outperform the stock market by 120%

To

day

Make a differenceDifferentiationCost-advantage

To

mo

rro

w

Functional – driven by price

and convenience, little if no brand-building.

Relies on DR and PPC activity for salience.

Aspirational – highly

Creative brands who portray a lifestyle

(i.e. TV campaign ‘me styled by me’

Meaningful – increases

brand equity and loyalty by making a

positive impact to peoples’ lives (i.e.

Dine in for a Tenner, Shwapping,

Leading Ladies)

Making an impact on people’s lives , not just their wallets

Shopping on steroids.

There will be no such thing as an ‘online’ or ‘offline’ customer journey… brands will need to act like entertainment brands, and provide fully

digitised experiences.

Digital relationships are evolving

Technology has moved from something we used to be scared

of, to something we’re scared of living without

Merging on and offline worlds

Be the future brand that consumers will store in their memories

(For good and bad reasons)

Customers who make and break things

Over the next 5 years access to software and iterative hardware will mean that real people will

be creating alongside us, and they may have better ideas (and solutions). The retail brands

that thrive, will fuel this new form of digital savviness.

The next big creative innovations are going to come from ‘them’ (not us!)

And real people are getting better at making and breaking things

But these are things happening today, so we need to start thinking about tomorrow

@keano81 amy.kean@havasmedia.com