The 2015 Digital Consumer Collaborative Charter

August 19, 2014

The Digital Consumer Collaborative Strategies in content, context, and influence through digital

All content in this presenta/on is copyrighted by Stone Mantel and can be share by permission only.

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THE DIGITAL CONSUMER COLLABORATIVE

The DCC conducts primary research and co-creation for forward-thinking customer experience strategists, done collaboratively. Launched in Sept 2013 Finishes in Sept 2014 •  10 companies •  100s of hours of field work •  Discovering new jobs to do •  Defining new strategies

and profiles •  Demonstrating the value

produced •  Act within organizations to

execute

THE 2014 DIGITAL CONSUMER COLLABORATIVE 3M Hallmark Sam’s Club SunTrust Erwin Penland Integer CarpetOne Strategic Horizons

In November 2013, Stone Mantel launched the Digital Consumer Collaborative, a network of leading marketing strategists from advertising, retail, banking, travel, and office US based companies.

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OUR 2014 RESEARCH QUESTIONS

1. Push our understanding of what the digital consumer will want from mobile experiences in the next three years. 2. Find new ‘jobs-‐to-‐get-‐done’ in the digital environment that increase customers’ likelihood to spend more /me with a business or brand. 3. Iden/fy strategies and tac5cs to make businesses more effec/ve in crea/ng value from the delivery of their experience to customers through digital technologies. 4. Discover new ways of profiling target audiences based on digital usage. 5. Develop techniques that aid in helping customers feel more comfortable in sharing data with companies in the right way and at the right /me. 6. Develop language, tools, and principles for understanding how consumers behave in an increasingly mobile environment.

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THREE FOUNDATIONAL INSIGHTS

The digital consumer is predictable. We can an/cipate what people will want from retail because we can know how digital consumers think and behave. And all consumers are digital consumers.

The future of mobile technology is digital context. Wearables, data, sensors, social, and loca/on are factors that will change retail. Omni-‐channel only gets you half way there. Companies need an integrated, contextual digital strategy with mobile at the center.

You can target and innovate for digital consumers more effec/vely if you focus on modes that they get into rather than the technologies that they use. Modes represent a whole new way to profile consumers.

1.

2.

3.

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INSIGHT 1: THE DIGITAL CONSUMER IS PREDICTABLE

At his or her core, the Digital Consumer is a person who wants to do more. Digital technology eliminates or reduces the gap between thinking about something and ge^ng the job done. When that gap is closed, the consumer desires to do more things at once.

Over /me consumers will seek to do more things at once, they will value integrated digital technologies because they do more things and experience greater support from their tools and the environments they are are in. Home is an especially rich environment for digital behavior.

QUEUING

ADJACENCIES

OVERLAYS

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Google Glass

Digital Cars

The New Urbanists

The Contextual Self Personal Contextual Assistants

Contextual Home

Pinpoint Marke/ng

The Five Forces

INSIGHT TWO: DIGITAL CONTEXT

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DIGITAL CONTEXT IS DIFFERENT FROM CONTEXT

3. Condi/ons The condi/ons that are unique to the ac/on taken are influenced heavily by what’s already in the queue.

Digital context shids things . . . 1. Environment As the individual increases in ability to do more, the situa/on and environment become less about what is happening here/now.

2. Meaning The volume of ac/vity going on in a moment affects the meaning of and completeness of every decision (e.g., what exactly is a considered purchase?)

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THINKING ON CHANNELS MUST EVOLVE

The infrastructure that retailers are building for omni-‐channel will become the plajorm for digital context as sensors, data, new tools, social, and environments evolve into new systems.

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thecollabora/ves.com

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THE MANTEL METHOD GETS YOU DEEP INTO DIGITAL EXPERIENCE

1

New approaches

New opportunities

Strategies and tactics

Experience requirements

Prepare to launch

Finalize design

Digital Ethnography

Co-Creative Design

Design the experience Test for time well spent Find experiences that matter

Discover Define Demonstrate

4 Drive organizational change

Create cultural capital

Act

Performance Validation

Take Action

Implement

2

3

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GET RELEASES OF THE DCC GENERAL FINDINGS

24 24 The$DCC$©$Copyright$Stone$Mantel$2013$

QUEUEING IS THE THOUGHT-TO-TASK INTERFACE

Queueing$empowers$the$consumer$to$accomplish$more$tasks$at$the$same$?me$and$turns$the$topic$into$an$ongoing,$recurring$event$that$progresses$over$?me.$$5.$$


THE DEFINITION OF A DIGITAL CONSUMER

At$his$or$her$core,$the$Digital$Consumer$is$a$person$who$wants$to$do$more.$$$Digital$technology$eliminates$or$reduce$the$gap$between$thinking$about$something$and$geCng$the$job$done.$When$that$gap$is$closed,$the$consumer$desires$to$do$more$things$at$once.$$$Three$aFributes$of$how$the$consumer$interacts$with$digital$to$accomplish$more$are:$$$Topics$$$$|$$$$$Tasks$$$$$|$$$Queueing$


THE DEFINITION OF A DIGITAL CONSUMER

The$more$empowered$people$are$to$accomplish$more$in$a$short$period$of$>me,$the$more$people$meander.$They$move$from$thought$to$task$to$thought$to$another$thought.$$$$Digital$doesn’t$meander.$$To$facilitate$the$interac>on$between$digital$tools$and$thought,$people$and$their$devices$queue.$$$

Thought$ Job$

There are two types of insights from the DCC: general and specific. Your company must be a member of the Collaborative to gain access to the specific insights. General insights are shared through conferences, web seminars, white papers, and workshops. To see some of the insights coming out of the DCC go to our web site.

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EXAMPLES OF COLLABORATIVE OUTPUTS

©2012 Deluxe Enterprise Operations, Inc. All rights reserved. 8

Our journey

TOPIC AREA Retailing Profitable Solutions by 2015

FIRST GAP Retailing vs. Banking

JOB TO GET DONE Knowhow

FIRST ROUND CREATING DEMAND Knowhow Formulas CONCEPTS

Framing Session FUTURE STATE OF RETAIL Make it Your Own

BY 2015 Mobility + Knowhow

PROOF OF CONCEPT First Indicators

©2012 Deluxe Enterprise Operations, Inc. All rights reserved.

By 2015: Visualization

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Visualization, as it is currently being developed, is after the fact, descriptive of the things that have happened in the past. Mobility, and the expectations associated with mobility, change customer expectations. The appification of tasks and the ‘in the moment’ use of data, causes the consumer to assume that the brands that they work with and share their data with (and banking transactions is data) can anticipate their needs and provide helpful solutions that allow them to move forward. (A detailed review of PFMs is provided in the appendix.)

Visualization will be only one, limited, portion of where mobility banking and Personal Financial Management (PFM) tools are headed.


Appification changes the basics of banking activity

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As apps are increasingly able to deliver a virtuous stream of information that enables sharing, learning and acting in the moment, the bank is relegated to a less relevant role.


Two parts to knowhow

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Know How

Ability to do it

Context Facts

Visualization Reminders

Timing

Steps


Product design and Knowhow

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•  Personal •  Mobile •  Uses money wisely •  Simple usage and function •  Forward-looking •  Enables decision making

As product becomes more about mobility, your solution will become more personal, more focused on advice, and more forward looking.

©2012 Deluxe Enterprise Operations, Inc. All rights reserved. 78

The Before-After Knowhow Service Awareness Effect

AFT

ER: A

vera

ge o

f: %

that

find

Kno

who

w s

ervi

ce

trul

y ne

eded

/use

ful;

and

net w

hose

per

cept

ion

of

bank

will

impr

ove

due

to K

now

how

ser

vice

ALL: N=524

Age Groups (years): 21-30 (N=125); 31-40 (N=118); 41-50 (N=128); 51-60 (N=153)

Genders: Male (N=216); Female (N=308)

Asset Class: Mass (N=271); Mass Affluent (N=253)

Educational attainment: High school only (N=72); HS+ (N=104); College graduates (N=225); Some postgrad (N=38); Postgrad degree (N=85)

Employment: Full (N=391); Non-full, i.e., part-time, student, homemaker, retired, and seeking (N=193)

Willingness to be kept abreast of new banking products: High (N=240); Medium (N=235); Low (N=39)

Income Group: <$30 (N=61); $30-59 (N=148); $60-84 (N=119); $85-124 (N=112); $125+ (N=84)

Best provider of Knowhow service: Bank (N=152); Others (N=372) BEFORE: % that rated “timely tailored online info with offers” as one of

the top 3 best shopping aspects

15%

20%

25%

30%

35%

0% 5% 10% 15% 20%

Male

Female

51-60

41-50

31-40

HS+

College

College+

Postgrad

Non-full

W-H

W-M

W-L

Bank

Others

21-30

Full ALL

HS only

Mass

Affluent

<$30

$30-59

$85-124

$125k+

$60-84

Low initial opinion; great uplift

High initial opinion; great uplift

High initial opinion; modest uplift

Low initial opinion; modest uplift

13.4%

26.7%

A knowhow service dramatically increases consumer interest in your offers

When consumers understand how the knowhow service works their interest in online info with offers goes up dramatically almost across the board.

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OUR PRELIMINARY CHARTER

The 2015 Digital Consumer Collabora/ve will be an amazing journey. We will: •  Go deep around the direc/on and future of content

over the next three years •  Examine “context” and digital “fog” and its effect on

decision-‐making. (“Fog” is the local cloud of connected things, sensors, and data that support context.)

•  Develop new frameworks for influencing behavior and engagement through digital

•  Get people to take ac5on and buy •  Develop techniques for sharing data in the right way

and at the right /me •  Inves/gate how companies can use data & analy5cs

to really change the consumer experience and generate disrup/ve innova/on

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HOW YOU CAN HELP

When you see these topic areas, what comes to mind?

Go deep around the direc/on and future of content over the next three years

Examine “context” and digital “fog” and its effect on decision-‐making. (“Fog” is the local cloud of connected things, sensors, and data that support context.)

Develop new frameworks for influencing behavior and engagement through digital

Get people to take ac5on and buy

Develop techniques for sharing data in the right way and at the right /me

Inves/gate how companies can use data & analy5cs to really change the consumer experience and generate disrup/ve innova/on

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A BIG INITIATIVE WHERE TEAMWORK MAKES THE DIFFERENCE

WHAT IS REQUIRED? WHAT ARE THE OUTCOMES?

WHO SHOULD BE INVOLVED?

4 Face-to-face meetings

5-‐7 Virtual meetings

3 Homework assignments

Participants can have up to 2 seats at the table. 1 seat = $45K 2 seats = $55K Travel costs not included

•  A comprehensive series of strategic and tactical principles

•  Access to all insights gathered throughout the process

•  Findings from two ethnographic studies

•  Results of quantitative research •  Specific insights applied to

participating companies

If you commissioned this body of work on your own it would cost between $450K and $600K

People who work well in teams, can handle exploratory processes, and understand innovation.

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STEP 1: SHAPE STUDY AND FORM NETWORK

Charter our path Review secondary research

Conduct Preliminary Ethnographic study

In-‐person collabora/ve mee/ng to analyze findings and shape Phase 2: Discover

June 2014 Sep 2014

November 20-‐21

q  Collabora/ve network established q  Research ques/ons solidified q  First round of insight acquired

OUTPUT

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STEP 2: DISCOVER

Design Round 2 Ethnographic Study

Members conduct Round 2 field study in their markets Stone Mantel will work concurrently. Compile and Analyze

In-‐person collabora/ve mee/ng to develop concepts based on insight

February 2015 March 2015

q  Second round of insight acquired q  First round of concepts developed OUTPUT

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STEP 3: TEST

Recruit consumers

Conduct quan/ta/ve study

In-‐person collabora/ve mee/ng to conduct framing sessions with consumers

Members conduct on-‐site applica/on exercise

Prepare final report version 1

June

q  Story-‐boarding/facilita/on skills learned q  Concepts advanced and tested q  First round of tailoring for implementa/on complete

OUTPUT

Advance concepts Advance concepts

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STEP FOUR: MASTER

In-‐person collabora/ve mee/ng to review all findings, version 1 conclusions and applica/on to member organiza/ons

Sharing within your organiza/ons

September 2015

q  Analysis and conclusions completed q  Implementa/ons accelerated at member COs q  Speaking and wri/ng skills advanced

OUTPUT

Advance reports

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SOME FAQs

Have you done this before? Yes, for nine years we’ve run Collaboratives. Have you studied digital consumption before? Yes, this year’s work builds on work we started in 2013. We’ve been studying digital for years. What’s the level of commitment required? When we are together (4 times), it will be intense most of the time. A bit like a fire hose. Otherwise there are a 7 virtual meetings and 3 homework assignments over a year’s time. Not too stressful. Do I have to be a researcher? No. We will teach you the Mantel Method. You will be, when you are done.

Do we share our internal research or IP with the Collab? No. We do not ask you for lists, background research, or strategy. Is this a commissioned study? No. The Collaborative is designed as a learning process that you join. You are not commissioning the study. You are learning from the process of participating in the Collaborative. Will we have access to all findings? Yes. All findings are shared. General findings you can share outside your company. Specific findings you can only share within your company or with other Collab members.

Do you already know the answers to the research Qs? No. We are studying everything we can on the topics. But there will be a series of breakthroughs that occur that will yield new-to-the-world insights. You will experience a paradigm shift with us. Will our organizations be able to benefit from the insights? Yes, if you bring them along. We have built in takeaways for you to share. There is a key meeting and homework assignment that is designed to help your org benefit. Don’t just show them the final result. Does every one benefit who participates? Yes. Our track record for getting Collab members promoted is excellent. We are just as anxious as you to find insights. We all become better from the process.

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DELOITTE Consulting Group Design thinking Business innovation

processes IDEO

Design Firm

JOE PINE CLAYTON CHRISTENSEN

DAVE NORTON Original thought leadership

Frameworks and models of consumer behavior

Hand-crafted strategy and implementation

Stone Mantel

A BOUTIQUE Facilitation and Implementation

WHERE WE PLAY

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Stone Mantel is the very best at producing value from experiences

Marketing

The 2015 Digital Consumer Collaborative Charter