team finland future watch report: what makes us buy and why, june 2014

What Makes Us Buy, and WhyJune, 2014

Prepared by Soren Kaplanwww.innovation-point.com

Give me the best valueat the best price

Make it easy andintuitive for me

I get my sense of self fromthe brand

Protect me from theuncertain world

Life is about ‘doing’rather than ‘having’

I vote with my timeand pocket book

Let me share myself inunique ways

value chasers impulse followers brand lovers

fear fixers experiential engagers meaning makers Expressive creatives

simplicity seekers

8 Consumer Roles for the Future

It’s all about the pathof least resistance

impulse followers

value chasers brand lovers

fear fixers experiential engagers meaning makers expressive creatives

simplicity seekers

Deep Motivators (Value Propositions) for the Future

value

rewards

simple

intuitive

convenience

time

recognition

community

security

avoidance

fun

learning

responsibility

relationship

self-expression

accomplishment

impulse followers

value chasers brand lovers

fear fixers experiential engagers meaning makers expressive creatives

simplicity seekers

Deep Motivators (Value Propositions) for the Future

impulse followers

Give me the best valueat the best price

Make it easy andintuitive for me

It’s all about the pathof least resistance

I get my sense of self withall the brand represents

Protect me from theuncertain world

Life is about ‘doing’rather than ‘having’

I vote with my timeand pocket book

Let me express myself inways that are uniquely me

valuerewards

simpleintuitive

conveniencetime

recognitioncommunity

securityavoidance

funlearning

responsibilityrelationship

self-expressionaccomplishment

Business Implications & Opportunities

Here are 10 examples of trends that highlight how leading-edgecompanies are tapping into some of the deep motivators to innovate theirway to future success. As you review these, consider:

1.How might these trends apply in my markets and for my customers?2.Which trends, roles, and deep motivators are most relevant for what wedo today?3.Which trends, roles, and deep motivators represent opportunities forfuture innovation – to tap into new customer segments or as the basis fornew products, services, processes, experiences, or business models?4.What other trends in your own industry tap into the deep motivators,and how can you use them as a source of innovation?

InstapreneurshipKey Targets: Expressive Creatives, Value Chasers

The Internet makes it easier for brands and consumersto connect and “co-create.” A number of platforms haveemerged that enable aspiring entrepreneurs to design,create, develop, and sell their products, ideas, and orservices. These are the so-called “Instapreneurs” whoare able to create businesses and accomplish greatthingsin (almost) an instant. It empowers consumers whom

may have never developed their ideas without theseprograms.

Instapreneurship

7

Kimberly-Clark gives $15,000 'HuggiesMomInspired Grants' to 'Mompreneurs' whoare creating their own businesses so that theycan build relationships with women who areinnovating children's products. The companygives these women money to fund theirbusiness, and the only thing they ask in returnis to have the rights to buy their business ifthey decide to sell. The program received 50millions web impressions when it went livewhich created incredible brand awareness.The company has received hundreds of newideas and product submissions from momsaround the world.

Lähde: Website: Huggies MomInspiredVideo: Huggies MomInspired

Instapreneurship

8

The online community enables consumers tobecome co-designers by making custom-made bags and other merchandises, this co-designer can then check out, vote on, andbuy from other users and/or brandedpartners, and set licensing fees for their owndesigns. These consumers are able toexpress themselves by creating something oftheir own while belonging to a specificcommunity as well as having the sense ofaccomplishment and recognition.

Lähde: Website: ZazzleVideo: Zazzle

Social Currency MarketingKey Targets: Brand Lovers, Experiential Engagers, Value Chasers

Marketing messages bombard consumers everyday. To cut through the noise, many companiesnow provide merchandise or discounts in returnfor consumers’ social sharing and promotion totheir friends. Consumers who are passionateabout certain products, brands, or experiencesshare with their networks – and receive financialincentives in return for promoting the company.

Social Currency Marketing

10

Marc Jacobs opened up a pop-up shop in themiddle of Manhattan for its perfume brandDaisy. This shop is not ordinary becauseclients pay through the tweet they send outand/or share. The more they tweet, the morefree products they will receive. The designerstrategically found a way to go beyondadvertising and engage his clients throughsocial media, and for them to becomeambassadors of the brand. This initiative wentviral, and was communicated in a vast varietyof media outlets, which became a P.R.success.

Lähde: Website: Marc Jacobs Pop-Up Tweet ShopVideo: Marc Jacobs Pop-Up Tweet Shop

Social Currency Marketing

11

The campaign gave the opportunity toconsumers to share promotion Hertz had tooffer with their friends on Social Media. Themore they shared, the higher the discountbecomes. This is another example of howcompanies could create brand loyalty byinvolving their consumers in their campaigns.As participants, consumers have a sense ofbelonging and gain recognition from theirpeers through social media.

Lähde: Website: Hertz “Share it Up Campaign

Affinity NetworkingKey Targets: Meaning Makers, Expressive Creatives, Brand Lovers

Affinity Networks are communities wherepeople come together around a sharedpurpose or focus. Companies createnetworks where people connect, share, andinteract with each other based on specificcommon interests.

Affinity Networking

13

Beer fans can socially connect with oneanother on this mobile app by sharing theirfavorite beers and breweries. Members canalso gain points for the different kind andbrands, and amount of beer they post andshare on their account. This mobile app isdeveloped specifically for people who have aspecific subject in common – in this case,beer – that brings them all together andcreates a sense of exclusive community forbeer enthusiasts all over the world. Byspecifically developing an app for beerenthusiasts, Untapped Beer App serves as afacilitator for different relationships andconnections.

Lähde: Website: UntappdVideo: Untappd Beer App

Affinity Networking

14

Like the first example, Runkeeper is also amobile app where people with a commoninterest – athletic activities – are able to tracktheir outdoor fitness activities and connectwith fellow athletes. Their personal records,and time tracking could also be shared withfellow members, which makes Runkeeperpart app and part social network. Again, thisapp brings people who have the samepassion, or interest together in one virtualcommunity, which encourages people to stayactive and share their personal stories ofprogress and success. Furthermore, theinteractions between the communitymembers also contribute to personalachievements as well as encourage feelingsof satisfaction.

Lähde: Website: RunkeeperVideo: Runkeeper

Rent-a-AnythingKey Targets: Fear Fixers, Simplicity Seekers, Meaning Makers

Many consumers increasingly recognize thevalue in approaches that share, rent, swap, orloan products, services, and experiences.Concern for the environment, a desire forgreater simplicity, freedom from accumulating“stuff”, and a sense of community are triggersfor participation in such marketplaces.

Rent-a-Anything

16

Its value proposition speaks for itself: “Whybuy, when you can share”. This onlineplatform connects people with differentpractical objects and or tools who would liketo share and lend them. It is about ‘neighborshelping neighbors’ and brings a sense ofclose-knit community. When looking forhardware tools, consumers no longer have tobuy them for a one-time use, but are able tomake their lives easier by borrowing whatthey need for when they need it.

Website: Open ShedVideo: Open Shed

Lähde: Website: Open ShedVideo: Open Shed

Rent-a-Anything

17

A way of simplifying the hassle of moving.Usually, moving means costs, especiallywhen renting out a moving van or service.Meemeep allows registered users to post theitems they want to move and to where, andother users with a moving van from that areaare able to pick up and help out these moversto get from point A to point B at a lower cost.These two parties make agreements on theprice while Meemeep keeps the money untilthe items are successfully delivered.

Lähde: Website: MeemeepVideo: Meemeep

Peer Support for Motivation & ChangeKey Targets: Fear Fixers, Simplicity Seekers

Most people want to change something aboutthemselves. But change is tough! A new breed ofcompany now brokers connections with peers andexperts to promote greater compliance with goals andthe motivation to achieve personal objectives.Whether financial planning, weight loss, or juststicking to a New Year’s resolution, social support isone of the most powerful drivers of personal change.

Peer Support for Motivation & Change

19

This platform enables people to incentivizetheir social networks friends by requesting forhelp with tasks. These tasks include; resumewriting, babysitting, plumbing, andaccounting. The friends who help out, receiveMynt points that are redeemable for productsonline. Users are able to have tasks donemuch easier and it leaves time for other onesat hand.

Lähde: Website: MyntcityVideo: Myntcity

Peer Support for Motivation & Change

20

An online community dedicated to weight lossand peer support for encouragement. JennyCraig has created an online platform wheremembers can have discussion abouttrainings, diets, weight loss, etc. Member whoneed some boost while going throughchanges are able to share their stories andfind inspiration. The journey of losing weightcould be hard on some people; therefore,Jenny Craig creates a safe environmentwhere people can be open and honest witheach other in order to reach their goal for thefuture.

Lähde: Website: Jenny Craig Buddy Groups

Interactive (Virtual) ShoppingKey Targets: Experiential Engagers, Impulse Followers, Simplicity Seekers

The line between physical and virtual shopping israpidly becoming blurred, and shopping, itself, willlikely become a blended virtual and retailexperience. While wiz-bang technology may feelnovel initially, interactive shopping can save time,reveal options for customization andpersonalization not available in physical stores,and deliver engaging experiences as part of thepurchase process.

Interactive (Virtual) Shopping

22

The supermarket chain came up with a freshnew idea for South Korea, where people worklong hours and therefore have little to no timeto shop. They created a virtual billboard insubway stations that looked like supermarketshelves. Commuters are then able to scanQR codes placed on the billboard and theitems selected will be delivered to theirhomes. Tesco/Home Plus came up with asolution that would simplify the Korean’s livesby pairing technology with reality.

Lähde: Website: Tesco/Home PlusVideo: Tesco/Home Plus

Interactive (Virtual) Shopping

23

The shoe brand designed an interactive in-store digital wall that provides its customerswith extended online merchandise. The wallfeatures shoes that are not physicallyavailable in stores and helps them to stillprovide more options without having to havethem in stock (space saving). The customersare also satisfied because they have moreoptions to look at, customize the sneakers,and have them ordered by one click. Itengages the customers by giving them adifferent store experience, while simplifyingtheir options by having the shoes visuallydisplayed.

Lähde: Website: Adidas Adiverse Footwear WallVideo: Adidas Adiverse Footwear Wall

Fun-and-Games-Agement (Engagement for Fun &Games) Key Targets: Experiential Engagers, Impulse Followers

With the struggle to gain consumer mindshare,many brands are looking to interact withconsumers by creating experiences that rely onfun, games, and humor. Often these strategiesand programs take consumers by surprise,tapping into the impulse to explore, trysomething new, or just have fun..

Fun-and-Games-Agement (Engagement for Fun &Games)

25

This crosswalk traffic light in downtownGermany engages pedestrians from theopposite side with a game of pong. Each sidehas a controller where they can play againsteach other. Strangers become gameopponents while waiting for the light to green,and are able to express their win or loss asthey cross. This has created a so-called‘urban interactions.’ Although it is an artinstallation, this could be of inspiration forbusinesses and governments to find ways forstrangers to connect in urban places.

Lähde: Website: Traffic Light PongVideo: Traffic Light Pong

Fun-and-Games-Agement (Engagement for Fun &Games)

26

Two countries with high tensions and living inconflict with one another, came together forjust one day to share happiness through thepower of technology. Coca-Cola placed twovending machines in two malls; one in Indiaand the other in Pakistan. The vendingmachines had live communications portal withtouchscreens along with a live streamingvideo feed. These strangers from bothcountries were encourage to complete taskstogether such as, dance, peace sign drawing,or even a wave before receiving a Coca-Cola.The brand managed to bring these twoconflicting countries together to share ahappy moment by engaging them throughexperiences and self-expression.

Lähde: Website: Coca Cola Small Worlds MachineVideo: Coca Cola Small Worlds Machine

Upgrade-abilityKey Targets: Meaning Makers, Brand Lovers, Value Chasers

Upgrade-ability isn’t about consumers makingnew purchases every time they want somethingnew. It’s about constantly upgrading or improvingexisting products. Tapping into consumers’ desirefor instant access to the “next version,” the wholeconcept of “upgrades” are now being applied tophysical objects. Preserving the environment,obtaining a sense of community, and savingmoney are all triggers for engaging in upgrade-ability.

.

Upgrade-ability

28

It is a smartphone concept by a Dutchdesigner, which aims at reducing electronicwaste. The phone is split in different blocksand is customizable, so the consumer candecide how large his/her battery would be orthe size of the camera lens. When parts ofthe phone don’t work they are able to replacethat specific part with another one instead ofbuying a new phone. The consumer has thencreative input in what he/she uses and thesmartphone converts into something moremeaningful for them.

Lähde: Website: PhoneBloksVideo: PhoneBloks

Upgrade-ability

29

Car manufacturer Renault partnered up withOvicuo to design a multi-purpose car. The caris versatile, which means it can go from anordinary family car to a camper in just a fewminutes. This new design gives a fresh lookat camping, and makes it more accessible forpeople to travel without having to rent out acaravan. two conflicting countries together toshare a happy moment by engaging themthrough experiences and self-expression.

Lähde: Website: OvicuoVideo: Ovicuo

Social Entreprise Business ModelsKey Targets: Meaning Makers, Experiential Engagers

Social enterprises are businesses that bring socialvalue to society while at the same generatingrevenue. Their goal is to provide a win-win thatallows consumers to “give back” to society by doingbusiness with them.

Social Enterprise Business Models

31

Two young Dutch designers came up with anidea after they would always ask theirgrandmas to knit out their designs. Theydecided to create a social enterprise thatbrings their fresh new designs to life throughthe knitting of volunteer knittinggrandmothers. The grandmothers do this forfree as they are more than happy to beoutside of their homes socializing, however,they receive incentives, such as, group dayout etc. This duo have creatively solved asocial problem in The Netherlands and gavethe grandmothers new meaning in life. Allwhile still selling high-end and fashionableknitwear.

Lähde: Website: Granny's FinestVideo: Granny's Finest

Social Enterprise Business Models

32

A London-based financial program, MyBnkgive financial and enterprise education toschools and youth groups. Financial expertsand teachers teach these youngsters how tomanage their own money, and financing. It isnot only about education but also practice.The young people are able to receive loanswithout any interests when they set-up theirown enterprises in their local community.They feel empowered and have a sense ofresponsibility for their actions with money, butalso it is a source of inspiration for their ownfuture.

Lähde: Website: MyBnkVideo: MyBnk

Grassroots Experiential Marketing Campaigns(GEMCs) Key Targets: Experiential Engagers, Meaning Makers

GEMCs are interactive consumer activationcampaigns by which consumers are directlyinvolved in as they are the driving force behindthe marketing strategy. These movements -depending on the purpose communicator’smessage - can trigger a sense of responsibility,pleasure, enlightenment, or even wonder.

Grassroots Experiential Marketing Campaigns(GEMCs)

34

This guerilla marketing campaign called ‘Fastlane’ was implemented in order to promoteVW Polo GT’s two core elements: have funwhile driving and speed. The campaignenabled mall-goers to choose between anormal escalator and a bright red slide todescend. Many chose to slide down while ahidden camera recorded their experience andfacial expressions – the campaign went viral.

Lähde: Website: Volkswagen FastLaneVideo: Volkswagen FastLane

Grassroots Experiential Marketing Campaigns(GEMCs)

35

The American television network TNT createda dramatic surprise for their launch inBelgium. It created a guerilla campaign on aquiet square in Belguim and put a pole with ared button where people could push. As soonas people pushed the red button, a theatricaldrama would occur that would leave people’sfaces in awe. The network managed toengage spectators with the element ofsurprise by keeping them on their toes as towhat would happen next.

Lähde: Website: TNT DramaVideo: TNT Drama

Deep Motivators as Drivers of Future Opportunities

ValueChasers

SimplicitySeekers

ImpulseFollowers

BrandLovers

Opportunities

•What can you deliver that’s the best value (benefits versuscost) compared to the competition?•What incentives, rewards, or other perks can you give inreturn for loyalty, early-bird purchases, or bulk orders?

• How can you simplify the life of your customer whilemaking your offering extraordinarily easy to understand,use, and experience?

• What can you eliminate all instructions, manuals, oruser guides so that no additional effort is required to getthe full value from the product or experience?

• How can you make your offering the easiest to find,fastest to purchase, and quickest to get?

• How can you save the customer the most timethroughout their entire experience with your product orservice?

• What status symbols can be used to highlight andreinforce social status related to owning or using yourproduct or service?

• What values do your customers share with each other,your organization, and society – and how can youexplicitly promote these?

Value & Rewards

Simple & Intuitive

Convenience& Time

Recognition &Community

Consumer Roles Motivators

Deep Motivators as Drivers of Future Opportunities

Self-Expression&

Accomplishment

FearFixers

ExperientialEngagers

MeaningMakers

CreativeExpressives

Motivators Opportunities

•What can you do to eliminate concerns or worry incustomers’ lives?•How can you help customers avoid potential problems inthe future to give them greater peace of mind?

• What can you do that delivers pure enjoyment orentertainment?

• How can you help customers gain new knowledge,personal insight, and inspiration in their lives?

• What can you do that helps advance a social cause, theenvironment, or just simply “do the right thing?”

• How you can foster connections between customers orwith your organization tied to shared life experiences,personal stories, or community?

• What can you do that gives customers an opportunity toexpress their creativity?

• How can you provide opportunities to give customers asense of accomplishment around achieving specificpersonal goals?

Security &Avoidance

Fun & Learning

Responsibility &Relationship

Consumer Roles

Consumer Roles, Motivators, Opportunities & Trends

ValueChasers

SimplicitySeekers

ImpulseFollowers

BrandLovers

•What can you deliver that’s the best value(benefits versus cost) compared to thecompetition?•What incentives, rewards, or other perks can yougive in return for loyalty, early-bird purchases, orbulk orders?• How can you simplify the life of your

customer while making your offeringextraordinarily easy to understand, use, andexperience?

• What can you eliminate all instructions,manuals, or user guides so that no additionaleffort is required to get the full value fromthe product or experience?

• How can you make your offering the easiestto find, fastest to purchase, and quickest toget?

• How can you save the customer the mosttime throughout their entire experience withyour product or service?

• What status symbols can be used to highlightand reinforce social status related to owning orusing your product or service?

• What values do your customers share witheach other, your organization, and society –and how can you explicitly promote these?

Value & Rewards

Simple & Intuitive

Convenience & Time

Recognition &Community

Consumer Roles Motivators Opportunities Business Trends

InstapreneursshipSocial Curency Marketing

Upgrade-ability

Rent-a-AnythingPeer support for Motivation

& ChangeInteractive (Virtual

Shopping)

Social Currency MarketingAffinity Networking

Upgrade-ability

Fun-and-Games-Agement(Engagement for Fun &

Games)

Consumer Roles, Motivators, Opportunities & Trends

FearFixers

ExperientialEngagers

MeaningMakers

CreativeExpressives

•What can you do to eliminate concerns or worryin customers’ lives?•How can you help customers avoid potentialproblems in the future to give them greater peaceof mind?

• What can you do that delivers pureenjoyment or entertainment?

• How can you help customers gain newknowledge, personal insight, and inspirationin their lives?

• What can you do that helps advance a socialcause, the environment, or just simply “dothe right thing?”

• How you can foster connections betweencustomers or with your organization tied toshared life experiences, personal stories, orcommunity?

• What can you do that gives customers anopportunity to express their creativity?

• How can you provide opportunities to givecustomers a sense of accomplishmentaround achieving specific personal goals?

Security &Avoidance

Fun & Learning

Responsibility &Relationship

Self-Expression &Accomplishment

Consumer Roles Motivators Opportunities Business Trends

Rent-a-AnythingPeer support for Motivation &

Change

Social Currency MarketingInteractive (Virtual) Shopping

Fun-and-Games-Agement(Engagement for Fun & Games)

Social Enterprise Business ModelsGrassroots Experiential Marketing

campaigns

Social Currency MarketingAffinity Networking

Upgrade-ability

Fun-and-Games-Agement(Engagement for Fun &

Games)

References

Bhalla, G. (2010, November 03). Innovation Management -CollaborationAndCoCreationIncentivesAreImportant. Retrieved February 12,2014, from Innovation Management: https://innovationmanagement.se/2010/11/03/collaboration-and-co-creation-incentives-are-important/

Dvorak, T. (2013, February 02). University of Twente. Retrieved February 12, 2014, from Utwente.nl:http://www.utwente.nl/mb/ba/education/ba-thesis-2013-2/dvorak.pdf

Edelman. (2013, November 12). Edelman Editions. Retrieved February 24, 2014, fromEdelmaneditions.com: http://edelmaneditions.com/2013/11/co-creation-crowdsourcing-2-0/

Edelman. (2014, April 2). Edelman Editions. Retrieved April 2, 2014, from Edelmaneditions.com:http://edelmaneditions.com/2014/04/the-content-challenge-driving-meaningful-consumer-engagement/

Green Book Blog. (n.d.). GreenBookBlog. Retrieved from GreenBookBlog.org:http://www.greenbookblog.org/2013/10/01/co-creation-3-0/

MSLGroup. (2013, March 01). PeoplesLab.MSLGroup.com/PeoplesInsights/AnnualReport. RetrievedFebruary 13, 2014, from MSLGroup.com: http://peopleslab.mslgroup.com/peoplesinsights/annual-report/

Research led and report prepared by:

Soren Kaplan, Ph.D.Managing [email protected]

San Francisco - USA