OPEN Watch 2008

O.P.E.N. Watch: Retail Edition January 2008

Role of the Interactive Channel is Expanding The interactive channel is becoming a digital hub—the catalyst and connector to the entire brand experience. With this expanded role, the retail industry needs to redefine success and how it is measured. 2

Consumer Motivations and Behaviors are Changing Three new chief behaviors of the web- empowered consumer are to create, share and influence. Retailers now have the opportunity to learn about consumers beyond transactional information. 3

“To relate to this authoritative new consumer who creates, shares and influences via the social web, a brand must be O.P.E.N.— on-demand, personal, engaging and networked.” Kelly Mooney The O.P.E.N. Brand: When Push Comes to Pull in a Web-Made World 4

EXECUTIVE SUMMARY : TBD What is OPEN?

An OPEN brand… : encourages consumer involvement in the brand’s messages and offerings. : stages and supports experiences that pull consumers into brand participation in a way that is relevant to their lives. 6

Worldview of a Worldview of an CLOSED Brand OPEN Brand Targets Consumers Fosters Communities of Consumers Monologue Dialogue Awareness Engagement Push Pull Guarded Communications Transparent Communications Created by Marketers Co-created With Consumers Brand Management Brand Stewardship 7

An OPEN brand… Provides tools for consumers to create, share, and influence both other consumers and the brand itself. CREATING Make content in the form of words, pictures or video SHARING Share content, ideas and opinions for the world to witness INFLUENCING people’ Affect other people’ s attitudes and actions 8

O …is for On-Demand P …is for Personal E …is for Engaging N …is for Networked Delivers accessible, Facilitates meaningful Deepens attachment Taps the exponential self-directed and interaction with many through relevant potential of individual instantly gratifying markets of one. emotional consumers and online experiences. experiences. niche communities. Defining Traits of OPEN : Efficiency : Acknowledgement : Participation : Self-expression : Ease : Dialogue : Belonging : Ego gratification : Control : Customization : Immersion : Portability : Findability : Privilege : Entertainment : Community : Instantaneousness : Popularity : Inspiration : Meaningful change 9

EXECUTIVE SUMMARY : TBD How are Retailers OPENing Up?

Sears: Grant a Wish Widget O P E N Brand Messages at a Glance Brand-loyal shoppers had access to store events and promotions without having to check email. ALSO SEEN AT: Informational widgets rely on fresh, real-time content for relevancy. 11

Wal-Mart: Mobile Campaign O P E N Worth the Text Charge We gave Wal-Mart consumers a reason to smile by alerting them to Secret In-Store Specials while they RI Client shopped. Wal-Mart’s Secret In-Store Specials campaign stimulated online conversation with spikes in conversation, Consumers will opt in and conversations corresponding with campaign subscribe to timely, meaningful releases.* content. 12 * Resource Interactive Holiday Buzz Study with MotiveQuest, January 2008.

JCPenney: Know Before You Go O P E N Stocking Up Consumers knew which local stores had items in-stock, and got driving directions thanks to “Know Before You Go” listings. ALSO SEEN AT: Consumers have a low tolerance for misinformation and wasted time. One drive to a store based on outdated inventory levels will cost retailers. 13

Netshops: Co-shopping O P E N Shop With Me Consumers could shop with friends online, emulating the traditional offline experience. While less-tech-savvy consumer Digital Millennials are 50% more likely than other groups may not be as quick to consumer segments to use the web to connect with adopt, Digital Millennials will others who understand what they care about.* beat a path to the co-shopping experience. 14 * iCitizen Motivational Survey, Resource Interactive and Harris Interactive, August 2007.

Apple: Predictive Search O P E N Search Me Consumers received results and recommendations before they were finished typing their search. Predictive search is most 73% of retailers say that overhauling site search relevant for consumers when functionality is an investment priority for 2008.* paired with recognizable imagery and intuitive categorization. 15 * The State of Retailing Online 2007, a Shop.org survey conducted by Forrester Research, Inc.

Amazon: Timely Product Launch O P E N Sparking Ideas Amazon’s timely launch of its portable eReader product may have led to piqued interest and discussion during the holiday season. “Retailers can take a hint from technology companies– launch with a test-and-learn mentality. Innovation that test- and- mentality Customers will become invites consumers to be part of the development process accustomed to on-demand is a great example of an OPEN brand.” content on portable devices. — Laura Evans, Executive Director, Retail Practice, Resource Interactive 16

Barneys: Green Campaign O P E N Easy Being Green Barneys’ “Green Holiday” extended to merchandise, promotional materials and philanthropic opportunities. Know if going green is a 74% of consumers say they buy environmentally lifestyle change for your friendly products, and 55% say they make a “special consumers. Trivializing the effort” to patronize retailers with green reputations.* trend could backfire if the campaign is perceived as being insincere. 17 * KPMG and the Gordman Group, “2007 National Shopping Behavior Survey,” December 2007.

Bath & Body Works: Reviewer Badges O P E N Badge of Honor We gave top reviewers notoriety by creating badges for Bath & Body Works, raising the bar on ratings and reviews. RI Client ALSO SEEN AT: Badges distinguish loyal consumers, whose expertise may influence other shoppers’ purchase decisions. 18

HP: Gift Guide O P E N Take Out the Guesswork Personality-based profiling served up a tag cloud with the recipient’s personality traits and corresponding gift suggestions. RI Client ALSO SEEN AT: Retailers that go beyond rehashing their gift catalogs and truly “get to know” the recipient will keep shoppers coming back. 19

Neiman Marcus: Bundling O P E N Dynamic Outfitting Thank you, Neiman Marcus! Shoppers got the experience they’ve been waiting for, with outfit bundles that could be itemized for easy purchasing. “Neiman Marcus has always provided Like a virtual closet, consumers cross-sell opportunities but never in such a cross- should have the option to pick and playful and compelling format.” choose what goes in their shopping — Nita Rollins, PhD., Innovation Consultant and Co-Author of The bag, whether it’s a single item or the OPEN Brand, Resource Interactive entire outfit. 20

QVC: On-site Video O P E N Cross- Cross-Channel Video Consumers found the expected QVC TV shopping experience right on the product page. “QVC uses video the right way— built into the Extending offline assets online consumer experience—providing relevant content to satisfies existing consumers facilitate a purchase decision.” and gives new consumers a —Tricia Reisch, Senior Strategist, Retail Practice, Resource Interactive taste of the offline experience. 21

PINK: Facebook Page O P E N Get Face Time We helped Victoria’s Secret PINK foster community with their Digital Millennial consumers by creating a Facebook page to drive traffic to the brand’s site. RI Client “The PINK consumers are tech-savvy Digital Relevance is key. Retailers that Millennials who are using the social web and mobile are mindful of their consumers’ messaging on a daily basis. For the PINK brand to be motivations will succeed in this on Facebook is the epitome of consumer relevancy.” space. — Mila Goodman, Director of Retail Strategic Services, Resource Interactive 22

Home Depot: Light Up the Neighborhood O P E N Home Away From Homepage Consumers were encouraged to upload pictures of their home decked out for the season, then vote on RI Client their favorites. “The competitive nature of neighbors is brilliantly Support (and encourage) what leveraged on the Home Depot microsite. The consumers are already doing one- one-upmanship of consumer vs. consumer naturally by providing a destination for gives way to transactions online.” interactivity. — John Kadlic, Executive Director of Business Development and Marketing, Resource Interactive 23

Circuit City: City Center O P E N Create a Hub The site features blogs, forums and photo galleries, allowing users to serve up relevant topics—all within the brand experience. Keep transparency in mind. If retailers are pushing content out to consumer Approximately 57% of adult Internet users are online networks, it should be clear it’s social network users.* coming from the brand. 24 * eMarketer, “US Adult Online Social Network Users,” December 2007.

eBay: eBay To Go O P E N Don’ Don’t Stop the Sale eBay keeps consumers thinking about bidding with an auction countdown widget for use on blogs and social networking sites. Reminders are helpful, but Facebook users have installed nearly 13,000 widgets retailers that allow consumers 765 million times.* to purchase directly from widgets are ahead of the curve. * Ketchum and USC Annenberg Strategic Public Relations Center "Media Myths & Realities: 25 A Public of One - 2007 Media Usage Survey, December 2007. ,

Amazon: Customers Vote Campaign O P E N Cast Your Vote Evolving last year’s Customers Vote campaign, Amazon encouraged consumers to vote on products they wanted to receive a deal on. Habitual site visits commenced as consumers checked the site to see if their product won, creating an event out of the experience. “Amazon continues to succeed by allowing the Making an event out of a consumer to be the driving force of the experience— promotion keeps with features like Listmania, Askville, and of course, consumers visiting daily. Customers Vote.” — Edd Johns, Executive Director of Strategic Services, Resource Interactive 26

Target: TargetLists O P E N Make Your List, Check It In-store In- Consumers were able to create shopping lists online, then access them via in-store kiosks, creating a seamless, cross-channel experience. Only 21% of U.S. online shoppers said they were Understand how consumers going to use wish lists this season.* are creating lists offline. 27 * Shop.org, “2007 eHoliday Mood Study” conducted by Shopzilla, 12/10/07

GAP: GapTidings O P E N Create It and Pass It On Consumers were encouraged to create their own video greeting (or personalize a standard message), then send it to friends and family, and rate other consumers’ greetings. Providing consumers with tools When it came to online gift-giving conversations during to send greetings within a the holiday season, GAP was the third most talked-about brand environment is even retailer, with almost 1,100 conversations conversations.* more meaningful when there’s still a link for easy shopping. 28 * Resource Interactive Holiday Buzz Study with MotiveQuest, January 2008.

Online Gift-Giving Conversations 29 * Resource Interactive Holiday Buzz Study with MotiveQuest, January 2008.

Retailer Buzz and Sentiment 30 * Resource Interactive Holiday Buzz Study with MotiveQuest, January 2008.

EXECUTIVE SUMMARY : TBD 2008: What’s Next?

The New Standard The digital experience standard will be WeCommerce The New Standard established by the most influential consumers— the social web- Beyond Instant Multi-sourced, What’s empowered consumer. Gratification Next? Multi-faceted 411 The Global Sphere of Shopping Experience Influence 32

Multi-sourced, Multi-faceted 411 Consumers will seek a new authoritative voice—the WeCommerce The New Standard combination of social networks, peers, like-minded consumers, experts and Beyond Instant Multi-sourced, What’s brands. Gratification Next? Multi-faceted 411 The Global Sphere of Shopping Experience Influence 33

Sphere of Influence Brand loyalists will have an increased craving for time- WeCommerce The New Standard sensitive scoop, which, if satisfied, will make them the new brand stewards. Beyond Instant Multi-sourced, What’s Gratification Next? Multi-faceted 411 The Global Sphere of Shopping Experience Influence 34

The Global Shopping Experience Consumers will want the global shopping WeCommerce The New Standard experience—a killer app that will allow them to seamlessly shop across retail sites. Beyond Instant Multi-sourced, What’s Gratification Next? Multi-faceted 411 The Global Sphere of Shopping Experience Influence 35

Beyond Instant Gratification Consumers will continue to change the dynamic of WeCommerce The New Standard supply and demand by expecting real time personalized and portable Beyond Instant Multi-sourced, What’s experiences. Gratification Next? Multi-faceted 411 The Global Sphere of Shopping Experience Influence 36

WeCommerce The web-empowered consumer will demand a WeCommerce The New Standard digital social shopping experience—the culmination of more convenient and Beyond Instant Multi-sourced, What’s relevant shopping, consumer Gratification Next? Multi-faceted 411 inspired features and expanded social networking The Global Sphere of capabilities. Shopping Experience Influence 37

EXECUTIVE SUMMARY : TBD How to OPEN Up…

How to OPEN Up : Listen to, learn from, and join online conversations. : Know the influencers within and beyond your brand. : Provide appropriate tools for creating, sharing, and influencing. : Integrate eCommerce with social media marketing. : Use OPEN metrics to measure your success. 39

ARE YOU ? 40

THANK YOU. Email your questions to Sara Saldoff at ssaldoff@resource.com, or call 614-621-2888 www.resource.com This work is licensed under the Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 United States License. To view a copy of this license, visit http://creativecommons.org/licenses/by-nc-nd/3.0/us/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.

OPEN Watch 2008

by Resource Interactive on Jan 06, 2010

Accessibility

Categories

Tags

Upload Details

Usage Rights

1 Embed 1

Statistics

OPEN Watch 2008 — Presentation Transcript