SapientNitro Insights 2012 - How Digital Innovation Impacts Your Business

3 MarkeTING aT THe INTerSeCTIoN of Mobile CoMMuNICaTIoNS aND CoMMerCe 47 Context — The New Gold of the Mobile Industry Alan Herrick Torsten Schollmayer 51 Could Mobile Lead Your Customer Experience? 5 MoBIle MoMeNTS Paul Bevan Hilding Anderson, Rachel Zinser Technology 19 VIewSIGHT 54 Digital Marketing Platforms: Taking Back Control Marketing and Media Dan BarnicleTable of Contents 21 What’s New in Digital Nigel Vaz 57 After the Release: Maximizing Value From Your Commerce Platform Investment 24 Rise of the Machine — Sheldon Monteiro Death of the Media Planner? David D’Alleva 61 Platforms in the Cloud: Deciding to Use or Own Scott Petry 27 The Cross-Channel Challenge: Building Pervasive Information Architecture 65 INTerNaTIoNal PerSPeCTIVeS Michael MacLennan North america: 31 Media of the Moment Justin Barkhuizen, Rob Murray David Bradfield australia: Mark Krebs China: Jennifer Tan 34 Predictions for the Next 5 Years in Retail Banking Singapore: Jue Lu Alex Sion India: Vidhya Sankarnarayan russia: Yulia Rubina Social Media Middle east: Matt Horobin 36 Branding Out Loud Without Losing Your Voice: Germany: Torsten Schollmayer How to Avoid Social Dilemmas in the Digital uk: Paul Bevan, Chad Cribbins Knowledge Marketplace Erik Gottesman 85 foreSIGHT: THe oNe To fIVe Year 39 If a Tweet Falls in the Forest: TreND ouTlook Using Listening to Drive Social Media Strategy Rob Gonda, Hilding Anderson Annicka Campbell 94 NoTe froM THe eDITor 42 Social Commerce — Hilding Anderson Beckoning New Opportunities Chitranjan Sood 45 Is Social Commerce Exempt From ROI? Uwe Tueben

we believe in the intrinsic relationshipbetween brands and the brand experience “revolutions never go backwards.” – Wendell Phillips we live in interesting times. 2012 spread Unilever’s mission to encourage people to share life’sand that, ultimately, all communications small moments of happiness. This “ice-cream truck for thewill be interactive. Marketing at the Intersection of The way we go about living our lives has been forever transformed by the unceasing march of digitization and device digital age” leveraged facial recognition and 3G technologies to Communications and Commerce proliferation. In the wake of this transformation stands an create an industry-leading, award-winning brand experience. Written by Alan Herrick, President and CEO; Sapient Corporation emboldened, digitally armed consumer who is an opportunity Another great example of how technology is liberating the — and therefore — a target. The challenge for brands? traditional boundaries between marketing and commerce Get to that consumer first … and last. channels is Tesco. To increase its online market share in South Korea, the UK’s leading grocery chain developed a mobile app Television’s monopoly is over. The couch is no longer the main that allows customers to view and purchase products at virtual seat of brand impact. And the lines that used to distinguish stores installed in subways. The campaign reflects some of the communication from commerce are barely discernible. More earliest examples of how brands can create and satisfy demand sales are occurring via digital channels but, more importantly, in the same environment. As a result of its virtual stores, Tesco the brand experiences being delivered by those channels are increased online sales by 130% becoming the number one influencing the traditional retail shopping pathway. Add the online grocery store. silo-breaking effect of mobility to the equation and you end up with a $500 billion advertising industry in desperate need of More and more, clients are turning to SapientNitro to an integrated, seamless solution that blends traditional with understand how they can evolve to thrive in this new world. digital, marketing with sales. This is exactly what SapientNitro was built for, and why our distinctive ability to create brand experiences at the intersection Shortly after Sapient acquired Nitro Group, a traditional, of multi-channel marketing and multi-channel commerce is so brand-led agency, in June 2009, I was often asked why we relevant today. made, what many considered, an upside down decision: a digital shop acquiring a traditional agency. The answer I gave then is In the following pages of Insights, SapientNitro subject matter the answer I give today. Because we believe in the intrinsic experts present their perspectives on how business leaders relationship between brands and the brand experience and can successfully face the challenges posed by today’s complex that, ultimately, all communications will become interactive. business environment. From harnessing the voice of the consumer through social media management and listening Clients ask how they can stay ahead of the curve and navigate tools to constructing optimal multi-channel experiences using change. For CEOs to achieve these goals it must start by letting pervasive information architecture, the cloud, and user content, go of the “above the line, below the line” mindset. There is no our authors address a diverse range of market, marketing, and line. Brand success hinges on two key capabilities: optimizing design topics. investments and creating high-impact, integrated customer experiences, which is at the heart of what we, at SapientNitro, At SapientNitro, we see the challenges facing our clients and call Idea Engineering. are inspired by the array of opportunities they present for companies to create truly groundbreaking experiences. In this Empowered consumers are dictating when and where they complicated world where connections and capabilities are interact with brands. They don’t think in terms of touch points; being reinvented, Insights is the ultimate accelerator. they see, hear, and feel the collective brand experience, regardless of where or how it’s being delivered. That is why we We appreciate your participation, your interest, and your must create robust, technology-enabled brand experiences support of SapientNitro, and I wish you all success as you that will allow CMOs and CIOs to get the most out of the navigate this ever changing, always exciting business world. multi-functional nature of digital channels. Experiences like Unilever’s Share Happy, the world’s first smile-activated vending machine that was created to help

MobileMoments Written by Hilding Anderson, Sr. Manager, Research + Insights; SapientNitro Washington, DC and Rachel Zinser, Associate of Research + Insights; SapientNitro Chicago 135,000,000 exploring Multi-Channel Mobile experiences Mobile represents the next major frontier for interacting with the digital world. Be it the Amazon Kindle, Redbox reservation system, Google Wallet, or M-PESA’s Kenyan experiment, great mobile apps create interlocking connections between the web, kiosks, physical stores, and other platforms.U.S. and W. Europe Smartphone SalesMOBILE DEVICESALES ACCELERATE 2010 2011 2012Global Tablet Sales

The initial Google Wallet rollout is quite limited. It is available eBay’s PayPal 1 2 3 4 5 Ease-of-Use Companies are now able to — and should strive to — we interviewed 23 mobile professionals, conducted only in the U.S., only on the Sprint version of the Nexus 4G 1 2 3 4 5 Feature Set provide a single, cohesive experience in the store, at heuristic evaluations for each app, and asked our top phone, only on the Android marketplace, and supporting only Heuristic Evaluation 1 2 3 4 5 Design home, or on the go. These new experiences place the strategists to identify the most important, influential two payment types (Citi Mastercard and Google prepaid). Mobile 1 2 3 4 5 Familiarity customer at the center of a company’s ecosystem of apps offerings in each of the following categories: Professional The Google Wallet delivers the first salvo in what promises to Review 1 2 3 4 5 Importance and devices, which have the potential to create genuine • Mobile wallet be the next major wave of mobile technology — perhaps the value for both the company and the consumer. Strategic Importance 1 2 3 4 5 Strategic • In-store mobile most significant mobile innovation since SMS and broadband Demonstrating genuine value for consumers is a test • Integrated experiences connectivity. It opens doors for more secure transactions, real 2nd 3.6 overall for any mobile application. To get past the initial "trial (multiple devices or channels) time offers, and a brand new real-time marketplace. Starbucks Mobile application: a widely adopted, and forget" model of 80% of mobile apps, there must • location-based technology in-store payment tool be consistent and repetitive value. even among • emerging technology Google wallet 1 2 3 4 5 Ease-of-Use The Starbucks App doesn’t offer the fullest set of functionality applications that are commonly used, we still found • International experiences 1 2 3 4 5 Feature Set compared to Google Wallet or PayPal. It only works with Heuristic troubled user experiences. applications such as Evaluation 1 2 3 4 5 Design Starbucks stores, and the app was not always intuitive Google Maps, eBay Mobile, and amazon kindle meet a guide to scoring: We evaluated the strength of each (especially on initial setup). Mobile 1 2 3 4 5 Familiarity the test. others do not. application across three equally-weighted sections. Professional Review 1 2 3 4 5 Importance Yet based on our interviews, it is one of the most influential example Strategic Importance 1 2 3 4 5 Strategic mobile wallet applications. It has the key elements of any 1 2 3 4 5 Ease-of-Use 1 2 3 4 5 Feature Set mobile wallet application: multi-platform, multi-location 1st 3.9 overall Heuristic (over 7,800 locations), multi-payments, and an integrated Evaluation 1 2 3 4 5 Design eBay’s PayPal: Peer-to-peer player with opportunities rewards program.Mobile wallet Mobile 1 2 3 4 5 Familiarity Professional A leader in online payments, PayPal has invested heavily in Review 1 2 3 4 5 Importance building out its mobile payments platform, although it falls Ultimately, it is a promising start, which shows the potentialThe mobile wallet is an ambitious experience — much more Strategic Importance 1 2 3 4 5 Strategic for the digital wallet, but may be swept away — certainly short of a true mobile wallet offering. PayPal lacks a mobilethan just touchless payment with near field communication from this list — when multiple wallet solutions come out. phone of its own, reducing its ability to influence future 1st 3.9 overall(NFC) at the point of sale (POS). mobile wallets design and implementation. It does allow consumer behavior. In addition, our interviewees emphasized Starbucks 1 2 3 4 5 Ease-of-UseIdeally, a mobile wallet will allow mobile devices to store easy peer-to-peer mobile bill payment, and mobile web Mobile five key challenges of implementing a mobile wallet: security, applicationall the elements of a physical wallet digitally. It will include purchases, but doesn’t integrate with any physical retail 1 2 3 4 5 Feature Set versatility, customization, ease of use, and design. Heuristicphotos, government-issued IDs, credit card information, stores — yet. Its NFC-based peer-to-peer payment Evaluation 1 2 3 4 5 Designcash-equivalents, and loyalty cards. It will use location and Google wallet: a brand new platform that holds promise technology is a start of a mobile wallet capability. Mobile 1 2 3 4 5 Familiarity Professionalpreferences to notify users of nearby brands, sales, and As the first mobile wallet solution, the Google Wallet Review 1 2 3 4 5 Importance As one of our interviewees said, “[PayPal’s] mobile candeals. It will allow payment processing with a simple swipe combines tap-and-pay mobile payment, location-based offer Strategic Importance 1 2 3 4 5 Strategic serve as a unique bridge between the digital and physicalof the phone. discovery, integrated loyalty cards, and a digital transaction worlds.” Another noted, bluntly, “PayPal will be big.” 3rd 3.3 overall history to create the first true mobile wallet experience.At the time of this report, there is only one mainstream, others of note: Verizon and Payfone, Bling Nation,full-fledged digital wallet technology in the U.S. The mobile The mobile professionals polled emphasized Google’s ISIS, and Applewallet will have profound implications for a variety of strong relationships with banks (Citi, Visa, Discover,applications including: American Express have all announced partnerships),• Personal financial management and banking its in-house mobile phone engineering prowess, and its The domestic mobile wallet challenge: Changing consumer behavior• Shopping and product comparison tools substantial financial resources as key factors. NFC and the mobile wallet face a substantial Yet in the U.S., our interviewees feel it will take• Payment and card services In our initial testing, we found that tap-and-pay works well challenge in the U.S. substantial incentives to transition us from a credit• Promotions and couponing with the thousands of PayPass devices deployed at major card swipe culture to a tap-to-buy technique. Many• Loyalty and customer services retailers. But more significantly, Google’s SingleTap connects Internationally, consumers are already using of our interviewees feel that the key to accelerating• Tickets, passes, and event integration a purchase to a loyalty or reward card, and can apply coupons touch-to-pay technology. According to our adoption will be loyalty programs, simple andOur research suggests that substantial NFC mobile wallet during checkout. Boarding passes, tickets, digital receipts, interviewees, Canadians commonly tap credit cards easy-to-use offer redemption and couponing, andadoption is at least four years off, based on the pace of and other personal transaction information are also core for payment, while in Japan they’ve been using mobile real-time offer delivery as promised by Starbucks,adoption and the complexities of the service model. As Gartner elements. Location-based offers can shape consumer tap payment technology for years. Sparkfly, Shopkick, and many others.noted,1 the biggest challenge isn’t the technology but changing behavior and drive in-store traffic. 1 Gartner “Market Trends: Mobile Payment, Worldwide, 2011" 8

In-Store MobileThe in-store mobile experience has, as one of our Our interviewees believe these in-store mobile experiences Practical tools add value in-store or when preparing to a gift certificate has been earned. It delivers rewards andindustry interviewees delicately put it, “a great should be a core, strategic area of investment for many large shop: everything from the basics (finding Home Depot special offers in-store and allows users to purchase productsopportunity for improvement.” consumer-facing firms. And recent research shows the locations) to more complex features (using the toolboxs directly from the app. firms are responding, with 40% of surveyed online business caliper, tape measure, and converter).We’re seeing glimmers of that future now: integrated managers planning on building a mobile-optimized site.3 Our testers main disappointment with the experiencebar-code scanners, practical mobile tools, inventory The integrated barcode scanner holds promise of in-store was the app’s inability to save what the user had looked at.visibility, and location. A few of the best applications serve But, creating a fantastic in-store mobile experience takes a integration, but wasn’t working during our testing. Scanned items are not automatically saved into a history.as a guide while you browse the store. Some of the strongest long-term commitment. According to a recent Forrester report, However, most online reviewers of this app had no problem Also, the manual “save” feature was not functioningeven offer concierge services, allowing you to make 60% of all eBusiness managers either do not have a mobile with the barcode. correctly when we audited the app.appointments with sales associates and experts for custom strategy, or have one that has existed for less than a year.4services (think: clothing tailors or personal shoppers). Home Depot has made a substantial investment in the Best Buy reward Zone 1 2 3 4 5 Ease-of-Use While there remains overall room for improvement, we did application, and it shows. The interface is well designed 1 2 3 4 5 Feature SetCore elements of leading branded applications include identify several examples that show the strong potential of and makes goal completion easy and intuitive. Yet even Heuristic Evaluation 1 2 3 4 5 Designreviews, ratings, recommendations, cross-sell and up-sell, mobile devices and their use in-store. a top in-store experience still has technical glitches andfeatures comparison, or video. More advanced functions ROI concerns. Mobile 1 2 3 4 5 Familiarity Professionalinclude ordering from the aisle and shipping it directly apple Store app: Your personal concierge Review 1 2 3 4 5 Importancehome, or integration with social networks. Apple’s application enables users to make purchases, read Home Depot 1 2 3 4 5 Ease-of-Use Strategic Importance 1 2 3 4 5 Strategic reviews, reserve products, view in-store events, and schedule 1 2 3 4 5 Feature Set Heuristic 3rd 3.5 overallWith a few exceptions, most in-store mobile applications Genius Bar appointments. The in-store mode also lets users Evaluation 1 2 3 4 5 Designare largely disconnected pilots, apps, and mobile sites with see how many people are in line and estimates wait times. others of note: Barnes & Noble, Redbox, ShopSavvy, Mobile 1 2 3 4 5 Familiaritylow adoption (just 20% of smartphone consumers have The differentiated value is transparency. This same Professional RedLaser, My Coke Rewards, and Shopkickdownloaded and used their shopping application to receive technique could be applied to any sort of one-on-one service, Review 1 2 3 4 5 Importancecoupons, price alerts, and product deals).2 The result: and could be applied at many different major retailers. Strategic Importance 1 2 3 4 5 Strategicconfused consumers and low ROI. 2nd 3.6 overall Solid scores across our heuristic evaluation in ease-of-use, a fight with your partners:we identified three main issues: feature set, and design round out the product. Grocery store chains versus CPG companies Best Buy reward Zone: In-store shopping for• ease-of-use. Getting set up and then using these apps Grocery store chains and CPG companies, long technology geeksis too difficult, inhibiting adoption. Most require multiple apple partners, are seeing their relationships evolve in this 1 2 3 4 5 Ease-of-Use The Best Buy Reward Zone app is another fullsteps, and require the consumer to remember to activate Store app new digital world. 1 2 3 4 5 Feature Set featured application.the app while in the store. Can a consumer opt-in to a Heuristic Evaluation 1 2 3 4 5 Design Increasingly, large CPGs and grocery store chains arebrand on one device and receive those messages wherever In our review, we found that the Best Buy Reward Zone app investing in mobile experiences. Yet they’re targeting the Mobile 1 2 3 4 5 Familiaritythey are in another? Not today. Professional is a complement to the store and works to infuse the social same customers with similar applications. Long-time Review 1 2 3 4 5 Importance• lack of value. Functionality generally doesn’t show content from the website into the shopping experience. partners are becoming competitors over who will Strategic Importance 1 2 3 4 5 Strategicenough value to be compelling. Most apps haven’t quite The most helpful capability within the app is the QR scan own customers search and discovery methods,figured out the right value proposition for users — narrow 1st 4.0 overall feature, whereby users can surface additional product developing a parallel system of marketing to traditionalenough to be easily used by consumers, valuable enough information like users’ reviews and other nearby Best Buy in-store facings.to be regularly used. Promotion and rewards plans are Home Depot: Bringing utility to the in-store locations where a product may be available.anemic; special offers are not very special. mobile experience This is another example of how a mobile and• Integration points. The third issue is weak integration The Home Depot application delivers genuine value to its It also allows Reward Zone members a quick view into digital world is upsetting existing relationshipswith existing processes and back-end technology. Problems users — its useful and relevant to the consumer while the points that they’ve earned at Best Buy as well as the and business models.include non-imaging POS systems, untrained sales associates, still remaining on brand. opportunity to redeem points directly from the phone whenand a lack of integration between the mobile phone, POS, and 2 http://www.internetretailer.com/2011/06/02/one-five-smartphone-owners-the back-end CRM system that should drive the loyalty, use-shopping-apps-survey-findspersonalization, and customization options presented. 3 Forrester Research “Mobile Channel Strategy: An Overview,” June 2, 2011 4 Ibid 10

Integrated experiencesIntegrated experiences offer the holy grail of our digital challenge. Other industries like retail have taken a slower This ability to pass profile and status information between and a highly regulated industry, airlines have been forcedfuture: one device, many channels, and multiple devices, path to multi-channel. devices, and the cloud, is of strategic importance far to aggressively cut costs, particularly in customer service.with a single profile. beyond the Kindle. It represents the future of integrated The Delta Airlines kiosk, mobile, dot-com, and loyalty While many are talking about it, few have mastered the experiences: multiple specialized devices, while program integration scored highly. Mobile ticketing andThe ability to seamlessly jump across devices or channels multi-channel consumer journey. Our interviews identified simultaneously making the device irrelevant. check-in highlights the potential of multi-channelis the key. Soon, youll be able to create a wish list on several best practices for building these journeys: integration. Delta’s efforts integrating loyalty programsTarget’s mobile app while waiting on the train, purchase amazon kindle • Meet the consumer where they are. Provide the right 1 2 3 4 5 Ease-of-Use with other channels (e.g., personal SMS messages tothose items on your PC at work, and change the shipping set of tools — mobile, kiosk, digital display, sales- 1 2 3 4 5 Feature Set platinum flyers after flight delays) helped put them on top.address on your iPad at home. Your personal information Heuristic associate devices — for where and how your Evaluation 1 2 3 4 5 Designand ordering data wont change across devices. Mobile ticketing, combined with enhanced loyalty programs, consumer wants to engage. Mobile 1 2 3 4 5 Familiarity digital status updates of upgrades, flight delays, seat options,Many of the early leaders we’ve found are those facing • Think and organize beyond silos. Many business Professional Review 1 2 3 4 5 Importance post-flight feedback, and even those apologies due toindustry disruption, forcing them to rapidly change. professionals are still thinking in silos, and developing Strategic Importance 1 2 3 4 5 Strategic cancellations or delays become possible through theAirlines, books, banking, and car rentals are all facing a a separate solution for PC, mobile, TV, and social. consumers channel of choice. Organizations should consider the overall experience 1st 4.3 overall this creates for their customer, and optimize that While our evaluation found data integrity issues, and slow our interviewees identified six key components experience across organizational boundaries and silos. Banking (uSaa): Mobile deposit and banking from home performance hampered our ease-of-use score, the promise of future in-store mobile experiences: • Consider back-end technology. Digital tools are built A pioneer in an industry not known for innovation, USAA’s of an all-mobile ticketing and rewards future is glimpsed. 1. Integrated loyalty, personalization, and on top of your existing technology. If you don’t have mobile application is a leader in multi-channel experiences. customization options. Based on past buying airline kiosks 1 2 3 4 5 Ease-of-Use one view of the consumer, or your technology stack USAA’s pioneering work allowed consumers to deposit checks history and level of loyalty, the retailer will push is unstable, it will impact the quality of the offer. 1 2 3 4 5 Feature Set from their phone for the first time. The mobile app reinforces Heuristic specific offers. For example, Sparkfly offers • Support in-store technology. Traditionally, most Evaluation 1 2 3 4 5 Design its strategic position: as a branchless bank (USAA has only a progressive discounting — 10%, 20%, 30% over in-store IT support is focused on the PC platform. handful). Tight integration between the remaining channels: Mobile 1 2 3 4 5 Familiarity time, rewarding repeat customers. Make sure you have a plan to support products when Professional web, mobile, and call center is essential. Review 1 2 3 4 5 Importance 2. real-time deals and messages. Retailers will they go down. Do you have the right skills in-house? Strategic Importance 1 2 3 4 5 Strategic be able to push relevant, real-time messages to • Plan for ongoing upgrades. Just as with any in-store The app offers remote check deposit, quick (and secure) the user as they walk through the store, perhaps product, you’ll need to have a plan for regular mobile login, and accident claim photo submission. 3rd 3.3 overall personalized by the area of the store. upgrades to new displays, interfaces, and 3. ability to digitally "like" or share a product on USAA changed expectations of what service from your bank others of note: Zipcar and Streetcar (UK), Banking (Chase), product offerings. a shelf. Retailers will be able to connect the really means — without investing in thousands of branches. and Shazam • repurpose content. Make sure you reuse any video in-store shopping experience with social networks. Suddenly, the ROI for mobile becomes clear. or static content created for one channel to others. 4. enabling sales associates. Store associate- This benefits the company by reducing rework, and Mobile, social, and location: an era of radical transparency Banking (uSaa) 1 2 3 4 5 Ease-of-Use enabled mobile devices will help improve benefits the consumer by creating a single, easier to For better or for worse, combining mobile, social, and demonstrations and provide richer, more learn experience. 1 2 3 4 5 Feature Set location is going to transform shopping experiences. For Heuristic personalized selling. Evaluation 1 2 3 4 5 Design retailers, its no longer easy to have unique pricing and 5. Digital displays. There will be a roll out of new amazon kindle: one profile, many devices Mobile 1 2 3 4 5 Familiarity product selection for each regional store. Consumers can digital merchandising options, including tablets The Amazon Kindle is reshaping media consumption. Professional Review 1 2 3 4 5 Importance sniff out the best possible price quickly and easily — either attached to the aisle, large touch screen kiosks, With tremendous scale and a quality product; today, Strategic Importance 1 2 3 4 5 Strategic at your store or on the Internet at your competitors sites. and interactive displays. Amazon is selling more eBooks than paper books. 6. New physical configurations. Look for mobile 2nd 3.8 overall Increasingly, the shopping experience becomes infused The Kindle suite of products sets a new baseline for POS devices (think: Apple store), or being able with entertainment, on top of a much more robust set multi-device integration (seamless switching across to scan on your phone as you shop. airline kiosks (Delta): Cut-throat competition of fulfillment options. Multiple screens, interactive devices). Consumers can read on a mobile phone, review drives kiosk, mobile innovation elements, and even gaming have become a potent part it with a PC, and continue on the tablet at home. The modern airline experience is a fiasco. With their backs of the retailing world. against a wall by high fuel prices, cutthroat competition, 12

location-Based Technology “ one of the amazing things with Google Maps is that every day there is some other new things going on there. TheFew technologies show the societal impact of digital technology Yelp: Global, crowd sourced service evaluation tool latest is being able to download maps for offline accessfor average Americans as clearly as the rise of GPS. The ability Yelp’s aggregation of comments and ratings, augmented on your mobile phone.” – Mobile Business Professionalto instantly access a vast database is incredibly powerful, and reality, and location create tremendous value for consumers.opportunities are still being discovered. Its search features are its strongest asset, allowing users to conduct manual searches where the user designates searchIt is easy to take for granted the tools that Yelp and other parameters, while also leveraging location-aware technology. foursquare: flash in the pan or genuine value? facebook Places: Beyond the check-Insimilar community review sites offer. You shouldn’t. Just Additionally, the augmented reality integration, the Yelp Foursquare has had a continuing struggle to stay relevant Facebook was the first large network to acknowledgefive years ago, getting this information required a paid Elite Squad rewards program, and local relationships have and active. the lack of value of a check-in. They officially removed allsubscription, or a physical guide. Information was largely helped to sustain its growth over the past three years. check-in notifications from their feed, and instead allowedundated, and reflected expert views. Their recent partnership with American Express — which users to seamlessly Geotag status updates, photos, and Yelp has also started to make inroads into Foursquares allows consumers to pay with an American Express card videos. Users find much higher value in adding location toThe ideal future for location-based technology is for all and Groupon’s territories with a check-in feature that can and receive deals and coupons after check in — is a strong their digital assets.mobile activity to be filtered based upon its current location, unlock special deals for users, although this initiative has effort to make the tool more valuable and relevant forand areas of recent activity. Location becomes a layer, had limited success and is being reconsidered. consumers. Foursquares tips for individual locations is In the end, Facebook has effectively integrated locationwhich defines all the other functions — you can find your another differentiator. across the 600-million user platform, even though thefriends who are nearby, shop nearby deals, find good The bottom line: Yelp is in the process of becoming a location tag is only used by a tiny percentage of users.restaurants, and more. global taste arbiter. As one interviewee stated, “Foursquare is still a leader [in location-based tools]. Amazing work. They’ve come up with Location is evolving from an action or service, to a ubiquitousGoogle Maps: an uncredited, yet essential location tool Yelp 1 2 3 4 5 Ease-of-Use a value proposition for consumers and businesses that may attribute that simply adds value, and plays a key role asMobile mapping and routing technology represents the become less of a recommendation engine but more of a brands become situationally aware and contextually relevant. 1 2 3 4 5 Feature Setgreatest practical application of mobile technology that Heuristic check-in service.” Evaluation 1 2 3 4 5 Designwe’ve seen over the past 10 years. In our research, most felt Facebooks location tagging Mobile 1 2 3 4 5 Familiarity Professional foursquare 1 2 3 4 5 Ease-of-Use remains important, and highlighted the event locationThese tools have a new sophistication: mode of transportation Review 1 2 3 4 5 Importance 1 2 3 4 5 Feature Set check-in and ability to check in friends. The lack of tips inoptions, contextual layers (traffic, hotel finder application, Strategic Importance 1 2 3 4 5 Strategic Heuristic locations and limited mobile commerce integration remain Evaluation 1 2 3 4 5 Designrestaurants, gas stations), GPS integration, special offers, a weak point. Much more public facing than Foursquare, 2nd 4.3 overall Mobile 1 2 3 4 5 Familiarityand rewards integration. These tools, not coincidentally, are Professional several noted the different makeup of friends on thean excellent fit with the Google Wallet. Review 1 2 3 4 5 Importance two platforms. Strategic Importance 1 2 3 4 5 StrategicThis cloud-based technology allows computation-intensive In the end, most people’s go-to tool for location check-in 3rd 4.0 overalldisplays on simple, low-power devices (so long as you have remains Foursquare — for now.good data). facebook Places 1 2 3 4 5 Ease-of-UseIn the end, Google should be appreciated for what it is: the 1 2 3 4 5 Feature Setdefinitive location application. Heuristic Evaluation 1 2 3 4 5 Design Google Maps Mobile 1 2 3 4 5 Familiarity 1 2 3 4 5 Ease-of-Use Professional Review 1 2 3 4 5 Importance 1 2 3 4 5 Feature Set Heuristic Strategic Importance 1 2 3 4 5 Strategic Evaluation 1 2 3 4 5 Design Mobile 1 2 3 4 5 Familiarity 4th 3.4 overall Professional Review 1 2 3 4 5 Importance others of note: Gowalla, SCVNGR Strategic Importance 1 2 3 4 5 Strategic 1st 4.7 overall 14

emerging TechnologyThe Emerging Technology section of this report examines information, special offers that allow consumers to find and Applications range from remote sensing, building Yet with over 15 years of investment, it is still not perfect.the most interesting future and emerging technologies learn using their mobile device, and businesses to present management/automation, logistics, automotive, eHealth, Mobile phone manufacturers from Google to Apple todevelopments relevant to marketing services. By 2013, and market to this audience. and agriculture. Wi-Fi, RFID, Bluetooth, and WiMAX are Samsung have also been offering it successfully for somewhen mobile web traffic is expected to exceed desktop some of the enabling networking technologies. time, often using crowd-sourcing models to minimize thetraffic on the Internet, many of the nascent technologies Gesture recognition: Taking touch screen to the next level training the older systems needed. Virtual assistants suchwe identify in this report will be more developed. Others will The gestural interface (e.g., Microsofts Kinect, Apples There are substantial opportunities for efficiency as Siri — which was acquired by Apple in 2010 and may bebe gone. Here are the top emerging technologies identified iPhone, or Microsoft’s Surface) was a surprising top-scorer improvements: remote monitoring of fuel, gas, electricity, included in the iPhone 5 — allows a personal assistant toby our interviewees. in our mobile expert survey. In some ways, this is just a tracking the location of a fleet of vehicles, or optimizing provide recommendations and assistance. Google has offered natural evolution from the touch screen revolution that has delivery truck routing. a more basic voice-to-text transcription service for some time.augmented reality: Combining the digital and occurred over the past five years. A whole generation hasanalog worlds grown accustomed to not needing a mouse, keyboard, or Increasingly, this data is being sent over the Internet. In the And the promise was enough for Ford and other largeAugmented reality (AR) has been an emerging technology button to manage their digital tools. Combined with the future, data sent and received by sensors and machines will automotive companies to begin offering voice recognitiondarling for years. The technology superimposes digital accelerometers built into mobile devices, gesture or natural dominate traffic online. as an option in some vehicles.images on the real world, often using smartphone cameras interfaces could control one or many screens andand displays to capture and display this view. interactive elements in the retail setting. The rise of these sensors will have major efficiency Driven by continued investments in mobile, voice recognition benefits, but will also raise real challenges with data, will continue to improve, from a hit-or-miss call center toolIt holds more promise for consumer applications today than Examples such as the Kinect or MIT’s SixthSense lab — analytics, and modeling, as information threatens to to a reliable partner for consumers and businesses.ever before. which explore the new technologies of full-body gesture overwhelm our ability to process it. and augmented reality experiences — highlight how far others of note: Content provider paywall, E-Ink daylightEarly examples included automotive head-up displays, we have come and how much further we have yet to go. Voice recognition: The natural communication technology color display, Mobile device barcode scanning,Yelp’s Monocle, and webcam-based virtual try-on. More Other examples such as the Kymera Magic Wand — which A surprisingly high-scoring technology, voice recognition QR codes/2-D barcodes, and translucent displaysrecently, Facebook and Google have rolled out applications controls devices at a distance through motion — can has an opportunity to transform computer interaction.capable of recognizing human faces and landmarks and create engaging user experiences.6then presenting relevant information. These tools combinedata from GPS, digital cameras, broadband, and cloud- In terms of practical business applications, our respondents International experiencesbased information. Overlay databases such as Wikipedia highlighted this type of technology as a major opportunity inand Google Maps can present special offers, or allow a three to five years. But they also pointed out that, right now, Despite the lead of Asia and Europe in 3G adoption, SMS the adoption of new technology. But there are some excitingmobile device to quickly find and display important and there is a lot of hype but few scalable options. "There are usage, and QR codes, the surprising consensus among our applications coming from overseas, and we highlightrelevant information near a location. examples related to building a campaign, or dropping a pool of international mobile professionals is that the U.S. several below. single kiosk in a mall, but few operate at scale." remains the leader when it comes to mobile offerings —Examples include pure-play firms such as Layar, which has at least in terms of smartphone-based mobile apps and M-PeSa: Mobile banking for the unbankedmore than 700,000 active users worldwide using their AR Nevertheless, when combined with augmented reality, the mobile web. M-PESA, Vodacom’s offering in Kenya and select otherplatform. World Lens allows users to point their mobile voice recognition, and even telematics, there is a long-term countries, is an exciting application of emerging mobiledevice at street signs for instant language translation. opportunity to reinvent human-computer interaction, with Indeed, in most of the world, mobile represents the technology to improve the lives of the unbanked in thePanasonic offers the virtual VIERA TV simulator to model massive applications for consumers and the enterprise alike. “first screen” — the go-to device for digital information, developing world.how the TV will appear in a consumers room. entertainment, and conversation. According to comScore, Telematics: when computers talk to computers smartphone penetration in Japan is around 10% — far This financial platform for low-cost, peer-to-peer paymentsKey applications, according to Gartner,5 include exploration Every year, millions of new devices are connected to the below the U.S.’s 32%, and also far below the penetration has seen massive growth. It has seen particularly large(finding things in your vicinity), suggestion (indicating real- Internet. Some are devices we understand today — mobile, rates in the UK and Spain (each around 40%).7 International growth in Kenya, where 13.5M have an M-PESA account,world objects of interest), and direction (indicating where tablets, PCs. Others we are less familiar with — vending users are doing more — or at least a lot — with less. while only 3.5M have a bank account. It supports theconsumers should go). machines, IP telephones, elevators. And increasingly, everyday ubiquitous and low-cost feature phone. In many cases, it sensors (and networks of sensors) are being enabled. Our interviewees also mentioned that a combination of represents the entire set of financial tools for Kenyan users.As AR continues to evolve, business applications will device fragmentation across Asia and Europe are slowinginclude branded points-of-interest, local relevant 5Gartner “Hype Cycle For Emerging Technologies, 2011” 6Ibid 7eMarketer “Asia-Pacific Mobile: Redefining the Digital Landscape,” July 2011 16

Sapient Nitro: StrategicAs a result, people in these countries are starting to use shoppers cart. Once purchased, the goods are delivered Heuristic evaluation Mobile Professional review Importance Category Name Ease-of-Use Feature Set Design Familiarity Importance Strategic Overall Ratingtheir mobile devices for more. Over the next decade in to the customers door right after they get home.emerging countries, many people’s first exposure to theInternet will be through a mobile device. And this, in turn, Conclusion Mobile walletwill change their expectations of future devices. eBay Paypal Mobile App 4.0 4.3 3.0 3.7 4.1 3 3.6 2nd Google Wallet 3.7 4.7 3.3 3.1 4.4 4 3.9 1st In this report we’ve highlighted six major categories of Starbucks Mobile App 4.0 3.3 3.0 3.9 3.1 3 3.3 3rdHomeplus Subway Virtual Store: Grocery shopping research we examined — mobile wallet, in-store mobile,while waiting for the train integrated experiences, location-based technology, In-Store MobileThe 2011 winner of a Grand Prix Lion for Media, for “Best emerging technology, and international experiences. Apple Store App 3.7 3.7 3.7 4.6 3.9 4 4.0 1stUse of Outdoor,” the Homeplus Subway Virtual Store is a B&N App 3.7 4.0 4.0 2.9 3.1 3 3.3remarkable business and mobile breakthrough. Homeplus We found that while there are a great many mobile 4 Best Buy Reward Zone App 3.0 3.3 3.3 3.0 3.5 3.5 3rd(rebranded from Tesco to gain local audience relevance) applications, in total, the space is uneven. Mobile 2.7 4.3 4.3 3.1 3.3 4 3.6 2nd Home Depot Appis a South Korean/British discount store retail chain jointly represents a major new frontier for brands. As we look Redbox App 3.7 4.3 3.0 1.9 2.4 4 3.3owned by Samsung and Tesco with 113 local branches at the top mobile applications available to date, what is RedLaser App 4.0 2.0 2.0 3.7 3.7 2 2.8throughout South Korea. most remarkable is how much opportunity remains to get ShopSavvy App 4.0 3.7 3.7 2.5 3.2 3 3.2 the product right. Years after the first smartphone arrivedCustomer research revealed the urgent need to avoid rush in the market, sophisticated experiences remain Integrated experiences:hour in the supermarket. The solution from Tesco was to in development. Multiple Devices or Channelssave time by doing the grocery shopping on the way home. Airline Kiosks (Delta) 2.0 3.3 3.3 4.2 4.1 3 3.3 3rdFor its "shopping on the move" campaign, Homeplus Whether it is mobile payments, in-store shopping and Amazon Kindle 4.3 3.7 3.7 4.1 3.8 5 4.3 1stcreated virtual stores in subway stations at rush hour brand experiences, or integration with location, social, Banking (Chase) 3.3 3.7 3.7 3.1 3.8 3 3.3using floor-to-ceiling pictures of actual store aisles. Each and loyalty programs, there is still ample time and room Banking (USAA) 4.3 4.0 4.0 2.5 4.1 4 3.8 2ndproduct includes a QR code, which adds the product to the in the competitive landscape to be successful. Macy’s iShop Mobile App 3.0 1.7 2.3 2.7 3.2 2 2.4 location Based Technology Facebook Places 4.0 3.0 3.3 3.9 3.9 3 3.4 4thNotes on Methodology Foursquare 3.7 3.7 4.0 4.1 4.2 4 4.0 3rdWe spent over three months of intensive research to SapientNitro clients that would otherwise be eligible Google Maps 4.3 4.7 4.0 5.0 4.7 5 4.7 1stidentify and evaluate leading mobile experiences across were excluded from a final ranking in this report. Gowalla 2.7 2.7 3.0 3.3 3.2 1 2.3six key categories. SCVNGR 3.7 3.7 3.7 2.7 3.2 2 2.9 Among the companies we interviewed for this report: Yelp 4.0 3.7 3.3 4.2 4.1 5 4.3 2ndWe conducted in-depth interviews, followed by an online poll, Sparkflyof 23 mobile business professionals. These experienced leaders 360i emerging Technology(40% with over a decade of professional experience in mobile) Major National Retailer Augmented Reality 4.1 3.9 5 4.5 1stdiscussed what they felt were the leading examples in each Smartsoft Mobile Augmented Social Experiences 3.3 4.0 3 3.3 Major Mobile Wallet Provider Content Provider Paywall 2.8 3.2 4 3.5category, and scored them in the poll. E-Ink Daylight Color Display 2.7 3.5 2 2.6 Banking 2.0 Author Mobile Device Barcode Scanning 4.6 4.1 3 3.7A heuristic evaluation was conducted across nine elements in Digby Motion-Gesture Technology 3.8 4.1 5 4.5 2ndthree major categories — ease-of-use, feature set, and design. Kurt Salmon QR Codes/2-D Barcodes 4.7 3.7 2 3.1 Telematics/Internet-Enabled Vehicles 3.3 4.1 5 4.3 3rdFinally, a strategic review was conducted to understand In addition, we consulted with SapientNitro’s top mobile Translucent Displays 2.5 4.1 4 3.6the long-term significance of each offering. strategists working with major brands such as Coca-Cola, 4 Voice Recognition 3.9 4.2 4.0 4th Foot Locker, New Balance, Dove, Chrysler Ram and Dodge, Mars, MetLife, Volvo, Vail Resorts, and the TSA. 18

ViewsightA collection of essays, written by Idea Engineers, on a broadspectrum of topics affecting commerce and technology.

Marketing and Media "what’s new in digital?" might just be a misleading to us with business problems and we have the strategic,what’s New in Digital question. It’s tempting to try and pick the Next Big Thing creative, and technical expertise to come up with solutions. — mobile and social are the new trendy buzzwords, the latter epitomised recently by properties like friendster Another example of this is the situation faced by publishers and MySpace. Consumers make or break trends, just like like The New York Times. They came to us because the days Written by Nigel Vaz, Managing Director; SapientNitro UK a popular new song that drops off the charts a few of breaking news to readers every morning are now gone. months later. It needed to fundamentally change how it engaged users to maintain its relevance where news was being broken The focus instead should be on the fact that, for thousands around the clock, and many times not by news reporters. and thousands of businesses and brands in every imaginable market, the digital age has already changed or is about to — The solution was to look at what The Times does best and in a profound, fundamental way that cannot be ignored. use the digital medium to redefine its relationship with its Digital — that incredibly broad concept — is no longer the consumers and maintain its legacy of relevance. teenager that brands flirt with to simply pretend to be current. It is a fully-grown adult and it is punishing those who That’s how we came up with the concept of Breakingviews, are not ready to embrace it, especially since consumers have. and how The Times went from having a strategy of selling news printed on paper in a 24-hour editorial cycle to The convergence of consumer behaviour, innovation in breaking insightful content around the clock a few business models, and technology is changing everything. minutes after an event. Take, for example, the video rental chain Blockbuster that managed to replace every mom-and-pop video shop. High street retailing, or retail activity in the traditional areas of towns or cities, is another industry that is undergoing Then the world got "digitised" and its business model a profound change. Ten years ago, mainstream thinking became as good as redundant. What Blockbuster needed was that online stores were an adjunct to the main high was not a digital campaign or a television campaign, or even street business. a really brilliant Twitter feed before anyone else "got" Twitter. It needed someone to tell them they had to change So when thinking about how Foot Locker could enable their their business with a whole new business strategy and then brand promise of “sneaker enthusiasm beyond reason,” redefine the roles for communications, technology, and the answer wasn’t to create just another campaign to gain customer experience in that. their customers attention for a second. It was to create a community for the global audience of the sneaker When Tourism Queensland came to us with a problem obsessed — a resource that appeals to collectors and that would normally have been solved by a simple TV ad fans: Sneakerpedia. and some posters and calendars distributed to travel agents, we came back with a suggestion that turned out What’s different about it? Sneakerpedia isn’t really a to be "The Best Job in the World." campaign. It’s a growing, living social space that has already generated 4.5 million mentions online, even though That campaign illustrates the fundamental way that the membership is currently limited while the site is in beta. digital age is changing the guts of most businesses and And it isn’t created by a team of marketing pros; it’s created how that, in turn, requires all of us to do things in a by the fans for the fans and powered by Foot Locker. radically different way. Our clients often come to us and ask for a mobile app. One of the reasons that SapientNitro is in Fortune magazine’s But we deliver only a few. Top 50 Fastest Growing Companies is that our clients come 22

Marketing and Media rise of the Machine —Conversely, exactly none of our clients has ever come to communications and interactions, across all brandus and asked us to build them a vending machine that can touch points from marketing and communications torecognise when people are smiling, but we’ve built one sales and service. Death of the Media Planner?anyway. Why? Because it was the solution to one ofUnilever’s problems — getting people to buy ice creams. To give consumers an excellent brand experience,In many stores, the ice cream freezer is burried in the back. businesses and their advisers need real focus on businessWe found a way to make ice cream more accessible. problems, and a mix of marketing, communications creativity, and deep technological expertise to deliver the Written by David D’Alleva, Media Director, North America; SapientNitro BostonUnilevers Share Happy became a lot more than just a way answer to these problems.of getting ice cream up in front. It was a beautiful campaignbecause it created a phenomenal commerce channel It’s hard to ignore the hype and instead focus on tacklingfor Unilever and, at the same time, a very cool brand complex issues, but with Idea Engineering, we can conceiveimpression (yes, with a great social media aspect). and execute real ideas that deliver real results.So, Share Happy was not just a digital campaign with a The takeawaycool new mechanic, but a fundamental change to ice cream Understanding what’s The takeaway isn’t about obsessingselling that blurred the lines between sales, marketing, over the next hyped trend; it’s seeing how it digital isretail, and digital. changing businesses on a profound level.The successful approach is to tackle business problems with strategy,What is big in digital? It is realising digital doesn’t really creativity, and technology: Idea engineering.exist. The brand is the experience, and the experience isan amalgamation of the perception created by all First published by Campaign in July 2011.

You say you want a(nother) revolution? an emphatic "yes" — or "no" for that matter. Simply put, we the campaign launch. So technology in the online display 2. exhibit search-like prowess. Given the campaign-Technology. Can we imagine what our lives would be know they havent yet, but media planners must certainly arena is certainly helping media planners not only find empowering tools at a planners fingertips (e.g., vendorwithout it? It is the fabric of our day-to-day experience evolve to hold their ground. audiences at scale but also become more efficient. dashboards), the media planner must harness and master— and we both demand and anticipate its continued this Pandoras box of raw insight to their advantage.evolution. This rapid evolution — rather revolution — Media’s new face Yet its not a fact that the “human lens” can be replaced by They must unleash a search-like approach to campaignisn’t the final frontier or last chapter of its story. It’s Lets first step back to understand the changing media robots, and this lens will continue to be a crucial driver for management, roll up their sleeves, be proficient with thejust the latest chapter. landscape. Over the past three years alone, there has been agency clients — one that won’t be replaced by hardware, tools available, and dive into the day-to-day intricacies. rapid innovation taking place like never before. Media is software, algorithms, and artificial intelligence — at leastIf we dust off our history books (or, more realistically, becoming measurable. Media is becoming attributable. The not in the foreseeable future. 3. Be a data geek. The media planner cannot be afraidconduct a Google search on our computers, smartphones, worlds of traditional and digital are on a collision course. to roll around in the mud with the data nuggets available.or iPads), we would learn that this revolution began over But the planner’s role in the campaign process requires an While they understand the client objectives, they must also250 years ago when major changes in agriculture, Just think about it. Out of home is rapidly becoming digitized. evolving skill set in order to succeed. Media planning is no be able to understand the data, which truly blends art andmanufacturing, mining, and transportation had a profound Television is becoming a targetable monitor for digital longer just about reaching audiences. Today’s it’s also about science. The ability to quickly interpret raw campaign dataeffect on the socioeconomic and cultural conditions of the content. Even the standard newspaper size has shrunk to fit engagement. Planners of today must look, listen, and in order to drive proactive conversations, develop keytimes. It marked a major turning point in human history an 8”x10” (or smaller) screen — one that can’t be tossed on respond to real-time insights and strategies. Gone are insights, and leverage them quickly is paramount.where almost every aspect of daily life was influenced in the front porch or rolled up to swat a bug. Even in the display the days where planners could "set it and forget it." Thesome way. Today, we are living in an “Age of Innovation,” media world, nearly two decades since the first clickable ad, DNA of the new media planner must accomplish these While the rise of the machines has brought the media and after a decade of struggling with remnant inventory and three things. landscape many changes and efficiencies, the fall of the sheer tonnage, ad networks are now more "tech-ed up" to media planner has been exaggerated. However, there is A media planners purpose is to select make network buys safer and more effective. 1. Master relationship management. The media planner certainly a change in the air that is forcing planners to media for advertisement placement on should continue to work closely with their key vendors in evolve if they want to remain relevant and valued to behalf of their clients. They must achieve We witnessed a plethora of alphabet soup surface during creating and identifying the right media opportunities for their agencies and clients. In the end, those who want to evolve business objectives through their advertising this time as well. RTB (real-time bidding) emerged at the clients. These relationships will continue to lead planners to a will succeed. Those who choose not to evolve wont. budgets by recommending the best intersection of data and inventory liquidity, creating an plethora of unique opportunities and first mover advantages Time and technology will wait for no one. explosion of choice where display ads could run. Three — a value add that cannot be taken for granted. possible use of various media platforms other letters became one of the most searched media available to advertisers. Their roles may terms in 2009: DSP. The rise of DSP (demand side include analyzing target audiences, platform) machines gave way to the promise of efficient keeping abreast of media developments, and scalable audience buying. reading market trends, and understanding consumer motivations. Today, display isn’t just banners and buttons, and shouldnt be seen as a dirty word. It’s any advertisement that can be displayed across many devices and in many formats. It iswhere technology continues to act as both a catalyst and fuel mobile. It is video. It is contextual. It is viral. It is social. It isto change. In the last 30 years alone we’ve seen the personal search. It is everywhere advertisers want and need to be.computer and the Internet become as common as the Users are in control — billions of times a day.television or the telephone. we can rebuild the media planner — with technologyThis evolution has given rise to the idea that the Holy Grail Fact: There are millions of sites accepting display ads,of media attribution and measurement is getting closer every significantly increasing the level of effort for a mediaday. But it has also made us question the role of the media planner. It would be too difficult for media planners toplanner. Can machines and technology — the modern day explore them all. Even a few dozen sites would require aR2-D2 or Optimus Prime — replace them? The answer is not planner to spend an inordinate amount of time, even before 26

Marketing and Media The Cross- Channel Challenge: Building Pervasive Information Consumers, now more than ever, are engaging with As Aristotle aptly put it, “the whole is greater than the architecture brands across multiple channels. No longer do they interact with brands solely through traditional media like television, radio, or print. and, since 2009, the sum of its parts.” There is no quote more relevant when examining cross-channel experiences. Blunders happen every day, whether its a customer who has downloaded a number of people browsing the web has more than retailer’s mobile application but struggles to understand its Written by Michael MacLennan,Senior Information Architect; SapientNitro Toronto tripled; this number continues to grow as more devices structure or someone who has researched a product online offer browsing experiences comparable to a desktop only to find out that it’s no longer available at the store. experience.1 additionally, social networking sites like In one study, over half of those asked reported buying Twitter and facebook now present companies with new products offline after first researching online. Additionally, opportunities to interact with their consumers and another 43% reported starting their research on a computer promote products and services. or mobile device only to contact the company directly because they could not find the information needed to complete the How, then, do we bridge the gap? transaction online.2 Information architects and user experience designers are tasked with creating new platform experiences by In an effort to reduce customer frustration, Andrea Resmini considering how these varied touch points build a brand’s and Luca Rosati proposed integrating a small set of heuristics cross-channel relevance. As a result, these individuals to keep in mind when creating cross-channel experiences. must consider how their efforts will create a seamless These heuristics concern themselves with ensuring that this experience1 that transcends beyond these new channels. experience is consistent across every platform, adapting to user needs and to the context of the experience, and In response to this growing challenge, a new idea has suggesting relevant connections among the varied pieces surfaced in the design community. Pervasive Information of information offered by that particular company. Architecture, coined by Andrea Resmini and Luca Rosati, promotes a holistic methodology to user experience design in order to create a seamless cross-channel experience. Sapient incorporates an approach that aligns with this methodology. 1http://www.quirksmode.org/blog/archives/2011/01/2010_mobile_bro.html 2 See Andrea Resmini and Luca Rosati (2011), Chapter 3 28

Case studiesSprint JeepSapientNitros efforts building both the web and mobile structurally. As illustrated in Figure 1, maintaining the look The redesign of Jeep’s history site sought to make it easy to As illustrated in Figure 2, the interface of the applicationexperience for Sprint inherently used key design approaches and feel of the experience allows Sprint’s customers to navigate over 70 years of the companys history. As a result, also aligns to a similar structure found on the website itself,to ensure those experiences were seamless and integrated. easily orient themselves as they move between platforms the current design breaks up vehicles by decade allowing a making it intuitive to familiar users. to perform various tasks including paying bills, viewing cell simple and effective navigation structure for browsing theWith SapientNitros cross-channel expertise, we were able phone usage, and exploring incentives to upgrade phones different generations of Jeep vehicles. And, when the client Cross-channel experiences are pushing users toward ato ensure that every Sprint channel built a strong sense of or service plans. chose to use the iPad application, the challenge became holistic and ubiquitous approach to products and services.place through consistent connections, both visually and experience-based within a different context that made the This means that designers must incorporate strategies that large set of data usable and pleasurable for the consumer. consider the larger context, as interactions become one seamless flow between the real and the virtual. In the end, the solution culminated in an interface that SapientNitros approach to cross-channel challenges makes leveraged the touch screen of the iPad in a unique way that it easier to provide solutions that inherently align with new allowed users to explore the history of Jeep in a simple way. emerging ideas like Pervasive Information Architecture. Figure 2. Each thumbnail allows the consumer Figure 3. Similarly, each grill image to browse Jeep vehicles by decade. represents a specific Jeep decade. Figure 1. The image above left represents the mobile experience while the image on the right illustrates the web experience. The similar look and feel ensures a strong sense of place for Sprint’s customers. References: Andrea Resmini and Lucia Rosati (2011). Pervasive Information Architecture: Designing Cross-Channel User Experiences, Albany (MA): Burlington. 30

Marketing and Media life is made up of moments: good and bad, happy and 1. Context Media of sad. In today’s connected world, moments happen in many different places and spaces. They shape customer Context frames the moment. It can be physical or digital, and is shaped by the “here and now.” Where am I? Why the Moment impressions and notions of what a brand represents. am I here? Who am I with? What does this mean to me? Too few marketers effectively harness these moments in Context opens peoples’ eyes to options. As they consider a social world, losing opportunities to optimize brand and new brands, products, or services, context may emerge Written by David Bradfield, Director, Marketing social equity in conversations and communities. But it through a conversation with a friend, Internet search, Strategy and Social Experience; SapientNitro Toronto is challenging to create authentic moments. People often product review, or advertisement, to name a few. resist intrusive brand pushes because they lack context, Moments can be unpredictable because context is such relevance, or personal appeal. a moving target. Marketers need to understand consumer context and align with those conversations and So how do you effectively humanize your brand and create communities. That doesn’t mean being intrusive, channels out of moments that amplify the consumer voice but respectful and useful instead. and generate genuine engagement around the brand? Organizations that succeed listen to and respect their Effective marketers understand that a multi-channel strategy customers. They recognize brand value from the customer’s is a necessity in today’s fragmented world. With people perspective. They work to create meaningful moments that trusting media less and seeking alternate sources of build on customer preference and reinforce business priorities. authority, understanding the consumer journey is essential. If those moments are significant enough, community 2. Conversation members can be motivated to share them in an instant, Moments spur conversation with people who are turning experience into action. Every marketer wants their personally close to “me” or close to the moment based customers to advocate for the brand, to share their positive on proximity or context. Conversations represent potential experience and impressions. points of entry for brand representatives and advocates. Context | Conversation | Community | Captivate This is not an opportunity to interrupt. It is a chance to align, SapientNitro has developed a model called Media of the a moment to understand your brand through the eyes of the Moment to help organizations understand the way people consumer. Conversation does two things in the modern experience brands and interact with others. There are four marketing mix: elements to these seamless multi-channel experiences. 1. It allows you to move beyond push tactics into a dynamic Context relationship with individuals who care about your brand enough to share their opinion — good or bad. These people Conversation can be influential. Conversations teach, and insights Community gleaned can impact your entire marketing ecosystem. 2. It forces you to let go a bit. Online conversations are Captivate personal and informal. They don’t often happen on your turf; conversations happen in person, over the phone, via email, and on social messaging platforms such as Twitter and Google+. 32

Marketing and Media 4. Captivate eMarketer reports that 60% of U.S. social network users were at least Many brands strive to captivate the customer through engaging experiences such as games, applications, or Predictions for the Next 5 Years in retail Banking somewhat likely to take action when loyalty programs that drive value. Captivating experiences have a longer duration and carry a higher value proposition a friend posted something about a to the customer. product, service, company, or brand on a social media site. Only 18% were A captivated customer can create context, drive Written by Alex Sion, Vice President, Digital Strategy and Financial Services; SapientNitro New York not at all likely to take action. conversation, and engage a community in a way that traditional media is currently unable to achieve.3. Community Concluding thoughtsConversations are not always 1:1. The right context and Media of the Moment is a model designed to pull customersconversations may lead customers to a community sparked closer to the brand. Context establishes fit and relevance.by the moment — where sustained engagement and an Conversations build alignment. Community drives engagement.“always on” environment add depth to their experience, Captivate encourages people to spend more time withinconnect them with others, and can reinvigorate a brand by branded experiences. Ideally these experiencesoffering insight into the subtext behind the community activity. build deeper moments that are valuable and shareable.Additionally, communities are more private. As a result, the Its one thing to meet customers in the moment, but in ordermembers set the direction for terms of engagement and to convert a customer into an advocate we need to motivatecommunity tone. Social networks such as Facebook, even them to share that moment. Sometimes just asking isif a presence is branded, are not owned channels. You can enough. Provide them with digital keepsakes that can bemanage but not control the conversation. shared. Photos, videos, facts, coupons, and group incentives all help people tell their stories and carry them forward. Our ability to turn experience into action holds incredible brand potential. It is powerful, authentic, and “of the moment.”

Social Media Branding out loudwhile many customers are still satisfied with their experience you deliver them is your message. This bank willbanks, its no surprise that the banking industry — from slash its traditional marketing budget and re-allocate allproducts to channels to transactions — has changed those dollars into amazing customer experiences and then without losing Your Voice:and will continue to do so. and, in the next five years, provide a platform for those experiences to be “heard.” Thisthe following shifts will affect everything. doesn’t necessarily mean awesome Facebook pages and lots of tweets, but it will likely mean some contemporizing of the1. a giant will fall. Somewhere, sometime within the next notion of community. How to avoid Social Dilemmas in the Digital knowledge Marketplacefive years, a historically significant retail banking institutionwill run out of steam. And the culprit will not be the wizards 4. a completely “crowd-sourced” bank will emerge. Written by Erik Gottesman, Director; SapientNitro Bostonof Wall Street. It will be a broken distribution model. For P2P payments, social lending, stock tweeting, social creditmany firms, the cost of branch-centric distribution, scoring, and underwriting — will somebody connect theservice, and acquisition through traditional media techniques dots already? A “bank of the people” will pop upcontinues to rise while the fundamental profitability of core somewhere, and it won’t be “off the grid.” It’ll bebanking products gets squeezed by government regulations, mainstreamed: a legitimate alternative to the traditionalcompetition, and savvier consumers. For these firms, the banking system. Money will be deposited, loans will befundamental cost model is out of whack with the ability to made, secure payments will clear, and risk will begenerate profits. Banks will scramble to re-align distribution managed. And guess what, it’s not going to becosts to profitability, launching bold multi-channel technology The Communist Manifesto: Part II. It will be wildly profitableinitiatives. One won’t do it, won’t be able to move fast enough, with 10 “employees” and a million customers.or will struggle with execution and change management.It won’t survive. 5. The main battleground for distribution will not be on the street corner or online — but in the workplace.2. New stars will rise. As a giant falls, several new stars As some banks learn that building relationships withwill rise. And the catalyst will not be a game changing errand-running multitaskers isnt easy and other banksproduct, interest rate chicanery, or an unbeatable rewards realize that non-stop email spam about interest rates is justprogram. It will be a steady but fundamentally transformative plain irritating, they’ll start to understand that grounds for achange in the distribution cost structure and client experience. relationship-oriented approach can exist at the workplace.These will be the firms who are aggressively investing now — While workplace banking is nothing new, the approach willwhether they are startups, traditional players, or challengers dramatically transform. What banks will realize is thatfrom the technology, retail, or telecom space — in a new workplace distribution is not just about bulk discounts —client experience. They won’t all be digital- or mobile- it’s about demographics and psychographics. It’s about acentric. In fact, expect several to be fairly low tech and take community of colleagues and friends. Companies havecues from high-engagement, high-touch businesses like personalities and often hire like-types. Banks that figuredirect selling. What they will have all figured out is a better out how to craft workplace experiences that add value to away to distribute engaging products, services, and company and then leverage its natural community will haveexperiences to customers. caught on to something special.3. a bank will slash its traditional marketing and media The current retail bank experience looks nothing like it didspend by 90% while increasing customer acquisition and 10 years ago, or even last year for that matter. As theseengagement. One bank out there will soon embrace what predictions come true in the upcoming months, there willmany Internet and technology companies already understand: be implications and new challenges that arise in the newYour customers are your marketing machine and the retail banking world. And thats something you can bank on.

Your workforce and your customers are your new “shadow impregnated with brand-transforming power reveals their To establish a vibrant and durable marketplace, your The takeawaymanagement.” Social tools for sharing knowledge, solving susceptibility to the many social, political, and economic company should invoke the following six strategies: Social technology is blurring the boundaries of theproblems, and shaping new ideas are increasingly foibles they predicted. As real-world markets have shown, organization. But, by employing these new "socialpervasive both inside and outside the enterprise. economics are inseparable from politics and underlying 1. Identify the brokered social objects (e.g., testimonials, strategies," your organization can mute the negativeConsequently, organizations risk flirting with age-old social contracts, whether explicit or assumed. And while support requests, product ideas) that create maximum network effects that present a threat to todays sociallyfree market problems in a new context imbued with the measures used to treat these market inefficiencies vary, market liquidity. transformed brand experience.power to not merely transform the organization — the fundamental problems (e.g., information asymmetry, 2. Invite participants to collaborate in the market’sbut the total brand experience. over-exploitation) are common and solutions must treat procedural and structural design. all three forces — in a balanced way that works for each 3. Build market authenticity and trust by connectingTwo markets, connected individual corporation. real-world and virtual indicators of repute.Television personality and Twitter aficionado @PiersMorgan’s 4. Balance the system of social and material incentivesrecent and well-publicized Delta flight debacle provides but Market-based problems call for market-aware solutions that engender self-identification, contribution, andone example of branding’s participatory new stage. The CNN One example? Ratings and reputations. While they may reciprocity without measurable dilution.talk show host slammed the airline after missing Americas Got reduce some problems on many social platforms, they still 5. Adopt a floating pricing mechanism to focus andTalent auditions following a string of airplane troubles and bad provide only partial answers to social dilemmas such as agitate the most valued forms of participation andcustomer service. reciprocity and complacency, and expectations of social and discourage monopolistic behavior. material incentives. Another example concerns moderation 6. Partition or de-partition markets to optimize for sizeSocial messages such as Morgan’s, combined with near- policy. Open or un-moderated platforms allow diversity, but and time perspective of decisions affecting theobsessive re-tweeting, create a market force that is not fully invite a flood of shallow or negative contributions. Closed brand experience.controllable. This effect occurs equally inside the enterprise. or moderated platforms increase quality, but sacrificeEndowed with social tools, employees reveal their do-it- diversity and participation. The solution isnt always clearyourself tendencies, innovating solutions to procedural cut, but establishing a workable market design sensitiveinefficiencies, synthesizing new products and services, and to these concerns involves making trade-offs — withgenerating real value while simultaneously exposing the firm real-world consequences — that, if poorly chosen, willto new risks and confounding management. It is within these inhibit marketplace efficacy, value, and fairness.Systems of Engagement (to use the term coined by GeoffreyMoore) that an increasing volume of brand knowledge is In an article entitled, "How to Find Answers Withincreated, challenged, and even destroyed. The individual Your Company," which appeared recently in MIT Sloanexperience, swept into vibrant and inclusive dialogue, has Management Review and Harvard Business Review, authorsusurped the official experience methodically crafted by few. Hind Benbya and Marshall Van Alstyne offer guidance for dealing with such market-design dilemmas. Benbya andThe social marketing trifecta Van Alstyne suggest that executive leadership function likeOver a decade has passed since Thomas Davenport and a Federal Reserve, promoting flexibility and liquidity insteadLaurence Prusak suggested, in their well-regarded book acting as a central planner. Evidence suggests that embracingWorking Knowledge, that knowledge markets are subject this paradigm shift produces benefits not solely limited to theto three distinct but inseparable sets of forces: economic, company, but offers opportunities externally to the consumerpolitical, and social. At that time, the commercial Internet as well. Despite the privacy, property, and governancewas still in its infancy, and “social” on the scale evidenced challenges it poses, this approach may indeed offer theby Facebook or Twitter had barely been contemplated. Yet, greatest reward.Davenport and Prusak’s observation proved prescient.Recognizing social forums as knowledge markets 38

Social MediaIf a Tweet falls in the forest: as a marketing research practice, social listening (also known as social media conversation analysis, social media monitoring, or digital anthropology) has been growing online through social listening. With studies ranging from a few days to a few months, the insights generated through listening research are frequently used to inform, drive, and using listening to Drive Social Media Strategy steadily in popularity in recent years. In its most basic evaluate strategy for our clients. form, social listening can be described as the analysis Written by Annicka Campbell, Associate, Marketing Strategy and Analysis; SapientNitro Chicago of consumer conversation happening on social media In recent years, the Research + Insights team has conducted platforms in order to distill insights related to products, social listening research specific to a wide range of industry brands, or behavior. for researchers and strategists, in verticals. Over time, we’ve begun to identify a number of particular, social listening has revolutionized the way we conversation patterns that are industry-unique. For example, study consumer behavior online. commercial banking brands tend to generate high volumes of negative sentiment. We’ve found that these conversation Social media lends itself to oversharing, passionate debate, patterns aren’t just true for the client in question — they hold and self-expression, often in a very public context. New true for the way consumers are talking about many brands behaviors predicate new methods of study; today, marketers within an industry. Therefore, these conversation patterns have access to a vast universe of rich, real-time data being can act as unique guides to development of social media generated by social media users related to nearly any topic, strategy, by industry. While the development of a more brand, or behavior imaginable. With access to this kind of comprehensive framework is a long-term undertaking, data, researchers are able to identify and understand the we have provided our initial thoughts below. way consumers behave, perceive, and discuss brands and products online. While social listening isn’t a replacement for financial services other forms of market research, it does add a layer of insight In the financial services space, the most obvious application and perspective to strategy and creative messaging that is of listening is customer relationship management. With completely unique. unhappy users frequently taking to Twitter to voice concern over unresponsive customer service representatives and In such an ever-changing space, the potential applications ailing online banking websites, providing customer support of social listening are nearly endless — as are the means of via this microblogging channel is a no-brainer. Moreover, culling this type of data, as new listening platforms emerge in the realm of using listening as a behavioral research tool, and evolve as quickly as the tweets they track. Major brands Twitter can be a great place to understand customer are also quickly increasing their investment in such research. perception towards aesthetic design and creative work: We’ve seen companies like Gatorade and Dell adopt internal “Why does the Chase website look just like the PayPal social listening "command centers" as a means to identify website? O_O are they related? Or is that just the standard and address the needs of their customers (and potential thing for money sites?” customers) in real time. Other companies, like Xerox and Kodak, have built out their listening capabilities to drive Another one of the most consistent themes emerging from specific business objectives like acquisition and product financial services listening is a high volume of negative development research — all by paying attention to what sentiment, particularly on Twitter and forums. The global their customers are saying on social media sites. economic crisis and resulting bailout in the United States have coupled to produce feelings of cynicism and mistrust At SapientNitro, we’ve developed a range of ways to apply from consumers online. As one Twitter user recently said: social listening to our clients’ needs. In addition to community “I don’t understand my bank. They attach chains to their management and influencer identification, our Research + pens?! If I’m trusting you with my money, you should trust Insights team also specializes in studying consumer behavior me with your pens!” 40

Social Media Social Commerce —Banking customers are often turning to web forums and In turn, auto brands can use listening as a way tomessage boards as a means of finding (and providing) understand what values and stories their core advocatesunbiased answers and support specific to mortgage, credit are using to describe and discuss their brand.card, and small business financial products. Listening to theconcerns and questions expressed by customers on theseforums is an integral step toward rebuilding the trust lost CPG Not surprisingly, we’ve found that social listening research Beckoning New opportunitiesbetween bank and customer over the past five years. There holds substantial potential for CPG brands, particularly Written by Chitranjan Sood, Senior Associate,are many active forum communities and blogs for bank in terms of generating product use cases and behavioral Business Consulting; SapientNitro Gurgaoncustomers to share problems, advice, and news related to insights. Through listening, traditional brands can uncovertheir personal finances. innovative uses and applications of their product that would otherwise go undetected by traditional research methods.One forum dweller gave the following advice to his peer “Tartarus, the most effective toothpaste for children underregarding the expected closure of an account: “The guy IS the age of twelve, can also be used for dogs!”responsible to you as a customer to tell you who took them, This can help identify new demographic targets andand it is ABSOLUTELY NOT his responsibility to tell you to ‘get messaging opportunities — specific to season, day of thea lawyer.’ The person at your actual bank branch also knows week, region, and more.exactly what is going on … you need to go bug them about itfirst thing in the morning. Did you, by any chance, make two We would also note the effectiveness of social listeningdeposits into separate accounts that may have totaled more as applied to tracking of media campaigns. “As an ownerthan $10k if they were on the same deposit slip?” of both a hamster and an Xbox 360, I find myself hating the most recent Kia commercial for multiple reasons.” Inautomotive addition to qualitative analysis, the tracking of sentiment,In the case of automotive brands, we’ve found that social volume, and topical reaction to both traditional and digitallistening is a wonderful way to inform creative messaging. messaging can provide granular information on brandCars and car brands have an emotional connotation in the perception before, during, and after a campaign or newU.S. (as in other countries), and for auto fans, social media product launch.is a great way to connect with like-minded enthusiasts anddiscuss what they love the most about their vehicles: We’re excited to continue this study in understanding social"I love driving down dark country roads in my truck. media conversation patterns as a way to develop more#luckytoliveinthecountry #newhashtag" meaningful and relevant social media strategy. We continue to share these new insights with clients through research deliverables, thought leadership, posts on the SapientNitro Idea Engineers blog, and academic publications.

Social media has had a profound impact on the way Social Commerce Market Size 2010-2015 ●Social media optimization. As part of social media ● loyalty and referral marketing. Brands will use socialbrands interact with consumers. Invariably, all optimization, services can be offered such as news feeds, media platforms to run a variety of loyalty and referral $30consumer-facing companies use at least one social +56% deal offerings, or online social media events. Leading marketing programs in their bid to maximize customermedia channel to engage customers. Social media’s role $20 $14 U.S. brands such as Starbucks, Victoria’s Secret, and Dell experience. Consumers are enamored with special dealsas a marketing tool has assumed so much significance $14 currently run feeds on various social media platforms. and discounts; giving them reward points for purchasing $9 $9that a number of companies now have dedicated $5 Rest of and referring products will further strengthen their bonds $5 $3 $16senior-level positions for social media. $1 $12 the World How does social commerce benefit brands? with brands. ● Social CrM. Social media is also seen as a customer $6 $8 $4 Social commerce can benefit your brand in threeThe next phase of social media evolution is its convergence 2010 2011 2012 2013 2014 2015 primary ways. retention tool. The CRM market is buzzing with activity andwith e-commerce channels — popularly known as social all the leading vendors have added social dimension to theircommerce. Increasing numbers of consumers are using The six pillars of strength First, it allows you to monetize your social media investment. CRM suite. Vendors are also reporting robust growth insocial media platforms to access brands’ websites, Social commerce is based on six main elements. Companies have already invested time and effort to have a revenues on the back of increased focus on the use of socialresearch products, and post comments. Consumers are They are as follows: social media presence. But by adding commerce functionality, software for marketing and customer service.also "following" brands to know more about product social media investment can effectively generate ROI too — ● Mobile social commerce. Integration of social media withupdates, promotions, and discounts. This rapidly-evolving ● Social shopping. This involves use of social media stores which can easily be measured in terms of sales and profit e-commerce on mobile platforms is also expected to holdconsumer behavior is forcing brands to use social media on Facebook or other social media sites, which get users to increases as a result of investment and promotion of fort. More consumers are using smartphones for accessingalong the entire consumer engagement process from bring their online social network to e-commerce sites in social media. customer reviews on products, and brands will certainly lookbrand awareness to conversion to retention and growth. order to make purchases. 1-800-FLOWERS and Levis are to incorporate ratings and reviews in their mobile offerings. ● location-based marketing. Consumers using location- examples of brands already making use of social shopping. The tools social commerce can leverage (some that haveNow and later — social commerce by the numbers ● ratings and reviews. Customer opinions are integrated never been available before) — things like live chat, feeds based apps are heavy users of social media. These usersSocial commerce has taken the digital world by storm. into e-commerce sites or comparison shopping sites, with deals, or social media events — all help to facilitate are also not averse to data sharing, and brands will focusSocial commerce startups have proliferated and, in the sponsored reviews, and customer testimonials. Marks & online sales. And social commerce apps, ratings and on this important user group to drive social commerce. ● Group buying. The success of Groupon has attracted afirst quarter of 2011, received funding of nearly $2 billion. Spencer used Bazaarvoice’s ratings and reviews solution reviews for instance, are also integrated on e-commerceGroupon alone received $950 million. The market is also to allow its customers to share their opinions and provide sites, resulting in additional prospects for increased sales. number of companies to move into this space. Given thatripe for consolidation — 2011 has seen big-ticket acquisitions feedback on over 24,000 products. discounts and promotions are the most important reasonof social commerce players by companies such as Yahoo! ● recommendations and referrals. Customers are Second, it helps gather market insight. Through social for consumers to indulge in social commerce, there is hardlyand Walmart. rewarded for referring new consumers, and shopping commerce, brands can make important observations any doubt that group buying will be among the hottest trends. recommendations are based on similarities in profiles on buying behavior, key themes of consumer conversation, The market can see consolidation and expansion in newBut now, the social commerce market is set to explode of customers. Think: Apple’s iTunes Genius and Netflix’s and trends with respect to particular age groups or territories and broaden the product portfolio.in the years to come. Dollar value of products such as Cinematch. specific locations.electronics, apparel, and movie tickets sold through social ● forums and communities. In discussion forums, people Social commerce will continue to capture the imaginationmedia is expected to rise to $30 billion by 2015. Wireless, often solve each others problems or answer questions. And last, it can improve customer loyalty. Enhanced of consumers, brands, and agencies. Ever-growing numberscable, and financial services companies will also have And online communities can be linked to an e-commerce customer experience as a result of a variety of social apps of people accessing social networks on smartphones,multi-billion dollar opportunities. site with a loyalty, advisory, or social CRM purpose. Juicy will drive consumers to use social media channels again emphasis on word of mouth marketing and user-generated Couture’s conversion rate increased 162% following and again, and brands will reap the rewards of a one-time content, and clear-cut measurement will further aid the"If I had to guess, social commerce is the next area the implementation of an online community portal called investment in social apps many times over. growth of the social commerce market. And social commerce Club Couture. will be an integral part of companies’ multi-channelto really blow up." - Mark Zuckerberg ● Social ads and apps. Ads can be placed in media space Hot trends to watch strategies. Capturing mindshare, enhancing customer on social media platforms as well as within blogs and Social commerce will be in style for the foreseeable future. experience, and generating commercial value out of strong forums. Social apps are widgets that support social There are five trends to keep a close eye on — and consider relationships will be among the top priorities of brands — interactions and contributions. Chick-fil-A ran a successful using in your business strategy: and agencies and technology companies will play an ad campaign on Facebook, whereby users who clicked on increasingly vital role in helping brands realize the true the fast food chains ads received coupons. value of social commerce. 44

Social Media Is Social Commerce Social commerce is on everybody’s minds — and on the minds of most marketers in particular. “supported” the purchase with their comments; once it reaches “critical mass,” the deal is done, and the transaction exempt from roI? is settled. These techniques can increase the quality of the at a recent conference, I saw a presentation delivered by customer experience of the online store. a young, successful online store specializing in bikes that was gaining positive customer feedback and revenue. a good customer experience drives increased conversion Written by Uwe Tueben, Director, Technology; SapientNitro Dusseldorf These cutting-edge guys decided to launch a store on In fact, we recently evaluated the customer experience facebook as part of their social strategy. Their regular quality of online stores run by the 25 leading multi-channel online store is great — highly tailored to the needs of bike retailers in Germany. We also conducted consumer research enthusiasts. It has ratings and recommendations and even into digital and traditional behaviors of their customers. product videos. The facebook store is … well … a store that Together, this data demonstrated a clear link between the kind of works — once you figure out how to enter it. as customer experience and key business success metrics. with many facebook applications, users often have trouble finding and launching f-commerce capabilities. This documented correlation should simplify the justification of an investment in an improved customer experience — As a market launch campaign, the company offered a 10% particularly in social commerce. Yet many times, investments discount on each purchase within Facebook. When I asked in customer experience are delayed or cancelled, due to a what their strategy was to pull people into the Facebook store lack of confidence in the ROI. With modern web analytics after the 10% campaign had ended, the response was, “Well, and social media monitoring in place, those doubts should we believe we will grant the 10% permanently.” be lifted. Why is that? Because without a discount, there is no reason A good social commerce strategy should, without any doubt, to buy with Facebook over a traditional online store. Is this lead to conversion and/or margin improvements in the short social commerce? Yes, but social commerce can be much term. This is not to say Facebook commerce is the answer; more. As with their traditional online stores, e-retailers need rather, we view f-commerce as a promising but still unproven to understand their customers’ needs, and they need to be new technology. When combined with elements of social open to experimenting with social channels to make it work commerce (e.g., reviews and ratings) and other channels for them. (e.g., Twitter or SMS), it can be an effective way to leverage social interactions between friends and families to achieve Taking social commerce to the next level your social commerce strategic goals. A better example of the potential of social commerce — be it on Facebook or another platform — involves pulling in social Social commerce remains an evolving set of technologies. As comments and social affirmation to drive higher conversions. part of the maturation process, well see more experiments Start with what we have today: Consumers have the like the ones described in this article. To maximize success, opportunity to show on Facebook that they “Like” your products. companies should focus on customer need, measurement, and ROI as part of the social commerce strategy. But you could go much further than this. Imagine a “conditional checkout process” for consumers who are unsure whether they should buy your product or not — either online or in-store. At the end of the online checkout, or on a mobile device in-store, the consumer publishes his or her pending purchase to Facebook. The transaction is kept in the pending state until a certain number of friends have 46

what we are seeing today is only the surface of the real Second, we need to distinguish if it is a proposition that will potential for mobile services. This is because producers, serve every user with the same need or if we need to design brands, and agencies are still doing what people do when the product in ways that serve different people with they discover a new channel: They transport existing different needs. products and ideas into the new channel, but neglect to dig deeper to reach "the gold." Lets start with two case studies, from the least complex to the most elaborate. Because banner and display advertising had worked well on desktop screens, the obvious reaction is to simply autoTraders iPhone app. This app was created and reduce the size of the ads on mobile screens regardless developed by SapientNitro, and only available in the UK of where users were or what they were doing. market, which originally focused on one specific idea: Users were in the streets (a very mobile situation) when This mistaken behavior happens because it is too exhausting they spotted a vehicle they liked. SapientNitro asked, and time consuming to think disruptively and consider the "How can we leverage that moment into a mobile opportunity user context. Unfortunately, we are often “prisoners of our for AutoTrader?" own ideas.” We tend not to be objective and are therefore bound by our own thinking most of the time. However, The initial information that these users needed was the according to The Next Web article, "Everyone Sits in the make and model, its price, and how to purchase it. The Prison of His Own Ideas," new thinking is needed for solution was to use the iPhone camera to identify the car developing successful mobile services. There are several model by taking a photo of the number plate and then ways to accomplish that goal: match it with the government database. As a result, the user got the exact model, could search for it within the ● Trying to get an idea of what people want by doing AutoTrader market, and then could contact the car dealer. market research, ● Building something you really need yourself, This was not an adaptation of the desktop AutoTrader ● Building something your friends say they need, portal. There were no sitemap or navigation elements. ● Copying and pasting someone elses idea and The entire focus of the concept was to serve the needs improving upon it, or of the user to identify and shop from the street. ● Letting a thousand flowers bloom and watching what happens. Context will certainly be the key driver for popular mobile offerings that serve specific customer need. And while there is no best way for victories in mobile, there are strategies for building a winning mobile service.Mobile Case studies: user context considerations for mobileContext — The New Gold So how do we design, create, and develop a mobile service with user context in mind? of the Mobile Industry First, we have to look at the existing assets of the mobile product or service and what the core value might be. If we can identify these things, we are halfway there. Written by Torsten Schollmayer, Mobile Experience Figure 1. The AutoTrader iPhone application Strategist; SapientNitro Dusseldorf 48

The Homeplus Subway Virtual Store. This product was In the second phase, when the user wants or needs to this mobile service include repairing a bike, getting glasses insurance cards, IDs, subway tickets, event tickets, andthe 2011 winner of the Cannes Lions for “Best Use of “Swim,” he or she gets a richer level of detail for the from the optician, or buying a Big Mac and Coke for a the list goes on. A digital wallet is not just a way to pay. It’sOutdoor.” For its "shopping on the move" campaign, content or the function that enables shopping or browsing special price. taking that actual wallet in your back pocket and all of itsHomeplus created virtual stores in subway stations at rush quickly and securely. contents and associated behaviors and integrating it intohours showing their goods on displays that looked exactly Gigalocal uses the power of user context by combining the some type of digital device.”like those in real stores, including prices and advertising. In the final stage, when the user is “Diving,” he or she has time the user has with the urgent need to get a problemThe difference was that people shopped with their smart- extra time and is able to use all the functionality that leads solved while providing a unique, social, and simple service. To convince the user of the benefits of using a mobile devicephones by scanning the QR code and putting the products to the desired goal. as their digital wallet, we need to rethink the users contextin virtual shopping baskets. Once purchased, the goods and what would provide the added value to bind thewere delivered to the customers door after they get home. Think disruptively and create simple + social customer to the service permanently. The digital Along with accepted design principles for mobile services, combination of one place and continuous availabilityUsers could avoid rush hour in the supermarket and save there are other determinants for creating successful will be the core values of the digital wallet.time by shopping on the way home. mobile products that leverage the idea of “considering user context.” When thinking about a users behavior in a mobile environment and how to match this to mobile products, a common mistake is to copy a great idea or adopt already- known behavior patterns and market offerings that exist in the non-mobile space. Figure 3. Gigalocal To be successful, however, the principles need to be based on disruptive and creative thinking that are very different to The digital wallet of 2012 known offerings and highlight the core value and function of If we look at the trends that may greatly impact the near the mobile service. future, it is obvious that the technical environment for mobile payment will soon be a reality. Global banks, credit Additionally, we should also consider what the mobile card companies, and Internet companies like Google are Figure 4. The digital walletFigure 2. Homeplus Virtual Subway Store device means to us in the context of “being on the move.” attempting to position themselves as the first contact point Every user is unique and uses the device in a personal way for payments with mobile devices. If you are thinking about creating and delivering a digitalComplex mobile services need a — and often under severe time pressure. This means that wallet, a mobile commerce solution, or any other mobile“Paddle, Swim, and Dive” approach we need to build mobile services that are social, simple, One of SapientNitros “Idea Engineers,” Christina White, service, you must consider user context. Once this isBut what if the mobile service that needs to be designed and and connected to the personal environment of the user. phrases our perspective:“Most of us carry some sort of recognized and appreciated by your customers, usagecreated must serve different users with different needs? payment method [in our wallets], but you probably have and distribution can be built on a solid base — leading To illustrate that theory, take the example of Gigalocal. a bit more — loyalty cards, business cards, receipts, to success and satisfied users.For this scenario, SapientNitro recently introduced the Gigalocal is a service that describes itself as the first“Paddle, Swim, and Dive” approach, which generally fits well “microworking” mobile application that offers a market-and provides the right level of detail to initiate the concept. place for micro deals and offerings. Users will be able to suggest and provide service delivery via their smartphonesIn the “Paddle” phase of a mobile product, we see a person from two perspectives: buyer and seller.who urgently needs to solve a problem or save time. Thismight be a quick look at the news, a pop-up reminder, or Gigalocal is focusing on city or local markets, which meansanything that is only “one-click” away. that users can immediately act on offerings in real time. Typical services that could be offered and consumed via 50

MobileCould Mobile lead Your Just a few years ago, the idea of mobile taking the lead On the other hand, mobile services arent perfect: 90% of in customer experience would have seemed ridiculous. apps are deleted after 30 days and 38% of people are not However, thanks to the iPhone charge, mobile is now satisfied with their favorite brands app. The mobile webCustomer experience? significantly more important to most brands, and has become an integral part of their multi-channel experiences. does not fare much better; 25% of people would not revisit a retailer’s mobile site after a bad experience and and 75% of the UK top 100 retailers do not have mobile-optimized The opportunities that accompany this new technology versions of their website even though people spend three-and- Written by Paul Bevan, Mobile Strategist; SapientNitro UK is real, but taking advantage of them will not be easy. a-half times longer and look at three-and-a-half times as Brands will have to create great customer experiences, many pages on optimized sites, compared with non-optimized. and this comes with challenges and questions that must be answered. will mobile continue its rapid ascent? The demand for mobile services and their commercial Is mobile working? importance will only increase — and quickly. We have To understand how far mobile can go, it is important to identified four areas that have influenced mobile growth, understand how far it has come. The audience for mobile and will continue to do so. interactive customer experiences has grown quickly. Mobile ownership is now nearly ubiquitous. And while phone and text 1. rise of the smartphone and tablet. Mobile has been still dominate usage, interactive usage has grown significantly propelled by the explosive sales of smartphones and tablets in two major areas of mobile — Internet and native apps. that give people a far richer experience. Sales of smartphones in the UK jumped 74% between 2010 and 2011. In fact, people now spend on average 32 minutes a day Tablets were virtually non-existent 18 months ago, yet using mobile Internet services, and more than 15 billion worldwide tablet sales in 2010 almost hit 16m units, and apps have been downloaded from the iTunes App Store this is expected to grow to 56m units by 2012. alone. Customers are consuming these mobile experiences on both phones and tablets, at home, at work, and on the 2. availability of cheap, fast data. The availability of cheap move, and are looking for experiences that are fun, useful, data bundles, the rollout of 3G across the UK, and the usable and/or convenient. launch of LTE/4G in 2014 will mean greater mobile broadband speeds and even more mobile growth. Customers are also becoming increasingly comfortable transacting on mobile, which has led to impressive revenue 3. awareness of mobile services. Many mobile solutions figures. Online retailer ASOS brings in more than £1m a fall at the first hurdle because firms fail to pay proper month through mobile transactions, Amazon brought in attention to launching their services. One example? There $1bn from 2009 to 2010, and eBay sold $2bn worth of are over 420,000 apps in the Apple App Store alone. To products last year. compete with the saturation, smart brands are looking at how to best tag apps, categorize, and drive participation. However, the influence of mobile reaches far beyond just direct sales. Brands are using mobile to build awareness 4. Better technology. In the past few years, a range of through advertising and create affinity through customer improved technologies such as cloud-enabled, NFC-enabled, care and loyalty programs, and consumers are using mobile and location-based services have started to deliver more to research products both at home and in-store. Because complex experiences. Over the next few years, technology mobile devices are carried with the consumer constantly, will continue to improve. This trend will only continue. they become powerful tools for creating multi-channel brand ecosystems that can deliver real value. 52

Can you meet the challenges? See what the customer doesn’t. Richer mobile experiencesJust because the screen is smaller doesnt mean the frequently require access to back-end systems such asobstacles are any less. Key challenges to keep in mind follow: product catalogues, e-commerce systems, and account information. Too often, companies do not consider theirMatch your offering with your audience. Understanding back-end architecture sufficiently. As a result, mobileyour audience is the first step. This is particularly important experiences that rely on good access to back-endin mobile as audiences are fragmented by form factor systems are often delayed or never come to life at all.and usage, which are also heavily influenced by cultureand geography. Think strategically. When creating consistently great mobile experiences that deliver customer and businessMobile behaviors should also be considered. This includes value, strategy matters. The time for one-off mobilefilling spare time, performing small jobs that are ideally experiments has now passed.done on the go, and offering a third screen at home. Then,the real value comes from detailed understanding of your The first step is to have a clearly defined mobile strategy inaudience and unveiling key insights. place that includes a roadmap. This needs to be supported by a conviction that warrants the growing investmentCraft the right experience. The range of front-end required. Many analysts will suggest that there is no suchtechnology is broad and changing by the day. They include thing as a “mobile strategy” — only a multi-channel strategy.native apps, hybrid apps, NFC, 3D, and good old SMS, to While this is true, mobile often carries the load for innovationname a few. From the business point of view, a deep and business transformation.understanding of the technology is not necessary.What is important is choosing the right technology. Conclusion Could mobile lead your customer experience? The simpleThese decisions have a direct impact on the consumer. For answer is yes! And even if it does not lead, it will withoutexample, typing in a URL is very different than downloading doubt play a critical role. There are a series of mountains toan app. The end solution may accomplish the same goals, climb, but consumers are demanding it and the opportunitieshowever the consumer expectations can be wildly different. are huge, so the time to act in a serious fashion is now. Technology Digital Marketing Platforms: Taking Back Control Written by Dan Barnicle, Vice President, Content Management and Collaboration; SapientNitro Munich

Planning, delivering, and measuring sophisticated 1. The early years. In this initial stage, the retailer is 2. Campaign production processes. Inefficient and One global consumer products companymulti-channel marketing campaigns has never been "dabbling" with digital marketing. There is no common redundant processes are minimized, and a consistent estimates that, due to a lack of coordinationmore difficult. process or technology approach. Numerous silos of agency process — critical to reuse — is rolled out across the and process subordination, over 50% of their and technology partners create flexibility, but only organization. Benefits are seen by all the players involved. digital marketing spend goes to productionMarketing was once much more straightforward: occasionally share assets or technology investments. Small and technology capability costs alone —TV, radio, print, and physical store channels were taken scale means that these inefficiencies can be considered a 3. Technology governance. A close working relationship,care of by one agency. Today, two main factors are cost of doing business, and worthwhile given the flexibility and clear governance structure is essential to overcome which could be better spent on creativechanging everything: the explosion of channels to meet and time-to-market benefits. the inevitable technical challenges. strategy, concepts, and experience design.communication needs, and the push toward personalizedengagement marketing. 2. The awkward years. The retailer is struggling with scale 4. Standardized campaign types. Clients typically develop In the end, the challenges of a true multi-channel digital and cross-campaign analysis. It is frequently "reinventing a core set of campaign types to speed time-to-market. marketing enablement can be accelerated with a platform.We now have microsites, mobile, apps, VOD, real-time the wheel," but isnt sure how to evolve. Symptoms include The common technology platform must anticipate and But we believe that how you integrate the platforms — withsocial conversations, and a vast number of other overspending on redundant technology investments. This support these types. An actual campaign could be a their various capabilities — is critical. Accountability forchannels, leading to specialized agencies, organizational company may also experience occasional security and hybrid of long-lived (e.g., websites, brand affinity, content digital marketing, long divided among various traditionallychallenges, profit nightmares, fragmented technical liability incidents due to inconsistent processes. syndication, social networking, mobile apps) or short-lived and digitally focused constituents, must be explicitlygovernance, asset inefficiencies, and new competition. campaigns (e.g., promotional web or mobile sites, social defined. Governance must focus on enablement andMultiply that across a portfolio of brands across a number 3. The adult years. In this phase, scale is fueled by a networking campaigns). acceleration, not on constraints.of local markets in a fast-paced social world and what do standardized operating model and consolidated technology.you get? An overwhelmed marketer with a big problem. Additionally, coordinated consumer data, campaign 5. Managed platform capabilities. Identifying and Incentives become a critical part of the driving platform analytics, and reporting across campaigns are optimized. enhancing the core management platform capabilities adoption across an organization — whatever your agencyHence the rise of the digital marketing platform, designed The benefits of this fully mature platform include: is essential. Content management, digital asset and partner model.to centralize digital assets, group and manage content, management, social or community presence, marketing andreuse processes, connect with external sites, and apply • Marketing innovation campaign management, measurement and analytics, or Does one production model fit all?advanced analytics. The result enables rapidly launched • Speed-to-market and nimbleness consumer data management make up this set of opportunities. Choosing the right balance between centralizing productionexperiences using pre-built and tested digital components, • Intimate consumer-brand relationships partners, and allowing a modest set of loosely coupledand shifts the cost from developing digital functionality to • Effective and holistic consumer intelligence 6. Digital production toolkit. Creation of a set of reusable firms to operate relatively independently is a tradeoffproviding marketing services. • Measured campaigns in real time asset libraries — from copy to HTML to video and more — between capability, coordination and overhead costs, • Optimized technology investments can deliver a campaign much quicker, with better results. and ability to scale. And, in most cases, allowing fully • Reduced liability and data security risk ungoverned production procurement should no longer 7. Multi-channel campaign delivery. Combining the asset be an option. The digital marketing platform is no The digital marketing platform solution libraries with the standardized processes and campaign longer a technology problem, which has The digital marketing platform toolset allows marketers types allows rapid multi-channel campaign delivery. Conclusion become relatively straightforward; it is to maximize their campaign or marketing strategy, and can From iPhone apps to in-store end-caps to viral videos, The digital marketing platform is a tool to meet the now a business problem, a philosophy, also enable important organizational changes, which are multi-channel is all about quickly executing cohesive complex needs of the marketing creative process, creative and a working model. essential for productivity. Digital marketing enablement marketing on every appropriate touch point. agencies, and production agencies. Tactically, it offers the touches on eight areas: opportunity to accelerate specific campaign roll outs, and 8. Campaign management and analytics. Testing, optimize those campaigns from existing assets andThe digital marketing maturity model 1. an organizational model. There are a number of learning, tracking, and adjusting are all tremendously processes. Strategically, it addresses governance gaps,Marketing organizations’ digital marketing maturity falls interweaving elements that are critical to a successful challenging. But for true engagement marketing, optimizes digital marketing processes, and provides a levelinto three distinct "ages." campaign including content, production, and technology. it is essential. of nimbleness, control, and insight that allows marketers to Strong organization is paramount and the key is in building focus on driving marketing innovation and effectiveness. out those connections. 56

Technologyafter the release: Maximizing “There will come a time,” wrote louis lamour, the great american storyteller, “when you believe everything is that will result in more work down the road. Debt is not necessarily a bad thing (you did launch after all), unless Value from Your Commerce finished. That will be the beginning." l’amour passed you let it get out of control. Then you find yourself applying away more than a decade before digital commerce went patch after patch, resigned to inefficient operational mainstream, but he eloquently captured the gestalt of a work-arounds or foregoing opportunities because change Platform Investment digital platform going live. launching a platform today is simply costs too much or takes too long. There is a real no small feat, typically taking months — perhaps years temptation to focus all investments in post live releases on — of effort. Yet, on the eve of launch day, the real work adding new user features, which may worsen the problem Written by Sheldon Monteiro, Vice President; SapientNitro Chicago has just begun. The operational and evolution challenges by actually adding debt. are many, and it’s no surprise that we see some platforms thrive while others stumble and fail. How to avoid this fate? Avoid interest-only mortgages. Create a list of operational and technical debt, and address $ There are nine things every customer experience items that improve future agility and reduce recurring work. executive should know on launch day: One of our major telecommunications clients conducted 1. It feels like you just gave birth. No matter how much four major platform releases, but then invested their fifth you planned, you will be surprised in the first few months, release almost exclusively to reorganizing the platform and not in a pleasant way. There will be issues, whether code for easier and more streamlined maintenance related to scalability, stability, operations, or content. Peak supporting their organizational structure. That meant foregoing business periods and hours tend to reveal quite a bit about new functionality in the fifth release in favour of non-user the behavior of your new platform under stress. And after facing features, but which enabled less friction, cost and time, a few 3 a.m. calls, it might feel less like you launched a and higher through-put, in every subsequent release. system and more like you brought a colicky infant home from the hospital. 3. Design, build, and test must evolve to listen, respond, and evolve. Today, no platform investments lack technology Smart firms take a pragmatic approach in the first six to measure customer experience. Analytics are common- months. They realize that the only true test is one with real place, yet all too often we see firms stumble with listening customers and traffic — a staged go-live — where the or responding to their customers. Data may be plentiful, but platform is gradually opened up, in parallel with existing it isn’t worth a dime if you don’t have an effective process to platforms. In addition, they invest T+180 continuously make changes based on the information. stabilizing, improving processes and reviewing analytics. Every anomaly is a learning opportunity, which should not Often, it’s measuring too many things, an over-reliance on be squandered. This critical period should be used to generic metrics, or a lack of a working process that cripples fine-tune your release process. insights from driving action. 2. New platforms start out with a mortgage. And, no, Empirically, we have observed that firms that initially we are not referring to the check for your platform signed choose no more than three top-level core metrics have an by your CFO. Going live on time and within budget likely easier time making informed changes — especially those requires some compromises in the business tools or requiring material investments. technical maintainability. 4. Marketing, business, development, and operations You can view these deviations from the optimal solution in a must converge. At go-live, its unlikely that the marketing, manner similar to a mortgage or debt — the loan you took business, development, and operations teams are on the 58

same page. We commonly observe organizational budget, actively incentivized development and operations to to sustain the effort needed, but consumers still demand mid-level IT manager. Unsurprisingly, starved of executivestructures and incentives tailored for slowly evolving improve deployment and process efficiency, with sustained personalized, differentiated content. focus, many of those investments languished and wereenterprise resource planning systems, rather than those C-Suite visibility. In a few months, the team was steadily ultimately written off.required to facilitate customer expectations. deploying platform changes to production every two weeks. Prior to launch, one major retailer realized they would Notwithstanding executive focus and attention, significant require several million dollars of additional funds to In hindsight, digital was not and is not a channel — it’sWe have two proven suggestions to drive change: financial resources are required to maintain the platform re-shoot thousands of product images (based on hard simply part of business, across channels and customerFor one, you can force alignment by establishing a fixed and stay competitive — after the first year post live, the data that product imagery was a major conversion driver). touch points. The trap many firms fall into is that digital isand firm calendar of “global releases.” Global releases are typical enterprise IT application devotes 80% of on-going Another retailer disbanded their catalogue business only viewed as “infrastructure” — or an enabling technologya vehicle for major feature changes that require enterprise spend to maintenance and only 20% to enhancements and to realize 18 months later that authoritative content on their commodity. The net result is bespoke or duplicativecoordination, and complement smaller, interim releases upgrades. For digital commerce platforms to remain website was strongly correlated with increased dwell time investments in technology, business process, andthat are localized in scope of impact. Every business unit, competitive, we have observed that an even split is more and conversion. It took them considerable time to staff and operations. In contrast, the platforms that support digitaldepartment, and individual knows that any significant appropriate between lights on and evolution spend on an rebuild their content capability. are maximal in their business value when viewed as anchange happens on set release dates that are established on-going basis. integrated and strategic product suite across channelsin advance every year, and negotiation of what goes into 8. additions will be needed — just avoid spit and duct and business lines.each release happens on set dates prior to the releases. 6. New platforms need help fitting in with established tape. Your significant investment and robust platformIf scope is not closed by the due date, the desired change channels, structures, and incentives. Though discussed will feel like its falling behind before the year is out as A major CPG client has invested in a global marketingdoes not make the release. often, few firms have truly mastered multi-channel today. customer expectations and industry innovation forge ahead. platform that operates across their brands, business units, In many instances, their ability to get there is compromised and partner marketing agencies. It provides commonOr, consider using iterative, incremental time-boxed due to organization and scale constraints. Think through new feature additions with a custom (not infrastructure, content administration, and analytics.practices for enhancements and operations. Agility is an vendor-provided) business case — including what you A small, full-time staff of platform account managersacute challenge within a “design, build, transfer” model At one major office supply chain, the store associates will might learn from smaller investments that can inform interfaces with each global business and their marketingthat is prevalent in enterprise IT, where the developers who literally intercept customers headed towards the in-store future decisions. Also, create a vision — user journeys agencies. It’s an effective “platform as a product” model —build the system and know most about its workings hand kiosks to make a purchase — an egregious example of relayed through video narratives, rich media prototypes one with direct focus from their CMO and CIO.over the code to a junior, inexpensive maintenance group. incentive misalignment. Regardless of how delightful the placed in a test area of your site to stand trial in the courtIn contrast, those development teams that continue to work online platform experience or the in-store experience is, of customer opinion. Chances are, you are aware of some of these issues.using agile methods integrated with marketing, business multi-channel fails if the organization and incentives are But if you have gained some valuable insight from theseand operations are able to increase feature through-put and not aligned. While being first with new features may not always be proven practices, then consider leading the change.respond faster to change. the wisest, being a fast follower is often prudent, and Making change happen takes some doing — it takes Conversely, another Fortune 50 client aligned all digital maintaining experience parity with your direct competitors destroying some notions and creating some positive5. Time + attention + resources = value. During the initial platform investments under a single program executive is a cost of business in a digitally connected world. friction to do things in a new way. louis lamour onceplatform launch, it’s common to work alongside senior reporting directly to their COO. Their in-store, call center, again provides us inspiration: “I would not sit waitingexecutives. But as time goes by, we see less focus from and digital experiences are synchronized across brands. 9. Your platform is a product — sell it. Whether you think for some vague tomorrow, nor for something to happen.the C-Suite, with operational management relegated to Incentives are aligned. Digital is not a channel; it’s a part about (and manage) your new platform as an IT application, one could wait a lifetime, and find nothing at the endsomeone two or three levels removed. of the business, enabling every channel. a channel, or as a product will have a massive implication of the waiting. I would begin here, I would make on its success. something happen."One telecommunications firm we worked with immediately While technology plays an enabling role, your best hope formoved post release into a functional silo structure, and realizing the promise of multi-channel is to understand why At the height of the dot-com boom over a decade ago, it was This is an excerpt of a longer article series, which isa modest budget was almost fully consumed by routine your employees act the way they do and then plan accordingly. fashionable for organizations to anoint a dot-com czar, and available at http://ideaengineers.sapient.com/maintenance. Larger enhancements were funded via essentially view the investment as a new channel, even acapital requests through a lengthy and bureaucratic 7. Content is not the redheaded stepchild. In the race to new business. In large part, that was driven by investorapprovals process. It took them five years after go-live to go live, content is commonly not treated with the same appetite to pursue e-business metrics as distinct fromintroduce a sorely needed technology feature — functional rigor as development or system testing — and may not business metrics. In the bust that followed, companiesclustering — that they knew was needed three months even be fully defined. Often, content teams are too anemic retrenched, czars went out of fashion, and the formerafter go live. In contrast, another client, also with a modest platform investments were typically folded under a 60

TechnologyPlatforms in the Cloud:Deciding to use or own Written by Scott Petry, Director of Technology Strategy; SapientNitro Atlanta a decade ago, digital marketing and e-commerce involved However, just because your software provider has a new building websites. any substantial website was built version, doesnt mean you can use it. In fact, you probably using technologies like content management systems, cant. The latest version is probably a complete overhaul of personalization servers, rules engines, and e-commerce their solution, and the customizations youve deployed over platforms. and the first step in the process was to make time are probably not compatible. a fundamental decision about whether to buy or build. Since the available solutions could often meet business we need a new strategy requirements, most companies chose to buy, rather than Marketing is a nimble industry, and marketers are looking getting into the business of developing and maintaining for their technology partners to deliver all the latest and software (though buying often led to the need for a team greatest capabilities swiftly and cost effectively. The decision to develop, maintain, and operate software regardless). we need to make today is whether we can effectively take on ownership of the platform required to achieve the business Today, digital marketing and e-commerce are infinitely objectives or not. If we dont want to be in the business of more complicated than websites alone. Consumers engage software development and maintenance, we need to find with brands across a dizzying array of digital channels that built-for-purpose solutions (or services) to use. If we dont are integrated into the traditional physical world in ways want to be in the business of software development and that make it impossible to distinguish real from virtual. maintenance, we need to find ready-built solutions to use. The complexity of consumer experiences and interactions across all these channels presents a daunting technology The big question is how to decide. The criteria for the challenge for anyone tasked with building the platform decision needs to be objective and measurable, not to support it all. Fortunately, several leading software emotional. We all take great pride in our work, and we companies and a few innovative startups have been able enjoy ownership and relish control. to keep pace with the proliferation of digital channels. 62

In IT, this often leads to a desire to own and control the But those are all emotional criteria. Objectively, it comes enter, the cloud However, we’d still rather get to the cloud if the offeringsplatforms that run the business, so the systems can be down to value — benefit versus cost. In marketing, value This is where cloud-based platform services can really were there. While most new concepts are built in the clouddeeply understood, and when something breaks, the is the ratio of working spend to non-working spend — the change the game. In the cloud, we can have the latest (e.g., ratings and reviews, recommendations engines,situation can be addressed within the team to get the higher the ratio, the higher the value. Working spend goes innovations and capabilities readily available, and video serving with in-stream tagging, multivariate testing,business back on track. It seems harder to manage a toward media, content, conversations with customers, pay-per-use pricing models — everything we need to location-based targeting, etc.), few fully-featured contentbad situation when we are dependent on a vendor to fix it. merchandising, and taking orders. Non-working spend balance the value equation for marketing and e-commerce. management and e-commerce platforms are available in goes toward infrastructure, development, process the cloud today. And when they are, they tend to haveConversely, in the business team, the need for control often management, and operations and maintenance. There are some situations where owning the platform really generalized capabilities, limited scalability, or unprovenleads to a desire to avoid IT as much as possible; IT has few does make sense. For example, with unusually complicated vendors. It is not a small task for software vendors toresources to deliver new solutions, limited capabilities We also need to consider the timing of non-working back-end systems to integrate, highly-specialized become cloud service providers. It represents a fundamentalwith the latest concepts, and spotty performance when spend versus working spend. The value of working spend requirements, or if the business is so large that managed shift in their business models, their sales forces, and theirit comes to swift resolution of issues. It is often more depends on the success of the campaigns being executed. solutions just aren’t scalable enough, owning the platform organizations.effective to put pressure on a vendor who is motivated If non-working spend associated with a particular is in the best interest of the company. Maybe.by the same metrics as the business, and expect them campaign is high upfront and the campaign fails, well be The question that still remains is who — not when.to deliver the best solution or resolve the issue swiftly. left with a very low ratio of working spend to non-working The time is now. spend. We need to be able to align the costs to the benefits. (And, of course, we need to measure to understand if our working spend is really, well, working.) own Versus use10 Working spend 10 Working spend Non-working spend Non-working spend9 9 Business value Business value8 87 76 65 54 43 32 21 10 1 2 3 4 5 6 7 8 9 10 11 12 0 1 2 3 4 5 6 7 8 9 10 11 12 Figure 1. Own (left) versus Use (right) quarterly spend and value over 3 years The Use model delivers 35% greater business value on 18% lower non-working spend 64

International Perspectives Seven questions. Nine markets. Nine local perspectives. In this section, we explore whats hot and trending in major markets around the globe. From the iPhone, Foursquare, the digital wallet, and QR codes to Angry Birds, Vodafone, and even Jay-Z — read on to hear what our counterparts around the world think about consumer behavior, technology, trends, multi-channel experiences, the future of privacy, and the best media campaigns out there. GerMaNY ruSSIa SINGaPore ukNorTH aMerICa CHINa MIDDle eaST INDIa auSTralIa

Q&a QueSTIoN 6 Democrats agree, it is online consumer privacy protection. In the next 2 – 3 years, to what extent do you view The implications for marketers are both unclear and profound consumer privacy as a concern in your region? at the same time. NORTH AMERICA what are the implications? Supercookies, zombie cookies, and history stealing — industry What is known is that every channel and touch point will now have a new layer of privacy requirements that will affect self-regulation is not working and consumers are more creative and user experiences. What will always remain is that privacy-aware than ever. In the next 6 – 24 months, we will see consumers will surrender personal data for a valuable and the federal government enter the world of online privacy relevant experience. regulation. If there is one issue where Republicans and Written by Justin Barkhuizen, Strategist; SapientNitro NYC, Rob Murray, Strategist; SapientNitro NYC QueSTIoN 7 Maybe theyre the best place to test new shows before sinking what are the most important social platforms millions of dollars into production and network expenses.QueSTIoN 1 location-based bias. Whether we’re checking in at the U2 regionally and why? foursquare. The race to own check-ins is over. FoursquareIn the past three years, what were the top three trends in concert and sharing that experience on Instagram with facebook. Its hush-hush music platform, Instagram-esque won — hence the demise of Facebook Places. Innovationsdigital consumer behavior and activities in your region? anonymous fans, or snapping QR codes at Best Buy to make photo filters, and video chat innovations show that the leader include their masterstroke American Express deal, openingevolution from GuI to NuI. The rise of gesture-based sure we’re getting the best price, geo-based technology has is aware (unlike MySpace) that it needs to evolve to stay on top. up monetization opportunities and silencing the cynics.interactivity has radically changed the way we engage with accelerated the recession of the divide between the physical Twitter. They are the de facto live search provider, and Google+. This platform cleverly exposed a chink in Facebook.machines, and has allowed digital activities to be consumed and digital realms. And we can’t go back. continue to make the proposition make sense for brands It has a bunch of features, and is integrating them into theirby a much broader audience. Apples latest OS "Lion" is based always public, all the time. The socialization of media and with their "sponsored" suite of products. properties pretty well. Theres a lot riding on this — includingentirely on NUI learnings; Wii, Move, and Kinect immerse the the mobilization of connectivity means that every activity, YouTube. The worlds number 2 search engine is simply becoming the number 1 web destination again.gamer in ways we only dreamed of before. Just ask any parent question, cry for help, and status update is packaged, a synonym for online video, and is a continually leadingon a long road trip with their 6-year old what price theyd put on published, and public — usually in the moment. Its no innovation in the display world. Their latest suggestion?that iPad. longer behind the walled garden.QueSTIoN 2 smartphones consume more data than PCs. And that dataIn the next 12 – 24 months, what do you see as the key is ingested in large part through apps.opportunities for marketers in your region? Smart marketers will also understand appification —Marketers will have an e-dentity crisis; smart marketers will that content is being chunked into packets of digestiblefind a successful solution. They will be challenged by the experiences. And they will adopt an "86/4" not “24/7" mentality;everyday barrage of content, options, and opinions their they will realize they are no longer fighting for day-parts or aconsumers face. They will understand that iPads and share of 24 hours, but for the 86,400 seconds in a day.QueSTIoN 3 QueSTIoN 4what would you highlight as examples of multi-channel In the last 12 months, what were the most creative,marketing campaigns in your region? design-driven campaigns of note in your region?One success was Bings Jay-Z: Decoded campaign. The Ralph Lauren 4D experience stands out.QueSTIoN 5 everyday life. Spotify contains every song ever sung in thewhat is the latest, hottest mobile application or mobile cloud and is available on demand. HBO GO lets its users takeproduct in your region? their living rooms with them. And Evernote makes it possibleThere are many. Flipboard for iPad is an elegant display of to save thoughts and then access them anywhere.personal content. Instagram offers a visual, social story of 68

Q&a AUSTRALIA Q&a CHINA Written by Mark Krebs, Strategy Planner; SapientNitro Brisbane Written by Jennifer Tan, Chief Creative Officer, China; SapientNitro ShanghaiQueSTIoN 1 Connectivity. The ubiquity of social media has seen the QueSTIoN 1In the past three years, what were the top three trends in number of social "creators" plateau, giving rise to the social In the past three years, what were the top three trends indigital consumer behavior and activities in your region? "spectator" — largely driven by voyeurism. This can be seen digital consumer behavior and activities in your region?"always on." Smartphones have truly flooded the market, from an APAC region point-of-view with Australia having Micropayments via social gaming, online commerce viawith many consumers upgrading to the most current some of the highest usage levels for Facebook globally. Taobao, and group buying platforms have reigned supreme.generations of products (largely, the iPhone 4) after their first e-commerce. This trend is driven by the trends above,24-month phone plans. Tablet devices such as the iPad are also as well as the strength of the Australian dollar. QueSTIoN 2 QueSTIoN 3increasingly common, particularly around the workplace. In the next 12 – 24 months, what do you see as the key what would you highlight as examples of multi-channelQueSTIoN 2 QueSTIoN 3 opportunities for marketers in your region? marketing campaigns in your region?In the next 12 – 24 months, what do you see as the key what would you highlight as examples of multi-channel Integrating social media with e-commerce plus the Lynx has one of the most successful multi-channelopportunities for marketers in your region? marketing campaigns in your region? prevalence of micropayment online will lead to successful campaigns. It relies on humour, celebrity endorsement,From a brand point of view, it will be about delivering added Tescos virtual stores in Korea are exciting. In Australia, social commerce. In addition, marketers should take advantage and sexual innuendo to sell its products, and attractedvalue across the entire customer experience (Australian CommBanks augmented reality newspaper ad could be of video-based marketing and in-store interactive marketing 70,000 followers on Weibo and Renren in the first threeconsumer confidence is currently at its lowest levels since the the future of advertising. via digital screens. months alone.Global Financial Crisis). From a channel point of view, mobilewill be key as will connecting it with social CRM.QueSTIoN 4 QueSTIoN 5In the last 12 months, what were the most creative, what is the latest, hottest mobile application or mobiledesign-driven campaigns of note in your region? product in your region?Drambuies "The Premise" campaign and Foot Lockers Pocket Hipster. As one enthusiastic consumer put it,Art Prize. “It’s like, the best music app ever!”QueSTIoN 6 QueSTIoN 7In the next 2 – 3 years, to what extent do you view what are the most important social platformsconsumer privacy as a concern in your region? regionally and why?what are the implications? Facebook, thanks to the connectivity it offers, and YouTube,Privacy? What privacy? With Google Street View, WikiLeaks, the content king.and data harvesting, public is the new private. The implicationsare far-reaching and yet to be seen. 70

Chinas Social Media Market Youku Renren Tudou Sina WeiboQueSTIoN 4In the last 12 months, what were the most creative, QueSTIoN 7design-driven campaigns of note in your region? what are the most important 1,300mMercedes, 7UP, and Levis. social platforms regionally and why? Video sharing via Youku.com and Tudou.com is the most 2,500mQueSTIoN 5 QueSTIoN 6 popular social media activity, followed by messaging on 3,300mwhat is the latest, hottest mobile application or mobile In the next 2 – 3 years, to what extent do you view QQ.com (Chinas instant messenger) and bargains on 3,600mproduct in your region? consumer privacy as a concern in your region? Taobao.com (Chinas eBay). Search on Baidu.com is alsoCurrently Nokia and its app store are dominant, with what are the implications? important as every search allows users to create or join a90% market share in China. Consumer privacy is still a nascent issue in China, but there forum thread. was a recent move to enhance consumer protection. This will have some implications on businesses who are used to paying about $250 USD for thousands of pieces of vehicle owners’ information, including their names, cell phone numbers, home addresses, vehicle models, colors, and more. 72

Q&a QueSTIoN 5 what is the latest, hottest mobile application or mobile SINGAPORE product in your region? Currently, FlightLover and taxi booking apps are paramount. Written by Jue Lu, Senior User Experience, Design; SapientNitro SingaporeQueSTIoN 1In the past three years, what were the top three trends indigital consumer behavior and activities in your region?Smartphones and tablets, social networking, and digital data QueSTIoN 2in marketing and public service campaigns. In the next 12 – 24 months, what do you see as the key opportunities for marketers in your region? Marketers must focus on digital interactive street media,QueSTIoN 3 including digital signage, and figure out how to effectively usewhat would you highlight as examples of multi-channel mobile, real-time data, and innovation via a crowd. And socialmarketing campaigns in your region? networking is poised to become a future driver in purchaseThe Taiwan Tourism Bureaus Fun Taiwan Challenge on through social video and live TV.TLC has found great success. Additionally, the digital wallet will become a reality. QueSTIoN 4 In the last 12 months, what were the most creative, design-driven campaigns of note in your region? A clever use of technology and design for retail interaction was Melvyns Nike Trackball campaign. Formula 1 and Samsung Smart TV also developed QueSTIoN 6 QueSTIoN 7 successful interactive campaigns. In the next 2 – 3 years, to what extent do you view what are the most important social platforms consumer privacy as a concern in your region? regionally and why? what are the implications? Facebook still the most popular social networking site. Privacy is government driven. Singaporeans are quite mindful Facebook is like an extended arm of the individual‘s (but sometimes a bit naive) of their security. While we take personality and voice. That, and Twitter. it seriously, we are certainly reliant on the government to ensure the technology is safe and secure. 74

Q&a QueSTIoN 3 a mania across the nation over the last couple of years. what would you highlight as examples of multi-channel MTV India’s experience also comes alive across a variety of marketing campaigns in your region? youth-centric media touch points including mobile, social INDIA The Vodafone ZooZoo campaign is one of the most successful examples of multi-channel marketing in India. ZooZoos were networking, and TV. The brand currently has one of the fastest growing and most highly engaged communities on Facebook launched as Vodafone’s brand mascots in 2009 and became and Orkut in India. Written by Vidhya Sankarnarayan, Director; SapientNitro GurgaonQueSTIoN 1 Base: All India Internet Ever UsersIn the past three years, what were the top three trends in (Urban) (All figures in Million)digital consumer behavior and activities in your region? Top 8 Metros Other Metros 5-10 lake towns Less than 5 lake townsMobile social media usage has increased. Active mobile 5 Mn 9 Mn 12 Mn 16 Mn 32 Mn 46 Mn 50 Mn 63 MnInternet users have increased to 26.3 million in India, as of March 5%2011. E-mail, chat, search, social networking sites, and portals are 4% 20% 20% 19% 29% 29% 30% 36%among the most commonly used applications. Lower subscription 13% QueSTIoN 4 handprint in blue (Team India’s colour). Fans continue to 7% 7% 6%rentals, the availability of Internet-enabled cell phones at cheaper In the last 12 months, what were the most creative, "Bleed Blue" today. 10% 12% 15% 19% 20% 12%prices, and increased digital literacy are some of the reasons why 12% design-driven campaigns of note in your region? In addition, Parle Hippo developed a very successfulmobile Internet penetration has risen. 20% 21% 21% Nike Bleed Blue. Cricket and Bollywood are India’s two campaign. Hippo chose to partner with its consumers in one 18%E-commerce sites are hugely popular among consumers. biggest religions and every Indian marketer is constantly of the most inventive and simple Twitter campaigns India hasIndian e-commerce is on the rise, with around 17 million 77% 58% 55% 55% 41% 38% 37% 34% seeking opportunities to leverage them. The simple, yet seen. It asked them to tweet whenever they could not findusers. The fact that they feel comfortable shopping on the evocative, "Bleed Blue" mantra, which ran across traditional Hippo at outlets near them, with a promise to stock the outletInternet in a country that has historically been shy of online and new media, captured India’s imagination during the World as soon as possible.spending speaks about the rising acceptance of the digital 2000 2001 2003 2004 2007 2008 2008 2009 Cup cricket frenzy of 2011. The campaign leveraged cricket Hippo’s campaign resulted in not just resolving the brand’smedium in India. Sites like Flipkart.com have built a strong fervor in India by collecting over 11 million handprints via an distribution problem, but also kick-starting brand sales tonetwork of customers and escalated their business and valuation considerably over the last year. Additionally, group buying innovative digital and events-led campaign that inspired fans the point of selling out across over 200,000 stores.and discount sites are gaining ground at a rapid pace. For example, Snapdeal.com attracts 500,000 visitors every day. to express their loyalty to the team by simply marking theirInternet usage is also skyrocketing. Small town India is edging out metropolitan cities in terms of Internet usage.QueSTIoN 2 among the youth. Internet on TV has also entered the IndianIn the next 12 – 24 months, what do you see as the key market and could take-off in the next two years, offeringopportunities for marketers in your region? marketers the opportunities in brand tie-ups, applications,With Internet-enabled mobile phone penetration going up, games, etc.Indian digital consumers are getting excited about the Additionally, Foursquare is showing signs of lucrative growthpossibilities it offers. Metro consumers are using mobile in the India market. It has caught the fancy of metro youth andphones for social networking, searching, and more. Social youth marketers in particular and is increasingly waking up tonetworking is in fact beginning to emerge as one of the its potential.biggest motivations to use the Internet on mobile, especially 76

Q&aQueSTIoN 5 and mobile service offerings have plummeted making thesewhat is the latest, hottest mobile application or mobile the most attainable digital devices.product in your region?India is one of the most exciting emerging mobile markets Smartphones are currently the hottest mobile device. Android is already investing in this trend by setting up its RUSSIAacross the globe. Over the last few years, costs of handsets largest development hub in India.QueSTIoN 6 India’s relationship with personal space and privacy is veryIn the next 2 – 3 years, to what extent do you view different from that of the rest of the world. India’s currentconsumer privacy as a concern in your region? buy in to digital media comes from the way they expand and Written by Yulia Rubina, Senior Strategic Planner; SapientNitro Moscowwhat are the implications? improve an individual’s life. It remains to be seen whether and in what sense privacy will be a concern in India.QueSTIoN 7 Facebook ousted Orkut as the number one platform in QueSTIoN 1 The Internet. The amount of users and their activity iswhat are the most important social platforms July 2010. Orkut now rests at #10. In the past three years, what were the top three trends in growing on the Russian Internet (Runet), as well as theregionally and why? LinkedIn has also evolved into a highly popular and influential digital consumer behavior and activities in your region? amount of viewed pages and time spent. In general, theFacebook’s popularity among Indian online users is at a high social networking site among Indian professionals. LinkedIn Smartphones. Mobile Internet audiences were two times typical urban person spends two hours a day on the Internet,with around 31.5 million users, double of what it was in 2010. has grown at a rate of 76% in the past year and with a user bigger versus general Internet audience last year and mobile with half of this time devoted to social networks.Over a third of Indian Internet users are on Facebook. Orkut count of 9 million, it is poised to get bigger. content and applications demonstrate active growth. IPTV. With more diversity, and higher quality, the amount ofhad been the leading social network in India since 2005, but people watching TV (federal and online channels) is increasing. QueSTIoN 2 russian Internet activity In the next 12 – 24 months, what do you see as the key Portals 26 MMH. opportunities for marketers in your region? Social 51 MMH. Networks 5 MMH. Integrated campaigns with interactive cyber elements, 5 MMH. advocates who are willing to recommend and talk about your News 2 MMH. brand or product in social networks, and mobile marketing Resources 9 MMH. will be dominate opportunities. Education 6 MMH. 5 MMH. Software 2 MMH. Video 15 MMH. Product 10 MMH. Catalogues 6 MMH. 7 MMH. Blogs 5 MMH. Weather 5 MMH. QueSTIoN 3 what would you highlight as examples of multi-channel marketing campaigns in your region? Red Quest aimed to engage a young audience. This mobile tariff plan from MTS was developed to save Russia from the increasing smog and heat. At the heart of this campaign is a team game that resulted in 3.5 million unique visitors in the first two months, 1.04 million registered participants, and 800,000 app installations. 78

Q&aQueSTIoN 4 QueSTIoN 5In the last 12 months, what were the most creative,design-driven campaigns of note in your region? what is the latest, hottest mobile application or mobile product in your region? MIDDLE EASTRed Quest, Windows with noise insulation, and BCE PABHO. Red Quest, Angry Birds, and Foursquare. QueSTIoN 6 In the next 2 – 3 years, to what extent do you view consumer privacy as a concern in your region? what are the implications? Many Russians do not care about privacy. In fact, there is no direct translation of the word. We are quite open and comfortable Written by Matt Horobin, Strategic Planning Director; SapientNitro Dubai posting pictures in social networks and sharing details of our private lives. Perhaps because we are used to living in limited spaces and were given no privacy during Soviet times. QueSTIoN 1 Facebook but we have local versions as well. In the past three years, what were the top three trends in The second is increased smartphone ownership. QueSTIoN 7 digital consumer behavior and activities in your region? While Smartphone sales are trending, this ownership is not what are the most important social platforms Weve seen two. The first is significant growth in popularity necessarily leading to high levels of usage of smartphone regionally and why? and prevalence of social media usage. The most popular technologies due to prohibitive data costs. In August 2010, Russia ranked #1 worldwide in time spent on social media sites are international versions such as social networking sites, with Vkontakte, a site geared toward socialising and fun, at the top. Also highly popular is QueSTIoN 2 control that comes with this — as well as a perceived lack Odnoklassniki, a social network service primarily for In the next 12 – 24 months, what do you see as the key of measurability. classmates and old friends. opportunities for marketers in your region? Transforming such activity into genuine consumer Despite the above activity on such networks, social media engagement, leading to accountable brand- and revenue- marketing has yet to be truly maximised. Brands are active in building opportunities, will be the next step. the online social space but in a very timid, traditional way. This The next opportunity will be mobile engagement. With mobile lack of confidence likely stems from the "mystification" of the penetration at nearly 200%, this channel offers massive social space and a general lack of understanding. Brands are potential. Currently brands rely on push SMS campaigns to also concerned about the implications of engaging with engage with mobile users, mostly alienating rather than allying consumers in an open, two-way dialogue and the ceding of them. Critical to success will be a more competitive mobile landscape with more affordable pricing, which is on the horizon. QueSTIoN 3 A second example of harnessing online consumer behaviour is what would you highlight as examples of multi-channel the Standard Chartered "Food Explorer" concept — although marketing campaigns in your region? this was almost entirely online and not so multi-channel in its There are very few examples of campaigns using mobile as part approach. It involved establishing an online dining community of a multi-channel campaign. However, a leader in innovative to promote SCs credit cards and an associated discount at communications within the region is Batelco, the leading selected restaurants. Bahraini Telco, with its "Infinity" campaign. QueSTIoN 4 Again, Batelco launched a much-acclaimed brand campaign, In the last 12 months, what were the most creative, which is probably as creative a campaign as has ever come design-driven campaigns of note in your region? out of this region. 80

Q&aQueSTIoN 5 a high price and therefore remain niche amongst wealthier GERMANYwhat is the latest, hottest mobile application or mobile audiences. However, these audiences are key influencers andproduct in your region? will define wider consumer behaviours as prices decrease andTablets — either in form of an iPad, a Samsung Galaxy, or a associated up-take broadens.BlackBerry PlayBook. These big-ticket items tend to come atQueSTIoN 6 Middle East (well, until recently!), there is little concernIn the next 2 – 3 years, to what extent do you view regarding personal privacy at an institutional level. Thisconsumer privacy as a concern in your region? privacy issue only becomes a concern at a personal levelwhat are the implications? where individuals may not be comfortable sharing content Written by Torsten Schollmayer, Mobile Experience Strategist; SapientNitro DusseldorfAt a governmental, social, and legal level, privacy is not such (e.g., imagery) of themselves and their lives, given thean issue. Given the mostly non-democratic nature of the custom of women remaining veiled in public at all times. QueSTIoN 1 QueSTIoN 2 In the past three years, what were the top three trends in In the next 12 – 24 months, what do you see as the keyQueSTIoN 7 Facebook recently proved itself as a formidable catalyst of digital consumer behavior and activities in your region? opportunities for marketers in your region?what are the most important social platforms regionally social change by facilitating uprisings across the Arab world. QR codes as marketing tools for mobile microsites, the Mobile commerce and the digital wallet (NFC) will drive the nextand why? At the same time, Facebook is also being used by youths growth of e-commerce (especially for brands like Adidas or wave of marketing meets technology. The smartphone will beFacebook is the most popular social platform. Twitter is looking to date, meet, and marry. electronic goods), and social media campaigns and activities the most used Internet device and will be complemented bygaining ground but is still relatively niche. In a region that Blogging is also big — particularly in Saudi Arabia where within Facebook. tablet devices. Consumers and sales personnel will interactstruggles with self-expression and individuality in the real this serves as really the only means of self-expression — with these devices and will be standard in-store.world, the virtual opportunities for self-expression are very particularly for women. As a result, blogs are nowcompelling. Community is also a critical pillar of Arab culture tightly controlled. QueSTIoN 3 in order to manage (e.g., add, edit, delete) recordings onand the instant, real-time connectivity that such platforms what would you highlight as examples of multi-channel the IPTV box in the users living rooms.enable is unrivalled. marketing campaigns in your region? Additionally, the Audi car campaigns are the most advanced The remote EPG of the IPTV service of Deutsche Telekom is offerings on all channels, presenting quality and brand available via mobile website, mobile app, and desktop website value continuously. QueSTIoN 4 QueSTIoN 5 In the last 12 months, what were the most creative, what is the latest, hottest mobile application or mobile design-driven campaigns of note in your region? product in your region? Vodafone launched several real-time campaigns promoting The most used and downloaded mobile app is the WhatsApp moments with music in combination with social networks. Messenger application, which offers simple text messaging for all mobile platforms. Despite any availability on web or desktop QueSTIoN 6 platforms, the traction still grows: Group chatting and picture In the next 2 – 3 years, to what extent do you view and video sharing are the key functions. consumer privacy as a concern in your region? what are the implications? QueSTIoN 7 Historically, German customers are very sensitive with what are the most important social platforms privacy in general, and with data security in particular. A lot of regionally and why? regulations are currently in place and the media acts quickly Facebook is heads and shoulders above the others. if there is a breach in any kind of privacy. The fear of giving But Twitter, and the VZ-group offerings (StudiVZ and away privacy and owning the data is huge. SchuelerVZ) are valuable too. 82

Q&a QueSTIoN 4 QueSTIoN 6 In the last 12 months, what were the most creative, In the next 2 – 3 years, to what extent do you view design-driven campaigns of note in your region? consumer privacy as a concern in your region? Using clever campaigns to connect with consumers in the what are the implications? UK region. Generating great ideas, which deliver real value and deliver them using innovative technology. One example is a Its important. A client is currently engaging us on a project related to this topic, in which future monetization of data relies bus shelter campaign run by VitaminWater — "Recharge." on permissions to enable business services like location driven By recharging your cell phone while you’re waiting in the advertising and targeted marketing. The key is to provide trust bus stop, VitaminWater stayed on-brand — and offered their and reassurance, and to show, wherever possible, the benefits customers a positive experience to boot. to the customer. So whilst reassurance and privacy is key, more In addition, mobile and associated technology, location-based and more consumers are also realistic that data can make services, and the mobile wallet are massive opportunities. modern services better. Ability to form truly multi-channel experiences — and delivering on those experiences. QueSTIoN 5 QueSTIoN 7 what is the latest, hottest mobile application or mobile what are the most important social platformsWritten by Paul Bevan, Mobile Strategist; SapientNitro UK, Chad Cribbins, Associate Creative Director; SapientNitro UK product in your region? regionally and why? Vouchercloud displays vouchers for restaurants, retailers, Facebook is the obvious leader in the UK. It offers a nice and evening out events. The interface is nice and intuitive. global platform, with an intuitive mobile offering. LinkedIn QueSTIoN 1 industry. Weve gone from “I must have an app” to a more web app, which uses HTML5 technology to provide native-like provides huge amounts of value in the B2B space, and is In the past three years, what were the top three trends in mature and business-driven approach. Increasing customer experience through a mobile browser. growing in popularity. digital consumer behavior and activities in your region? demands. Fun, useful, and usable experiences on mobile TripAdvisor isnt the newest, but their mobile app uses the Higher adoption of smartphones and tablets. There has been devices whenever, and wherever they want have become hybrid model quite effectively. a huge increase in touch screen devices. Greater maturity of standard and expected. QueSTIoN 2 Particularly important to international firms. Yet many times, In the next 12 – 24 months, what do you see as the key offers, pricing, and stores vary. Branding needs to feel opportunities for marketers in your region? consistent, but regional leaders need to be able to tailor Health and mobile apps. Being able to use your mobile their offerings and merchandise according to local needs. device as a health monitor will become even more popular. Collaborate and leverage technology. More and more in Consumers will use phones to remind themselves to take mobile, you can only offer the caliber of experience that people drugs, measure heart rates, and track their loved ones with are requiring if you have a solid set of front-end and back-end dementia via GPS. technology to support it. Until you get the technology stuff sorted, Standardization. When you visit a company’s page in a given you can have nice ideas, but all those things are reliant on effective region, it needs to feel the same as those in other areas. technology behind the scenes. That’s often the painful bit.QueSTIoN 3 Additionally, the Aurora Group, a major UK retailer, will deliverwhat would you highlight as examples of multi-channel orders from any channel — mobile, in-store, eCommerce —marketing campaigns in your region? within 90 minutes, thanks to a fantastic, organized inventoryBritish Airways mobile ticketing campaign allows users to system. They also recently announced an iPad point-of-salecheck in on the way to the airport and use a QR code to get to device for sales associates to take payments, and to browsetheir gates as quickly and easily as possible. and order on the brands website.This sets a new benchmark in this space and has delivered huge success in the UK. 84

foresight: THe oNe To fIVe Year TreND ouTlook Written by Rob Gonda, Global Head of Innovation; SapientNitro Miami and Hilding Anderson, Sr. Manager, Research + Insights; SapientNitro Washington, DC Tomorrow’s consumers are increasingly empowered to participate and share their perceptions of brands, products, and their environment. The implication? Brands will be forced to respond and react faster and better than they have in the past. Social, geo, local, mobile — all these terms reflect a new reality: an empowered consumer with more information and tools than any one brand or individual can handle. Interesting, yes, but also scary, as major brands rise and fall. watch for these new trends — what we call the SapientNitro Seven.

1The SapientNitro Seven: Trends to Shape the Next one to Three YearsTrend 1: Transmedia Storytelling when will this trend be relevant? when will this trend be relevant? who will be affected?Marketing has evolved from the traditional one-value It is relevant now, and will continue to be increasingly Early traces are surfacing, mainly focused on behavioral Venture capitals, startupsmessage broadcast, and the consumer has evolved from relevant over the years. 4 display advertising and socially driven commerce. Morepassive to engaged. Technology has empowered people to integrated solutions should start appearing in two years Trend 4: Digital Invades retailconsume media at their own pace, in their own terms, and who will be affected? and a fully formed contextual computing ecosystem should Integrating the physical world with digital technology (and 2shifted the notion of trust — from the brands to other people. Brands, advertising agencies, PR agencies take shape in five. vice-versa) is one of the most interesting and opportunity-rich territories of our age. It happens everywhere, but one of theOver the past few years, research has demonstrated that Trend 2: Data Is the New Holy Grail who will be affected? largest opportunities and demonstrations is happening inthe power of a recommendation drastically improves Data is the most undervalued aspect of our business. It is Brands, media companies, technology companies retail environments. Innovative brands are using digitalconversion; people have found an easy way to tap into their traditionally misconceived as analytics and afterthought, experiences to draw new customers, enhance their shopping 3friends networks for recommendations, disrupting the and more recently upgraded to mining results to refine Trend 3: Technology Invades and enables experiences, extend and facilitate social communications,focus of brands attempting to influence this new space. strategy. However, those who undercover the power of data advertising and Marketing and — soon — will integrate mobile payments. to drive personalized experiences that optimize outcomes There should be no doubt that today’s customer experienceBut the wheels keep turning and, by 2014, we will have will succeed. is enabled and driven by technology. Everything from the 1. enter, customer. The digital retail experience startsreached an era of data and friendship overload. In fact, very basic notion of connectivity: broadband to cloud before customers have even entered the store. Backstudies show trust has shifted so much that people world- Theres a new notion of "big data" and specialized computing to mobile devices and tablets to smart televisions projections, cameras, and gesture recognition (madewide need to hear the same thing three to five times before databases optimized for NoSQL. The amount of data to in-store kiosks to digital merchandising. The consumer easy through Kinect), allow people to engage with storesthey believe it; in the U.S., it gets as high as eight to nine collected today is far greater than the amount of data drives, and the money follows. Many top venture capital without stepping in.times. People will have so much advice online that the true possible to consume. Companies are investing in data dollars reside in the technology domain, sponsoring high-techvalue of that advice will be reduced — the law of diminished scientists and experts in visualization; the art of making and innovation startups, which are fueling the evolving 2. ambient in-store interaction. Once hooked, digitalreturns. People will revert back to seeking expertise, not the most complex relationships easy to absorb by the customer experience. installations engage, immerse, and entertain, enticing thejust friendly input; they will seek expertise from a subgroup business minds is becoming highly valuable. customer to stay and shop.of their social circles or from experts in the field elevated by It is — and will continue to be — interesting to observebrands. It is an opportunity for brands to regain their voice. Advancement in storage capacity and processing power, the impact of pure technology companies in the world of 3. a richer product experience. Once shopping, digital especially the one delivered by cloud computing, is making marketing and advertising. Take Google Labs. It wasn’t technology including short code, RFID, reader displays, andMessaging and information will need to be consistent across it possible to quickly process and understand the data in until 2010 that they started to get recognition: Super Bowl augmented reality will be able to provide a wealth of detailchannels — TV, radio, print, digital, mobile, and social will macro and micro levels, allowing it to be used to customize ads, the Ad Age A-List, and in 2011 appearing at Cannes, around the item the customer is interested in, from relatedall have to confirm, extend, or complement the same real-time experiences. The holy grail of data is a centralized winning five Lions, and winning "Media Person of the Year." products, to reviews, to promotions.information to gain that trust of the skeptical consumer. database with a single view of the customer and all related They have been shaking the industry not just by being dimensions: customer data, their relations, sales, creative, but by using technology to bend the limits of 4. lean on me. The shop assistant will use digitalThe truth is that todays art of storytelling goes beyond marketing, advertising, transactions, behaviors, and social. what’s possible. A perfect example is their ongoing Chrome technologies as well to help the customer evaluatenarrative and requires the understanding of networks, We will not only have all these dimensions and be able to Experiments, which use HTML5 to build dynamic new and compare choices and offer advice.group dynamics, and social spread. The introduction of apply advanced business intelligence, but be able to use experiences in the browser, which werent possible before.social media has further coined terms such as "social them in real time to predict the next action and optimize 5. The fitting room. Augmented reality browsing andcurrency," "likeonomics," and "attentionomics," all brand exposure. HTML5, for instance, has opened the doors not only to customization will be increasingly possible.attempting to put a structure around the art of word of innovation on the web, but is particularly strong in the cross-mouth, conversation propagation, and influence. The semantic web has been a long time coming, the true platform application arena, enabling building applications that 6. a second opinion. People seek validation by close social web 3.0, if we dare to keep the term web in this new era. run on multiple mobile platforms, tablets, even on TV. circles. Retailers that understand the purchase lifecycleBrands will succeed when they understand the proper Semantic computing will allow all brands to be contextually and provide a shortcut — such as validation without leavingmedia mix, allow stories to run free, take their own shape, relevant and aware, driving an optimized value exchange when will this trend be relevant? the store — will have the power to increase the conversionempower liquid content, and understand that their brand between brands and consumers. Venture capitals are betting on disruptive technology. There significantly.experience is the sum of all the little moments — and they is a mass overvaluation in the private equity section, and allneed to make each one of them count. eyes are on tech companies that are going public to either predict a sustainable growth or another bubble. 88

when will this trend be relevant? A further step in brand advocate involvement is true exactly the same promise as Apple iCloud. Ultimately, environmental, political, and economic data. CalculatingWe’ve seen initial prototypes in store, though not many co-creation — everything from the store experience these giants are not fighting to own your data, friends, correlations and causality among all the different variableshave shown significant results and ROI. Over the next (Starbucks), the advertising (Old Spice), or the product or social networks; they want to own the experience. allows the brand to build predictive models to optimizecouple of years, the cost of these experiences will go down, (VitaminWater). It gives fans a sense of belonging, ownership, every interaction — ultimately gaining relevance with the 5allowing deeper experimentation and growth. early buy-in, and guarantees success as the end result. Benefits will include easy access across devices (a key consumers, but with the goal of increasing the conversion expectation for the new multi-channel consumers), lower ratios and sales.who will be affected? when will this trend be relevant? hardware requirements, and integrated community andRetailers, design companies, technology companies Brands are already betting on, and building, communities, social networks. Downsides will include a reliance on data Access to real-time data — and being able to process and though some are still learning to identify tribes and networks, privacy concerns related to the data being stored compute in nanoseconds — is changing the decisionTrend 5: Collaboration and Co-Creation understand complex relationships. Co-creation requires a and shared without your permission, and performance. But making engines. Small and large technology companiesBrands and products used to be a closed system. Research much more liberal approach but after a few success stories the cloud is here to stay, even when it doesn’t make sense are all investing in real-time decisions, using a wide arrayand development, manufacturing, marketing, and retail over the next few years, it will begin to push stronger adoption. for all applications. of techniques: neural networks, statistical models, andwere all different silos. But the system has changed — even genealogy.feedback loops are now open, and everything is who will be affected? when will this trend be relevant?interconnected. Brands used to hire research focus groups Brands The cloud is the de-facto platform solution for every One example of this trend in the media space is real-timeto understand consumer perception, whereas now the solution provider start-up, music and videos are rapidly bidding (RTB). A simple concept, RTB matches real-time 6 7feedback is immediate and everyone has a voice. Not only Trend 6: Cloudification adopting, and will play a revolutionary role in user-content supply and demand of media properties to maximizethat, but consumers are passionate about becoming part of “The Cloud” has been picking up rapidly with growth of storage over the next 36 months. relevance and gain. RTB is slowly evolving to incorporatethe community and having a say in the product’s future. a combination of software-as-a-service, platform-as-a- more sophisticated decision engines that are not solely service, and infrastructure-as-a-service solutions; but who will be affected? based on price, but actually value and yield.Smart brands are allowing their advocates to evangelize despite the level of abstraction or solution layer, easy Large companies, consumersthem, influence connections, and provide critical feedback. access to endless storage and processing power is reducing Data is abundant and will be soon commoditized; contextThey build systems and tools to elevate their brand advocates barriers to entry and giving birth to more start-ups and Trend 7: real-time everything will continue to gain relevance and soon create a contextand give them an even larger voice. By building and services than ever before. In the age of constant connectivity, information travels marketplace. In the near future, the money will reside inmoderating these communities, brands have the opportunity at the speed of light. Technology enables instant the media properties and the right audience segments.to sit on a gold mine of insight and data that will not only drive Amazon AWS is leading the charge in the infrastructure communication — although it’s nothing new. People use moretheir product and release strategy, but will potentially inform side, hosting massive services such as Netflix, Foursquare, SMS instead of email, social network chats and feeds, and Real-time everything represents predicting every outcomeevery aspect of their business. BackType, HootSuite, IMDb, and Yelp just to name a few. Twitter to announce earthquakes before the mainstream and constantly adapting to responses, applied at the macro The race however, is to win the connected experiences: news channels can mobilize their traditional channels. All and micro levels.A great example is Sneakerpedia by Foot Locker, a iCloud, Google+, Spotify, Pandora, and Kindle are all these experiences are setting expectations of responsivenesscommunity that enables sneaker fans to post and share their allowing users to sync content through the cloud and — and brands need to evolve to provide them. when will this trend be relevant?collections. By providing tools for an existing community to allowing mobile phones, tablets, and TVs to converge. Real time, now.communicate, get closer together, and elevate their status, Led by the music industry, and extended by Google and However, the real opportunity is for the brands. Access toFoot Locker built themselves an insights factory that can other brands, the ability to move licensed content, shared real-time data allows brands to be more relevant in every who will be affected?understand demand through many dimensions such as content, and, in the future, even entire operating systems to engagement, and brands must be situational-aware and Large companies, consumersdemographics, cultures, locations, and seasonality. These the Internet will create substantial value for organizations contextually relevant to succeed.insights can inform stores about inventory, fulfillment, and customers alike.marketing strategy, and drive vendor relations — all because The world of data has evolved from being used to analyze theof what seemed to be a simple community repository for For instance, Google+ might be a much closer competitor past, to optimize the present, and ultimately to predict the"sneakerheads." to iCloud than to Facebook. It will embed itself natively into future. Real-time data gives brands the ability to combine and Android mobile devices, Google TV, Chomebooks, and the compute massive sources of data — including demographic Google ecosystem, allowing people to socialize, and store, and psychographic, historic purchases, sales and marketing, and share all their pictures, videos, music, and more — social and conversational, and externalities such as 90

The long Term: what to watch for in Three to five Years 3 4Marketing services are experiencing a major and rapid Implications for major brands Scenario 3: Mobile everywhere Scenario 4: Context will Be kingevolution. Predicting the future in this space is difficult. Don’t over-invest in social commerce and tracking tips. Goodbye, desktop computer. The mobile device (including Social networks and major Internet players are makingwe have created four future scenarios, which illustrate Respect consumers privacy concerns today to help reduce tablets) will continue its rise, becoming the dominant device headway in storing every aspect of our lives. Facebook isvisions of the world in 2014 to 2016. the risk of this scenario. Be prepared for potential on the Internet. Mobile shopping, mobile advertising, effectively tracking people, their relations to each other, 2 regulatory changes. consumer behavior shifts, and the mobile wallet will and their relations to brands, objects, things, and tastes.Most likely, none of these scenarios will be completely converge to make mobile the go-to choice for shopping, Google is tracking click behaviors, keywords, and interests,accurate. rather, they should be used as a tool to help Scenario 2: Digitally enabled retail Business Models reading, and watching while on-the-go or at home. and with Google+ it will bring in personal data such asmake crucial business decisions. Invest in a portfolio of Major advances in digital retail will transform the way we Tablets will have overtaken laptops for typical users, while videos, photos, music, and games. Apple iCloud is playing 1capabilities which, when combined, will strategically shop and enable the creation of entirely new retail business desktops and laptops will be mainly for content creators: in a similar space, trying to capture all user-generatedposition your company most advantageously across a models. Moving beyond the integration of digital we developers and designers. assets and commoditize the storage, sharing, andcombination of these scenarios. discussed in Trend 4, above, in this scenario the retail socialization aspects. They are all becoming master social industry is forced to adapt to an ever-more digital business U.S. usage will begin to track more closely to SoutheastScenario 1: Privacy data warehouses. in order to compete with new business models. Asian behaviors, and mobile will be the way to haveA combination of government intervention, over-aggressive personal time while at home, on the bus, at school, or However, smart and effective engagements will be theuse of cookies and tracking technology, a well-publicized Kiosks and mobile integration will become routine. New spending time with a group. Carriers will make major ones who can consume, process, and act on all this data inmurder based on a privacy invasion, and poorly managed layouts will optimize flow, remove checkout aisles, and investments into data networks as bandwidth (despite real-time, at the moment of truth. We will see new types ofadvertising and marketing business will result in changes allow associates to check out consumers anywhere in the upgrades to WiMAX or LTE) will continue to be a major issue. companies surfacing and providing enormous value: RTDEfor privacy. Governments will intervene, severely restricting store, maximizing sales per square foot. Major pharmacies (real-time decision engines). These RTDEs will usea number of key marketing technologies. will roll out kiosk-only stores (think: Redbox writ large). Smartphone users will become the majority and adoption advanced semantic analysis and statistical models to Rich, interactive exhibits in retail stores will delight and will continue to increase at an accelerated pace, at whichNevertheless, we will see the next generation of existing leverage the massive amount of data, understand the entertain younger shoppers, and create an entirely new point they will not be called smartphones anymore, theytracking technologies. Today, facial recognition is already nature of every engagement, and predict the best possible level of brand engagement. will be just phones. New phones, enabled with GPS,in use by Facebook (and called illegal by the UK and scenario for a brand to engage. cameras, Bluetooth, and NFC will connect, pay, andGerman governments) and in select retail locations to New business models around virtual goods, extensive multi- become full-featured tools to enable consumer digital There will be a strong emphasis in value exchange. Peopleidentify visitors by gender, ethnicity, and age. Cookies are channel delivery options, just-in-time inventory, and pop-up lifestyle. Wearable devices — eyeglasses and contact lenses will perceive much greater value when brands understandbeing replaced by alternative tracking technologies such stores become important levers to complement the still- — will use integrated sensors, cloud-based processing, and their needs, in context of the exact moment, and help themas flash-shared objects, HTML5 storage, and HTTP ETags. dominant traditional retail channel. Efficiencies gained from cloud-based data to present additional layers of information fulfill them. Brands become more situationally aware, andCompanies like Phorm are conducting behavioral analysis nimbleness and reduced overhead will result in lower cost, of the world around us; but at their heart, they will still be therefore more contextually relevant.of ISP data to deliver targeted behavioral ads. which will allow small businesses to complete with the powered by the universal connected device: the mobile phone. massive capitalized investments of large retailers. Pure Raw data, highly valuable today, will slowly get commoditizedIf these trends continue, we expect a privacy response digital offerings will allow businesses to mobilize quicker, Implications for major brands — giving room for media, audience identification, andacross the three main areas: mobile, shopping, and online. perhaps enter a new time-share or charter model — Mobile will no longer be another track, channel, or contextual brokers to take the main stage.Mobile. Major new controls will be built into systems leasing only the time they need. extension of a web-centric campaign; instead mobile Implications for major brandsto allow precise, app-level control of location-based, will take the front seat and be the center piece, core and Meeting the customer at the moment of truth is a timeless Brands have to evolve from broadcast message delivery,geo-fencing, and personal information. essential as the primary digital medium, with all other guiding principle, which will hold and sustain value as beyond enabling social conversations, into understanding media as extensions.Shopping. In-store biometrics and tracking will be technology improves customer segmentations and is able context of conversations. There is great value to be unveileddelayed or pushed off, digital innovation in-store will to better predict consumer behavior. Mobile commerce is no longer a luxury — in this scenario, by fusing existing data sources with new ones. Yet the focussuffer, and the dot-coms will be the ultimate winners, your mobile presence will influence the majority of your in the future should not be on data collection, but rather on Implications for major brandsas consumers seek anonymity. sales across all channels. Multi-device support will technology or services that allow access to the valuable If you have a retail presence, be prepared for a major continue to transition from an optional luxury to an data when needed. Real-time usage of this data — toonline. All ISPs will be required to conceal and block investment in your physical footprint, along with the essential element of a company’s strategy. predict outcomes and maximize the chances of success —cookies and other tracking mechanisms when requested back-end technology, which drives these experiences. Those will separate leaders from followers.by the consumer. Personalization, email, and cross-sell companies who lag in their investment will find their in-storeeffectiveness will be greatly reduced. experience fails to attract this new demanding consumer. 92

Note from the editor:We do live in interesting times. Consumers are in the midst of a dramatic change — mobile is hitting critical mass and digital isinfluencing up to 45% of all retail sales, even as companies struggle and, too often, fail to move beyond their silos to connectwith their customers across channels.As I reflect on the content of this report, Id like to highlight eight key insights: • The Google Wallet, PayPal, and Starbucks (and perhaps Apple) represent the future of payment, loyalty, and rewards programs. (Mobile Moments: Mobile wallet) • Companies must escape from "desktop thinking" when developing new products and services. Specific techniques, including user research, can help envision new mobile services. (Context — The New Gold of the Mobile Industry) • Apple’s mobile app accelerates face-to-face interactions in store; for in-store mobile applications to be successful over the long-term, they must represent a tangible, genuine value for consumers. (Mobile Moments: In-Store Mobile) • Digitally enabled retail stores and, more importantly, new retail business models (pop-up stores, large kiosk-only stores, and rich interactive exhibits) have substantial potential. (foresight: The one to five Year Trend outlook: Trend 4 and Scenario 2) • Device-agnostic multi-channel experiences, like the Kindle, will paradoxically allow for increasingly specialized devices, while enabling seamless switching. (Mobile Moments: Integrated experiences) • Digital Marketing Platforms are allowing marketers to plan, deliver, and measure sophisticated multi-channel marketing campaigns. (Digital Marketing Platforms: Taking Back Control) • Challenges remain after you roll out your new commerce platform: we explore what they are, and how to overcome the inevitable compromises you’ve made along the way. (after the release: Maximizing Value from Your Commerce Platform Investment) • Thoughts from the Middle East team revealed the search for self-expression and individuality on Twitter, Facebook, and blogs amid the Arab Spring. (International Perspectives: Middle east)We hope you’ve enjoyed reviewing Insights 2012. Our goal for this report was to pull together some of the best thought leadersacross SapientNitro globally, and share our perspectives on the evolution of communication and commerce. We hope thisreport has succeeded in helping you better understand this ever-changing landscape. Respectfully submitted, Hilding Anderson, Research + Insights Editor of Insights 2012acknowledgements:This report could not have been assembled without the support of a great many people. Several I’d like to highlightinclude: Lauren Cohen, Todd Cherkasky, Rob Gonda, Rachel Zinser, Abby Adolph, Julie Capron, Seijen Takamura, AnnickaCampbell, Scott Tang, David Hewitt, Steven Fisher, Byron Cunningham, Sherie Freedman, Allison Bistrong, Sarah Bosch,and many others. 94

about SapientNitroSapientNitroSM, part of Sapient®, is an integrated marketingand technology services firm. We create and engineer highlyrelevant experiences that accelerate business growth and fuelbrand advocacy for our clients. By combining multi-channelmarketing, multi-channel commerce, and the technology thatbinds them, we influence customer behavior across thespectrum of content, communication, and commerce channels,resulting in deeper, more meaningful relationships betweencustomers and brands. SapientNitro services global leaderssuch as Citi, The Coca-Cola Company, Foot Locker,Singapore Airlines, Target, and Vodafone through ouroperations in North America, Europe, and Asia-Pacific.For more information, visit www.sapientnitro.com orfollow us on Twitter@sapientnitro.for additional information:lauren Nguyen CohenDirector, MarketingSapientNitro San Franciscolcohen@sapient.com@ltnguyenfor media inquiries:David laBarGlobal Communications DirectorSapientNitro NYCdlabar@sapient.com@dlabarDesignaaron ThornburghArt DirectorSapientNitro Washington, DCemily CarrollDesignerSapientNitro MiamieditorHilding andersonSr. Manager, Research + InsightsSapientNitro Washington, DC 95

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SapientNitro Insights 2012 - How Digital Innovation Impacts Your Business

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SapientNitro Insights 2012 - How Digital Innovation Impacts Your Business Presentation Transcript