STQ              Social Technology                  Quarterly Vol. 2 Issue 1Games Marketers     Social TV and the   Social...
Social Technology Quarterly Vol. 2 Issue 1                        rte logy                        Tec ial                 ...
Kuliza   Social Technology Quarterly Vol. 2 Issue 1                                                                       ...
Kuliza    Social Technology Quarterly Vol. 2 Issue 1                                                              Saveur m...
Kuliza   Social Technology Quarterly Vol. 2 Issue 1                                                                       ...
Kuliza   Social Technology Quarterly Vol. 2 Issue 1on Facebook, like publishing what the users’ friends have        balanc...
Kuliza   Social Technology Quarterly Vol. 2 Issue 1                                                                       ...
Kuliza   Social Technology Quarterly Vol. 2 Issue 1                                                                       ...
Kuliza    Social Technology Quarterly Vol. 2 Issue 1                                                                      ...
Kuliza Social Technology Quarterly V2 i1
Kuliza Social Technology Quarterly V2 i1
Kuliza Social Technology Quarterly V2 i1
Kuliza Social Technology Quarterly V2 i1
Kuliza Social Technology Quarterly V2 i1
Kuliza Social Technology Quarterly V2 i1
Kuliza Social Technology Quarterly V2 i1
Kuliza Social Technology Quarterly V2 i1
Kuliza Social Technology Quarterly V2 i1
Kuliza Social Technology Quarterly V2 i1
Kuliza Social Technology Quarterly V2 i1
Kuliza Social Technology Quarterly V2 i1
Kuliza Social Technology Quarterly V2 i1
Kuliza Social Technology Quarterly V2 i1
Kuliza Social Technology Quarterly V2 i1
Kuliza Social Technology Quarterly V2 i1
Kuliza Social Technology Quarterly V2 i1
Kuliza Social Technology Quarterly V2 i1
Kuliza Social Technology Quarterly V2 i1
Kuliza Social Technology Quarterly V2 i1
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Kuliza Social Technology Quarterly V2 i1

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The Social Technology Quarterly is a research publication focused on helping brands leverage the latest research and trends in social media and social technologies.

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Kuliza Social Technology Quarterly V2 i1

  1. 1. STQ Social Technology Quarterly Vol. 2 Issue 1Games Marketers Social TV and the Social Office(Should) Play Future of Online Spaces Media
  2. 2. Social Technology Quarterly Vol. 2 Issue 1 rte logy Tec ial Soc Qua hno rly 4STQ 8 se ha 12 rc Pu to o M n Overview tio Lo ira So sp 27 g In in Welcome to the new look Social Technology Quarterly. m ct co ne The Social Technology Quarterly is a research 36 Be on ia publication from Kuliza focused on helping brands ns ed C is M to ry leverage the latest research and trends in social media ig e 41 st g in pa da llin du and social technologies. nl ar te In O m l S ry y of ha to ta it 46 a al re The Social Technology Quarterly has been a reflection of us al S C up it tu G sp Fu Kuliza’s passion and evangelism for social technologies. Ka isu ya Ho 51 e V The new look and design of the magazine is a reflection da th nt e th ar nd of the impact design can have on products. ow lS a es hi H ha V ps us T Ac iti al Ap This issue showcases how various industry verticals Ka ci i fit un So ok u raf like hospitality, banking and fitness are leveraging social Bo m nd G technologies for smarter campaigns, communities and s Ku e om n’ a tiv re commerce. It also provides marketing insights from the e l dy ra rn a ld ci C in bo hi So world of social games and storytelling. An la C ol ai on at C By re rm g C ps ia in We hope you enjoy the all new Social Technology G d om ee yr D nk Ap i s s an ce ha ke Ba C r Quarterly! al nd pa lic m lS a m ts Br ci D h ya t M ks ai ha e S So ia er Pa ha M dB irc c h Th an ce M Offi W d it Team Kuliza ee t w e d, An C Vi al aj u M it o om ja Am oci ic ne G chi it ks S in y R ed ng am nt A g ay :O re ati Ag a es ya G Fa e nl e Sw M up in of ti ar t e St ke a th pa e or te H es rs AR (S on E ho th ul e d) H ig Pl h ay St re et 16 20 24 2 3
  3. 3. Kuliza Social Technology Quarterly Vol. 2 Issue 1 sources. Images have an uncanny ability to take control of shared interests, and it is doing that in big numbers. This is a person’s time in an instant and lead them down a path why Pinterest provides the ideal platform for brands to connect that they didn’t intend taking. They are also the most shared with a community of existing or potential customers who are Visual assets on the social web. passionate about things that relate to a brand’s core values. So if a business runs a lawn-care center, for instance, they A number of image-based platforms like Visualy, Instagram, would want to engage with people who are pinning pictures Storytelling and SlideShare have already made a strong statement of landscaping. about how visual content can impact business results. The introduction of Facebook’s timeline in September 2011 has to Connect further exaggerated the impact of visuals. A recent addition Leveraging Pinterest to this list of image-based social platforms is Pinterest. The platform has witnessed phenomenal growth and brands are The simple and obvious approach is to use Pinterest to create rapidly adopting it to connect with their customers. a new board of your products, adding descriptions and prices Inspiration to to the images, and making sure they link back to your website. The objective of this article is to provide some insights Brands can then start tracking pinterest.com as a referral source into how brands can leverage Pinterest as a platform in their website’s analytics. This approach may get brands some Purchase to understand and engage with their customers through initial traction and one more platform to source traffic from, but it effective visual storytelling. may not pay any major dividends in the long run. Campaigns Businesses should not try to just pin pictures of all their What Makes Pinterest Tick products, but should pin images that capture a lifestyle, by Kaushal Sarda passion or cause that forms the essence of their brand. This is because there is something really magical about sharing one’s dream with strangers on the social web, and especially when it is visual. As the images that represent the brand’s Brands are using Pinterest to engage in vision get re-pinned onto other people’s boards, an emotional meaningful ways with their customers. connection that stems from sharing a common journey or purpose is established. Brands that share this level of intimate exposure will cultivate a meaningful and impactful presence We all know that stories provide a great way to reach out on Pinterest as well as lay the groundwork for a thriving to people and create an instant connection. Storytelling is community. They will also forge genuine connections while an ancient and effective way of communicating a message emotionally triggering consumer loyalty. that is clear and relatable. It is no surprise brands have been leveraging this tool to create impactful campaigns. Infographic Credit: Flowtown Let’s now look at some ways brands have used Pinterest in meaningful ways to engage with their customers. In order for a brand to market itself effectively in the era of social it really needs to connect deeply with its target audience Pinterest is a pinboard-style, social sharing website around Create value or community. It must have a narrative that clearly articulates photos. The service allows users to create and manage theme- Brands should look to offer helpful advice and useful ideas its core values, captures the attention of that community, based collections of images. The site’s mission statement is that their followers would find valuable and create boards that creates value, and makes them emotionally invested. to “connect everyone in the world through the ‘things’ they showcase the lifestyle the brand represents. Illustration Credit: Edd Cross find interesting.” It launched as a closed beta in March 2010. Brands are now trying to augment their ability to tell a great On August 16, 2011, Time magazine listed Pinterest in its “50 Cooking Light, one of the early stars on Pinterest, created a and consistent story. They are providing customers with Best Websites of 2011” article. In December 2011, the site series of boards that featured timely holiday recipes, seasonal tools to contribute and share stories through technology became one of the top 10 largest social network services, menu ideas and how-to cooking techniques, along with DIY advancements in real-time communication, on social according to Hitwise data, with 11 million total visits per week. projects and kitchen resources. Lowe’s Pinterest presence platforms, location based services, and with augmented It now drives more referral traffic to retailers than LinkedIn, has around 25 boards that span topics like family projects, reality tools. YouTube, and Google Plus combined. craft ideas, decorating ideas for the home and other home- improvement-themed boards. Whole Foods, one of the first The rise of visual storytelling as a means of spreading a04 What is exciting about Pinterest is that site illustrates the food brands on Pinterest, features boards on gardening, marketing message seems to be the direction in which the evolution from the “social graph” to the “interest graph”. What recycling and fitness. world of online marketing is heading. Images, presentations, and infographics are shared with ease, attracting thousands that means is that it is creating a shift from friend-based of views and sending huge volumes of traffic to their original networks to networks that connect people based on their4 5
  4. 4. Kuliza Social Technology Quarterly Vol. 2 Issue 1 Saveur magazine created a dinner party pinboard contest, asking pinners to build a dream dinner party on their own boards using at least three recipes from Saveur.com. Participants were asked to tag pins with #saveur and #dinnerparty to help extend the reach. The winning board was brought to life in the print edition of Saveur. French car maker Peugeot’s Panama unit recently ran a contest that awarded fans who completed a Pinterest puzzle. The brand’s Pinterest profile featured images of cars running over two or more boards. In each case, a board was missing. To get the missing pieces, fans Pinterest Board: McDonald’s Olympic Games History had to go to Peugeot Panama’s Facebook Page or website. Influencer engagement Thought leadershop Brands can create collaborative boards that allow external B2B businesses should look at Pinterest to share resources,Pinterest Board: Cooking Light pinners to contribute. It’s a way to engage and recognize content and ideas that help drive interest and opinions in their a few of their top evangelists or favorite pinners. America’s industry that will in turn lead to bolstering their position as an Test Kitchen created several boards focused on projects that expert. Spredfast has a board up on social media management feature pins from contributors – from homemade gifts to slow-Tell stories where they share anything and everything related to helping cooker recipes.GSD&M created a visual guidebook for surviving SXSW 2012 social brands get ideas for social programs.and used Pinterest to make the survival story come to life. Community engagement / Capturing customer storiesThis also ensured all the information they wanted to share Pinterest provides brands with a great way to not only share butwas easily available in one place. also learn about their customer community. Pinterest allows businesses to understand trends and styles the community likes based on engagement (i.e. likes and repins). Panera asks its followers to share their favorite pairing (like soup and salad) using the hashtag #youpicktwo. A board was dedicated to these creative pairings. Dunkin Donuts asks users to share what they’re drinking and how they’re “running on Dunkin.” Pinterest Board: Spredfast Takeaway The aim of this article is to aid brands in leveraging the truePinterest Board: GSD&M potential of Pinterest and find new ways to use the platform to deliver their story with more vigor and strengthen connectionsEngage through context with and within their customer communities.Brands can create “pin and win it” contests to encouragecustomers to share their inspirations and drive engagement Pinterest Board: Dunkin Donutsaround their creations. Bringing offline events to life About Kaushal Sarda Brands can leverage Pinterest to bring their offline activities to life by creating photos and video footage of events. Technology evangelist, serial Chobani, a Greek yogurt, brand’s boards highlight the entrepreneur, Chief Evangelist travails of the CHOmobile as it canvasses the country. at Kuliza, advisor to HashCube. Cabot Creamery showcases farm families that are a part of Writes on commerce and CRM. the Vermont cooperative and McDonald’s has a Pinterest board dedicated to the building of its first Olympic park Twitter: @ksardaPinterest Board: Saveur Dinner Party restaurant in London.6 7
  5. 5. Kuliza Social Technology Quarterly Vol. 2 Issue 1 leadership with a mobile app. The app allows customers to iPad application to recommend wines to its customers. search and create recipes prepared by executive chefs of the hotel and share them with their network. Similarly, the hotel’s How the ‘Concierge Insider Guide’ application recommends places to visit, video tours and provides inside tips. Hospitality Industry is Becoming SoLoMo Facebook campaigns and F-commerce apps Hotels are very aggressive in their use of the social network for marketing and sales. Many have experimented with Facebook Campaigns applications to share customer stories and experiences to facilitate word of mouth. Holiday Inn uses this concept to by Achintya Gupta Crowne Plaza and Hotel Indigo use their mobile applications to collect and showcase stories of customer travel using their facilitate room bookings and loyalty programs. Customers can Stay Social application. Similarly, Hilton uses its Facebook book rooms with their mobile phones, redeem points for stays application - Hilton Stories - to get customer feedback and and get their entire loyalty program managed with a single market research. Hilton also ran a Facebook contest for music Social, local and mobile initiatives are application. The Hilton, Choice Hotels and the Marriot also have lovers where the application asked participant to submit stories enriching customer experience. similar mobile applications for discovering interesting resorts of musical adventures and the most popular entry voted for by across locations, booking reservations and managing reward fans won a trip to Grammy’s. Over the years, the hospitality industry has thrived on word points. Accor Hotels has further gamified this experience by of mouth and expert referrals for its promotions. Since hotels integrating their mobile application with Facebook Places. are all about the experience, no ad campaign can replace the With this application, users can check into Accor hotels to earn ability a customer’s word-of-mouth has to increase numbers points and unlock exclusive badges and rewards. and loyalty. However, today there is a major shift among hotels to social technologies for their abilities to enrich customer Experience applications experience, spread customer experience through trustworthy Social technologies have enabled businesses to enrich their channels, and generate customer centric data. customers’ experience with high-end experience applications. Hotels that provide customers luxury experiences are using In this article we have tried to illustrate how hotels are using such high-end experience applications to build fascinating stays. social, mobile and local channels for customer engagement, loyalty, promotion and data. New York’s Plaza hotel provides an integrated luxury Photo Credit: eGlobal Travel Media experience with iPads. Each room has an iPad that can With so many consumers on Facebook hotels have begun to be used to control room temperature and lighting, order use the social network for direct sales. Hotels like Super8, Hotels room service, request wake up calls, and avail of concierge Hotel Indigo and Home2Suites are using Facebook for services. Similarly, the St. Regis E-Butler application gives Mobile apps reservations and bookings. Here, however, most of the the guest access to communicate with chefs and receive With their consumers increasingly moving to smartphones, applications limit themselves to providing an interface for recommendations for food, restaurants and sites worth visiting some of the largest hotel groups are building mobile booking and taking the customer to the hotel website when from city celebrities and experts. applications to enable mobile transactions, push deals, reward they click on the search button. We think these hotels will08 loyalty, and offer concierge services on mobile phones. Many other hotels are jumping into this race to craft memorable move to a 100% Facebook transaction experience (like Best experiences for customers using applications. For example, buy and 1-800 Flowers) to address customers who do not The Intercontinental Hotel Group’s Kitchen Cookbook is an the Holiday Inn has equipped its concierges with iPads to want to leave Facebook for transactions. There is also the excellent example of promoting the brand’s gourmet thought provide better guides of hotels and Naples Tomato uses an possibility of viewing other people’s interactions with the hotel8 9
  6. 6. Kuliza Social Technology Quarterly Vol. 2 Issue 1on Facebook, like publishing what the users’ friends have balance called ‘The Business Balance’. The Four Seasons a fascinating campaign in New York City, where consumers local space displays how social tools can be used to enrichsaid about the hotel (across various channels), how many of has a foodie community called ‘Four Seasons Foodies’ and could interact, dance and move with Disney characters on the customer experiences, spread consumer stories and providetheir friends ‘like’ the hotel, and how many used its services the Sheraton has an online community where customers can TV screen. In the past, Disney has built more social campaigns great service. It comes as no surprise that so many hospitalityin the past. share their stories of travel and living. like the ‘let the memories begin’ campaign, where they asked businesses are experimenting in this space. users to submit and vote for their favourite Disney memories,Blogs and online communities and an advocacy program, ‘InsidEARS’, where they askedThe most fascinating thing about blogs is the diversity of parents to advise others on their Disney visits.ways they can be leveraged to engage one’s audience andmarket one’s offerings. Hotels are using blogs to targetvarious marketing strategies. The Marriott has built a blog About Achintya Guptabased press room for quick and social news publishing. Thehotel chain is also using blogs for thought leadership in thehospitality industry. They have a CEO’s blog and expert blogs Marketing enthusiast and Brandon food, fitness, wellness and travel. Renaissance Hotels Manager at Kuliza. Writes on socialand Courtyard Hotels (both managed by the Marriott) have media marketing.moved a step ahead in creating blog based communities.Renaissance Hotels manage the RLife blog that focuses Twitter: @achintya85on lifestyle, luxury, travel and experience and the CourtyardHotels manages the Connections blog which is essentiallya blog based travel community. Other hotel chains like the Social media campaignsFour Seasons are using blogs to engage people with families Apart from building social platforms for marketing, hotels alsoaround travel. Their well designed blog - Have Family Will use social channels such as YouTube, Twitter and FacebookTravel - publishes information on having fun with families on for creative campaigns. For example, the Hilton’s potential Airportsvacations and outings. guests can watch videos of its Caribbean hotels and get video Many airports have tried to woo their SoLoMo consumers with tours on the Hilton’s YouTube channel. The Hyatt provides their mobile applications to aid their airport visits. Copenhagen Twitter concierge services with the sole objective of helping airport built an augmented reality mobile application to people in their travel queries. The Hyatt’s guests can also guide travellers across the airport. The mobile application check in with their mobile phones and simply pick up keys from helps you search for and locate various places and review the front desk. Similarly Accor Hotels launched the ‘A-Club customer ratings in a very user friendly way. Heathrow’s social media project’ where their social media team conducted mobile application helps travellers get instant access to all the research on their customers’ open social media conversations information they need for air travel. Using this application they (tweets, blog posts) of their customers. Based on the research can check live flight updates, book long-stay car parking, view they treated customers with surprise gifts on their next arrival. interactive terminal maps, see shop and restaurant listings, check flight timetables, and view city guides. A while ago, Other businesses in the hospitality industry, such as theme Bangalore Airport ran a social media ideation campaign where parks and airports, have launched very interesting initiatives it asked its customers for ideas on how can they make their in the social and mobile space that the hotel industry can gain airport experience better. Other airports like Gatwick are using inspiration from.When it comes to engaging one’s target audience, nothing channels like blogs and Twitter to solve customer queries andworks better than online communities. Online communities help them in their airport travel.succeed in providing a very high engagement quotient to Theme Parksmembers, like the ability to generate profiles, connect with The hospitality industry initiatives in the social, mobile andthe audience, find friends and connections among like- Theme parks have a lot to teach us when it comes to usingminded people, and gain recognition among a community of technologies to boost consumer experience. Many waterpeople with similar passions. These are some areas where parks like the Great Wolf Resort are using RFID wristbands toblogs fail. Therefore, the world’s leading hotels have created allow users to post their pictures on social networks during thecommunities for a niche target audience around lifestyle, course of their stay. Some are even using wrist bands to helpinterests and passions. Wyndham has a community for customers post status updates while in the park. Other themewomen travellers - ‘Women on their way’ - for travelling tips, parks are using augmented reality to create great experiences.advice and conversations. Marriott has a very active travel In South Korea, a complete 4D theme park has been built withcommunity for members of its rewards program. Similarly, Kinect and RFID. The theme park allows users to become aEmbassy Hotels has a customer community around work-life part of a 4D adventure. Disney, too, used AR tools to create10 11
  7. 7. Kuliza Social Technology Quarterly Vol. 2 Issue 1 3 We are going to witness a major 4 The user interface of the TV is going convergence of television and mobile to feel more and more like mobile platforms. With the introduction platforms, complete with on demand of different television features like content, games, and media apps. There Social TV and streaming devices, streaming services, has been an acceleration in this trend on-demand viewing, and custom apps because of initiatives by companies like there are more ways to watch TV than Google, Samsung, and Apple. 6 ever before. This may create a strong the Future of demand for a one stop-destination for users to plan their entertainment. Online Media 5 The social aspect is being thoroughly integrated into the entire production Campaigns process of a show. This bottom up, super participatory approach will certainly by Kaushal Sarda have an impact on the way some news Users are using web connectivity and shows are produced. access to smartphones and tablets to Eight ways that social technology is going to revolutionize supplement their TV experiences via television and online media. the second screen. This trend is now becoming mass market in the USA. The 1 second screen provides a means to make TV content engaging, personalized and trigger conversations amongst 7 the audience community, adding an extra element to the experience of just 2 watching a show. The ‘click’ paradigm from the PC and TV era is being replaced by the ‘touch’ Photo Credit: 88 Media paradigm. The mass adoption of tablets 8 and smartphones will require media Social ratings will augment traditional companies to make their content aligned rating systems like Nielson’s ratings. to the touch experience. Companies Social gestures are transitioning from It will provide unfiltered focus-group are achieving this by partnering explicit shares and likes to frictionless like insights based on social feedback Photo Credit: with touch content aggregators like sharing. With Facebook’s open graph that audiences are providing while Jectaspecta Flipboard, coming up with their own API it has become possible to build apps watching TV. We may see more advances in ‘push’ touch magazine-like experiences using that share information about what users based media consumption. This is publishing tools like Adobe Publisher are watching, reading, or listening to where personalized media content that for native apps and Mobstac for html5 on their profile pages. The Washington may be specific to the user’s current based apps. Post’s social reader app is a great location is pushed for consumption example of this trend. However, media using technologies like NFC. companies need to be aware of privacy issues when building such apps.1212 Photo Credit: Future Tech Life 13
  8. 8. Kuliza Social Technology Quarterly Vol. 2 Issue 1 3. MisoTop Miso has evolved social What we like4 TV to beyond check-ins. This app enables the They create a community creation of communities on by providing a publishing the second screen which platform to anyone - networks, can create long lasting Miso’s superfans, bloggers, engagements and deepen comedians and, potentially, relations between the celebrities, regardless networks and their audience. of their association with a show. This year theySocial TV 2. Shazam Photo Credit: Mac Talk launched “SideShows”. This is an interactive contentApps Shazam is identification an mobile audio app. experience on users’ that iPhones plays while It uses a mobile phone’s they watch TV to deepen microphone to gather a brief engagement with the second sample of audio being played screen. It varies from and provides information on characters’ back stories to the album or artists in the information on guest stars, case of music. The app also fashion, history facts, trivia caters to TV ads providing and quotes. brands with an opportunity to Photo Credit: Deviant Art take advantage of Shazam’s ‘second screen’ experience1. GetGlue to provide their consumers What we like with additional product The app provides an 4. ZeeboxAbout: GetGlue is platform information or give them opportunity to transformthat allows users to “check- an easy and fast point-of- TV ads from being about Zeebox acts as an electronic What we likein” to television shows, interest retail experience in awareness to being more program guide, weighted They are focused onbooks, and movies that real time. interactive, personalized, by what your friends or providing the three key thingsthey are watching using a and engaging. anyone is watching. They will users need when watchingwebsite, mobile website, or soon introduce interactive TV: getting informationa device-specific application. social payments and voting about what they see on TV,Checked-in users are features into the social TV ability to buy products theyentitled to receive points, app, allowing users to buy see on TV in real-time, andearn virtual stickers, receive what they see on screen, and have access to links to new Photo Credit: Serendipityrecommendations, and earn also vote for a contestant in episodes. Susan Photo Credit: Analogfolkdiscounts for entertainment their favorite TV talent shows.companies.What we likeThe app provides a way tocreate a connection withand amongst the audienceand create a framework forrecognizing and rewardingloyal fans.14 15
  9. 9. Kuliza Social Technology Quarterly Vol. 2 Issue 1 Each disruption in retail redefined customer expectations and Why is this Trend Happening? reimagined what retail is. Retailers that have survived thus far are the ones who adapted their format and offerings. The next We think this trend is the start of the integration of online and major disruption will be the integration of the mobile internet physical stores. Some of the reasons that it is occurring are: and the in-store experience of shopping. This is not just typical e-commerce with stores competing on price or convenience 1. People value experience and engagement with Clicks Meet for shoppers, but is about commerce becoming social. other people Shopping has always been a social experience, but now As the pace of technology change accelerates we value online and brick-and-mortar retailers are leveraging people’s and find comfort and security in the familiar: human contact. Technologies and apps that are scaling are ones that ease Bricks: Online social graph to add a social layer to aid product discovery, promote products and deals, and assist purchase decisions. transactions and encourage interaction between people. Until Facebook is at the forefront of this disruption with social recently, the common experience when purchasing a product plugins that add a social later to retail sites, enabling retailers is for customers to wait in a queue until they arrive at the cash Stores on the to push personalized recommendations, and using Facebook register and the wall between the buyer and seller. However, Deals to add a social layer to brick and mortar stores. Apple have broken this barrier and made the process a much more seamless part of the interaction between people with High Street One trend that is emerging as social commerce evolves and the the purchase completed on a modified iPod Touch. The integration of the mobile internet and the in-store experience focus of their stores is to build relationships and try to make of shopping continues, is the establishment of physical stores people’s lives better. Commerce by online retailers. This is reversing the previous trend of retailers establishing an online presence, either through The eyewear retailer Warby Parker initially launched by Diarmaid Byrne as an e-commerce site only, but quickly started offering their own e-commerce site or on Facebook. Having either an e-commerce site or a physical store appears to be no longer appointments to customers to sample their frames in their an option. Retailers see the advantage of trying to perfectly office. Later they partnered with a number of boutiques for integrate the advantage of physical and online stores to people try their frames. However, in both cases shoppers still Online stores are adapting their online- had to purchase online. More recently they decided to open a satisfy customers and their changing shopping habits as their only strategy and opening brick and mortar 2,500 square foot shop. They see a retail presence as having lifestyle becomes more influenced by mobile technology. In stores. 4 advantages: his Harvard Business Review article, The Future of Shopping, Darrell Rigby outlined the advantages of online and physical stores that retailers are trying to leverage: “First, our customers wanted it. Second, it allows us to build A Brief History of Retail close personal relationships with customers by meeting Advantages of online stores: them, which you don’t get from an online transaction. The retail industry has experienced a number of major • Rich product information Third, the showrooms act as learning laboratories, and disruptions in its history. The first large stores developed from • Customer reviews and tips help us to create ways to make shopping for glasses smaller general stores through the late 18th and early 19th • Editorial content and advice online easier based on how we see people behaving centuries. The first purpose built department store was opened • Social engagement and two-way dialogue physically in-person. Fourth, the stores are a great in Dublin, Ireland, in 1853. Compact and centralized cities of the • Broadest selection training opportunity for our staff. When they’ve served 19th and early 20th centuries, with public transport converging • Convenient and fast checkout people in our showrooms, they do a better job helping on the city center, were ideal for the growth of department • Price comparison and special deals customers who need assistance by phone or over email.” stores. As they were among the first large retailers they pioneered store design that is still common today. However, • Convenience of anything, anytime, anywhere access Photo Credit: Britannica Warby Parker is not the only online store to have established mass-produced cars and new suburbs changed the structure Advantages of physical stores: a physical presence. eBay and the Gilt Groupe both recently of cities, and shopping malls with specialty retailers challenged • Edited assortment opened pop-up stores. eBay opened stores in New York, San city center department stores. The next phase of disruption • Shopping as an event and an experience Francisco and London in December 2011 to display products from the 1960s undermined traditional malls as discount chains • Ability to test, try on, or experience products available online, with digital shop windows that included scan- like Wal-Mart and big-box stores like Home Depot grew. • Personal help from caring associates able price tags. The next major disruption began in the mid 1990s during the • Convenient returns • Instant access to products Anecdotal evidence of this preference for human contact while first dot-com boom. Internet start-ups like Amazon.com and16 • Help with initial setup or ongoing repairs shopping is the growth of farmer’s markets and the rise of food Pets.com rushed to establish and scale their services as • Instant gratification of all senses truck movements. While the growth can also be contributed to investors gambled billions on the growth of online shopping. the better understanding of the value of eating locally grown However, the bubble burst in 2000 and wiped out most of the seasonal food, both also offer a far more personal experience first wave of e-commerce retailers.16 17

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