2014 MITX Data & Analytics Summit The Consumer-First World: 8 Digital Trends Changing the Way Consumers Connect with Brands Speaker: Nathalie Krup (@nathaliekrup), Global Consumer Insights Manager, Microsoft Advertising Which digital and social media trends can we expect in coming years? What does the future of digital behavior and technology look like? Microsoft Advertising, IPG Mediabrands, and The Future Laboratory partnered to delve into emerging global digital trends that shed light on how consumers’ relationships with technology have evolved and reveal their expectations around data, privacy, creativity, and the ways technology can enhance their lives. We’ll take you through these eight fascinating trends, discuss what they mean for brands and how you as marketing and advertising professionals can benefit from this evolving digital landscape.

1. THE CONSUMER-FIRST WORLD:
8 DIGITAL TRENDS CHANGING THE WAY
CONSUMERS CONNECT WITH BRANDS
Nathalie Krup
@nathaliekrup
Global Consumer Insights Manager
Microsoft Advertising
Registration Desk

2. 2
MICROSOFT GLOBAL CONSUMER INSIGHTS
 Focus on understanding the
underlying consumer motivations that
drive attitudes and purchase decisions
 Dual Pivot: Internal to Microsoft
product/R&D teams; External to assist
clients in optimizing these insights for
their businesses

3. MICROSOFT DIGITAL TRENDS

4. USA
Sweden
Brazil
Russia
China
UK
Germany
Czech Republic
45
early adopters
online consumers
8,000
Microsoft Executives
& Industry Leaders

6. Value Me
Right to Anonymity IntelligentlyON Age of Serendipity Enhancing
the Real
My Analytics Creator Culture Niche Networks

7. Value Me
Right to Anonymity IntelligentlyON Age of Serendipity Enhancing
the Real
My Analytics Creator Culture Niche Networks

8. Enhancing
The Real
What is the trend?
Going Beyond
Tactile & Touch
Increasing desire for
technology to immerse
consumers in enhanced,
multi-sensory experiences
To an Enhanced World
36% say digital
devices and services already
enhance their experiences in the
real world, especially Chinese
consumers
Digital
Humanisation
Consumers are looking for
products and services that
offer more engaging and
‘human’ digital
connections

9. Enhancing the Real

10. Enhancing
The Real
Go Dos for brands
Be Digitally Alive! Mind the Gaps
Consumers say they are much
more likely to buy products/
services that let them use
technology to make shopping
more seamless offline to online
– especially Millennials
Think Immersive!
47% already expect
brands to heighten
everyday experiences
by engaging more of their
senses

11. Enhancing the Real

12. Enhancing the Real
The digital space will
evolve into a new
layer to the real
world, and
technology will bring
to life once-intangible
objects or
experiences.
The future

13. Enhancing
The Real
Brand Toolkit &
Discussion
Have all the human senses in mind. Enhance and engage, but be careful not to invade or overpower
Show, don’t tell. Engage consumers in your brand and campaign and seek out opportunities to collaborate with
brands that are pioneers in sensory technology
Create multi sensory experiences. Across brand touchpoints, give compelling interactions in real & virtual
space
Don’t overwhelm. Ensure multi-sensory engagement does not confuse or create unnecessary noise

14. Age of
Serendipity
I expect the
unexpected
Surprise & Delight
Consumers want more
than the predictive…they
want experiences they’d
never even thought of that
surpass imaginations
One Step Ahead
At their most powerful,
digital technologies can
perform a kind of magic -
a Human Feeling that feels
like a happy accident –
almost like ‘fate’
A Growing
Expectation
55% expect technology
to deliver surprising
experiences that are
uniquely tailored and ‘feel
like coincidences’

15. Age of Serendipity

16. Age of
Serendipity
I expect the
unexpected
Engagement at
Another Level
It sharpens the senses,
encourages emotional
engagement with the
world, people – so be the
brand that goes beyond
past behaviours
Know me
intimately
42% already expect
brands to know them and
offer something they
didn’t even know they
wanted
Harness the Power
of Surprise
Deliver us a pleasantly
surprising experience and
61%of us are more likely to
buy from you – up to 86% in
China and 81%in Brazil

17. Value Me
What am I worth?
Why is it
happening
Misuse of personal data
(by companies,
governments, etc) means
managing data online is a
growing topic of
conversation
A “free” service
Consumers understand
their data is valuable feel
they are due a slice of the
pie. When they share their
data, they expect value in
return
My Specific Needs
45% of consumers are
willing to sell ALL their
digital data collected over
6 months to the right
brand at the right price

18. Value Me
Nike pop-up
vending
machines in NYC
allow customers
to trade Fuel
points for Nike
merchandise –
turning a points
system into a
consumer
currency

19. Value Me 59% of us are more likely to buy from you if you reward us for
our digital information.

20. Customers don’t feel that they’re currently getting a
fair value exchange
66%
31%
Importance Satisfaction
Microsoft Financial Services CDJ
Information
sharing…

21. 67%
58%
38%
Full knowledge & control Stop or delete at any time Get reward or benefit from it
And seek more transparency about that exchange

23. Serendipity &
Value Me
Brand Toolkit &
Discussion
Deliver pleasantly surprising experiences. This could be outside of the product and service portfolio
Build serendipity into loyalty programs. This will ensure longer term engagement
Serendipity can be simple and small. Coincidence and surprise do not need to be complex
Gateway to Millennials. Double the percentage as Boomers expect brands to know & recommend things to them
Transparency is King. Understand you are in a two way relationship with customers and communicate their value

24. My Analytics
What is the trend?
Data is Insights!
Tracking habits and
activities, measuring
performance and seeking
insights and self
betterment from personal
data
Strategies for
Improvement
51% use digital devices
and apps to track habits
and performance and
make strategies for living a
better life
A ‘Better ’ Me
27% use digital
devices/apps to track, and
analyse data to optimise
habits, activities,
performance and set goals
for the future

25. My Analytics

26. My Analytics
Why is this
happening?
Health Focus &
Tech Innovation
Combination of cultural
changes in social attitudes
and technological
innovation
Mobile, Mobile,
Mobile!
Revolution in mobile
technologies has driven
innovation – led to
explosion in self-quantification
for self-improvement
Fighting Fit
Increasingly frantic world,
consumers are seeking
ways not just to be fitter,
but to be more productive

27. My Analytics
What is Next?
Disappearing
Wearables
With tech shrinking and
ingestible sensors on the
horizon, wearable
technology will become
less visible
And ‘Sci-Fi’ Tech
38% are interested in
being able to track and
analyze our data using
devices implanted or easily
dissolved into the body
To Cloud
Projections
Ambient displays around
will inform us of our short
and long term data trends
– a snapshot of our health
and wellness

28. My Analytics
Brand Toolkit
Adopt positive language. Focus on achievement, improvement and ability
Collaborate with health and wellness brands. As well as data-driven products and services
Help consumers. To develop their skills, who can capture and analyse their individual aggregated data
Go beyond tracking data for the sake of tracking. Ensure that the data can deliver real value and
measured improvements in consumer lives

29. Creator
Culture
What is the Trend?
A New Creator
Culture
Experimentalism, creativity
and a desire for the
satisfaction of building
something new lie at the
heart
Still Niche
Due to its niche nature,
awareness low compared
to other trends at 23% -
but does skew young and
male
Make Do & Mend
2.0
39% express a desire to
learn more about how to
make or adapt their own
digital devices and services

30. Creator Culture

31. Creator
Culture
Why is this
happening
Growing
Expectations
Spend more and more
time with digital tech &
increasingly eager to
understand their inner
workings
Coding Less Geeky
Amateur developers’
overnight success has
inspired others to learn to
code, and access this
potentially lucrative
marketplace
More Accessible
Barriers to learning to
code and hack are lower
than ever – including free
and open courses

32. Creator
Culture
What is Next?
Empowering
Creativity
Consumers will
increasingly create their
own personal ecosystems
of tools and services that
are tailored to their
specific needs
Focus on ‘Creating’
54% are interested in
making their own digital
products in the future
About the
Blueprints
The future will be
increasingly about digital
designs and intellectual
property, rather than
physical products

33. Creator
Culture
What this means
for brands
Collaborative
Experimentation
Brands must develop
collaborative relationships
with consumers opening
themselves to consumers’
experimentation
Creative
Involvement
Brands should find ways to
encourage consumers in
creating new products or
services, whether tweaks
of their own or entirely
new experiences
Hacking Openness
49% expect brands to
be open and allow them
to create a new product or
service by using the
brands original design and
features

34. Creator Culture

35. Creator
Culture
Brand Toolkit
Get Involved with Generation I. They are the crusaders of the future Creator Culture.
Engage with emerging markets. Consumers who, by necessity, are the established creators
Align with coder clubs, science clubs and events
Start planning now. For a world in which we are all co-creators and more self-sufficient
Focus on the blueprints. Customisation should be built into products and services pre shelf

37. THANK YOU
@nathaliekrup