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CURRENCIES
OF CHANGE
Why customers will expect
good behavior to be more than
just its own reward.
GLOBAL TREND BRIEFING
MARCH 2015
DEFINITION In 2015, brands who really have a HUMAN side must realize
that a million-and-one faux-HUMAN social media voices
and brand-vanity ‘experiences’ will never be enough: it’s
time for real action.
66% of consumers feel that their relationships with brands
are ‘one sided’, with them as the sole contributors and
brands as the sole beneficiaries (Edelman, October 2014).
One way that smart brands will take action when it comes
to customers’ quest for personal enhancement in 2015?
By taking the (ever-more widely adopted) smartphones
and wearable devices*
, and deploying them to offer more
personal, innovative, fun, timely, targeted and ultimately
relevant rewards in order to help people achieve their goals.
* Of course, like any trend that caters to such a basic human need,
tech-driven innovations aren’t the only solution. Check out some of
the low-tech innovations below too.
Consumers on a never-ending quest
for self-improvement will embrace
CURRENCIES OF CHANGE: discounts,
vouchers, rewards and more that
incentivize a desired behavior.
2www.trendwatching.com/trends/currencies-of-change/ CURRENCIES OF CHANGE
WHY NOW
Digital self-tracking promised to be a self-improvement
revolution.
Now, the results are in, and they tell a more nuanced story.
It’s true that the uptake of self-tracking has been impressive.
For example, 21% of US adults already owned a wearable
device (PWC, October 2014), while an online global study
of 24,000 consumers in 24 countries found that 8% owned
a wearable fitness monitor, 7% a smartwatch, and 6% a
wearable health device. 40%, 41% and 39% respectively plan
to buy one in the next five years (Accenture, January 2015).
But despite this, evidence shows that self-tracking alone
is not an effective long-term motivator for most users.
The Quantified Self has
failed to measure up.
Yes, self-tracking has given people
millions of data points about their lives.
But for many, it’s not enough.
3www.trendwatching.com/trends/currencies-of-change/ CURRENCIES OF CHANGE
A third of US consumers who have owned an
activity tracker stopped using it within six months.
ENDEAVOUR PARTNERS, JULY 2014
CURRENCIES OF CHANGE 4www.trendwatching.com/trends/currencies-of-change/
WHY NOW
Disappointment with the Quantified Self movement
doesn’t change the fact that self-improvement is one of
the deepest-rooted imperatives in human nature. What’s
more, it’s a fundamental driver of behavior inside the
modern consumer arena, where people strive to present an
interesting – and aspirational – face to the world.
We know in materially affluent societies, where basic needs
are easily met, human motivation quickly shifts away from
what I have to who I am. The result is a never-ending
quest for personal enhancement that can play out across
countless axes: health, formal education, informal skills
and knowledge, creativity, ethics, values and many more.
The problem? Other, self-sabotaging impulses and faults
that are just as much a part of human nature: lack of
motivation, poor time management, loss of focus, and yes,
plain old laziness (hey, we’re all guilty ;)
Yet the tension between
‘who I am’ and ‘who
I would like to be’
remains.
And the desire for self-improvement is
only getting stronger in more affluent
(and self-obsessed?!) societies.
5www.trendwatching.com/trends/currencies-of-change/ CURRENCIES OF CHANGE
In a survey of US consumers, 89% said taking
personal responsibility for health is the best way to
stay healthy. Meanwhile, 91% admitted to ‘snacking
all day on candy, ice-cream and chips’.
NIELSEN, JANUARY 2015
91%
CURRENCIES OF CHANGE 6www.trendwatching.com/trends/currencies-of-change/
The solution?
Combine new technologies with a deep
understanding of human behavior and
resolve this tension with compelling rewards
that help customers become the people they
want to be.
7www.trendwatching.com/trends/currencies-of-change/ CURRENCIES OF CHANGE
37% of Millennials would be strongly motivated
to use a wearable device if it ‘rewarded those who
frequently use it with loyalty points’; a figure that
rises to 52% if the rewards were monetary.
PWC, OCTOBER 2014
CURRENCIES OF CHANGE 8www.trendwatching.com/trends/currencies-of-change/
“Brand rewards would work for me because I’d end up
telling my friends about the brand and the incentives
they were offering, and that would make me feel more
obliged to succeed. Any brand that could help me reach my
personal goals would become a loved brand for me!”
PASCAL PERROCHON - STRATEGIC PLANNER / FRANCE
CURRENCIES OF CHANGE 9www.trendwatching.com/trends/currencies-of-change/
“A financial incentive from a brand I love would make me
more motivated to stick to a new habit. I think the most
effective incentives would be simple; anything too complex
and I might give up. But an effective scheme would really
show that the brand cares about their customers.”
LETICIA TANAKA - FASHION COLLEGE PROFESSOR / BRAZIL
CURRENCIES OF CHANGE 10www.trendwatching.com/trends/currencies-of-change/
LIVE | 2015 Seminars
1 YEAR. 6 CITIES. 2,000 + PROFESSIONALS.
Find out more
11www.trendwatching.com/trends/currencies-of-change/ CURRENCIES OF CHANGE
CHANGING THE SELF
FEATURED INNOVATIONS
See how these brands and businesses are incentivizing
change that improves individual wellbeing.
12www.trendwatching.com/trends/currencies-of-change/ CURRENCIES OF CHANGE
FEATURED INNOVATIONS: CHANGING THE SELF
Oscar Insurance
Insurance company rewards consumers
for walking
CURRENCIES OF CHANGE 13www.trendwatching.com/trends/currencies-of-change/
FEATURED INNOVATIONS: CHANGING THE SELF
Tencent and Razer
In-game rewards awarded for real-world
exercise
CURRENCIES OF CHANGE 14www.trendwatching.com/trends/currencies-of-change/
FEATURED INNOVATIONS: CHANGING THE SELF
Weight Watchers
Campaign offers reduced fees to
members who hit weight loss target
CURRENCIES OF CHANGE 15www.trendwatching.com/trends/currencies-of-change/
FEATURED INNOVATIONS: CHANGING THE SELF
SBT
Vending machine swaps cigarettes for
leisure experiences
CURRENCIES OF CHANGE 16www.trendwatching.com/trends/currencies-of-change/
CHANGING FOR SOCIETY
FEATURED INNOVATIONS
See how these brands are incentivizing consumers who
want to be better members of society.
17www.trendwatching.com/trends/currencies-of-change/ CURRENCIES OF CHANGE
FEATURED INNOVATIONS: CHANGING FOR SOCIETY
Fitbit and Feeding
America
Consumers burn calories to give food
CURRENCIES OF CHANGE 18www.trendwatching.com/trends/currencies-of-change/
FEATURED INNOVATIONS: CHANGING FOR SOCIETY
Prince Albert Police
Service
Canadian police partner with local
businesses to reward civic-minded behavior
CURRENCIES OF CHANGE 19www.trendwatching.com/trends/currencies-of-change/
FEATURED INNOVATIONS: CHANGING FOR SOCIETY
MaximusLife
Online platform for goal tracking syncs
with charitable organizations
CURRENCIES OF CHANGE 20www.trendwatching.com/trends/currencies-of-change/
CHANGING FOR THE PLANET
FEATURED INNOVATIONS
See how these brands are incentivizing consumers who
want to live more sustainably.
21www.trendwatching.com/trends/currencies-of-change/ CURRENCIES OF CHANGE
FEATURED INNOVATIONS: CHANGING FOR THE PLANET
Changers CO2
App rewards users who travel
sustainably
CURRENCIES OF CHANGE 22www.trendwatching.com/trends/currencies-of-change/
FEATURED INNOVATIONS: CHANGING FOR THE PLANET
Seda
Brazilian haircare brand exchanges
shampoo bottles for cellphone credit
CURRENCIES OF CHANGE 23www.trendwatching.com/trends/currencies-of-change/
FEATURED INNOVATIONS: CHANGING FOR THE PLANET
McDonald’s
Stockholm citizens pay for burgers using
cans
CURRENCIES OF CHANGE 24www.trendwatching.com/trends/currencies-of-change/
FEATURED INNOVATIONS: CHANGING FOR THE PLANET
MAMUT
Uruguayan shoe brand accepts plastic
bottles as payment
CURRENCIES OF CHANGE 25www.trendwatching.com/trends/currencies-of-change/
.
.
FIND OUT MORE »
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TR15
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TR15
Framework
Formats
Industry Focus
Tools
Framework
Formats
Industry Focus
Tools
NEXT
Want to supercharge customer self-improvement?
Apply this trend AND look beyond it!
27www.trendwatching.com/trends/currencies-of-change/ CURRENCIES OF CHANGE
28www.trendwatching.com/trends/currencies-of-change/ CURRENCIES OF CHANGE
NEXT
Time to mint your own
CURRENCY OF CHANGE?
Want to apply this trend? Ask: what
forms of CHANGE are important to our
customers but overlooked by other
brands? What is the most compelling
currency to offer (rewards, discounts,
hard cash)?
29www.trendwatching.com/trends/currencies-of-change/ CURRENCIES OF CHANGE
NEXT
Low cost, high reward?
Yes, this trend is being driven by new
technologies that enable rewards to
be ever more personal and relevant to
customers’ aspirations for change. But
CURRENCIES OF CHANGE don’t have
to be tech-driven or expensive. Check
out the creative, low-cost way that
McDonald’s showed customers they
cared about trash too. Can you come
up with a sub-$100 CURRENCIES OF
CHANGE initiative?
30www.trendwatching.com/trends/currencies-of-change/ CURRENCIES OF CHANGE
NEXT
Apply some
SYMPATHETIC PRICING
Turn flexible pricing into a lever
that supercharges customer self-
improvement by offering purposeful
discounts that support a shared value.
During the 2014 Winter Olympics in
Sochi, Dutch airline Corendon offered
cheap flights to Russia for gay rights
activists.
31www.trendwatching.com/trends/currencies-of-change/ CURRENCIES OF CHANGE
NEXT
Help your customers
develop some INSTANT
SKILLS
Meaningful self-improvement is at the
heart of the CURRENCIES OF CHANGE
trend. But customers will also embrace
innovations that empower them to
produce GREAT results with close to
ZERO effort. Hey, everyone wants a
shortcut sometimes...
32www.trendwatching.com/trends/currencies-of-change/ CURRENCIES OF CHANGE
NEXT
And if all else fails...
Forget incentivizing and find innovative
ways to PUNISH customers for bad
behavior. The Pavlok wristband, funded
on Kickstarter in October 2014, gives a
small electric shock when a user fails to
meet a personal goal. Whatever works ;)
MORE...
If you have any comments, suggestions
or questions then please do let us know.
Just email:
PAUL BACKMAN
Chief Client Officer
paul@trendwatching.com
About us
Established in 2002, trendwatching.com
is the world’s leading trend firm, scanning
the globe for the most promising consumer
trends, insights and related hands-on
business ideas. Our Premium Service counts
many of the world’s leading brands as
clients, while our free monthly Trend Briefings
go out to over 260,000 subscribers in 180
countries.
More at www.trendwatching.com
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2015 03 currencies-of-change

  • 1. CURRENCIES OF CHANGE Why customers will expect good behavior to be more than just its own reward. GLOBAL TREND BRIEFING MARCH 2015
  • 2. DEFINITION In 2015, brands who really have a HUMAN side must realize that a million-and-one faux-HUMAN social media voices and brand-vanity ‘experiences’ will never be enough: it’s time for real action. 66% of consumers feel that their relationships with brands are ‘one sided’, with them as the sole contributors and brands as the sole beneficiaries (Edelman, October 2014). One way that smart brands will take action when it comes to customers’ quest for personal enhancement in 2015? By taking the (ever-more widely adopted) smartphones and wearable devices* , and deploying them to offer more personal, innovative, fun, timely, targeted and ultimately relevant rewards in order to help people achieve their goals. * Of course, like any trend that caters to such a basic human need, tech-driven innovations aren’t the only solution. Check out some of the low-tech innovations below too. Consumers on a never-ending quest for self-improvement will embrace CURRENCIES OF CHANGE: discounts, vouchers, rewards and more that incentivize a desired behavior. 2www.trendwatching.com/trends/currencies-of-change/ CURRENCIES OF CHANGE
  • 3. WHY NOW Digital self-tracking promised to be a self-improvement revolution. Now, the results are in, and they tell a more nuanced story. It’s true that the uptake of self-tracking has been impressive. For example, 21% of US adults already owned a wearable device (PWC, October 2014), while an online global study of 24,000 consumers in 24 countries found that 8% owned a wearable fitness monitor, 7% a smartwatch, and 6% a wearable health device. 40%, 41% and 39% respectively plan to buy one in the next five years (Accenture, January 2015). But despite this, evidence shows that self-tracking alone is not an effective long-term motivator for most users. The Quantified Self has failed to measure up. Yes, self-tracking has given people millions of data points about their lives. But for many, it’s not enough. 3www.trendwatching.com/trends/currencies-of-change/ CURRENCIES OF CHANGE
  • 4. A third of US consumers who have owned an activity tracker stopped using it within six months. ENDEAVOUR PARTNERS, JULY 2014 CURRENCIES OF CHANGE 4www.trendwatching.com/trends/currencies-of-change/
  • 5. WHY NOW Disappointment with the Quantified Self movement doesn’t change the fact that self-improvement is one of the deepest-rooted imperatives in human nature. What’s more, it’s a fundamental driver of behavior inside the modern consumer arena, where people strive to present an interesting – and aspirational – face to the world. We know in materially affluent societies, where basic needs are easily met, human motivation quickly shifts away from what I have to who I am. The result is a never-ending quest for personal enhancement that can play out across countless axes: health, formal education, informal skills and knowledge, creativity, ethics, values and many more. The problem? Other, self-sabotaging impulses and faults that are just as much a part of human nature: lack of motivation, poor time management, loss of focus, and yes, plain old laziness (hey, we’re all guilty ;) Yet the tension between ‘who I am’ and ‘who I would like to be’ remains. And the desire for self-improvement is only getting stronger in more affluent (and self-obsessed?!) societies. 5www.trendwatching.com/trends/currencies-of-change/ CURRENCIES OF CHANGE
  • 6. In a survey of US consumers, 89% said taking personal responsibility for health is the best way to stay healthy. Meanwhile, 91% admitted to ‘snacking all day on candy, ice-cream and chips’. NIELSEN, JANUARY 2015 91% CURRENCIES OF CHANGE 6www.trendwatching.com/trends/currencies-of-change/
  • 7. The solution? Combine new technologies with a deep understanding of human behavior and resolve this tension with compelling rewards that help customers become the people they want to be. 7www.trendwatching.com/trends/currencies-of-change/ CURRENCIES OF CHANGE
  • 8. 37% of Millennials would be strongly motivated to use a wearable device if it ‘rewarded those who frequently use it with loyalty points’; a figure that rises to 52% if the rewards were monetary. PWC, OCTOBER 2014 CURRENCIES OF CHANGE 8www.trendwatching.com/trends/currencies-of-change/
  • 9. “Brand rewards would work for me because I’d end up telling my friends about the brand and the incentives they were offering, and that would make me feel more obliged to succeed. Any brand that could help me reach my personal goals would become a loved brand for me!” PASCAL PERROCHON - STRATEGIC PLANNER / FRANCE CURRENCIES OF CHANGE 9www.trendwatching.com/trends/currencies-of-change/
  • 10. “A financial incentive from a brand I love would make me more motivated to stick to a new habit. I think the most effective incentives would be simple; anything too complex and I might give up. But an effective scheme would really show that the brand cares about their customers.” LETICIA TANAKA - FASHION COLLEGE PROFESSOR / BRAZIL CURRENCIES OF CHANGE 10www.trendwatching.com/trends/currencies-of-change/
  • 11. LIVE | 2015 Seminars 1 YEAR. 6 CITIES. 2,000 + PROFESSIONALS. Find out more 11www.trendwatching.com/trends/currencies-of-change/ CURRENCIES OF CHANGE
  • 12. CHANGING THE SELF FEATURED INNOVATIONS See how these brands and businesses are incentivizing change that improves individual wellbeing. 12www.trendwatching.com/trends/currencies-of-change/ CURRENCIES OF CHANGE
  • 13. FEATURED INNOVATIONS: CHANGING THE SELF Oscar Insurance Insurance company rewards consumers for walking CURRENCIES OF CHANGE 13www.trendwatching.com/trends/currencies-of-change/
  • 14. FEATURED INNOVATIONS: CHANGING THE SELF Tencent and Razer In-game rewards awarded for real-world exercise CURRENCIES OF CHANGE 14www.trendwatching.com/trends/currencies-of-change/
  • 15. FEATURED INNOVATIONS: CHANGING THE SELF Weight Watchers Campaign offers reduced fees to members who hit weight loss target CURRENCIES OF CHANGE 15www.trendwatching.com/trends/currencies-of-change/
  • 16. FEATURED INNOVATIONS: CHANGING THE SELF SBT Vending machine swaps cigarettes for leisure experiences CURRENCIES OF CHANGE 16www.trendwatching.com/trends/currencies-of-change/
  • 17. CHANGING FOR SOCIETY FEATURED INNOVATIONS See how these brands are incentivizing consumers who want to be better members of society. 17www.trendwatching.com/trends/currencies-of-change/ CURRENCIES OF CHANGE
  • 18. FEATURED INNOVATIONS: CHANGING FOR SOCIETY Fitbit and Feeding America Consumers burn calories to give food CURRENCIES OF CHANGE 18www.trendwatching.com/trends/currencies-of-change/
  • 19. FEATURED INNOVATIONS: CHANGING FOR SOCIETY Prince Albert Police Service Canadian police partner with local businesses to reward civic-minded behavior CURRENCIES OF CHANGE 19www.trendwatching.com/trends/currencies-of-change/
  • 20. FEATURED INNOVATIONS: CHANGING FOR SOCIETY MaximusLife Online platform for goal tracking syncs with charitable organizations CURRENCIES OF CHANGE 20www.trendwatching.com/trends/currencies-of-change/
  • 21. CHANGING FOR THE PLANET FEATURED INNOVATIONS See how these brands are incentivizing consumers who want to live more sustainably. 21www.trendwatching.com/trends/currencies-of-change/ CURRENCIES OF CHANGE
  • 22. FEATURED INNOVATIONS: CHANGING FOR THE PLANET Changers CO2 App rewards users who travel sustainably CURRENCIES OF CHANGE 22www.trendwatching.com/trends/currencies-of-change/
  • 23. FEATURED INNOVATIONS: CHANGING FOR THE PLANET Seda Brazilian haircare brand exchanges shampoo bottles for cellphone credit CURRENCIES OF CHANGE 23www.trendwatching.com/trends/currencies-of-change/
  • 24. FEATURED INNOVATIONS: CHANGING FOR THE PLANET McDonald’s Stockholm citizens pay for burgers using cans CURRENCIES OF CHANGE 24www.trendwatching.com/trends/currencies-of-change/
  • 25. FEATURED INNOVATIONS: CHANGING FOR THE PLANET MAMUT Uruguayan shoe brand accepts plastic bottles as payment CURRENCIES OF CHANGE 25www.trendwatching.com/trends/currencies-of-change/
  • 26. . . FIND OUT MORE » Free Publications Premium Service Monthly publication featuring selected trends. On-demand access to all our trends & tools. A standalone, actionable opportunity. Static content. Read online or as a PDF. Understand the big picture of consumerism. Search & filter the innovation database by trend/ industry/ region. Download trend & industry reports or create custom PPTs. Find out moreSUBSCRIBE FOR FREE TR15 PPTPDF PPTPDF TR15 Framework Formats Industry Focus Tools Framework Formats Industry Focus Tools
  • 27. NEXT Want to supercharge customer self-improvement? Apply this trend AND look beyond it! 27www.trendwatching.com/trends/currencies-of-change/ CURRENCIES OF CHANGE
  • 28. 28www.trendwatching.com/trends/currencies-of-change/ CURRENCIES OF CHANGE NEXT Time to mint your own CURRENCY OF CHANGE? Want to apply this trend? Ask: what forms of CHANGE are important to our customers but overlooked by other brands? What is the most compelling currency to offer (rewards, discounts, hard cash)?
  • 29. 29www.trendwatching.com/trends/currencies-of-change/ CURRENCIES OF CHANGE NEXT Low cost, high reward? Yes, this trend is being driven by new technologies that enable rewards to be ever more personal and relevant to customers’ aspirations for change. But CURRENCIES OF CHANGE don’t have to be tech-driven or expensive. Check out the creative, low-cost way that McDonald’s showed customers they cared about trash too. Can you come up with a sub-$100 CURRENCIES OF CHANGE initiative?
  • 30. 30www.trendwatching.com/trends/currencies-of-change/ CURRENCIES OF CHANGE NEXT Apply some SYMPATHETIC PRICING Turn flexible pricing into a lever that supercharges customer self- improvement by offering purposeful discounts that support a shared value. During the 2014 Winter Olympics in Sochi, Dutch airline Corendon offered cheap flights to Russia for gay rights activists.
  • 31. 31www.trendwatching.com/trends/currencies-of-change/ CURRENCIES OF CHANGE NEXT Help your customers develop some INSTANT SKILLS Meaningful self-improvement is at the heart of the CURRENCIES OF CHANGE trend. But customers will also embrace innovations that empower them to produce GREAT results with close to ZERO effort. Hey, everyone wants a shortcut sometimes...
  • 32. 32www.trendwatching.com/trends/currencies-of-change/ CURRENCIES OF CHANGE NEXT And if all else fails... Forget incentivizing and find innovative ways to PUNISH customers for bad behavior. The Pavlok wristband, funded on Kickstarter in October 2014, gives a small electric shock when a user fails to meet a personal goal. Whatever works ;)
  • 33. MORE... If you have any comments, suggestions or questions then please do let us know. Just email: PAUL BACKMAN Chief Client Officer paul@trendwatching.com About us Established in 2002, trendwatching.com is the world’s leading trend firm, scanning the globe for the most promising consumer trends, insights and related hands-on business ideas. Our Premium Service counts many of the world’s leading brands as clients, while our free monthly Trend Briefings go out to over 260,000 subscribers in 180 countries. More at www.trendwatching.com Want more? Free Publications Premium Service LIVE: Keynotes & Workshops