Marketing Design Businesses: Era of Digital Disruption - Chad Stark and Drew McGukin
1. Marketing Design Businesses in the Era of Digital Disruption
Design Bloggers Conference 2017
Presented by Chad Stark: Sr. VP of STARK, President of Scalamandre + DFA
Drew McGukin: Founder Drew McGukin Interiors
Tuesday, May 7th, 2017
/ DBC - 2017
WWW.STARKCARPET.COM + WWW.SCALAMANDRE.COM + WWW.DREWMCGUKIN.COM
2. Chad Stark
Originally Digital Marketer and
Startup Junkie
STARK Sr VP, Scalamandre President,
DFA President
Instagram: @cdstark
Drew McGukin
New York-based Interior Designer
Principal, Drew McGukin Interiors
Instagram: @drewmcgukin
/ DBC - 2017
WWW.STARKCARPET.COM + WWW.SCALAMANDRE.COM + WWW.DREWMCGUKIN.COM
3. Who is our Customer and Why Now?
What Makes Design Marketing Unique?
4 Foundation of Digital Marketing
Design Marketing Strategies to THRIVE
Key Discussion Topics
/ DBC - 2017
WWW.STARKCARPET.COM + WWW.SCALAMANDRE.COM + WWW.DREWMCGUKIN.COM
4. Evolving Consumer Review:
Millennials (or Generation Y) are the demographic cohort following
Generation X. There are no precise dates when the generation starts
and ends; most researchers, demographers, and commentators use
birth years ranging from the early 1980s to early 2000s.
- Wikipedia
/ DBC - 2017
WWW.STARKCARPET.COM + WWW.SCALAMANDRE.COM + WWW.DREWMCGUKIN.COM
5. The Industry’s New Consumer –
“LUXURIAN” or “HENRYs”
HENRY: High Earners Not Rich Yet
/ DBC - 2017
WWW.STARKCARPET.COM + WWW.SCALAMANDRE.COM + WWW.DREWMCGUKIN.COM
6. Characteristics of HENRYS:
• Crave luxury
• Art, Real Estate, Food, Wine, Luxury Goods & Travel
• Have the means to attain Luxury Lifestyle
• Not restricted to Millennial Age Range
• Not Millennials – but Millennial-minded
/ DBC - 2017
WWW.STARKCARPET.COM + WWW.SCALAMANDRE.COM + WWW.DREWMCGUKIN.COM
7. Economic
More Price/Value Conscious
Use Internet to source/shop
Technological
Free Design Material online
Social Media, Design Blogs
Online Design Communities
Consumer Characteristics in “Connected Culture”
More Savvy Shoppers
Self Confidence
DIY Culture
Generational
Less “Touch and Feel”
Less Inclined to Travel
More willing to interact online
Prefer EASE and ACCESSABILITY
Choice Paralysis
Crave Instant Gratification
Online Research pre-visit
Browse Showrooms w/o designer
Want to buy products directly
/ DBC - 2017
WWW.STARKCARPET.COM + WWW.SCALAMANDRE.COM + WWW.DREWMCGUKIN.COM
9. • More VISUAL and PICKY target market
• Read less and visually scan more – Facebook food video versus
recipe.
• Immense pressure from industry (ie retail stores) to become design
authority.
• Spending $$$ to establish “new” design authority
• Industry slow to adapt new and innovative technology /
marketing tactics.
Design Business Marketing – What makes it unique?
/ DBC - 2017
WWW.STARKCARPET.COM + WWW.SCALAMANDRE.COM + WWW.DREWMCGUKIN.COM
10. Marketing Design Businesses in the Era of Digital Disruption
4 Pillars of Digital Marketing (ie the foundation) Remain Constant:
• Authenticity
• Frequency
• Etiquette
• Relatability
/ DBC - 2017
WWW.STARKCARPET.COM + WWW.SCALAMANDRE.COM + WWW.DREWMCGUKIN.COM
11. Authenticity
Consumers can feel the difference between genuine and fake
Honest + Genuine --> builds trust
Pay to Post is ok when ON BRAND
Can instantly hurt credibility if not genuine
Establish voice through unique-to-you content
Define your own “program”
Personal vs Professional Personas
MUST have a focus for professional accounts
1 or 2 accounts can work depending on content curation
Link accounts
/ DBC - 2017
WWW.STARKCARPET.COM + WWW.SCALAMANDRE.COM + WWW.DREWMCGUKIN.COM
12. Frequency
Digital followers expect frequent communication
Cannot disappear for extended periods of time or risk irrelevance
Gain New Followers is easier than winning back Lost Followers
Consistency
Posting should follow consistent visual and style guidelines
Define your natural rhythm
*consider variation per channel
/ DBC - 2017
WWW.STARKCARPET.COM + WWW.SCALAMANDRE.COM + WWW.DREWMCGUKIN.COM
13. Etiquette
Etiquette is Social Currency
Always give credit where credit is due builds trust and respect
Designers + Stylists + Vendors encourages mention exchanges
Photographers + Publishers
Don’t neglect followers!
Stay Positive
“Play the Game” – collaborate / cross pollenate / etc.
Can’t be all take, Social is about the give.
/ DBC - 2017
WWW.STARKCARPET.COM + WWW.SCALAMANDRE.COM + WWW.DREWMCGUKIN.COM
14. Relatability
Social Media overrun with bland corporate noise
Personality goes a long way!
Corporate control of brands has DISAPPEARED
Self Promotion vs Inspiration (ie promotion of others)
Consumers respond to “humanized” brands
Influencer and Peer-to-Peer Recommendations
/ DBC - 2017
WWW.STARKCARPET.COM + WWW.SCALAMANDRE.COM + WWW.DREWMCGUKIN.COM
18. Strategies to THRIVE with
Design Marketing in the
NEW design economy
/ DBC - 2017
WWW.STARKCARPET.COM + WWW.SCALAMANDRE.COM + WWW.DREWMCGUKIN.COM
19. Marketing Design Businesses in the Era of Digital Disruption
4 Pillars of Digital Marketing Remain Constant:
• Authenticity
• Frequency
• Etiquette
• Relatability
Strategies to THRIVE in Design Industry:
1 Embrace the new Design Economy and Consumer Preferences
2 Leverage channel specific content with a clear goal and strategy
3 Inspire and Inform through content that supports your strategy
4 Engage colleagues, influencers, and clients
/ DBC - 2017
WWW.STARKCARPET.COM + WWW.SCALAMANDRE.COM + WWW.DREWMCGUKIN.COM
20. EMBRACE the new design economy
Follow and Understand evolving Ecosystem
New Service Models and Consumer Preferences
Less is More Product > Lifestyle
Image Quality – iPhone vs professional setup
Shopable Social Media – “trims away fat” transparency
Website as ”one of many” digital touchpoints
Leverage DIY Mentality
/ DBC - 2017
WWW.STARKCARPET.COM + WWW.SCALAMANDRE.COM + WWW.DREWMCGUKIN.COM
21. Havenly: Get Decorated - The easiest way to decorate your home
21
/ DBC - 2017
WWW.STARKCARPET.COM + WWW.SCALAMANDRE.COM + WWW.DREWMCGUKIN.COM
22. Havenly: Get Decorated - The easiest way to decorate your home
22
/ DBC - 2017
WWW.STARKCARPET.COM + WWW.SCALAMANDRE.COM + WWW.DREWMCGUKIN.COM
23. LEVERAGE channel-specific content
Start with defining campaign or brand goals
Goals Strategies Tactics
Live vs Stories vs Posts
Utilize Dynamic Content (video, rotating slides, etc)
Each channel has unique advantages based on goals
Don’t forget about email personalized and effective
Clear Channel Strategy
Mastering 1 channel > 25% mastering many (Social Credibility)
/ DBC - 2017
WWW.STARKCARPET.COM + WWW.SCALAMANDRE.COM + WWW.DREWMCGUKIN.COM
25. INSPIRE and INFORM through content
Emotional content vs pretty pictures
Be BOLD and take RISKS unique and engaging content
80:20 safe : risky showstoppers vs sellers
Product Shopping vs Design Experience
Emphasis on PROFESSIONAL photography without losing authenticity
Showcase uniqueness and process
Demystify Design Process
Share Contacts and “Know How”
/ DBC - 2017
WWW.STARKCARPET.COM + WWW.SCALAMANDRE.COM + WWW.DREWMCGUKIN.COM
32. ENGAGE your followers
RESPOND TO EVERYONE get featured in Instagram “discovery” section
# interactions / # followers = engagement efficiency ratio
Interactions more interactions more, more, more!
Partner with industry influencers to backlink posts
Stories & Live Videos
Proactively follow, like, and comment reinforces relatability
Showcase understanding of audience
Share in client excitement
Solicit constant feedback
/ DBC - 2017
WWW.STARKCARPET.COM + WWW.SCALAMANDRE.COM + WWW.DREWMCGUKIN.COM
33.
34. Marketing Design Businesses in the Era of Digital Disruption
Design Bloggers Conference 2017
/ DBC - 2017
WWW.STARKCARPET.COM + WWW.SCALAMANDRE.COM + WWW.DREWMCGUKIN.COM
4 Pillars of Social Marketing Remain Constant:
• Authenticity
• Frequency
• Etiquette
• Relatability
Strategies to THRIVE in Design Industry:
1 Embrace the new Design Economy and Consumer Preferences
2 Leverage channel specific content with a clear goal and strategy
3 Inspire and Inform through content that supports your strategy
4 Engage colleagues, influencers, and clients
Q & A
Editor's Notes
Marketing Design Businesses: Era of Digital Disruption
Drew and Chad have become focused on today’s tech saavy “Luxurians”. In this session, both will establish who these buyers are in today’s commercial marketplace and top social channels, sharing success stories in mining these new digital client prospect pools. They will cover approaches from both designer and showroom/company/brand perspectives. Both are actively nurturing the brand>designer>client commercial food chain, and are wisely looking to the future with digital strategy practice and development intended to intersect disruptive online development in the world of luxury design commerce.
Chad Stark, Sr. Vice President and President of Decorative Furnishings Association, is the main figure behind the scenes at Stark. He continues to direct the company as an industry leader, while growing business in the digital age. As the operational wizard behind Stark, he manages all the technical details while remaining focused on providing the highest level of customer service to trade clients.
The New York Chapter of the International Furnishings and Design Association [IFDA] named Drew McGukin a ‘Rising Star’ in 2012; Departures Magazine has included Drew as a member of its Home Design Council since 2014; and Houzz.com, the leading online platform for home remodeling and design, continues to honor Drew with its “Best of Houzz” distinction in design for driving extraordinary online traffic through his online portfolio.
___
As technology continues to present us with new ways to approach projects, the design world’s clientele now has greater access to information than ever before. This access is changing the nature of the luxury consumer and puts us in a position where our in-depth knowledge of products and the industry is truly our most useful tool when working with this evolving client base.
When consumers once relied solely on the guidance of their decorators or designers, there now exists a widespread Do-It-Yourself (DIY) culture and endless free or affordable design resources at the touch of a screen. The client base that is developing in this environment prefers ease and accessibility to the ritual of making the trip to a showroom. It then becomes our job to use our knowledge of the design industry to effectively guide them as they find themselves bombarded with seemingly infinite suggestions.
Can probably shorten customer part
15-35 Years Old
There are various technological, generational, and economic factors that have been contributing to this change over the last 10 years.
Today, there are more design enthusiasts than ever before because of the easy access to free design materials online, such as blogs and design magazine websites. This is creating more knowledgeable shoppers who feel confident in their decision making without the help of a decorator.
This new generation of consumers is less “touch and feel” oriented and more willing to purchase products online. They are less interested in making long trips and want products that are easily accessible.
Lastly, consumers have become more price-sensitive than ever before, and they are using the Internet to make sourcing and shopping for products from different suppliers easier and more affordable.
In fact, more wealthy retail consumers than ever before are walking into showrooms without designers and trying to buy luxury products themselves.
There are various technological, generational, and economic factors that have been contributing to this change over the last 10 years.
Today, there are more design enthusiasts than ever before because of the easy access to free design materials online, such as blogs and design magazine websites. This is creating more knowledgeable shoppers who feel confident in their decision making without the help of a decorator.
This new generation of consumers is less “touch and feel” oriented and more willing to purchase products online. They are less interested in making long trips and want products that are easily accessible.
Lastly, consumers have become more price-sensitive than ever before, and they are using the Internet to make sourcing and shopping for products from different suppliers easier and more affordable.
In fact, more wealthy retail consumers than ever before are walking into showrooms without designers and trying to buy luxury products themselves.
There are various technological, generational, and economic factors that have been contributing to this change over the last 10 years.
Today, there are more design enthusiasts than ever before because of the easy access to free design materials online, such as blogs and design magazine websites. This is creating more knowledgeable shoppers who feel confident in their decision making without the help of a decorator.
This new generation of consumers is less “touch and feel” oriented and more willing to purchase products online. They are less interested in making long trips and want products that are easily accessible.
Lastly, consumers have become more price-sensitive than ever before, and they are using the Internet to make sourcing and shopping for products from different suppliers easier and more affordable.
In fact, more wealthy retail consumers than ever before are walking into showrooms without designers and trying to buy luxury products themselves.
Customized and Personalized communication = a functional result
Consumers ARE more informed AND have access to more info so you need to get with the program (honesty/transparency)
Our customer is specific (visually discerning)
Our competition has lots of money compared to us\
meaning our retail competition has a lot more money than we do and they are using it to try and establish themselves as design authority online, so we feel that pressure to compete (RH example with nice brochures)
We do not spend our limited budget in the right places (as a whole) slow to change, not very efficient (ie no short form video)
35
People need to feel engaged in the SOCIAL part of social media – share things, collaborate, involve people who you think may be interested. This will lead to larger following if done properly.
People need to feel engaged in the SOCIAL part of social media – share things, collaborate, involve people who you think may be interested. This will lead to larger following if done properly.
Ends at 1038
People need to feel engaged in the SOCIAL part of social media – share things, collaborate, involve people who you think may be interested. This will lead to larger following if done properly.
Speak about Ashely again for promotion of others
Nate Berkus
Talk about how Vienna built to 100K + leveraging emotional content ONLY
No photos
Personal Instagram is private
Now shifting to Stories for “Face to a name” addition
Also promoting events and speaking opportunities through Stories.
Speak about Ashely again for promotion of others
Nate Berkus
Stories
Industry specific
35
Only way for this to help you is for you to truly understand what it means for your new design consumer.
Examples: Havenly, Laurel & Wofff, DecorAid – changing mentality – DIY culture
As well as how to leverage the tools
Ashley Darryl Dining Room Time Lapse
Ashley Darryl Dining Room Time Lapse
Instagram stories and live videos on FB are another tool for engagement
Marketing Design Businesses: Era of Digital Disruption
Drew and Chad have become focused on today’s tech saavy “Luxurians”. In this session, both will establish who these buyers are in today’s commercial marketplace and top social channels, sharing success stories in mining these new digital client prospect pools. They will cover approaches from both designer and showroom/company/brand perspectives. Both are actively nurturing the brand>designer>client commercial food chain, and are wisely looking to the future with digital strategy practice and development intended to intersect disruptive online development in the world of luxury design commerce.
Chad Stark, Sr. Vice President and President of Decorative Furnishings Association, is the main figure behind the scenes at Stark. He continues to direct the company as an industry leader, while growing business in the digital age. As the operational wizard behind Stark, he manages all the technical details while remaining focused on providing the highest level of customer service to trade clients.
The New York Chapter of the International Furnishings and Design Association [IFDA] named Drew McGukin a ‘Rising Star’ in 2012; Departures Magazine has included Drew as a member of its Home Design Council since 2014; and Houzz.com, the leading online platform for home remodeling and design, continues to honor Drew with its “Best of Houzz” distinction in design for driving extraordinary online traffic through his online portfolio.
___
As technology continues to present us with new ways to approach projects, the design world’s clientele now has greater access to information than ever before. This access is changing the nature of the luxury consumer and puts us in a position where our in-depth knowledge of products and the industry is truly our most useful tool when working with this evolving client base.
When consumers once relied solely on the guidance of their decorators or designers, there now exists a widespread Do-It-Yourself (DIY) culture and endless free or affordable design resources at the touch of a screen. The client base that is developing in this environment prefers ease and accessibility to the ritual of making the trip to a showroom. It then becomes our job to use our knowledge of the design industry to effectively guide them as they find themselves bombarded with seemingly infinite suggestions.