The Rise of eSports

Since the advent and growth of eSports giants like Dota 2 and League of Legends, the gaming community has called for mainstream recognition regarding legitimacy. Take Colin Cowherd’s 2015 rant against esports for example. There are undeniable similarities between professional gaming and conventional sports, but the arguments have generally been ineffective in dispelling traditional beliefs formed by the collective generations of sports fans prior. While it is easy to dismiss playing video games as anything resembling an athletic endeavor, it is more complex than just noting the relative lack of physicality and declaring  as non-sports.

At their very essence,  are video games played in a competitive environment. Sometimes the games can be played one-on-one, other times, teams will square off against each other. But the key point in all of this is that  are competitive events. They are all about opposing players or teams doing battle in a real-time competition.

What’s In A Name? The traditional definition of professional sport is: all forms of competitive physical activity which, through organized participation, aim to provide entertainment to spectators and provide an income for the athletes, who in turn devote time training to increase their skills and experience to modern levels of achievement. But physicality alone cannot be the mark by which we measure “sport”. After all, look at poker. Poker is frequently broadcast on ESPN and other networks. This is equally true for chess and the National Spelling Bee. Is there anything remotely physical about playing poker? Or chess? Or a spelling bee? No.

And yet, all of these events are considered sporting events by probably the most recognizable sports network on the planet. Furthermore, players of  employ a strategies that play to their strengths while exploiting the weaknesses of their opponents. If the game being played is a team-based game, then teamwork is essential. Like any other athlete, players have tremendous reflexes, dexterity, and problem-solving skills. So, what exactly accounts for how we define “sports” and what does it mean for marketers?

The Conceptual Breakdown. Judging another culture solely by the values and standards of one’s own culture is termed ethnocentrism. People born into or surrounded by a particular culture begin absorbing its values and behaviors and build a worldview centered around these principles as the norm. Within the context of , this concept explains the psychology behind a lot of mainstream dismissal. Quite simply  don’t fit easily into our cultural definition of what sports should be. We do the same thing with other cultural categories all the time. For example, people in the U.S. struggle to classify crickets as food even though they are healthy, tasty, and plentiful. So, the struggle, whether it’s crickets or esports, is a reflection of cultural norms.

While ethnocentrism lends to maintaining the cultural status quo, generational gap is a concept referring to the differences between people of younger generations and their elders. It is the conflict between these groups which has catalyzed a lot of recent cultural change. This allows for members of the younger generation to form their own identities and cultures outside of older and mainstream influences. This is important to the development of  because despite its young age, its rapid growth foreshadows a change in the mainstream attitude towards it. The younger generation is growing up participating in and watching , thus making them part of their cultural norm. Within the next five years, there will be enough members in the community to challenge the mainstream dismissal of  and even gain the respect of the older generation regarding its legitimacy. And that should have everyone involved in marketing thinking.

Going Mainstream. Regardless of how you view , they are growing in popularity every year by leaps and bounds. Esports are on the verge of breaking out of their niche communities into mainstream focus. According to Newzoo, a company specializing in esports analytics, it’s estimated that the global esports economy will grow by 41% by the end of this year to $696 million and reach $1.49 billion by 2020. Keep in mind that includes more than the game itself, it includes media rights, advertising, sponsorships, merchandising and ticket sale. Like any other sport, it means reach extends well beyond the game.

The numbers speak for themselves, but also consider this: The renowned IMG Academy, an elite boarding school and training program in Florida geared for athletes in basketball, football, and other traditional sports, recently added an esports training program that includes physical, mental, and nutritional aspects. In other words, one of the most successful and prestigious sports-focused schools in the country believes so much in the future of esports that they have developed a training program around it. The outcome of generational gap is something IMG has identified and they are betting on significant changes in how we think of sports as a society.

Legitimacy also continues to be added as traditional sports team owners such as New England Patriots owner Robert Kraft and the organization that runs the New York Mets, Sterling Equities, have begun to make multi-million dollar investments in esports leagues. Cities like Washington D.C. have even outfitted their professional basketball arenas for live esports taking a well-calculated gamble that esports are here to stay.

That growth and investment around esports has started catching the eye of big-name brands including Arby’s, Coca-Cola, Audi, and Gillette to name a few. That’s because they see an opportunity to reach a demographic sweet spot, namely males between the ages of 21 to 35. They have cash, they’ve grown up gaming, and they are increasingly hard to reach via traditional advertising. Newzoo estimates the current global  audience at 385 million people, including 191 million enthusiasts and 194 million occasional viewers.

It’s estimated that the global eSports economy will grow by 41% by the end of this year to $696 million and reach $1.49 billion by 2020. Keep in mind that includes more than the game itself, it includes media rights, advertising, sponsorships, merchandising and ticket sale. Like any other sport, it means reach extends well beyond the game.

The numbers speak for themselves, but also consider this: The renowned IMG Academy, an elite boarding school and training program in Florida geared for athletes in basketball, football, and other traditional sports, recently added an esports training program that includes physical, mental, and nutritional aspects. In other words, one of the most successful and prestigious sports-focused schools in the country believes so much in the future of esports that they have developed a training program around it. The outcome of generational gap is something IMG has identified and they are betting on significant changes in how we think of sports as a society.

Spending by eSports still falls decidedly short of traditional sports. Enthusiasts will spend an average of $3.64 per person following the sport this year, according to Newzoo. Compared against basketball, on which fans spend an average of $15 each, and the short-term gains aren’t there for many brands. But like all things with esports, the numbers don’t tell the whole story. One reason for the discrepancy is that esports content is largely available for free and the money spent on merchandise remains relatively small. But spending is rising and expected to reach $5.20 per fan by 2020. Another reason is that eSports are drawing a younger crowd with less disposable income – for now. And this is where thinking about the long game becomes important. Building brand affinity and share of culture means building connections that last a lifetime. The earlier you bring a population into the fold, the sooner you become essential to the deeper cultural conversation. You aren’t reacting, you’re creating.

In the end, it doesn’t matter if eSports are seen as sports. People in the industry can identify similarities and use conventional sports as an example to adapt and grow the eSports culture. Growth in target audience involvement is currently more important than acceptance of members outside the base. And for brands hoping to remain relevant, having a presence in the eSports environment is extremely important.

 

 

Advertisements

AI, Advertising, and Culture

In an ever-increasingly connected world, artificial intelligence is beginning to find its way into every aspect of our lives. We are “on” 24/7and we rely more and more on our  devices, particularly our mobile devices, to help us make decisions. That rapid increase in computing power has done more than help the user. It has equipped companies with an unprecedented capacity to automate processes that previously required hours, days, and weeks of human effort. AI has allowed companies to target, adjust, and adapt at an unimaginable pace. In the same way that Siri acts as a personal assistant for its users, marketing companies are now tapping into AI to act as a personal assistant in the creation of highly effective marketing campaigns.

Currently, agencies (and their clients) use AI to sort Machine-Learning-AI-in-Finance-11-04-2016-A-1200x1200.jpg
through assets to determine and/or refine the target audience, to gather data about how to best position a brand in various contexts, and to create varied advertisements intended for a wide variety of mediums, including everything from billboards to social media. The final piece is still largely in its infancy, but will no doubt continue to grow and evolve as AI become faster and smarter. Today, the goal of AI in advertising is to optimize campaigns by placing ads in front of the right customer at the right time. As technologies evolve, advertisers will be able to limit their ads on the basis of a huge array of parameters, most of which we’re all familiar with. Targeting an individual will be based on hundreds of parameters and actions, all quantified and measure in the blink of an eye. And creative (and its placement) will adapt in near real-time. In other words, they’ll be able to micro-target at a faster pace than we can imagine.

All of that makes sense, but humans are more than individuals, we are part of broader cultural systems, which means context and cultural cues matter. Yes, each customer is unique and therefore each customer journey is unique. However, there are broader social, symbolic, and cultural forces that guide our behavior depending on the situation at hand. So, the question is, can AI account for those cultural patterns and processes?

Considering the rapid developments in machine and deep learning, these systems will become increasingly capable of teaching themselves to make more precise and effective decisions based on a broader set of inputs. Ultimately this means that for AI to be truly move beyond transactional relevance, it will need to have a more balanced approach, which is to have a robust understanding of people’s aspirations, interactions with each other, and social connections. What are they trying to get done, what are the barriers to that, how do they create a sense of belonging, etc.?

We create culture, interact with it, are affected by it, and can even be destroyed by it. Culture applies its own logic, has a memory, endures after its makers are gone, can be repurposed in supple ways, and can induce action. Because culture can do things we cannot do as individuals, like fostering collective action or making life easier by providing unspoken assumptions on which we can base our lives, AI will need to evolve to do more than react to clicks.

 

 

Story, Development, and Design

Storytelling is not simply narrative. It is an opportunity to communicate values in a way that is resonant and memorable, allowing the people taking it in to position themselves in the story, see its relevance to their current situation, and then play forward a narrative about their own role in the story of now. It’s a way of uncovering the complexities of a person’s world and designing within that context.

How does this happen? It happens through stories in which a human protagonist is presented with an unknown and has to make a choice. At this moment of choice, the listener feels the tension of what might go right and wrong, projects herself into that situation and, in so doing, experiences the values with which the protagonist wrestles. So how does it relate to development and design?

Story art and craft is one of the best and oldest ways to engage an audience. We approach every project, regardless of its size or scope, from this perspective. Not just story-first, but structure first. Just like screenwriters do or authors do. There are, of course, countless books on story art and craft, typically for writers, filmmakers, game designers and artists, but they’re rarely, if ever, written for the people who build websites, software, tools, services, etc. that are not necessarily art or entertainment.

Designers, product managers, developers, content strategists, they can all benefit from taking on a storytelling approach in the process of creation. Take for example the use of experience maps. The maps try to represent an actual example of how a person (or persona) went through and did something they wanted to do. The maps are generally chronological, moving forward through the hours of the persona’s actions one stage at a time. The phrase “experience map” came about because we tend to want to create tools most relevant to the job we’re assigned, but in practice we need to be agnostic of whether the persona is using digital tools or not, or a combination to tools. The map represents the journey a person takes from the idea of accomplishing something to having accomplished that thing in the end. We want to see how it all hangs together from the persona’s perspective.

There can be as many experience/journey maps for a particular persona as there are deviations in the way they do that thing. For example, if a persona was taking a commercial flight, there might be different maps for a business-related flight than a leisure-oriented flight. There might be different maps based on whether it’s a last-minute or urgent flight. There might be different maps for long versus short flights, flights where the persona has to get work done before landing, flights where the persona is scared of flying, etc. The relevance is that the mental model represents a set of states of mind (mental spaces) that a person might pop into and out of during this journey toward accomplishing a goal. The states of mind might proceed in a nice linear fashion. Or they might represent a more cyclical approach, where the person revisits a previous state of mind again to re-evaluate something, to continue something, or to address something new that has come up. And therein lies the power of storytelling. We are designing with the notion that the goal and the steps to achieving it are front and center. Taking this approach not only allows for better design, it ensures that the things we construct are tied into the broader ecosystem in which people operate.

 

Brands, Ads, and Culture

The old advertising model advocated the creation of an external brand image to influence consumers. It talked about benefits, it talked about the company, it promised to give you sex appeal. Those times are long past. This is partly due to the sheer number of channels in which people interact, but we believe there is a deeper reason. And that deeper reason is that successful brands both reflect and transform culture. In other words, talking about what you do is no longer enough. To compete in today’s landscape, you have to convey why you exist and connect it to how people experience their world.

Today we’re seeing that certain issues which could be considered secondary to a brand are suddenly primary. People are not just choosing the best, the sexiest, or the cheapest. They’re choosing brands that have meaning. Their concept of nature, of self, of society takes center stage. And this is where brands taking on a new and intriguing role.

So, what role does brand play in this landscape? The simple answer is that brands become symbols for crafting identity. They introduce, reflect, and influence meaning. The most resonant brands are creating value not just by the products or services they represent, but by the symbolic power they impart.

We believe that to be relevant and long-lasting, a brand must operate like a member of a culture. A company must share out its core values and articulate WHY it exists. A brand must stand for something and drive people to participate in it, become part of it. People want to belong to something bigger than themselves. People need to be part of a tribe.

Advertising for a Better World

Advertising is a visible face of business and as such, often takes a fair amount of heat– sometimes deservedly, sometimes not. We are at the heart of every argument against consumerism, questionable corporate practices, etc. And there is some truth to the criticisms that arise. But it’s worth noting that as an industry, we have the capacity to change the world in very meaningful ways and have, in fact, done so on more than one occasion. In fact, we are doing it more and more often with remarkable success.

There’s nothing necessarily new in this. The shift began in the 1960s in the form of a largely forgotten ad man by the name of Howard Gossage. His agency was in San Francisco. He worked for commercial clients but soon got bored and turned his attention to social issues and causes.

Agencies have always done work for charities and nonprofit groups, but this was the first time anyone had used the power of advertising for social and environmental good. He prevented the power companies from flooding the Grand Canyon, casually named a young environmental group “Friends of the Earth” and planned the Summer of Love from his agency. And the result was to redefine much of how we in the industry view our mission.

Recently, a story ran on 60 Minutes about the role advertising had in bringing a long and brutal conflict to an end. For decades, the Colombian government was fighting the guerrilla organization known as FARC. It was an unending cycle of violence and every strategy had ultimately come up short. As a last resort, the government went to advertising executive Jose Miguel Sokoloff. The idea was to use advertising, not bullets, to convince the FARC to demilitarize. The campaign and strategy was to focus on reconciliation and bringing FARC members back home. The result was that the majority of the FARC demilitarized, peace talks were arranged, and Colombia began to see the social and economic benefits.

Screen Shot 2017-01-17 at 10.31.26 AM.pngIn another outstanding campaign, TBWA launched an outdoor campaign in Finland for the Helsinki Police over the Christmas holidays that had a hyper-local, reactive element to it. When a domestic violence call into 911 (112 in Helsinki), the agency immediately put up anti-violence PSA posters on the 15 outdoor placements nearest to the home that made the call. The creative itself is also innovative. It shows a kitchen scene, which during the daytime looks normal, but after dark, a background lights switches on to reveal the signs of domestic violence.

Closer to home, Luckie & Co. worked with its partners to help make bring civil rights experience to life, particularly for younger generations. Screen Shot 2017-01-17 at 9.43.43 AM.pngIt’s hard to find a place that holds the civil rights struggle closer to its heart than Alabama. The state has made it a mission to turn a complicated, often painful history into a learning experience that does more than present the facts – it means to bring the story to life in an interactive, deeply resonant way. Luckie worked across multiple channels to tell a very human story that has drawn accolades and visitors from around the world.

The question is: how do we ensure we do this sort of thing more often? How do we become positive agents of change regularly rather than sporadically? I think the answer boils down to several key principles. Be strategic, be bold, and be determined. First, it’s not enough to get attention, you have to have a plan that will work over time, across multiple channels. You have to know every nuance of story being told and the audience that will receive it. Without a strategic plan, tactics will have no grounding and won’t produce meaningful change. Second, being bold means being will to disrupt, sometimes shock, and always have a clear point of view. This can be difficult with some clients because their need is to mitigate risk. Being bold is frightening. But without taking a strong stand, the message is easily lost in the sea of messaging we experience every day. Furthermore, change means confronting difficult issues, something people readily shy away from if given the chance. Unless your campaign, platform, etc. makes people stop and reflect, it simply won’t work. Finally, being determined means not wavering in the face of opposition, whether internal or external. That’s easier said than done in many case, but in order for your plan to have real impact, it will have to be “sold” again and again. Being strategic and being bold is threatening, which means clients will often shoot for the lowest common denominator. And to be fair, it’s a normal reaction. So, be prepared to defend your position again and again until you start to see results. Until you see the world change.

Context and the Changing Mobile Landscape

Marketers increasingly think about consumers in complex ways. It is understood that in a changing digital landscape, the context in which they learn and shop influences what messages we deliver and how we deliver them.  But we rarely define “context”. It is one thing to design a usable app that conforms to human factors and cognitive requirements, but it is quite another to design a stage in an environment when there are innumerable semi-autonomous devices mediating in a swirl of information.

Physical Context

Physical context refers to the notion of infusing devices with a sense of “place.”  In other words, devices can distinguish the environments in which they “live” and react to them. But this is difficult. Mapping out longitude and latitude is one thing, but reacting to features (political, natural, social, etc.) is much more problematic. Getting beyond the boundaries of identifiable borders and structures, means coming to grips with “place”.

Think of a mall.  There are hundreds of stores, each with hundreds of devices. The device now has to decode what information is relevant and how it will deliver information. What competing retailer apps get precedence over others? When you receive an offer, will the device “tell” other retailers in order to generate real-time counter offers? The digital landscape is continuous at all points throughout the day and getting design right means understanding the systems in which people operate.

Device Context

Just as various kinds of sensory apparatus (GPS-receivers, proximity sensors, etc.) are the means by which mobile devices will become geographically aware, another class of sensors makes it possible for devices to become aware of each other. This presents a series of problems that are different than those of physical context.

Technology is on the verge of existing in a world with zero-infrastructure networks that can spring up anywhere, anytime. Devices will exist in a constant state of discovery.  Returning to the mall, imagine that you are with a friend whose device is communicating with yours.  In the mall are a couple of thousand devices, all of which are discovering each other.  What happens now?  Assuming we’ve dealt with the problem of one friend’s device communicating with the other friend’s device while blocking out the other 2000 devices, you still have several thousand potential “identities” that may have useful information.  How is it decided what to manage without devoting significant time to setting up the hundreds of variables?

Information Context

This is the realm of information architecture. Data no longer resides “in” our computers.  Devices are extensions of the cloud and exist as something akin to perceptual prostheses.  They exist to manipulate data in the same way a joy stick allows us to handle the arms of robot in a factory.  This reflects a shift in how we use information because all information is transitory.

Storage issues are essentially removed from the equation.  Content can leap from place to place and device to device in an instant. Content will be customizable and reflect the human-application interaction rather than shaping it. Devices will find themselves in the fourth kind of context of social interaction, with all its contingencies. Just as behavior is shaped by the moment, so too will the apps and information needed to adapt.

Socio-Cultural Context

Each person is unique to contrasting cultures, tongues, traditions and world views. A cultural context may exist on levels as diverse as a workplace, a family, a building, a county, a continent, a hemisphere. Cultural context provides a framework for what “works” for each consumer in the world.

It is at this point where a better perspective is gained on what will and will not be accepted in the mobile universe. Take a beer pouring app that mimics the pouring of a beer when the device is tilted.  It serves no direct function and yet it has been successful because of the cultural needs it to which it speaks – workplace breaks, male-to-male bonding, etc. But in another context, say Saudi Arabia, the context shifts. Success lies in understanding the reasons behind the consumers beliefs and actions in the symbolic exchanges, and the ability to code and decode those exchanges.  Marketing mishaps come from a lack of comprehension.

So What?

Our great technological leaps forward have also produced more complexity, leading to a greater need to make sense of insights. Without a means to categorize context, marketers will miss identifying trends that matter most. What to do?

  • Rethink the problem. Frequently, “the problem” is a facet of something else. For example, when researching an eBook the problem to be solved isn’t technology, it is understanding why people read different material in different contexts. It may be about displaying books as a means of gaining status. The point is the problem seen may not be the problem at all.
  • Define the contexts. Defining the contexts helps articulate the range of possibilities for observation. For example, if the consumer behavior is drinking beer, all contexts in which beer is purchased and consumed need to be articulated.
  • Think through the sample. Who is the marketing targeting? What are the social circles that will shape the event? It isn’t enough to define a demographic sample, you need to think in terms of cultural systems.
  • Make a plan that involves experiential information gathering, not just statistics. Develop a guide to navigate the data collection and a method for managing the data (everything is data). Don’t  just think about the questions to ask, but also include opportunities for observation and participation.
  • Head into the field. This is the heart of the process. Meaningful insights and moments of “truth” are slow to get at. Low-hanging fruit will be easy to spot, but the goal should be to find those deeper meanings. Because everything is data, from attitudes to artifacts, it is important to capture as much as possible.
  • Do the analysis. Analysis is the most difficult, but also the most rewarding. The goal is to bring a deep understanding of cultural behavior to the analysis process. This goes beyond casual observation and gets to the underlying structures of why people do what they do.

The process is more time consuming than traditional approaches, but it ultimately yields greater insight and reduces time and costs on the back end. The end result is that you create greater value for the client and for the company.

Bricks, Clicks and the “New” Retail Paradigm

Since the emergence of internet shopping, companies have tended to structure their way of thinking about shopping channels in silos that reflect their operations. Shopping behavior is segmented according to the channel and the shopper is relegated to a specific trajectory. Shopping is usually thought of in terms of work – procuring goods, meeting needs, etc.  Shopping is seen first as a function and secondarily as something that serves emotional and social needs. Even as we talk about retail therapy, we revert in marketing to discussions about seemingly rational behavior.  But it isn’t so simple anymore. Unfortunately, with the ubiquity of internet access, be it from a fixed location or via a mobile device, the truth is those lines between the off-line and online experience have become so blurred as to be meaningless.  Rather than individual silos, shopping processes function as part of a complex, adaptive system that is increasingly driven by social interaction and socio-cultural needs, not transactional needs.

If a company is to grow its brand (and thereby its bottom line), it is wise to think about how this system emerges and understand how the act of shopping has fundamentally changed at a deep cultural level. What this means for shopper marketing is that the best retail experiences, those with the highest degrees of loyalty and sales, are those that project a story and invite the shopper into the narrative.

Bricks

Fifty years ago, the retail space was the only real way to interact with customers.  Yes, there was the option of the catalog, but it was, and is, a one-way conversation.  The retail space was more of a transactional space and advertising was simply a list, though cleverly done, of the goods available.  As shopping has become more convenient and the transactional element has been driven into new realms, and the retail spaces and brands that everyone admires have begun to touch shoppers on a more visceral level.

Shopping is about more than getting more stuff.  Brick and mortar shopping as it is practiced today in particular jumps the line between a functional/transactional and social/symbolic experience. Shopping is as much about entertainment, establishing cultural roles and teaching cultural norms (or rebelling against them) as it is about anything else. Often, the decision to enter into one retail space over another is about experiential elements more than it is price or convenience. Because experience is rooted increasingly in dialog between members of social groups (e.g. moms, bicyclists, rockabilly fans, etc.), the retail experience actually begins well before we set foot in the store, in conversations where people congregate.

Clicks

Digital shopping (online or with a mobile device) is highly personal, portable and an increasingly participatory experience. When it first began, the online shopping experience was largely fixed in one location and the interactions, primarily transactional in nature, were almost exclusively between an individual and what a company chose to present to them.  But this process was quickly modified as people began posting product reviews, blogging about their experiences, etc. Even so, the process of investigating a company was largely between an individual and either an institution or an abstract person in an unknown location.  And then social media was born changing the nature of the web and the shopping landscape forever. The highly individual, highly transactional nature of the online shopping experience became subject to the same social and cultural drivers as the brick and mortar experience.

Shopping ahs become as much about structuring peer groups as the transaction. The shopping and the purchase itself represent the groups we interact with and our places/roles in them. Because social media tools help us craft public identity, so do our purchase choices. With the increased use of mobile devices online shopping, and hence social media interaction at the point of shopping, has moved from the individual sitting at his or her kitchen table to a very public dialog. Peer group members (no, Ginger, we didn’t say “demographic” or “segment”) interact with each other and the retail environment simultaneously, creating a shopping experience that can draw literally thousands of people into the conversation from the point of consideration to the point of purchase.

Blenders

Retailers can blend the physical and social experience of brick and mortar shopping with the participatory (read: social network) experience of digital shopping to achieve a greater percent of brand loyalists (which currently and historically sits at 5%) and higher multi-channel revenue streams.

The first step is to examine in a bit more detail why people participate in digital shopping and what it means for the retail experience in its totality.

  • Social network: When shopping is done with others, as a family or with a friend, it is as much about establishing social bonds and being an outing as it is about fulfilling specific needs. It doesn’t matter if the shopping is in a physical location, in virtual space or a blending of the two.  Shopping has replaced the park, the lake, etc. Retail spaces and social media spaces that encourage people to interact both with each other and the brand lead to a greater sense of belonging and reinforce the roles people have adopted for that shopping excursion. For example, placing small sweets throughout a lingerie store (returning to our bra example) increases the sense of romanticism and allows people to “play” to the underlying storyline the shopper and her counterpart are seeking. Add to this the ability to share that experience with others and it becomes more real, more meaningful.  That in turn builds both interest and loyalty amongst your shoppers.
  • Entertainment and gaming: The store is indicative of a stage, a field on which we play games.  The same is true in social media.  People assume roles which they use to create a game-like environment, one-upping others and competing for cultural, psychic and monetary capital. Even without the direct associations with a specific story line a retail space and the social media environment should still conform to some very basic principles.  Namely, escape, fantasy, and inclusion. The total experience speaks to cultural and psychological triggers of enjoyment and participation. People create memories within places if storylines develop and form personal connections. The stronger the connection, the more likely they are to frequent the space and to buy. A good brand needs to be create a shared identity, connecting the company and the shopper by developing clear imagery and displays that create the sense that there is a narrative behind the façade.
  • Rewards as social influence: Rewards and bonuses are about more than getting goods for cheap.  The underlying motivations are largely drawn from the need to attain a sense of mastery that isn’t too far removed from the pleasure our ancestors derived from the hunt.  Not only do you get the good deal, but your sense of self worth and accomplishment is inflated.  Going beyond the need for mastery is the pride derived from demonstrating to the world that you are skilled.  You gain influence and cultural capital.  Add to the mix the element of social media, mobile social media more precisely, and the validation you receive is immediate and more expansive. The entire world shares in your success and you gain a degree of prestige that is tied to the exact moment of shopping, not as an afterthought. The result is that the brand, the store and the online presence become an integrated experience that is far more powerful for the shopper.

The trick for retailers is determining the proper mix of each of these elements to create the ideal shopping experiences for their brand. In the end, retail shopping is becoming more complex. With the increased use of online shopping and the ease of access to a more and more locations, people are making choices based on underlying desires, not just functional needs. Anything a retailer can do to improve the experience is a key differentiator. Differentiate your store and you increase loyalty and sales.