Retail IS Marketing

We’ve been hearing about the eminent death of brick and mortar retail for a very long time. And while the industry continues to be squeezed as more people shift their buying habits online, retail is far from dead. It does, however, need to evolve and think about how it can remain culturally relevant. A lot’s been said about how consumers today don’t settle for just great products. They want their brands to reflect their lifestyle and values. Things like authenticity, ethical behavior, relevance to their identity matter more than ever before. Retail shopping is becoming more complex and is more than a place to make a purchase – the retail experience is a marketing platform. 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. Thinking about the retail experience as a marketing tool will increase loyalty and sales. Treating your retail experience as a marketing tool involves six crucial elements:

  1. Tell a Great Story

The term “lifestyle” is thrown around fairly freely, but for us it’s about storytelling and engaging with people in a conversational way. A retail brand needs to be viewed in the same way a customer might view a friend who’s changing and evolving, but still has a strong sense of DNA. That means having a clear tone, but not being restricted by a rigid set of rules. It also requires that the brand communicate its story in everything it does, from traditional adverting, to how employees interact with guests, to its presence in social media. Every touch point needs to align with the other to create a clear, singular expression of why the brand exists, not just what it sells.

  • Unexpected Topics

Your brand shouldn’t be pigeonholed; it should be seen in a light where there is meaning and narratives are celebrated. A retailer can’t be afraid to venture outside its vertical and engage with people in unanticipated ways. This isn’t to say that the brand should jump into every conversation for the sheer sake of having a voice, but it should think creatively. For example, knowing banks need to attract younger customers, why not have a pop-up retail presence at a music festival? If your brand sells men’s clothing, why not host a happy hour? The point is, being an unexpected part of a conversation makes your brand more relevant in daily life.

  • Guides, Not Clerks

Going forward, in-store staff will have to be more educated and receive more training than retail staffers get today. That will of course lead to a larger training investment by the retailer, but the benefit is that there will be greater incentive to reduce staff turnover, which in turn will improve the shopping experience for consumers by making staff more knowledgeable and able to build lasting relationships with customers.

  • Technology

Technology will continue to change the store experience. Not just technology for the supply chain that gets products into the store faster and more reliably, but technology that consumers can use in the store. The technology that’s coming will recognize the consumer when they come into the store and make recommendations that are relevant and time-saving for them. It will also help retailers to organize and present products in ways that are more relevant to how consumers actually shop. With that in mind, staying ahead of the curve will ensure customers think of your brand first when deciding where to shop.

  • Create a Stage

Shopping is seen by most marketers 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. In fact, entertainment and a memorable in-store experience probably have more to do with a sale than the product or the ease with which people find it. Choice equates with enjoyment, turning shopping from labor to entertainment. The retail environment is an expansive, immersive media platform. 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.

  • Foster Social Roles

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 has replaced the park, the lake, etc. Brands that encourage people to interact both with each other and the space leads to a greater sense of brand affinity, reinforces the roles people have adopted for that shopping excursion, and creates a shared cultural connection.

Even as we talk about retail therapy, we often revert in marketing to discussions about seemingly rational behavior. But it isn’t so simple anymore. Shopping is about more than just getting more “stuff”.  Brick and mortar shopping as it is practiced today in particular jumps the line between a transactional and social experience. Shopping is as much about entertainment, establishing cultural roles and teaching cultural norms (or rebelling against them) as it is about anything else. No doubt we’ll see a range of creative ways in the future of dealing with the diversifying modes of shopping. For example, product companies may provide space to relevant service businesses. A luggage or travel store can have space for a Kayak or Expedia kiosk or service desk. The point is that it’s going to take creativity to get maximum leverage out of limited capital. But the payoff is a stronger connection to a brand, increased loyalty, and more dollars spent.

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Millennials, Motorcycles, and Marketing: The End Is Not Nigh.

CNBC ran a story yesterday on the slow demise of Harley Davidson that caught my eye. It began with the statement, “The supposed millennial penchant for ‘killing’ industries gets thrown around a lot, but it could really be happening to one American icon: the Harley-Davidson  motorcycle.” The reasoning is that in addition to a decline in sales (which are admittedly significant) and behavioral data suggest a considerable generational divide in attitudes toward heavyweight motorcycles. There’s little question that this American icon is dealing with difficult times, but there are two distinct problems with the article. The first is the fetishizing of data and the inability to interpret it in a broader context. The second is the obsession we seem to have as a society with blaming Millennials for crushing industries.

The Data Problem. Survey data suggests that the reasons for buying a bike differ fairly dramatically for older and younger generations. In response to why they buy a motorcycle, 21-34-year olds state that it’s a matter of ease of transportation, while older buys (the article doesn’t really qualify what “older” means) are buying because bikes are “cool” or as part of a hobby.  Younger buyers, so the story goes,  appear to be more motivated to consider motorcycles for practical reasons, which means it is likely they will be more interested in less expensive bikes that bring in lower margins for manufacturers. However, potential younger buyers cited the second most common reason to buy a motorcycle was that it “goes with their self-image”. That is, they’re buying them, or considering buying them because they are “cool”. So, from the outset there is a bit of a contradiction, or at least a misinterpretation, of the data and what appears to be a complete disinterest in exploring the findings with a critical eye.

First, these assessments don’t take into account that the economy into which this population into after leaving college, and the bulk of them are indeed college grads, is one of the most hostile times in U.S. History. Even with a booming stock market and labor market, this generation is mired in debt and jobs simply don’t pay what they did. Because of these tough times, they were forced to change the outlook or the norm in key areas such as ownership. Like their great grandparent who weathered the depression, their outlook and buying habits are more frugal, more pragmatic. This has affected other industries including the motorcycle industry, and as such we’ve have seen the rise of smaller more “urban-esque” style motorcycle in recent years. This presents a problem for brands like Harley-Davidson, but it is one they are addressing. The problem is, innovation and change take time, so the current decline in sales doesn’t necessarily indicate the death of the brand.

Second, there’s that point about bikes being cool. Motorcycle culture exists on the margins of mainstream culture as both a social community and a mode of transportation, and the cultural stereotype imagines all bikers to be rebels, socially as well as sexually. The motorcycle is much more than a means of transportation; it is a symbol of freedom, a life that breaks through the norms. To put it briefly, the motorcycle culture implies being one with the bike and living by the road’s unwritten rules. The degree of freedom, individuality, and adventure found in motorcycle riding and culture distinguishes it as nontraditional in contrast with cars, the bus, etc. In other words, while the technology behind a bike may have to shift to accommodate changing interpretations of technology and the economic realities of a younger generations, motorcycles still have a cultural allure that can’t be overlooked. And the Harley-Davidson brand is still the heart and soul of the motorcycle mystique.

The Millennial Problem.  Quite simple, Millennials haven’t destroyed industries any more than they’ve brought plagues of locusts. Piling up on a generation is divisive and counterproductive. American institution is declared dead, the news media like to haul the same usual suspect before the court of public opinion: the Millennial generation. But based on analysis of economists at the Federal Reserve, this idea is pure fiction.

When researchers compared the spending habits of Millennials with those of young people from past years, such as the Baby Boomers and Gen Xers, they concluded that “Millennials do not appear to have preferences for consumption that differ significantly from those of earlier generations.” They also found that “Millennials are less well off than members of earlier generations when they were young, with lower earnings, fewer assets, and less wealth.” So, the fact that young people are buying fewer motorcycles doesn’t prove that they don’t want them. It might mean they simply can’t afford them.

It’s typical for Millennials to bear blame for dramatic cultural and economic changes when their only crime is behaving like everybody else. For example, last year The Wall Street Journal published a report that cited young people for killing grocery stores. The data show consumers ages 25 to 34 are spending less at traditional grocers than their parents’ generation did in 1990. But here’s the rub: Americans of all ages are relying more on convenience stores, pharmacies, and superstores, for food to eat at home, and those institutions aren’t typically counted as grocers in government data. Furthermore, the same holds true for etailers, like Amazon. Also, Americans of all ages are eating out at restaurants more. The group shifting its spending toward restaurants the fastest? It’s not 20-somethings. It’s people over 50. In other words, whether it’s motorcycles, cars, groceries, or nearly anything else, the woes of these industries can’t be pinned on Millennials. Millennials have simply become scapegoats and tired tropes for unimaginative reporting.

What It All Means. Harley-Davidson’s reaction to the article from CNBC sums up everything about it quite nicely: “There’s nothing new here”. Blaming millennials for the failures of various industries, including the motorcycle industry, is rather asinine. Indeed, it might make more sense to thank them for forcing the motorcycle industry to go back to their roots of innovation, rebellion, and coolness. Manufacturers and marketers ultimately have a responsibility to work with dealers, influencers, etc. to create new riding opportunities and messages that breath life back into the industry. Brands like Harley-Davidson are making terrific bikes that people want to ride. But weak marketing communication efforts around their overall value have allowed the price-to-ride value equation to slide. Add to that a fixation on data over creativity and reflection on the cultural significance of the motorcycle and you have a tremendous problem. Millennials aren’t killing the industry. The industry, like society, is simply changing.

Retail Behavioral Economics

Agencies have been applying behavioral economics, sometimes knowingly, sometimes not, for years. But as a formalized discipline, behavioral economics is a relatively new school of thought at the intersection of economics and psychology (when compared against economics as a whole).  At its core is a simple principle: human beings are predictably irrational. The discipline has been used to shed light on all sorts of entrenched patterns of behavior, such as why gamblers are willing to keep betting even while expecting to lose, or why people who want to save for retirement, or to eat better, or start exercising and quit smoking, end up doing no such things. Long before behavioral economics had a name, agencies and marketers have been using it using it. “Three for the price of two” offers and extended-payment layaway plans became widespread because they worked, not because agencies had run scientific studies showing that people prefer a supposedly free incentive to an equivalent price discount. In essence, it’s about targeting behavior humans are hardwired for.

There’s nothing new in finding the psycho-social hook that triggers a reaction. What is new is an interest in systematizing behavioral thinking and using the discipline more conspicuously to shed insight on the challenges advertisers face. Advertising is a business that tries to shape how people think about their choices – it taps into the underlying triggers that drive our beliefs, actions, and passions. Neoclassical economics can explain ads only as providing information. But if the seller can invest in advertising that frames the choice, that frame will skew the buyer’s decision. In other words, a more systematic approach can unlock significant value and increase share of culture by targeting actions to match practices, beliefs, and the reptilian brain.

A shot before bedtime: Take a product’s cost less painful. In almost every purchasing decision, consumers have the option to do nothing: they can always save their money for another day. That’s why the marketer’s task is not just to beat competitors but also to persuade shoppers to part with their money in the first place. According to economic principle, the pain of payment should be identical for every dollar we spend. In marketing practice, however, many factors influence the way consumers value a dollar and how much pain they feel upon spending it.

Retailers know that allowing consumers to delay payment can dramatically increase their willingness to buy. One reason delayed payments work is perfectly logical: the time value of money makes future payments less costly than immediate ones. But there is a second, less rational basis for this phenomenon. Payments, like all losses, are viscerally unpleasant. But emotions experienced in the present—now—are especially important. Even small delays in payment can soften the immediate sting of parting with your money and remove an important barrier to purchase.

Another way to minimize the pain of payment is to understand the ways “mental accounting” affects decision making. Consumers use different mental accounts for money they obtain from different sources rather than treating every dollar they own equally, as economists believe they do, or should. Commonly observed mental accounts include windfall gains, pocket money, income, and savings. Windfall gains and pocket money are usually the easiest for consumers to spend. Income is less easy to relinquish, and savings the most difficult of all.

Technology creates new frontiers for harnessing mental accounting to benefit both consumers and marketers. A credit card marketer, for instance, could offer a Web-based or mobile-device application that gives consumers real-time feedback on spending against predefined budget and revenue categories—green, say, for below budget, red for above budget, and so on. The budget-conscious consumer is likely to find value in such accounts (although they are not strictly rational) and to concentrate spending on a card that makes use of them. This would not only increase the issuer’s interchange fees and financing income but also improve the issuer’s view of its customers’ overall financial situation. Finally, of course, such an application would make a genuine contribution to these consumers’ desire to live within their means.

Become the icon: Harness the power of a default option. The evidence is overwhelming that presenting one option as a default increases the chance it will be chosen. Defaults (what you get if you don’t actively make a choice) work by instilling a perception of ownership before any purchase takes place, because the pleasure we derive from gains is less intense than the pain from equivalent losses. When we’re “given” something by default, it becomes more valued than it would have been otherwise. And we are more loath to part with it.

Savvy marketers can harness these principles. An Italian telecom company, for example, increased the acceptance rate of an offer made to customers when they called to cancel their service. Originally, a script informed them that they would receive 100 free calls if they kept their plan. The script was reworded to say, “We have already credited your account with 100 calls, how could you use those?” Many customers did not want to give up free talk time they felt they already owned.

Defaults work best when decision makers are too indifferent, confused, or conflicted to consider their options. That principle is particularly relevant in a world that’s increasingly awash with choice. A default eliminates the need to make a decision. The default, however, must also be a good choice for most people. Attempting to mislead customers will ultimately backfire by breeding distrust.

Limit the options: Don’t overwhelm consumers with choice. When a default option isn’t possible, marketers must be wary of generating “choice overload,” which makes consumers less likely to purchase. In a classic field experiment, some grocery store shoppers were offered the chance to taste a selection of 24 jams, while others were offered only 6. The greater variety drew more shoppers to sample the jams, but few made a purchase. By contrast, although fewer consumers stopped to taste the 6 jams on offer, sales from this group were more than five times higher. Large in-store assortments work against marketers in at least two ways. First, these choices make consumers work harder to find their preferred option, a potential barrier to purchase. Second, large assortments increase the likelihood that each choice will become imbued with a “negative halo”—a heightened awareness that every option requires you to forgo desirable features available in some other product. Reducing the number of options makes people likelier not only to reach a decision but also to feel more satisfied with their choice.

Brand matters: Position your preferred option carefully. Economists assume that everything has a price: your willingness to pay may be higher than mine, but each of us has a maximum price we’d be willing to pay. How marketers position a product, though, can change the equation. Consider the experience of the jewelry store owner whose consignment of turquoise jewelry wasn’t selling. Displaying it more prominently didn’t achieve anything, nor did increased efforts by her sales staff. Exasperated, she gave her sales manager instructions to mark the lot down “x½” and departed on a buying trip. On her return, she found that the manager misread the note and had mistakenly doubled the price of the items.  In this case, shoppers almost certainly didn’t base their purchases on an absolute maximum price. Instead, they made inferences from the price about the jewelry’s quality, which generated a context-specific willingness to pay.

The power of this kind of relative positioning explains why marketers sometimes benefit from offering a few clearly inferior options. Even if they don’t sell, they may increase sales of slightly better products the store really wants to move. Similarly, many restaurants find that the second-most-expensive bottle of wine is very popular. So is the second-cheapest. Customers who buy the former feel they are getting something special but not going over the top. Those who buy the latter feel they are getting a bargain but not being cheap. Sony found the same thing with headphones: consumers buy them at a given price if there is a more expensive option, but not if they are the most expensive option on offer.

Another way to position choices relates not to the products a company offers but to the way it displays them. For instance, that ice cream shoppers in grocery stores look at the brand first, flavor second, and price last. Organizing supermarket aisles according to way consumers prefer to buy specific products makes customers both happier and less likely to base their purchase decisions on price, allowing retailers to sell higher-priced, higher-margin products. For thermostats, by contrast, people generally start with price, then function, and finally brand. The merchandise layout should therefore be quite different.

Marketers have been aware that irrationality helps shape consumer behavior for a long time. Behavioral economics can make that irrationality a bit more predictable. Understanding exactly how small changes to the details of an offer can influence the way people react to it is crucial to unlocking significant value.

Here comes Krampus

When I told a friend and colleague about Krampus a number of years ago, before the legendary creature had captured the hearts of the world, I received an earful about the damaging nature of such a myth. I learned that Krampus was, it turned out, as bad as violent video games, eating too much salt or drowning kittens. The thing is, I already knew about Krampus. I’d grown up with Krampus (thank you to my grim, German ancestors). And while I’m sure there are people who would dispute it, I turned out reasonably undamaged by the tradition.

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For those unfamiliar with the legend, Krampus is a demonic creature recognized in many Alpine countries. Krampus, with his horns and great lolling tongue, accompanies St. Nick during the Christmas season, punishing bad children – but lumps of coal are not part of his repertoire. When the Krampus finds a particularly naughty child, he stuffs the child into his sack and carries the frightened child away to his lair, where he presumably makes the child the centerpiece of his Christmas dinner. Krampus is a representation of the fear of winter. He is a harsh counterpoint to the perfect kindness of Santa. He is, in a sense, an answer to the questions children have about the inexplicable selflessness of a bearded gift-giver they have never met.

But is Krampus really so horrible? Will he really lead our children to lives of sin and an unrelenting fear of the dark? I hardly think so. Yes, Krampus is frightening, but regardless of what we want to believe, children are remarkably adept at distinguishing transitory, entertaining fear from the real thing. Krampus is indeed frightening, but he is also cartoonish. There is increasing data, for example, to support the idea that children are decidedly capable of distinguishing cartoonish violence from the real thing. So too with traditions like Krampus.

On the surface Krampus doesn’t have much to do with marketing. When you take a step back, however, it means that there are opportunities to embrace strategies that speak to the darker side of marketing and s

ets the stage for building brand affinity from Halloween through Christmas. The lines between the holidays are increasingly blurred and simply assuming that one cultural norm fits neatly into a single campaign pillar is a lost opportunity. Holiday shoppers no longer wait until Black Friday or even the month of November to get started. To get ahead of this holiday season, smart businesses must consider their marketing kick-offs much earlier. This makes Halloween an excellent starting point for the holiday season in its entirety, tying the fall-to-winter holiday continuum together. Krampus and similar spooky figures associated with the holiday season are, arguably, a better fit for Halloween, so why not use them as a connecting thread?  Ultimately, this leads to a more cohesive experience.

And that’s what marketing is all about: providing an experience. Why do I put up with getting nauseous riding roller coasters? Because my kids love the experience.  Why do people, young and old, love to watch horror movies?  For the experience of being spooked. Halloween marketing is built around providing some type of experience, but it needn’t begin and end with Halloween. Why not build continuity and extend the brand’s story? A brand story is more than content and a narrative. If you don’t have a story you are just another commodity in a season inundated with messaging. A replaceable cog in the consumption machine. By tying everything together, you capture people’s attention for the entire season, not just fleeting moments.

Making Tech Sexy: Share of Culture and Building Brands

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 used to 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 are 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. A

 How it relates to the creative process

We are not focusing on complex cultural concepts just for the sake of making people smarter. That’s completely useless if you can’t do anything with it. As such, we take the insights we uncover and integrate them into a creative strategy by asking questions such as: “What are the cultural forces and tensions that are acting on the consumer to influence how they perceive value?” or “What are the conventions or the categories that you may or may not want to disrupt?” The answers to these questions build a proposition to bridge between research findings and creativity that illuminates a new pathway to growth. Through that proposition, we are able to connect greater meaning to brands and grow share of culture. If you can understand the domain of culture, and actually use that understanding to build a strategy, you can increase relevance. Starting with a focus on cultural insights ultimately leads to looking at a problem from different perspectives.

Why do we take this particular approach? Because at a fundamental level we believe that when people make a purchase, whether it be a home, a new gaming system, a vacation package or whatever it is, they are actually using that product or service to add meaning to their lives. The meaning that has been created in the goods and services that everybody buys are not intrinsic to those goods and services, it’s actually our culture that says a diamond has more value than a ruby, and gold has more value than silver, an Apple mobile device has more value than a Nokia or what have you. If you come to marketing from that point of view, it suggests that the choice they’re making is actually very important to them. From that perspective, the marketer has a responsibility to do the right thing by those consumers, who are choosing a certain product in order to craft their identity. That means there are really no boundaries for clients and the emphasis becomes one of solving a problem rather than executing on a task. And quite simply, that sets up a brand for meaningful creative work.

Putting It Into Practice

So, what does all of this look like? Let’s take you through an example. BaM was asked by Microsoft to quickly come up with ideas for Windows Gaming’s VIP party for Gamescom in Cologne. Gamescom is the video game industry’s largest European event, with well over a quarter-million visitors and thousands of journalists, all looking to see advances in gaming technology. In other words, this is a very big, very visible event. And as with all such events, people are there to learn but also to have a good time, which of course means parties. But while Windows is a major platform for development and is home to a huge audience of PC gamers, it isn’t necessarily seen as the sexiest of brands. Windows needed two main things; 1) ideas to create buzz at the event and 2) a way to get VIPs to their party. Equally important, this was the event where Microsoft would premiere the auto racing game Asphalt 8, it’s newest release for Windows.

So, we began asking a very basic question. What makes a party meaningful? Through a series of interviews and recounting our own experiences with parties in a narrative-based brainstorm, we came to a very basic truth – a party is just another event, but a destination people want to actively be a part of. It creates a sense of excitement and suggests the promise of stories to come. For the attendee, a destination is something special, something tailored, something to live on after the drinking and dancing are done.

The next step was to gain a richer understanding of developer culture by thinking about them as a “culture of practice”. Culture of practice generally refers to the manifestation of a culture or subculture, especially in regard to the traditional and customary practices of a particular ethnic or other cultural group. In other words, what commonalities could we uncover in the developer tribe that we could speak to?  Two key insights bubbled to the surface. First, there are close links with driving culture in that machines are points of fascination. But the machine itself isn’t enough. They want to understand it, test it, experience what it can do. Design, how quickly it reacts, how it performs, etc. factor into a love of technology – it isn’t about the parts that make it up, it’s about the sum total of the experience. Second, developers have in the past been often overlooked at events like this. They are important and people listen to them, but once the technical discussions are over they have traditionally been relegated to the “geek” corner. Not anymore. Look at the two classic characteristics of geeks: social ineptitude and obsessive devotion to some pursuit. They’re neither social climbers nor rebels, because they are indifferent to how the world sees them. But those days are, in many ways, dead and buried. Cory Arcangel is a Damien Hirst­y hipster artist. Joss Whedon is not a geek but a talented hack writer in the tradition of Ben Hecht, capable of synthesizing junk culture in clever and knowing ways. The point being, developers are as much artists and rebels as anyone else. And they deserve recognition for it.

So, what if we paired the love of the machine with the cool factor of “geek culture”? Almost all of these developers are deeply familiar with the supercars in driving games like Asphalt 8, but how many have actually been in one? What if we created a taxi service involving high-end, high-performance cars? Even if our VIPs didn’t have a strong fascination with these amazing machines, they would jump at the opportunity to be in one. It spoke to the love of performance and technology, but also the sheer bad-assery of the design.

Knowing our venue was several miles from the event, it also provided an opportunity to do more than experience a pointless two-block ride – it let the passenger really feel the car. We found an incredible rental vendor and drivers to ferry our VIPs in Lamborghinis, Audi R8s, and Ferraris – the sort of things you might be familiar with if you were eagerly awaiting the next release of Asphalt.

The next step was to create awareness. Rather than sending an email or note that might never be seen, BaM created exclusive key cards, each featuring different 8-bit party icons for partygoers to present at the door. But for our select group of VIPs, we created cards featuring an illustration of an 8-bit car with handwritten phone number. Dialing that number landed them a ride to the club in our supercar taxi service. This did more than just get you to the event. It created a sense of exclusivity for the passenger and curiosity for the onlooker. It created buzz. Suddenly people were asking, what cool thing does Microsoft have going on and how do I get in?

Party Time

The cars and the buzz were great, but the party had to pay it all off. And this is where details matter most. BaM gave the club’s drink menu a redesign with retro-gaming themed names like Castle Key, Magic Elixir and Combo Move. The staff wore shirts featuring 8-bit artwork that corresponded to the drinks they were serving. And partygoers had the chance to play a sneak preview of Asphalt 8: Airborne on Surface tablets that were walked around by the staff.

Coolness is defined in many ways by the company you keep. In this case, the party did more than attract our guests. It produced both gatecrashers and a visit from the polizei – nothing says “successful party” like people from other organizations, like Google, trying to get in and the police showing up to manage the growing crowd outside the building.

Take Aways

Great story, yes, but why does it matter? At a practical level, we were able to demonstrate that Windows provides outstanding game quality. In other words, we were able to change perceptions about the brand (Windows is, it turns out, kind of cool) and the products. We did more than just make the case for the platform and the game, we generated increased interest and share of culture.

It also opened up new venues to sell games. By proving the products in a very public way, we could exploits Windows’ tremendous reach. We’re largely outside the App Store/Android battle. By demonstrating what Windows has to offer, it allows developers and designers to broaden their market, thus providing Microsoft with new partners, products, and prestige.

Finally, at a broader level we were able to start shifting perceptions of Microsoft and Windows. Added to the successes of the Surface Pro, the exclusive use of Windows products in DC universe programming, and an increasingly user-friendly operating system, this event helped the company capture a greater share of meaning in the broader culture. It helped move the conversation from moments of advertising and marketing, to part of a deeper, positive undercurrent. In other words, it helped capture a greater share of culture.

 

 

 

 

 

 

 

In the Age of Emotion

When historians look back on the early years of the 21stcentury they will note a paradigm shift from the closing years of the Information Age to the dawning of a new age, The Age of Emotion.  Now, there are those that would argue that in a period defined by prolonged economic ennui ROI is the only thing that really matters and pricing is the only real consideration consumers think about – the rest is fluff.  But I disagree. Why? Because we’re not talking about trends here, which are ultimately short lived, but cultural patterns which are sustained and signal a shift in worldview.levis-store-lighting-design-4.jpg

On a fundamental level, we are more in tune with our emotional needs than at any time in recent history, or at the very least we have more time to reflect on them.  We focus increasingly on satisfying our emotional needs and pop culture both reflects and creates this. It is a cycle. One needs look no further than the multi-billion dollar self-help industry as an example. Talk shows abound focusing on the emotional displays of the masses and the advice given out in front of an audience of millions.

And this growing focus on the emotional has extended into the shopping and retail experience.  Increasingly we will see a subtle, yet profound difference in the way people relate to products, services and the world around them. Retailers increasingly focus on the nature of the in-store experience, converting the space from a place to showcase goods, to a location, a destination, a stage on which we perform.  And indeed, shopping is as much about performance as it is about consumption.  Just as fulfilling emotional needs has become the domain of brand development, it is increasingly becoming a centerpiece of the retail experience, at least for retailers focused on margins rather than volume. Rationality will take a back-seat to passion as we move from the sensible to the sensory.  While ROI is the obsession today, Return on Insights and Return on Emotional Satisfaction will be the leading factors in the years to come.

For the developed world and the world’s emerging economies, time and money equate to an increased use of brands and shopping as emotional extensions of ourselves.  Status, power, love, etc. are wrapped into the subconscious motivations for choosing one location over another.  And while we are still bargain hunters, the hunt is less about price than it is about the experience of the hunt.  Again, emotion drives the process, even when we say it doesn’t. “Experience” is emotional shorthand.

Successful companies will learn to pay more attention to how their customers react emotionally and how their brands can fulfill emotional needs.  In the Emotion Age, brands will either lead the way to customer satisfaction or be left in the dust.

 

Shaping Personal Identity through brands

It sometimes seems lost on people, but consumers have begun to face an important problem: the increased uncertainty about various product attributes. This arises from various asymmetric information consumers have access to, regarding a specific product. Consumers tend to asses certain product attributes in a holistically manner rather than a case by case basis – bigger, faster, longer may still sell low-interest items, but it is increasingly losing its traction. Consequently, both extrinsic and intrinsic factors have to be accounted when trying to differentiate a product from its competitors. And therein lies the central distinction between products, campaigns, etc. and brands. Brands are bigger, richer, and drive us to act without always know precisely we we’re doing it. Brands can potentially play many different roles in the consumer decision process.

Nothing new in that idea. But if we step back a moment and let ourselves expand on that thinking, it opens up a range of deeper questions about the role of a brand in the cosmic sense. How brands help us construct and reflect our identity is one way to think about it – and it’s a damn fine way, at that.

Often, consumers will tend to choose a brand that are congruent with their self-image. In this particular way each consumer at an individual basis will try to reflect his or her own identity through choice. When part of a larger social group, consumer choices tend to converge to a certain pattern thus forming the basics of an individual social identity For example, a may choose to buy a pair of Doc Martens as an act of ubiquitous self-expression. If the buyer considers himself a post-punk soccer mom the boots are also a visual expression of being part of the middle-aged-once-a-punk tribe. Each individual lifestyle reflects a person’s values, life vision, and aesthetic style. It also reflects a shared set of ideologies, collective style, and sense of belonging.

Marketers tend to use brands to differentiate a company’s products from competitors and to create a sense of superior value to customers – this is frequently done by talking about product attributes. The most important step in creating and delivering a superior value to customers is by adding meaningful brand associations that create value beyond the intrinsic characteristics of a product. One of the most important characteristics of a brand is the self-expressive function, meaning that value goes beyond the immediate benefits of your stuff and imparts a sense of psychological and social well being. Brands have the power to communicate valuable information and can be used and perceived in many different ways by consumers, people with similar beliefs, and those closest to us. In other words, brands reflect our identities and a lot of folks tend to use brands as a mean to express their identity and lifestyle. Indeed, this is becoming more prevalent as peoples seek to break down the paradox of belonging to something bigger than themselves while aspiring to the American ideal of hyper-individuality.

In addition to serving as an external signal, brands can be used to create and confirm a consumer self-concept and unique identity. Individuals try to express their identity through all means they have at their disposal. By choosing a particular brand, a person reaffirms both his own and people’s perception about his desired identity. As a result, people use brands to reassure themselves and to signal others what kind of person they are. In particular, consumers tend to prefer brands that are convergent with their perceived ideal identity. As a result of that self-expression, a predilection for a certain brand is the result of only sociological factors because a person’s need for self-expression is the result of interactions with other members of the community. In other words, brands are used as a mean of expressing their own identity, brand predilection is the result of intrinsic factors, and brand preference is the result of extrinsic factors. What that means is that a successful brand must have a strong degree of resonance with both consumer personal identity and socio-cultural identity.

As a consequence, consumers’ needs for self-expression can be satiated not only be using certain brands but also by other available means of self-expression. This is particularly important when analyzing the correlations between brands and lifestyle because the lines between personal identity and everyday doings are becoming more blurred. Products are just things, but brands become beacons.

Why does it matter? It maters because brands can be used to create a unique social identity for each customer. Brands are more than just instruments of hedonic experiences because they have the power to harness and channel specific hedonistic desires in expressing a bigger sociological and psychological construct such as lifestyle. And this is where data and linear thinking fall flat (you just knew it was coming). Data get at the what and the why, but they don’t get at the richer aspects of the human experience, the why behind the what. Quantitative information isn’t relevant if it only gives you have the picture – the Mona Lisa can be broken down into its constituent parts but that doesn’t explain why people will spend hours in line for a glimpse at it. A John Deere cap does a great job of keeping the sun out of your eyes and that can be quantified. But those same data points can’t explain why the brand resonates with Midwest alternative kids to such a degree.

The answers lie in rethinking how we address brands and branding. By expanding the brand conversation to one of identity, longing, identity it allows us to penetrate the white noise and reach our consumers, turning them into advocates.