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THE NEW MILLENNIAL AGE OF SOCIAL, LOCAL AND MOBILE FRED NEIL @FREDNEIL2 [email protected] 561-245-1149
THE NEW MILLENNIAL AGE OF SOCIAL, LOCAL AND MOBILE
FRED NEIL
@FREDNEIL2
561-245-1149
THE EVOLUTION OF RETAIL
IN THE NEW MILLENIAL AGE
From Camelbacks…
To Marketplaces…
To Living Rooms…
… A LOT HAS CHANGED
TODAY…
50% of consumers have accessed social sites while watching TV
65% of consumers have looked up a product they saw featured on TV
…The Living Room Is A Store…
TOMORROW…
…Is Up For Grabs!
“The Internet in general, and Amazon.com in particular, is still Chapter One. You’re asking me about my story, and it’s still the very beginning.” – Jeff Bezos
BUT THERE ARE CERTAIN IMPERATIVES…
Be Interconnected Across Channels
Be Geographically Relevant Meet Customer Needs Provide Necessary InformationEngage & Entertain
Anytime | Anyway | Anywhere
”The most important single thing is to focus obsessively on the customer. Our goal is to be earth’s most customer-centric company.” – Jeff Bezos
THE GENERATIONAL DIVIDE
COMMUNICATIONS INFOGRAPHIC
MILLENNIALS ARE SKEPTICAL CONSUMERS
A values-driven generation attracted to brands that stand for something
84% will consider a brand’s values before making a purchase
Have sharp radar for authenticity
MILLENNIALS REPRESENTS LARGE ONCE-IN-A-GENERATION OPPORTUNITY
80m GenY
Spent over $240b last year in US
Don’t buy mobile phones for talking:•SMS•Downloads•Social•Surfing mobile web
By 2017 will out spend Boomers
Preferred method of Comms:1- SMS2 – Email3 - Social
Want freedoms of adulthood without accompanying responsibilities
UGC is most trusted source of info
Delayed adulthood
Fastest growing generation in marketplace
Millennials buy and behave differently than every other generation
4 Levers to Rely on to Reach Millennials
“Our point of view is we will sell more if we help people make purchasing decisions.” – Jeff Bezos
MILLENNIAL HABITS
Demand a seamless CX — expect to transition effortlessly from phone to computer to store to phone
41% practice “showrooming”—looking at merchandise at a store, then shop online to find the lowest price
MULTI-DEVICE SHOPPERS
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18 hours/day consuming media
5.4 hours/day of UGC consumption – social posts, photos, blogs, email, texting
81% are on Facebook
80% use two+ devices simultaneously every day
MAJOR CONTENT AND MEDIA CONSUMPTION
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Sources: Mr. Youth PEW Research Center, “Millennials in Adult Hood: Detached from Institutions, Networked with Friends,” March 7, 2014, Entrepreneur, “Millennials Spend 18 Hours a Day Consuming Media -- And It's Mostly Content Created By Peers, ” March 2014, Deloitte, “Digital Democracy,” 2014, Pew Research Center
MOST LIKELY TO SLEEP WITH THEIR CELL PHONE
17Sources: Mr. Youth PEW Research Center, “Millennials in Adult Hood: Detached from Institutions, Networked with Friends,” March 7, 2014, Entrepreneur, “Millennials Spend 18 Hours a Day Consuming Media -- And It's Mostly Content Created By Peers, ” March 2014, Deloitte, “Digital Democracy,” 2014, Pew Research Center
JUST THE FACTS…1. Personalization is king
2. Enabling easier product discovery contributes to a larger share of wallet
3. Gravitate toward visual, personalized discovery experiences
4. Use multiple devices and platforms during the shopping process and expect a seamless experience across those devices
5. Like to interact with brands that are personal and engaging
6. Social media is a key point of connection with brands
7. Like to shop with companies that have purpose beyond profit
8. Purchases heavily influenced by price but doesn’t buy loyalty
9. Looking for more in a social shopping experience than just the ability to share purchases on social media
e.g. product reviews, interact with other shoppers
BEING RELEVANT IN AN EVOLVING MEDIA
LANDSCAPE
Strong Mobile traffic & sales growth Device proliferation
Evolving customer behavior
Mobile PaymentMulti-Device Usage
Customer behavior and technology are changing incredibly fast
Devotion
MACRO MOBILE TRENDS – “GOING IN” ASSUMPTIONS
MILLENNIALS ARE FORCING MEDIA MIX SHIFTS
The oldest are 33 years old, the youngest are 22
The first inherently digital generation
First generation that may be worse off economically than their parents
Most diverse and educated generation in history
“If you’re not stubborn, you’ll give up on experiments too soon. And if you’re not flexible, you’ll pound your head against the wall and you won’t see a different solution to a problem you’re trying to solve.” – Jeff Bezos
55% of Millennials say they tune out marketing that isn’t RELEVANT to their lives RIGHT NOW!
LET’S TALK MOBILE
The world is going mobile
has gone
^
MEDIA TIME SPENT
MobileTelevision
Source: Based on reported and inferred data from eMarketer as recently as Oct 2015.
DigitalRadio
1950 1960 2000 2010 20172014
DISCOVERY ON MOBILE DRIVES SALES
1 in 3shoppers research on mobile before
purchasing on desktop or offline
1 in 2millenial shoppers research
on mobile before purchasing on desktop or
offline
WHEN IT COMES TO TIME ON MOBILE, APPS RULE
Source: comScore, The U.S. Mobile App Report, Aug 2014, comScore,
“How the Power of Habit Drives Mobile App Usage,” Sept 2015
52%of all time
spent on digital
88%of time spent in apps are within people’s
top five apps
MACRO TRENDS
SOCIAL | LOCAL | MOBILE
Marketing Is Getting Personal and
Personalization Is Going Omni-Channel
PERSONALIZATION… NEW NORMAL
“The balance of power is shifting toward consumers and away from companies… The right way to respond to this if you are a company is to put the vast majority of your energy, attention and dollars into building a great product or service and put a smaller amount into shouting about it, marketing it.” – Jeff Bezos
GEO-TARGETING | NOT IF, BUT WHEN
“What we need to do is always lean into the future; when the world changes around you and when it changes against you – what used to be a tail wind is now a head wind – you have to lean into that and figure out what to do because complaining isn’t a strategy.” – Jeff Bezos
MOBILE GAINING MOMENTUM QUICKLY
TV Flat / Declining YoY
Mobile Growing YoY
Mobile 29% of Screen Time
“If you double the number of experiments you do per year you’re going to double your inventiveness.” – Jeff Bezos
MOBILE SCREEN TIME WILL DOMINATE
Overall Ad Spend Is Not Increasing…
Dollars Will Shift From Less Productive Channels To Fund Mobile Ad Spend Growth
73% of Millenials Make Purchases on Mobile Phone
MOBILE AD SPEND WILL GET RIGHT-SIZED
Social
Local
Mobile
SOCIAL SHOPPING IS POISED TO EXPLODE
THE COLLABORATIVE ECONOMY | INNOVATION & DISRUPTION
2X More Likely to Rent Products in the “Shared” Economy
"All businesses need to be young forever. If your customer base ages with you, you're Woolworth's.” – Jeff Bezos
ALL BRANDS MUST INNOVATE OR DIE
SUMMARY
1. Operate With A Customer First Lens
2. Think Mobile First
3. Create Right-sized Content
4. Be Engaging & Relevant
5. Avoid Dead-ends
6. Continuously test and learn
7. Look Around Corners for What’s Next!
7 IMPERATIVES | ALWAYS…
"We innovate by starting with the customer and working backwards. That becomes the touchstone for how we invent.” – Jeff Bezos
QUESTIONS
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ONE MORE THING…
“Work hard, have fun and make history.” – Jeff Bezos
Fred Neil
@FredNeil2
561-245-1149
