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The Social Technology Quarterly is a research publication focused on helping brands leverage the latest research and trends in social media and social technologies.

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  • 1. STQSocial TechnologyQuarterly Vol. 2 Issue 1Games Marketers Social TV and the Social Office(Should) Play Future of OnlineSpacesMedia

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Social Technology Quarterly Vol. 2 Issue 1rte logyTec ial Soc Qua hno rly 4STQ8se ha 12 rc PutooMnOverview tioLoira So sp 27 g Inin Welcome to the new look Social Technology Quarterly.m ct co ne The Social Technology Quarterly is a research 36 Be onia publication from Kuliza focused on helping brandsns ed CisM tory leverage the latest research and trends in social mediaig e41 stginpa da llindu and social technologies. nlar te In Om l S ry yofha to ta it 46 a alre The Social Technology Quarterly has been a reflection ofus al S Cup it tu G spFu Kulizas passion and evangelism for social technologies.Ka isuya Ho51eV The new look and design of the magazine is a reflectionda thnt e thar nd of the impact design can have on products. ow lS aes hi H ha V ps us TAciti al Ap This issue showcases how various industry verticals Ka ci i fit un Sooku raf like hospitality, banking and fitness are leveraging social Bomnd G technologies for smarter campaigns, communities and s Ku e om n a tivre commerce. It also provides marketing insights from the e ldy rarn a ldciCin bohi So world of social games and storytelling.An laColai on atC Byre rm g Cps ia in We hope you enjoy the all new Social TechnologyGd om ee yr D nk Api ssan ceha ke BaC r Quarterly!alnd pa lic mlS am ts Br ci D hya t Mks ai ha e SSo iaer Pa haM dBirc ch Th an ce M OffiW d it Team Kulizaee t w e d, AnC Vialaj uM it oom jaAm oci icneG chiitksSin y Red ng am ntAg ay :Ore atiAg aes ya GFa e nle Sw M upinof tiar t e St ke a th paeorteH es rsAR(SonE hothul e d)Hig Pl hay St reet1620 24 2 3 3. Kuliza Social Technology Quarterly Vol. 2 Issue 1 sources. Images have an uncanny ability to take control ofshared interests, and it is doing that in big numbers. This is a persons time in an instant and lead them down a path why Pinterest provides the ideal platform for brands to connect that they didnt intend taking. They are also the most shared with a community of existing or potential customers who areVisual assets on the social web. passionate about things that relate to a brands core values. So if a business runs a lawn-care center, for instance, they A number of image-based platforms like Visualy, Instagram,would want to engage with people who are pinning picturesStorytelling and SlideShare have already made a strong statement of landscaping. about how visual content can impact business results. The introduction of Facebooks timeline in September 2011 hasto Connect further exaggerated the impact of visuals. A recent additionLeveraging Pinterest to this list of image-based social platforms is Pinterest. The platform has witnessed phenomenal growth and brands are The simple and obvious approach is to use Pinterest to create rapidly adopting it to connect with their customers.a new board of your products, adding descriptions and pricesInspiration to to the images, and making sure they link back to your website. The objective of this article is to provide some insights Brands can then start tracking pinterest.com as a referral source into how brands can leverage Pinterest as a platformin their websites analytics. This approach may get brands somePurchase to understand and engage with their customers through initial traction and one more platform to source traffic from, but it effective visual storytelling.may not pay any major dividends in the long run.CampaignsBusinesses should not try to just pin pictures of all their What Makes Pinterest Tick products, but should pin images that capture a lifestyle, by Kaushal Sarda passion or cause that forms the essence of their brand. This is because there is something really magical about sharing ones dream with strangers on the social web, and especially when it is visual. As the images that represent the brands Brands are using Pinterest to engage in vision get re-pinned onto other peoples boards, an emotional meaningful ways with their customers. connection that stems from sharing a common journey or purpose is established. Brands that share this level of intimate exposure will cultivate a meaningful and impactful presence We all know that stories provide a great way to reach out on Pinterest as well as lay the groundwork for a thriving to people and create an instant connection. Storytelling is community. They will also forge genuine connections while an ancient and effective way of communicating a message emotionally triggering consumer loyalty. that is clear and relatable. It is no surprise brands have been leveraging this tool to create impactful campaigns. Infographic Credit: FlowtownLets now look at some ways brands have used Pinterest in meaningful ways to engage with their customers. In order for a brand to market itself effectively in the era of social it really needs to connect deeply with its target audience Pinterest is a pinboard-style, social sharing website aroundCreate value or community. It must have a narrative that clearly articulates photos. The service allows users to create and manage theme-Brands should look to offer helpful advice and useful ideas its core values, captures the attention of that community, based collections of images. The sites mission statement isthat their followers would find valuable and create boards that creates value, and makes them emotionally invested. to connect everyone in the world through the things they showcase the lifestyle the brand represents.Illustration Credit: Edd Cross find interesting. It launched as a closed beta in March 2010. Brands are now trying to augment their ability to tell a great On August 16, 2011, Time magazine listed Pinterest in its 50 Cooking Light, one of the early stars on Pinterest, created a and consistent story. They are providing customers with Best Websites of 2011 article. In December 2011, the siteseries of boards that featured timely holiday recipes, seasonal tools to contribute and share stories through technology became one of the top 10 largest social network services, menu ideas and how-to cooking techniques, along with DIY advancementsin real-time communication, on social according to Hitwise data, with 11 million total visits per week. projects and kitchen resources. Lowes Pinterest presence platforms, location based services, and with augmented It now drives more referral traffic to retailers than LinkedIn, has around 25 boards that span topics like family projects, reality tools. YouTube, and Google Plus combined.craft ideas, decorating ideas for the home and other home- improvement-themed boards. Whole Foods, one of the first The rise of visual storytelling as a means of spreading a04 What is exciting about Pinterest is that site illustrates the food brands on Pinterest, features boards on gardening, marketing message seems to be the direction in which the evolution from the social graph to the interest graph. What recycling and fitness. world of online marketing is heading. Images, presentations, and infographics are shared with ease, attracting thousands that means is that it is creating a shift from friend-based of views and sending huge volumes of traffic to their originalnetworks to networks that connect people based on their4 5 4. KulizaSocial Technology Quarterly Vol. 2 Issue 1Saveur magazine created a dinner party pinboard contest,asking pinners to build a dream dinner party on their own boardsusing at least three recipes from Saveur.com. Participantswere asked to tag pins with #saveur and #dinnerparty to helpextend the reach. The winning board was brought to life in theprint edition of Saveur. French car maker Peugeots Panamaunit recently ran a contest that awarded fans who completeda Pinterest puzzle. The brands Pinterest profile featuredimages of cars running over two or more boards. In eachcase, a board was missing. To get the missing pieces, fans Pinterest Board: McDonalds Olympic Games Historyhad to go to Peugeot Panamas Facebook Page or website.Influencer engagement Thought leadershopBrands can create collaborative boards that allow external B2B businesses should look at Pinterest to share resources,Pinterest Board: Cooking Lightpinners to contribute. Its a way to engage and recognize content and ideas that help drive interest and opinions in theira few of their top evangelists or favorite pinners. Americas industry that will in turn lead to bolstering their position as anTest Kitchen created several boards focused on projects that expert. Spredfast has a board up on social media managementfeature pins from contributors from homemade gifts to slow-Tell stories where they share anything and everything related to helpingcooker recipes.GSD&M created a visual guidebook for surviving SXSW 2012 social brands get ideas for social programs.and used Pinterest to make the survival story come to life.Community engagement / Capturing customer storiesThis also ensured all the information they wanted to sharePinterest provides brands with a great way to not only share butwas easily available in one place.also learn about their customer community. Pinterest allowsbusinesses to understand trends and styles the communitylikes based on engagement (i.e. likes and repins). Paneraasks its followers to share their favorite pairing (like soup andsalad) using the hashtag #youpicktwo. A board was dedicatedto these creative pairings. Dunkin Donuts asks users to sharewhat theyre drinking and how theyre running on Dunkin. Pinterest Board: Spredfast Takeaway The aim of this article is to aid brands in leveraging the truePinterest Board: GSD&M potential of Pinterest and find new ways to use the platform to deliver their story with more vigor and strengthen connectionsEngage through context with and within their customer communities.Brands can create pin and win it contests to encouragecustomers to share their inspirations and drive engagementPinterest Board: Dunkin Donutsaround their creations.Bringing offline events to lifeAbout Kaushal SardaBrands can leverage Pinterest to bring their offline activities tolife by creating photos and video footage of events. Technology evangelist,serialChobani, a Greek yogurt, brands boards highlight theentrepreneur, Chief Evangelisttravails of the CHOmobile as it canvasses the country. at Kuliza, advisor to HashCube.Cabot Creamery showcases farm families that are a part ofWrites on commerce and CRM.the Vermont cooperative and McDonalds has a Pinterestboard dedicated to the building of its first Olympic parkTwitter: @ksardaPinterest Board: Saveur Dinner Partyrestaurant in London.6 7 5. Kuliza Social Technology Quarterly Vol. 2 Issue 1leadership with a mobile app. The app allows customers to iPad application to recommend wines to its customers.search and create recipes prepared by executive chefs of thehotel and share them with their network. Similarly, the hotelsHow theConcierge Insider Guide application recommends places tovisit, video tours and provides inside tips.HospitalityIndustry isBecomingSoLoMoFacebook campaigns and F-commerce appsHotels are very aggressive in their use of the social network formarketing and sales. Many have experimented with FacebookCampaigns applications to share customer stories and experiences tofacilitate word of mouth. Holiday Inn uses this concept to by Achintya GuptaCrowne Plaza and Hotel Indigo use their mobile applications tocollect and showcase stories of customer travel using theirfacilitate room bookings and loyalty programs. Customers canStay Social application. Similarly, Hilton uses its Facebookbook rooms with their mobile phones, redeem points for staysapplication - Hilton Stories - to get customer feedback andand get their entire loyalty program managed with a singlemarket research. Hilton also ran a Facebook contest for music Social, local and mobile initiatives areapplication. The Hilton, Choice Hotels and the Marriot also havelovers where the application asked participant to submit stories enriching customer experience.similar mobile applications for discovering interesting resorts of musical adventures and the most popular entry voted for byacross locations, booking reservations and managing rewardfans won a trip to Grammys. Over the years, the hospitality industry has thrived on word points. Accor Hotels has further gamified this experience by of mouth and expert referrals for its promotions. Since hotels integrating their mobile application with Facebook Places. are all about the experience, no ad campaign can replace the With this application, users can check into Accor hotels to earn ability a customers word-of-mouth has to increase numbers points and unlock exclusive badges and rewards. and loyalty. However, today there is a major shift among hotels to social technologies for their abilities to enrich customerExperience applications experience, spread customer experience through trustworthy Social technologies have enabled businesses to enrich their channels, and generate customer centric data.customers experience with high-end experience applications.Hotels that provide customers luxury experiences are using In this article we have tried to illustrate how hotels are using such high-end experience applications to build fascinating stays. social, mobile and local channels for customer engagement, loyalty, promotion and data. New Yorks Plaza hotel provides an integrated luxuryPhoto Credit: eGlobal Travel Mediaexperience with iPads. Each room has an iPad that canWith so many consumers on Facebook hotels have begun tobe used to control room temperature and lighting, orderuse the social network for direct sales. Hotels like Super8, Hotels room service, request wake up calls, and avail of conciergeHotel Indigo and Home2Suites are using Facebook forservices. Similarly, the St. Regis E-Butler application gives Mobile appsreservations and bookings. Here, however, most of thethe guest access to communicate with chefs and receive With their consumers increasingly moving to smartphones, applications limit themselves to providing an interface forrecommendations for food, restaurants and sites worth visiting some of the largest hotel groups are building mobile booking and taking the customer to the hotel website whenfrom city celebrities and experts. applications to enable mobile transactions, push deals, reward they click on the search button. We think these hotels will08 loyalty, and offer concierge services on mobile phones.Many other hotels are jumping into this race to craft memorable move to a 100% Facebook transaction experience (like Bestexperiences for customers using applications. For example,buy and 1-800 Flowers) to address customers who do not The Intercontinental Hotel Groups Kitchen Cookbook is anthe Holiday Inn has equipped its concierges with iPads to want to leave Facebook for transactions. There is also the excellent example of promoting the brands gourmet thought provide better guides of hotels and Naples Tomato uses an possibility of viewing other peoples interactions with the hotel89 6. Kuliza Social Technology Quarterly Vol. 2 Issue 1on Facebook, like publishing what the users friends havebalance called The Business Balance. The Four Seasons a fascinating campaign in New York City, where consumerslocal space displays how social tools can be used to enrichsaid about the hotel (across various channels), how many ofhas a foodie community called Four Seasons Foodies andcould interact, dance and move with Disney characters on thecustomer experiences, spread consumer stories and providetheir friends like the hotel, and how many used its services the Sheraton has an online community where customers canTV screen. In the past, Disney has built more social campaignsgreat service. It comes as no surprise that so many hospitalityin the past. share their stories of travel and living. like the let the memories begin campaign, where they askedbusinesses are experimenting in this space. users to submit and vote for their favourite Disney memories,Blogs and online communities and an advocacy program, InsidEARS, where they askedThe most fascinating thing about blogs is the diversity of parents to advise others on their Disney visits.ways they can be leveraged to engage ones audience andmarket ones offerings. Hotels are using blogs to targetvarious marketing strategies. The Marriott has built a blogAbout Achintya Guptabased press room for quick and social news publishing. Thehotel chain is also using blogs for thought leadership in thehospitality industry. They have a CEOs blog and expert blogsMarketing enthusiast and Brandon food, fitness, wellness and travel. Renaissance HotelsManager at Kuliza. Writes on socialand Courtyard Hotels (both managed by the Marriott) have media marketing.moved a step ahead in creating blog based communities.Renaissance Hotels manage the RLife blog that focusesTwitter: @achintya85on lifestyle, luxury, travel and experience and the CourtyardHotels manages the Connections blog which is essentiallya blog based travel community. Other hotel chains like the Social media campaignsFour Seasons are using blogs to engage people with familiesApart from building social platforms for marketing, hotels alsoaround travel. Their well designed blog - Have Family Will use social channels such as YouTube, Twitter and FacebookTravel - publishes information on having fun with families onfor creative campaigns. For example, the Hiltons potential Airportsvacations and outings. guests can watch videos of its Caribbean hotels and get video Many airports have tried to woo their SoLoMo consumers with tours on the Hiltons YouTube channel. The Hyatt provides their mobile applications to aid their airport visits. Copenhagen Twitter concierge services with the sole objective of helping airport built an augmented reality mobile application to people in their travel queries. The Hyatts guests can also guide travellers across the airport. The mobile application check in with their mobile phones and simply pick up keys from helps you search for and locate various places and review the front desk. Similarly Accor Hotels launched the A-Club customer ratings in a very user friendly way. Heathrows social media project where their social media team conducted mobile application helps travellers get instant access to all the research on their customers open social media conversations information they need for air travel. Using this application they (tweets, blog posts) of their customers. Based on the research can check live flight updates, book long-stay car parking, view they treated customers with surprise gifts on their next arrival. interactive terminal maps, see shop and restaurant listings, check flight timetables, and view city guides. A while ago, Other businesses in the hospitality industry, such as theme Bangalore Airport ran a social media ideation campaign where parks and airports, have launched very interesting initiatives it asked its customers for ideas on how can they make their in the social and mobile space that the hotel industry can gain airport experience better. Other airports like Gatwick are using inspiration from.When it comes to engaging ones target audience, nothing channels like blogs and Twitter to solve customer queries andworks better than online communities. Online communities help them in their airport travel.succeed in providing a very high engagement quotient toTheme Parksmembers, like the ability to generate profiles, connect with The hospitality industry initiatives in the social, mobile andthe audience, find friends and connections among like- Theme parks have a lot to teach us when it comes to usingminded people, and gain recognition among a community of technologies to boost consumer experience. Many waterpeople with similar passions. These are some areas where parks like the Great Wolf Resort are using RFID wristbands toblogs fail. Therefore, the worlds leading hotels have created allow users to post their pictures on social networks during thecommunities for a niche target audience around lifestyle,course of their stay. Some are even using wrist bands to helpinterests and passions. Wyndham has a community forcustomers post status updates while in the park. Other themewomen travellers - Women on their way - for travelling tips, parks are using augmented reality to create great experiences.advice and conversations. Marriott has a very active travelIn South Korea, a complete 4D theme park has been built withcommunity for members of its rewards program. Similarly, Kinect and RFID. The theme park allows users to become aEmbassy Hotels has a customer community around work-life part of a 4D adventure. Disney, too, used AR tools to create1011 7. Kuliza Social Technology Quarterly Vol. 2 Issue 13We are going to witness a major 4 The user interface of the TV is goingconvergence of television and mobile to feel more and more like mobileplatforms.With the introductionplatforms, complete with on demandof different television features likecontent, games, and media apps. There Social TV andstreaming devices, streaming services, has been an acceleration in this trendon-demand viewing, and custom apps because of initiatives by companies likethere are more ways to watch TV than Google, Samsung, and Apple.6ever before. This may create a strong the Future ofdemand for a one stop-destination forusers to plan their entertainment. Online Media5The social aspect is being thoroughlyintegrated into the entire production Campaignsprocess of a show. This bottom up, superparticipatory approach will certainly by Kaushal Sardahave an impact on the way some newsUsers are using web connectivity andshows are produced.access to smartphones and tablets to Eight ways that social technology is going to revolutionizesupplement their TV experiences via television and online media. the second screen. This trend is nowbecoming mass market in the USA. The 1second screen provides a means tomake TV content engaging, personalizedand triggerconversationsamongst7the audience community, adding anextra element to the experience of just2watching a show. The click paradigm from the PC and TV era is being replaced by the touch Photo Credit: 88 Media paradigm. The mass adoption of tablets 8 and smartphones will require media Social ratings will augment traditional companies to make their content alignedrating systems like Nielsons ratings. to the touch experience. Companies Social gestures are transitioning fromIt will provide unfiltered focus-group are achieving this by partnering explicit shares and likes to frictionless like insights based on social feedback Photo Credit: with touch content aggregators likesharing. With Facebooks open graph that audiences are providing while Jectaspecta Flipboard, coming up with their ownAPI it has become possible to build appswatching TV. We may see more advances in push touch magazine-like experiences usingthat share information about what users based media consumption. This is publishing tools like Adobe Publisherare watching, reading, or listening to where personalized media content that for native apps and Mobstac for html5on their profile pages. The Washington may be specific to the users current based apps.Posts social reader app is a great location is pushed for consumptionexample of this trend. However, media using technologies like NFC.companies need to be aware of privacyissues when building such apps.1212Photo Credit: Future Tech Life 13 8. Kuliza Social Technology Quarterly Vol. 2 Issue 1 3. MisoTopMisohasevolvedsocial What we like4 TV to beyond check-ins.Thisappenablesthe They create a communitycreation of communities on by providing a publishingthe second screen which platform to anyone - networks, cancreate long lasting Misos superfans, bloggers,engagements and deepen comedians and, potentially,relations between the celebrities,regardless networks and their audience. of theirassociation with a show. This year theySocial TV 2. Shazam Photo Credit: Mac Talk launched SideShows. This is aninteractive contentAppsShazam isidentification anmobile audioapp. experience on usersthatiPhonesplayswhileIt uses a mobile phones they watch TV to deepenmicrophone to gather a brief engagement with the secondsample of audio being played screen. Itvaries fromand provides information oncharacters back stories tothe album or artists in theinformation on guest stars,case of music. The app alsofashion, history facts, triviacaters to TV ads providing and quotes.brands with an opportunity toPhoto Credit: Deviant Arttake advantage of Shazamssecond screen experience1. GetGlueto provide their consumers What we likewithadditionalproductTheappprovidesan 4. ZeeboxAbout: GetGlue is platforminformation or give them opportunityto transformthat allows users to check-an easy and fast point-of- TV ads from being aboutZeebox acts as an electronic What we likein to televisionshows, interest retail experience inawareness to being moreprogram guide, weightedTheyarefocused onbooks, and moviesthat real time. interactive,personalized,by what your friends orproviding the three key thingsthey are watching using aand engaging.anyone is watching. They willusers need when watchingwebsite, mobile website, or soon introduce interactive TV:getting informationa device-specific application.social payments and voting about what they see on TV,Checked-in usersare features into the social TVability to buy products theyentitled to receive points, app, allowing users to buy see on TV in real-time, andearn virtual stickers, receivewhat they see on screen, and have access to links to newPhoto Credit: Serendipityrecommendations, and earn also vote for a contestant inepisodes.SusanPhoto Credit: Analogfolkdiscounts for entertainment their favorite TV talent shows.companies.What we likeThe app provides a way tocreate a connection withand amongst the audienceand create a framework forrecognizing and rewardingloyal fans.1415 9. KulizaSocial Technology Quarterly Vol. 2 Issue 1 Each disruption in retail redefined customer expectations and Why is this Trend Happening? reimagined what retail is. Retailers that have survived thus far are the ones who adapted their format and offerings. The next We think this trend is the start of the integration of online and major disruption will be the integration of the mobile internet physical stores. Some of the reasons that it is occurring are: and the in-store experience of shopping. This is not just typical e-commerce with stores competing on price or convenience1. People value experience and engagement withClicks Meet for shoppers, but is about commerce becoming social.other people Shopping has always been a social experience, but now As the pace of technology change accelerates we value online and brick-and-mortar retailers are leveraging peoples and find comfort and security in the familiar: human contact. Technologies and apps that are scaling are ones that easeBricks: Online social graph to add a social layer to aid product discovery, promote products and deals, and assist purchase decisions.transactions and encourage interaction between people. Until Facebook is at the forefront of this disruption with social recently, the common experience when purchasing a product plugins that add a social later to retail sites, enabling retailers is for customers to wait in a queue until they arrive at the cashStores on theto push personalized recommendations, and using Facebookregister and the wall between the buyer and seller. However, Deals to add a social layer to brick and mortar stores. Apple have broken this barrier and made the process a much more seamless part of the interaction between people withHigh Street One trend that is emerging as social commerce evolves and the the purchase completed on a modified iPod Touch. The integration of the mobile internet and the in-store experiencefocus of their stores is to build relationships and try to make of shopping continues, is the establishment of physical storespeoples lives better. Commerceby online retailers. This is reversing the previous trend of retailers establishing an online presence, either through The eyewear retailer Warby Parker initially launchedby Diarmaid Byrneas an e-commerce site only, but quickly started offering their own e-commerce site or on Facebook. Having either an e-commerce site or a physical store appears to be no longer appointments to customers to sample their frames in their an option. Retailers see the advantage of trying to perfectly office. Later they partnered with a number of boutiques for integrate the advantage of physical and online stores topeople try their frames. However, in both cases shoppers stillOnline stores are adapting their online- had to purchase online. More recently they decided to open a satisfy customers and their changing shopping habits as theironly strategy and opening brick and mortar 2,500 square foot shop. They see a retail presence as having lifestyle becomes more influenced by mobile technology. Instores.4 advantages: his Harvard Business Review article, The Future of Shopping, Darrell Rigby outlined the advantages of online and physical stores that retailers are trying to leverage:First, our customers wanted it. Second, it allows us to buildA Brief History of Retail close personal relationships with customers by meeting Advantages of online stores: them, which you dont get from an online transaction.The retail industry has experienced a number of major Rich product information Third, the showrooms act as learning laboratories, anddisruptions in its history. The first large stores developed from Customer reviews and tipshelp us to create ways to make shopping for glassessmaller general stores through the late 18th and early 19th Editorial content and advice online easier based on how we see people behavingcenturies. The first purpose built department store was opened Social engagement and two-way dialogue physically in-person. Fourth, the stores are a greatin Dublin, Ireland, in 1853. Compact and centralized cities of the Broadest selection training opportunity for our staff. When theyve served19th and early 20th centuries, with public transport converging Convenient and fast checkout people in our showrooms, they do a better job helpingon the city center, were ideal for the growth of department Price comparison and special deals customers who need assistance by phone or over email.stores. As they were among the first large retailers theypioneered store design that is still common today. However, Convenience of anything, anytime, anywhere access Photo Credit: BritannicaWarby Parker is not the only online store to have establishedmass-produced cars and new suburbs changed the structure Advantages of physical stores:a physical presence. eBay and the Gilt Groupe both recentlyof cities, and shopping malls with specialty retailers challenged Edited assortment opened pop-up stores. eBay opened stores in New York, Sancity center department stores. The next phase of disruption Shopping as an event and an experienceFrancisco and London in December 2011 to display productsfrom the 1960s undermined traditional malls as discount chains Ability to test, try on, or experience products available online, with digital shop windows that included scan-like Wal-Mart and big-box stores like Home Depot grew. Personal help from caring associatesable price tags.The next major disruption began in the mid 1990s during the Convenient returns Instant access to productsAnecdotal evidence of this preference for human contact whilefirst dot-com boom. Internet start-ups like Amazon.com and16 Help with initial setup or ongoing repairsshopping is the growth of farmers markets and the rise of foodPets.com rushed to establish and scale their services as Instant gratification of all senses truck movements. While the growth can also be contributed toinvestors gambled billions on the growth of online shopping. the better understanding of the value of eating locally grownHowever, the bubble burst in 2000 and wiped out most of the seasonal food, both also offer a far more personal experiencefirst wave of e-commerce retailers.16 17 10. Kuliza Social Technology Quarterly Vol. 2 Issue 1In recent years loyalty programs have become a far moreAn Apple store is more than a place to buy an Apple product. Referencespowerful tool for tracking purchasing patterns. Tesco uses As Ron Johnson, the former Senior VP for retail at Apple, said,their Clubcard program to track which stores customers visit,a store has: Alistair Barr, Amazon retail stores to reportedly open inwhat they buy and how they pay. This has allowed them toSeattle, Washington, Huffington Post, February 6, 2012adjust store products for local tastes and customize offeringsgot to help people enrich their lives. If the store justbased on what people usually buy and what they are likely tofulfills a specific product need, its not creating new B. Joseph Pine and James H. Gilmore, The Experiencealso buy; for example, customer data analysis discovered that types of value for the consumer. Its transacting. AnyEconomy, 1999people who buy diapers for the first time are also likely to buywebsite can do that. But if a store can help shoppersbeer because new fathers spend less time in pubs. With thefind outfits that make them feel better about themselves, Darrell Rigby, The Future of Shopping, Harvard Businessproliferation of smart phones and native apps, retailers arefor instance, or introduce them to a new device that canReview, December 2011now able to know when a customer enters a store, leverage change the way they communicate, the store is addingPhoto Credit: Business Weektheir knowledge about him or her, and push relevant content value beyond simply providing merchandise. The stores Gardiner Morse and Ron Johnson, Retail isnt broken. Storesbased on their data.that can do that will take the lead. are, Harvard Business Review, December 2011than the typical supermarket or restaurant. The importance here is that stores need to move from ifoAppleStore.com, Revealed: Retail stores handheld POS2. The app economyReimagine Stores being focused on transactions to creating value for theirdevice, February 4, 2010Spending money is a stressful experience. Customerscustomers. The role of an Apple sales associate is not towant to make sure they are buying the best, most suitable Physical stores have suffered at the hands of commerce sell the customer a product, but to help the customer find a Peter Merholz, The Future of Retail? Look to its past, HBR Blogproduct at the best price. Online stores have been able tocompanies. Their response to slowing growth has been toproduct that is right for them.Network, December 12, 2011satisfy this psychological need by providing detailed product cut costs and service, losing any differentiation they had. Theinformation, product reviews and feedback, broad selection, result has been more customers shopping online. However, While Apple doesnt maximize customer data in-store, there Paul Chaney, Social commerce platform overview: Shopkick,price comparisons, deals, and convenience. With apps such retailers should view their stores as an asset rather than a are hints of how this integration will look from how retailers - mobile commerce on steroids, Social Commerce Today,as PriceGrabber and Amazon Mobile customers can find allliability. Customers want the advantages of physical stores: use apps such as Foursquare and Shopkick. The idea behindNovember 14, 2011this information while in a store. Indeed, electronic storesthe ability to test products, shopping as an experience, each of these is similar: reward a customer with special offershave essentially become showrooms for online retailers as personal assistance and instant gratification. These are for repeat visits. In the case of Shopkick, there are a number Susan Berfield, Hip Eyewear: Warby Parkers new spectacles,customers browse the aisles but buy from online stores for aelements that online stores cant provide. But customers alsoof features that bring the benefits of the online store to the Business Week, June 30, 2011cheaper price.want the personalization and other elements of their digital physical store:store integrated with their physical store. Technomic, Food trucks have staying power, says Technomic,This situation is perpetuated by the fact that many retailers The retailer is alerted once a customer enters the store July 18, 2011still view their stores primary purpose as transactional: they A successful case study in the utilization of a physical store Customers receive membership points, deals and offersstock products they think customers want, create awarenessand the need for human interaction is Apple, so successful from the retailer as they enter the storeUnited States Department of Agriculture, Farmers marketsof what is in the store and make it easy for customers to indeed that Amazon are due to also open retail stores to It provides information instantly to customers, allowing themand local food marketing, August 8, 2011buy. However, this transactional experience is the same showcase their electronics products. Apple has a good online to make better informed decisionsexperience that the customer has when shopping online,store, but reimagined the purpose of a physical store to addbut more expensive, less convenient and probably more value to the shopping experience that emphasises human Additionally, the app helps drive foot traffic to the store astime-consuming. While people value the human experience,interactions in a way that online sites never can. They mayusers can see participating stores nearby, and it encouragestechnology has advanced sufficiently to bring some of the not have integrated the digital and physical, but they madeloyalty with incentives to visit and browse products in stores.About Diarmaid Byrneelements of an online store into the physical store, such asthem complementary.It is another way for stores to communicate with customers ifbrowsing reviews, recommendations, alternative productsthey are in the vicinity or as they enter the store.and prices from apps. Retailers instead need to re-imagine Psychologist, interestedin socialthe store concept so that customers view it as a place tobehaviours and behaviour change and. The important thing is that using a service like Shopkick on itspurchase rather than a place to window shop. Chief People Officer at Kuliza. Writes on own wont differentiate a retailer forever. It will involve the type communities and commerce. of engagement that services like Shopkick and Tescos loyalty3. Leveraging online features in-store card offer with the value creation of a shopping experienceOnline stores allow retailers to capture more informationTwitter: @diarmaidb in a store like Apple. The retailer who manages to integrateabout their customers than was previously possible withthe virtual store and the physical store to create value fortraditional membership programs and offer deals that theycustomers will be the leader in the next phase of retail.were more likely to be interested in. Amazon was one ofthe first retailers to develop such predictive next best offers(NBOs), better recognized by the familiar people who boughtthis also bought that. Photo Credit: Camillo Miller1819 11. Kuliza Social Technology Quarterly Vol. 2 Issue 1a pen and paper to take orders. before pausing to observe and orient again. When informationis becoming ubiquitous, such companies are likely to dominateThe ritual of ordering two Sinful Choco Rocks, along with a the world in the future.chocolate walnut cake, which is supposed to be shared, is donewith quickly. With the product delivered, the couple spends thenext 2 hours lost in each other, oblivious to the world aroundWhat is a HARE?them. The only companion during the two hours is the mobilephone that is used to tweet about things they are talking about A company that moves fast like a hare uses honest, actionable,and to post pictures of them on Facebook. The guy also sendsreal-time and efficient feedback from its customers to take keyan SMS once to a short-code displayed on the menu saying, business decisions and outrun its competition.love ambience staff coffee, ouch walnut cake, overall 7/10.HonestThe store manager gets an SMS on her mobile that registersAn honest feedback is one that is naturally initiated by theThe Comingthe customers ouch feedback of the poor quality walnut cakeserved in her store. It turns out that the cake was 24 hours old,which got mixed up with fresh supplies and should not havecustomer without being under the prying eyes of a customerrep, who may have been incentivized to collect feedback andhence may even have selected the customer before proddingAge of the HAREbeen served. The couple is immediately offered an apology and for feedback. The act of prodding leads to customer stress asreplacement for the product. The restaurant is ready to deliver a he / she must prioritize time to fill the form and may even feelnear perfect experience to the next customer. frustrated if the feedback form is too long or needs too much Commerce information (These guys dont value my time?). An honestThe customer, who did not spend more than 20 secondsfeedback is valuable since it reflects the genuine act of a by Anand and Vijay Rayapati sending the SMS feedback, gets a coupon code on his mobile. customers own self-interest in relationship with the brand.It fetches him a 10% discount at the time of billing. The coupleleaves the restaurant holding each others hand. This is a 10/10Here are the different ways in which the customers self-interestexperience from their perspective.may play out: How businesses can make smart use of technology to transform their feedbackThe management of the caf chain looks at aggregate andLove this: I wish they did this on my next visit too! system.store-wise love / ouch ratio every day and provides assistance / Or ouch X: I hope this never happened to any customerinputs to each store manager to ensure that the ratio improves.(including myself)They are looking to achieve a love / ouch ratio of 0.995, at Military strategist and fighter pilot John Boyd broke down thewhich point they will truly be selling an experience and not just A positive brand response to honest feedback invariably causes process of observing and reacting into something he calledcoffee beans. the customer to say, wow, they actually acted on it. Ill love to an Observe, Orient, Decide, and Act (OODA) loop. To win hetalk to them again. realized that you need to observe circumstances, orient yourself to the enemys way of thinking and the environment, decide onThe Coming Age of the HAREActionable a course of action, and then act on it.The essence of feedback is that it will be acted upon. TheA hare is a very interesting animal. At 45 miles per hour, it customer time is well-spent giving feedback only if the standardsmoves fast and can not only outrun most predators but alsoare bettered next time. Hence the insights from the feedback Selling an Experience and not Coffee Beansoutfox them by taking a zig-zag path tailored to the landscape. need to be actionable and should help the business improveWhen in reconnaissance mode, it stops and collects feedback with each input. A couple on a date walks into the best coffee shop in town. Asafter every few hops, with its extraordinary sense of smell and they walk in, they take note of the ambience and the mood-sound. The inputs allow it to quickly hop on to the next nut or Real-time uplifting smell of the brewing coffee. The whole environmentherb that keeps the animal nourished and nimble all day.If the management does not respond to feedback fast enough makes them look forward to the good time they are likely tothat the organizational response is visible to the customer. have together. The guy clicks and tweets a picture saying wow,In the digital age of information overload, companies willThe basic contract between the feedback giver and receiver walking into the best coffee house in the town.need a similar ability to quickly observe, orient and act to beat is broken. A real-time feedback ensures that time betweencompetitions and win in the marketplace. The quality of their feedback and response is minimal. Soon a smartly dressed waiter arrives and hands over theactions will depend upon the speed and accuracy of insights menu with a warm smile. He senses the couples need for20obtained in the observation phase.Efficient privacy and moves away, waiting for the signal to be asked toFinally, the feedback must be collected with minimal cost take orders. The signal, which is nothing more than a couple ofA company that acts like a hare uses the right feedback systemto the organization and friction for the user. If it takes lots of glances away by the girl, breaking the small-talk between theto make quick progress and hop a few milestones really quicklypaperwork, transport, data entry and analysis to come up with couple is enough for the experienced waiter to come back with20 21 12. KulizaSocial Technology Quarterly Vol. 2 Issue 1an insight, chances are that by the time the insight is obtained,All that the customer would need to do is tap the phone againstReferencesit is no longer actionable or honest.another nearby device, calibrate a few responses and then transfer the data back to the device. Like text, this medium Alistair Croll, The Feedback Economy, OReilley Radar,Just as sound waves lose strength with distance travelled, would be quick and efficient with the customer spending less January 4, 2012inefficiently collected feedback will reduce in quality as it travelsthan 20-30 seconds on providing feedback.through organizational layers. It is unlikely to be respected byNear Field Communication, Wikipediathe senior management for making key decisions, even thoughthey may continue with the practice of collecting feedback asThe Universal Language of Feedbackone of many useful listening devices. However, the outcome willnot be very effective, as in the case of a partially deaf person It is very important that a universal language of feedbackwho makes every effort to listen to what is being communicated is established in order to collect feedback efficiently, trainand gesticulates animatedly for every word that sounds familiar. users across industries on feedback method, and establish aAbout Anand standardized method of analysis that is actionable. Multiple choice questions can be completely eliminated in favor of love CEO at Kuliza. Writes on startups,How Technology Enables a HARE? Photo Credit: Gadget Feel or ouch responses with respect to brand attributes and service entrepreneurship and social commerce. quality. In the new language of feedback, a typical data point forConvergence of social, location and mobile technologies Tribethe airline industry would look like: Twitter: @anand_kulizahas the potential to transform the way feedback is collectedThis medium is suitable for brands that have already investedand responded to within organizations. The new medium on social media to create fan followings. Their fans, who spend love food, leg space, staffsignificantly reduces friction for customers as customers are considerable time on Facebook, may find it easier to converse ouch the check-in system: the self-check in machines wereuniquely identifiable and do not always need to fill long forms with them on Facebook as well as share brand experiencesout of orderwith personal details.with their friends. When distilled in the language of feedback, all feedback givingAny feedback received by the new media can be instantly Again the success depends on not bogging users with long,will be a breeze.About Vijay Rayapatiprocessed and provided to local, mid-level and senior boring forms but collecting feedback in a way that is simple andexecutives in an actionable format. Some of the technologyquick (