THE CONSUMER-FIRST WORLD: 8 DIGITAL TRENDS CHANGING THE WAY CONSUMERS CONNECT WITH BRANDS

Nathalie Krup@nathaliekrupGlobal Consumer Insights ManagerMicrosoft Advertising

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MICROSOFT GLOBAL CONSUMER INSIGHTS

Focus on understanding the

underlying consumer motivations that

drive attitudes and purchase decisions

Dual Pivot: Internal to Microsoft

product/R&D teams; External to assist

clients in optimizing these insights for

their businesses

MICROSOFT DIGITAL TRENDS

USA

Sweden

Brazil

Russia

China

UK

Germany

Czech Republic

45early adopters

online consumers

8,000

Microsoft Executives

& Industry Leaders

Value Me

Right to Anonymity IntelligentlyON Age of Serendipity Enhancing the Real

My Analytics Creator Culture Niche Networks

Value Me

Right to Anonymity IntelligentlyON Age of Serendipity Enhancing the Real

My Analytics Creator Culture Niche Networks

Enhancing

The Real

What is the trend?

Going Beyond Tactile & Touch

Increasing desire for technology to immerse consumers in enhanced, multi-sensory experiences

To an Enhanced World

36% say digitaldevices and services already enhance their experiences in the real world, especially Chinese consumers

Digital Humanisation

Consumers are looking for products and services that offer more engaging and ‘human’ digital connections

Enhancing the Real

Enhancing

The Real

Go Dos for brands

Be Digitally Alive! Mind the Gaps

Consumers say they are much

more likely to buy products/

services that let them use

technology to make shopping

more seamless offline to online

– especially Millennials

Think Immersive!

47% already expect brands to heighten everyday experiencesby engaging more of their senses

Enhancing the Real

Enhancing the Real

The digital space will evolve into a new layer to the real world, and technology will bring to life once-intangibleobjects or experiences.

The future

Enhancing

The Real

Brand Toolkit &

Discussion

Have all the human senses in mind. Enhance and engage, but be careful not to invade or overpower

Show, don’t tell. Engage consumers in your brand and campaign and seek out opportunities to collaborate with brands that are pioneers in sensory technology

Create multi sensory experiences. Across brand touchpoints, give compelling interactions in real & virtual space

Don’t overwhelm. Ensure multi-sensory engagement does not confuse or create unnecessary noise

Age of

Serendipity

I expect the

unexpected

Surprise & Delight

Consumers want more than the predictive…they want experiences they’d never even thought of that surpass imaginations

One Step Ahead

At their most powerful, digital technologies can perform a kind of magic -a Human Feeling that feels like a happy accident –almost like ‘fate’

A Growing Expectation

55% expect technology to deliver surprising experiences that areuniquely tailored and ‘feel like coincidences’

Age of Serendipity

Age of

Serendipity

I expect the

unexpected

Engagement at Another Level

It sharpens the senses, encourages emotional engagement with the world, people – so be the brand that goes beyond past behaviours

Know me intimately

42% already expect

brands to know them and

offer something they

didn’t even know they

wanted

Harness the Power of Surprise

Deliver us a pleasantly surprising experience and

61% of us are more likely to

buy from you – up to 86% in

China and 81% in Brazil

Value Me

What am I worth?

Why is it happening

Misuse of personal data

(by companies,

governments, etc) means

managing data online is a

growing topic of

conversation

A “free” service

Consumers understand

their data is valuable feel

they are due a slice of the

pie. When they share their

data, they expect value in

return

My Specific Needs

45% of consumers are willing to sell ALL their digital data collected over 6 months to the right brand at the right price

Value Me

Nike pop-up vending machines in NYC allow customers to trade Fuel points for Nike merchandise –turning a points system into a consumer currency

Value Me 59% of us are more likely to buy from you if you reward us for

our digital information.

Customers don’t feel that they’re currently getting a fair value exchange

66%

31%

Importance Satisfaction

Microsoft Financial Services CDJ

Information

sharing…

67%

58%

38%

Full knowledge & control Stop or delete at any time Get reward or benefit from it

And seek more transparency about that exchange

Serendipity &

Value Me

Brand Toolkit & Discussion

Deliver pleasantly surprising experiences. This could be outside of the product and service portfolio

Build serendipity into loyalty programs. This will ensure longer term engagement

Serendipity can be simple and small. Coincidence and surprise do not need to be complex

Gateway to Millennials. Double the percentage as Boomers expect brands to know & recommend things to them

Transparency is King. Understand you are in a two way relationship with customers and communicate their value

My Analytics

What is the trend?

Data is Insights!

Tracking habits and activities, measuring performance and seeking insights and self betterment from personal data

Strategies for Improvement

51% use digital devices and apps to track habits and performance and make strategies for living a better life

A ‘Better ’ Me

27% use digital devices/apps to track, and analyse data to optimise habits, activities, performance and set goals for the future

My Analytics

My Analytics

Why is this

happening?

Health Focus & Tech Innovation

Combination of cultural changes in social attitudes and technological innovation

Mobile, Mobile, Mobile!

Revolution in mobile technologies has driven innovation – led to explosion in self-quantification for self-improvement

Fighting Fit

Increasingly frantic world, consumers are seeking ways not just to be fitter, but to be more productive

My Analytics

What is Next?

Disappearing Wearables

With tech shrinking and ingestible sensors on the horizon, wearable technology will become less visible

And ‘Sci-Fi’ Tech

38% are interested in being able to track and analyze our data using devices implanted or easily dissolved into the body

To Cloud Projections

Ambient displays around will inform us of our short and long term data trends – a snapshot of our health and wellness

My Analytics

Brand Toolkit

Adopt positive language. Focus on achievement, improvement and ability

Collaborate with health and wellness brands. As well as data-driven products and services

Help consumers. To develop their skills, who can capture and analyse their individual aggregated data

Go beyond tracking data for the sake of tracking. Ensure that the data can deliver real value and measured improvements in consumer lives

Creator

Culture

What is the Trend?

A New Creator Culture

Experimentalism, creativity and a desire for the satisfaction of building something new lie at the heart

Still Niche

Due to its niche nature, awareness low compared

to other trends at 23% -but does skew young and male

Make Do & Mend 2.0

39% express a desire to learn more about how to make or adapt their own digital devices and services

Creator Culture

Creator

Culture

Why is this

happening

Growing Expectations

Spend more and more time with digital tech & increasingly eager to understand their inner workings

Coding Less Geeky

Amateur developers’ overnight success has inspired others to learn to code, and access this potentially lucrativemarketplace

More Accessible

Barriers to learning to code and hack are lowerthan ever – including free and open courses

Creator

Culture

What is Next?

Empowering Creativity

Consumers will increasingly create their own personal ecosystems of tools and services that are tailored to their specific needs

Focus on ‘Creating’

54% are interested in making their own digital products in the future

About the Blueprints

The future will be increasingly about digital designs and intellectual property, rather than physical products

Creator

Culture

What this means

for brands

Collaborative Experimentation

Brands must develop collaborative relationships with consumers opening themselves to consumers’ experimentation

Creative Involvement

Brands should find ways to encourage consumers in creating new products or services, whether tweaks of their own or entirely new experiences

Hacking Openness

49% expect brands to be open and allow them to create a new product or service by using the brands original design and features

Creator Culture

Creator

Culture

Brand Toolkit

Get Involved with Generation I. They are the crusaders of the future Creator Culture.

Engage with emerging markets. Consumers who, by necessity, are the established creators

Align with coder clubs, science clubs and events

Start planning now. For a world in which we are all co-creators and more self-sufficient

Focus on the blueprints. Customisation should be built into products and services pre shelf

THANK YOU@nathaliekrup