1.There is nothing so terrible as activity without insight. Johann Wolfgang von Goethe

2. TABLE OF CONTENTS OE O.E. represents exclusive content which is only available in the online version.5WELCOME TO INSIGHTS 201347 how sensors are connecting 91 GAMIFICATION AS A DIGITAL STRATEGY OE TREND 4 Alan Herrickthe world and THE implications Mohammed Iqbal, Syed A. Suffiyan Globalization: The Global Marketerfor experience design OE and the Rise of the Global Consumer7IN-STORE DIGITAL RETAIL: Benno Schmidt96 Media-Sapiens: Using Social Instincts THE QUEST FOR OMNICHANNELto Explain, Predict and Influence 165 Understanding eCommerce in China Hilding Anderson, Rachel Zinser 52 invisible brand interfacesOE Desirability in the Digital AgeRobert Wang with Rebecca Prettyman, Lauren Egge Daniel Harvey Melissa Read171 FUTURE OF COMMERCE: LIFESTYLE SOCIAL 21 2012 Digital IQ Excerpt 56 is there a terminal velocity for 101Rebuilding Trust: How Banks CanCOMMERCE GOES BEYOND PINNING OE L2 Think Tank youth and digital?OE Reconnect With Consumers Jeff Blais, Sushobhan Mukherjee Omaid Hiwaizi Chris Baker, James Buchanan, Omaid Hiwaizi25 TRENDS: FOUR TRENDS SHAPING175 CHASING THE GLOBAL CHINESE LUXURY MARKETING PRIORITIES61 RESPONSIVE DESIGN 101: TREND 3 CONSUMER: A CONNECTOLOGY APPROACH Hilding Anderson, Todd Cherkasky, OPTIMIZING FOR MULTIPLE SCREENSContinuous Experiences: How Companies David Thorpe, Jake Wheeler Donald Chestnut Dan Israel, Mayur GuptaAre Blurring the Online and Offline World181 GLOCALIsATION AND THE ANTHROPOLOGY TREND 1 TREND 2109 STORYSCAPING: BUILDING WORLDS, NOT ADSOF GLOBAL MARKETING OE Real-Time Control: New Consumer- Predicting Desire: Building the Infrastructure Gaston LegorburuMegan Bannon Oriented Devices and Data to Anticipate Consumer Needs in Real Time 113 Brand as Channel: 187 Five Challenges to Tomorrows29 FUTURE OF TV69 Predicting Desirability Todays Always-On Messaging Global Marketing Leaders David Hewitt, Lucy Devassy Lessons From a Teen Genius Alan Schulman Hilding Anderson, Freddie Laker Sheldon Monteiro35 CUSTOMER EXPERIENCE IS ON THE MOVE 119 Adapting to a Fragmented190 INTERNATIONAL ecommerce expansion Nigel Vaz 75 The Future of Business Insight Media Environment Don Shields OE Lee Woodard, Chris Handley David DAlleva, Peter Colapietro39 MOBILE PAYMENTS:194 International Perspectives THE FUTURE OF MONEY81 The Big Data Era:124 the future of content experienceUS Perry Chan Learning to Act in Real Time and how to design for itUK James Buchanan Kevin Nichols Germany45 The Economy of one: Russia The consumer as producer, 86 DIGITAL LUXURY 101: HOW TO ENHANCE 130 I CAN SEE CLEARLY NOW ... Indiainfluencer and purchaserOE THE CUSTOMER EXPERIENCEOEACROSS THE ENTIRE EXPERIENCE: Singapore Dan Israel, Perry Chan Hazel Reed THE ANALYTICS MATURITY MODEL OE Japan Jennifer Patterson, Dave Kane ChinaAustralia 136 Valuing Fanatical Engagement Scott Petry 217 NOTE FROMTHEEDITORSHilding Anderson 142 MEASURING GERMAN MULTI-CHANNEL: Lauren Nguyen Cohen APPROACHES ANd IMPLICATIONS OE Uwe Tueben 149 THE CMO TOOLKIT: WHAT EVERY MARKETER SHOULD KNOW OE Gary Shannon, Omaid Hiwaizi 156 Retail Goes Rogue: How digital convergence will revitalize the in-store experience Charlie Sayers, Rob Milstead 3. WELCOME TO It is the function of creativeINSIGHTS 2013 man to perceive and to connectthe seemingly unconnected.Written by Alan Herrick, President and CEO, Sapient CorporationWilliam Plomer When history looks back on thisthink about creativity and what can Or that a ski resort would be one Our thinking is stretched daily to season of robust innovation andhappen to a compelling idea when its of the first to introduce RFIDhelp bring brand stories to life in progress, I think it is likely toamplified by the scale of technologytechnology as a way to enhance theirrelevant ways across the consumer remember it as one of the most and personalized by the intimacy of guest experience on the slopes andecosystem. As consumer, retail and significant paradigm shifts in, nothuman interaction.way beyond? We had the honor of communications landscapes continue only daily life, but in the business helping Vail Resorts innovate a way to stretch and evolve, we will continue of relevance in daily life. We are To that end, we believe that a brandsto connect skiers to RFID tagging toto wake up in the morning propelled perpetually challenged to connectability to innovate is not just about social media so that they can track by the challenge.technology. Its about combiningand share their Vail stories acrosstechnology with powerful ideas andtheir personal networks. The result In this edition of Insights,insightful perspectives on humanwas more than 100,000 social photos SapientNitro thought leaders offerOur thinking is stretched daily tomoments to create highly relevant shared, yielding approximately 12 you approaches and tools that helphelp bring brand stories to life in ways to connect.million social impressions for photos navigate this completely digitized,alone, and thats in just the first borderless worldto be used as arelevant ways across the consumer Who would have anticipated that one season. Vail Resorts empoweredflashlight of sorts. It offers research,ecosystem.of the most esteemed luxury car 150,000 people living the Vail Resortsobservations and compelling pointsbrands in the world would create astory to tell the Vail Resorts story to of view from subject matter expertsmobile app that allows consumersan audience of 12 million? What onceto students of life, to help us all seeto virtually build their entire carmight have begun as an ad for a ski the path were on a bit clearer, so the the dots between our brands andfrom the very first bolt to the lastvacation has become a panorama of next step feels a bit more confident. the daily lives of our consumers indrop of paint?experience that lives in perpetuity. meaningful ways. Thank you for your interest andOr that a 125-year-old British sports It has been our privilege tosupport of SapientNitro, and with As stewards of brands and purveyorsgaming company would be the one toparticipate in these and many continued resolve, we invite the of ideas, we are both humbledpioneer a combination of analytics, other breakthrough changes that challenges of our time, walking and exhilarated by the impact of social media and mobile technologyreinvent the definition of idea and alongside partners connecting in new technological innovation on how we to drive a record surge in betting? unfetter the boundaries of creativity and creative ways to their consumers.for new pathways of connection. 4. IN-STORE DIGITAL RETAIL: KEY THEMESTHE QUEST FOR OMNICHANNEL The goal of this research was toJust as ecommerce spurred the evaluate the digitization of physical evolution of a new type of shopping spaces. Our hypothesis was that experience, in-store retail is poised to most retailersparticularly in theirundergo the same type of disruptive marquee New York City Fifth Avenueevolutiontransforming itself into Written by Hilding Anderson, Sr. Manager Research + Insights, Washington, DC & Rachel Zinser, Sr. Associate storeswould have made substantialsomething so different it requiresResearch + Insights, Chicago, with Rebecca Prettyman, Associate Research + Insights, Chicago investments, and the investmentsa new name: Connected Retail. A & Lauren Egge, Associate Government Services, Washington, DCwould have been made here prior Connected Retail experience2 is a to other cities.fully integrated, digitally enhancedThe Adidas store, not part of our formal Over the past decade, retailers of allexploring in-store self-checkout with experience that engages the customerevaluation, included a display obviously added onto the in-store experience. sizes have been driven by disruptivesmartphones.We discovered that simply adding in both the virtual and the physicalOf the 71 retailers,technologies and the changing digital is not the answer for retailers worlds. It enables stores to exploit only 4 emerged withconsumer to make major investmentsTo measure the degree to whichyet that was an approach too oftenand extend their unique advantages in digital channels, particularly retailers are successfully building links taken. As youll note in the scores,into the digital realm. baseline scores. ecommerce and mobile platforms. between their digital and physical stores,brands that simply bolted on a screen Effectively, in-storeBut now, more retailers are starting to SapientNitro independently conducted aor added a tablet did not score well. InTo understand the implications of embed sophisticated interactive toolsfour-month audit of specialty retailers. digital experiencesfrom digital displays to interactiveWe evaluated the physical locations of 71 our view, the retail store must focus on tools that help sell in-store and extend the research, we focused on several questions we expect retailers to ask today are only weakly exhibitsinto the store layout itself.retailers across 7 key criteria, gatheringthe visibility of both the customer and and developed six key findings based integrated with in-store over 500 points of data (See Methodologythe sales associate into the digital space: on them.Ecommerce investments used to be & Approach).product reviews, near-infinite inventory goals and activities.focused on simply complementingand a much broader product assortment. the traditional retail store footprint. In the end, what we found was In that world, shoppers would browsesurprising. Of the 71 retailers, only online, compare prices through their4 emerged with baseline scores.KEY FINDING 1: PC and ultimately end up in the store toEffectively, in-store digital experiencesDigital In-Store Displays Are Powerful purchase. It was a linear journey.today are only weakly integrated withToolsBut Too Often Poorly Executed in-store goals and activities: The But increasingly, new ecommerce tools content and functionality (if it exists at are able to directly influence the in-store all) of these experiences struggle to When done well, in-store digitalcan enhance the experience, it lacks shopping experience. This is reshapingsupport in-store goals and activities.branding added tremendous energyinteractivity. We saw little content the traditional role of the store: What and engagement to the retail shopping focused on product information andOne example of well-integrated digital used to be a key step on the path is nowIn most stores, digital has a limited experience. Unfortunately, most digital utility, and even fewer interactive merchandising was the Bloomingdales optional on the way to the purchase effect on the visitmobile, kiosk orexperiences suffered from major experiences designed around userin-store in-wall displays. Not interactive, they still were well-executed and supported through a digital platform. tablet-based ecommerce and digitalshortcomings, if they existed at all goals and actions.the brand goals in the store. display screens could be removed40 of the 71 retailers evaluated had no Smartphones have reinforced thisentirely from the shopping processvisible digital displays. Interestingly,What worked: UNIQLOs in-wall transient behavior. Now, search and and there would be little change. Yet many of the best in-store experiencesscreens were tightly integrated with the price comparison is happening in thedespite the sad state overall, there were Chanels sleek runway video and physical design of the store and visually store aisles, and a new behavior of interesting examples that were doingCliniques iPad skin evaluationcompelling. In larger stores, consistent test-and-buy-elsewhere are becoming one category very well. For example,appeared to be created in positiveusage of digital display as part of much more common.1Nordstrom, Coach and Crate & Barrel partnerships between vendors or the brand experience was essential earned high scores in inventory visibilitysuppliers and retailers.in creating the desired impact. For In response, retailers are increasingly and fulfillment, UNIQLO had fantastic in- example, Bloomingdales had screens embedding digital experiences into theirstore digital displays and merchandisingMore troubling is that few retailersthroughout the store, which was physical locations, and applying connectedand Bloomingdales had great digitalembraced the interactive elementin stark comparison to other large thinking to enable consumers throughout brand and merchandising examples in of digital. Screens are great, but ourretailers that often had a single, and their journey with the brand. Examplesthe cosmetics section. JCPenney and expectation is that in-store digital must sometimes difficult-to-find, screen for include mobile apps with built-in scannersMacys also offered distinct Levis digital move beyond glorified wall hangings an entire floor. Digital entertainmentLEGOs in-store augmented reality experienceThe Nike Store, while not formally evaluated has received considerable buzz in the digitalas part of the research, offered some of the to discourage showrooming, inventorytouchpoints (the Denim Bar and Levis and deliver content and functionality for kids is an interesting concept; both space. But like many experiences in our audit,most immersive digital experiences.visibility and tools to enable cross-channelkiosk respectively) and sales associatesthat supports2 users in the shoppingAbercrombie and PS from Aropostale lack of support (in this case, the display was not shopping (e.g., wish list management).were enabled with iPads.process. Many of the screens focusedfeatured digital displays at kidsoperating) hampers the use of these devices. Retailers such as Walmart are alsosolely on branded content; while this heights, which offered a distraction forThe LEGO store was not part of our formally evaluated retailers. 1 59% of smartphone owners report having used their phone to find a better price while in-store. InsightExpress, Q1 2012, Digital Consumer Portrait. Jan 25, 2012 2 For more information on Connected Retail, see Retail Goes Rogue: How Digital Convergence Will Revitalize the In-Store Experience in the Trend 3 section of this report. 5. To measure the degree to which retailersRetailers physical stores were evaluated weary parents and kept kids engrossed. video footage, but didnt add to the visit. METHODOLOGY are successfully building links between their digital and physical stores, SapientNitro across seven criteria: Visibility, Content, Functionality, Brand Translation, Social The Levis Denim Bar at JCPenney was well designed and reasonably wellOver and over, we saw stores thathad clearly not thought through the& APPROACH independently conducted a four-month audit of Sharing Integration, Mobile Experience specialty retailers.In-Store and Cross-Channel Inventoryintegrated. Conversenot on our listdigital, omnichannel environment. We & Fulfillment (See Methodology Chart).offered digital tools to allow consumers encountered many examples of poor Our research approach consisted ofAnd ultimately, each retailer received an to customize their shoes in-store andplacement including a digital display in-person visits to the physical properties ofOmnichannel Score based on its compositewalk out with one of many designstucked under stairs and another hidden 71 retailers, focusing on flagship and otherscore (See Omnichannel Scorecard). printed on their sneakers. This is a behind a rack of clothes. One store had prominent locations in New York City.3 Researchers assessed each stores digital strong example of a tool that adds value seven-foot-high kiosks, which were offering(s) while equipped with Android and to the in-store shopping experience, isboth broken and awkwardly placed at iOS smartphones.relevant to in-store purchasing and cantan exit and in the middle of a crowded be replicated at home. clothes section. Another beauty andskincare store mounted a touchscreen Definition of Categories 60+ ExcellentWhat didnt: In smaller stores, such computer to the wall, but left the outlet 50-59 Good Visibility: To what degree are digital elementsSocial Sharing Integration: How well isas Lindt and Bath & Body Works, largeand cables clearly exposed. 40-49 Averageclearly visible in the store? Is digital integratedcross-channel or social sharing (e.g., email,screens behind the checkout displayed 30-39 Fair throughout the shoppers path? Facebook, Twitter) enabled? 29 and Weak below Top Scores: UNIQLO received a five in this categorythe highest possible ratingfor itsTop Scores: Sephora earned a four becausemany of its touchpoints supported easy emailKEY FINDING 2: dynamic, visually stunning store experience. sharing, and there was some social integrationPoorly Planned Digital Is Worsethough it was not seamless. Overall, a category Than No Digital At All Several retailers integrated scanningMethodologyContent: Is the content relevant to the brandaverage of 1.4 out of 5which excluded the and its products and services? How well is the 40 retailers that received a 0 scoreindicates capabilities into their mobile apps, but content tailored to the in-store experience? significant room for improvement acrossour attempts to scan were mostlyStore Experience 70%Digital is a key component of theWhat didnt: JCPenney had greatall retailers. unsuccessful. The scanning softwareVisibility15% Top Scores: No brand received a five, but shopping journey, but retailers that experiences at the Levis Denimusually worked, but the mobile app wasContent 20% Ethan Allen and Sephora secured a four byMobile Experience In-Store: Does the retailerrush to extend digital to the physical Bar and had iPad-equipped salesunable to look up the barcode.Functionality 20% Brand Translation15%offering product information and exploration have a native mobile app with functionalitystore experience wont win the race. associates, but the overall experience to support the in-store shopping experience. relevant to the in-store experience (e.g., pushRetailers must plan for the long-term; was hampered by broken price-checkSocial Sharing Integration 10% notifications, barcode scanner)? Functionality: Are digital tools interactive? this includes technology support and kiosks and two broken findmoreMobile Experiencesales associate training in how to use the touchscreen kiosks. Display errors To what degree are the functions relevant to Top Scores: No mobile experience warrantedIn-Store10%Cross-Channel shoppers goals and the in-store experience? a five. Most apps were singular in function ifthey worked at all. However, Bloomingdales tools and in the value they provide. Staff shouldnt be surprised when shopperson Guess touchscreen overshadowedany value the content could provide.Retailers DigitalInventory & Fulfillment10%Top Scores: No experience garnered a five, but Sephoras digital touchpoints, includingdid earn a four; in addition to the productscanner provided by its Big Brown Bag app, use smartphones to scan a barcode or Several retailers integrated scanning Assets (Content)Each retailer was scored in eachcategory from 0 (not present) to 5 the Scentsa fragrance finder, netted the retailer a four.the Bloomingdales @ 59th & Lex app offeredinteractive floor maps for its flagship store. interact with a touchscreen. Floor plans have to be redesigned for digital displayscapabilities into their mobile apps,but few worked seamlessly and Grow More Critical(best). The scores were weighted toand interactive elements.consistently. Guess sales associatescreate a composite index, and then Brand Translation: Is digital well integratedCross-Channel Inventory & Fulfillment: Does intercepted us as we tried the style into the physical space? Do digitalthe retailer provide store inventory visibility in The content owners that will multiplied by 15 to achieve an easy-to-What worked: UNIQLO is a prime selector, and in American Eagleread overall score from 0 to 75. See the touchpoints enhance the brand imageother channels? How well does the retailer thrive in this digital ecosystem example of a store designed with digital Outfitters, the sales associate wasntOmnichannel Scorecard for the results. and store experience?support cross-channel shopping and fulfillment? in mind, but even stores like Saks Fifth aware of the mobile apps barcode are the ones that understand Avenue and Ralph Lauren that had fewer scanner. Even several Sephora the need to deliver seamlessly Top Scores: Bloomingdales, especially its Top Scores: Coach, Crate & Barrel and cosmetics experience, and UNIQLOs spacesNordstrom allowed shoppers to easily check displays with little to no interaction employees provided misinformation across every possible platform. were clearly designed with digital in mind,in-store availability via the website and mobile executed what they did have wellabout the Beauty Studio tool.eMarketer 80 earning each a five. site and offered an option for in-store pickup,displays were integrated and smooth.which plays up a physical retailers advantage ofimmediate fulfillment and no shipping costs. KEY FINDING 3: It Isnt Just the Hardware: Content and Software Matter % Great digital signage and interactivematch the hardware. In our research,Companies that optimize their digital elements require great material. we found many examples of large-scale mobile web content outperform Nothing emphasized the gap between runway videos, but were left scratching those that dont by 80% in the promise and the reality better thanour heads about the lack of other year-over-year increases in the lack of software and content tostories. Where were the stories about web traffic.4 3 71 retailers were audited. Of those, we evaluated one or more locations in New York City for 68 retailers and locations in Chicago for three retailers with limited or no presence in New York City.4Aberdeen Group The Business Value of Adapting Web Content For Mobile Devices, 2011 6. how a great design came to life? Where several years, but is a solid tool, was the product information, or even promotional material?delivering personalized productrecommendations based on users skinKEY FINDING 5:types and key concerns (e.g., acne,Retailers Should Focus On In fact, Sephoras tools, Cliniques redness). It is integrated with emailSupporting User Tasks skin evaluation, Macys Levis kiosk,which workedand usually a printer, JCPenneys Levis Denim Bar and Ethanand was a popular tool at Macys,Well-designed, task-based tools Magic Mirror, which allows shoppers to Allens Express platform were some Bloomingdales, Nordstrom, SaksBased onof the only software implementations Fifth Avenue and Lord & Taylor. While emerged as being few and far betweenquickly try on many new glasses styles in our research. We found that thewhile still being able to see the styles SapientNitros focused on in-store tasks. In-store toolsmost had the Clinique iPad propped leading examples included wedding properly wearing their own. need to offer more than something aup in a very basic (likely standardized) work in the space, shopper can do at home.freestanding base, Bloomingdales registry kiosks, mobile barcode scanners and product explorations like the skinWhat worked: Crate & Barrel included we have found a went a step further to integrate the evaluation and fragrance finder.both a wedding registry kiosk and a significant increaseThere are hundreds of potential storiesiPads into a custom counter. mobile app that allowed users to walk for strong brands, and digital in-store But much was left on the table. While the store and scan items to add to their on the order tools offer the opportunity to tell them.What didnt: Barneys had over a dozen43% of brands had some sort ofregistries. Cliniques iPad tool delivered of 10% to 40% in The failure to highlight and feature these iPads placed consistently throughout functionality supporting in-store tasks,personalized product recommendations, stories is a key gap for many retailers. the multi-level store, but the content the majority were digital displays. Evenhelping shoppers narrow down the additional in-storeContent needs to be integrated intowas generic dot-com material (typicallyfewer (22%) brands had interactiveoptions at the point of sale. Macyssalesrelativethe development of digital in-storelinked to the blog The Window). ALDO tools, which support those user tasks.mobile app included a barcode scanner experiences, and content is a powerful was even worsethey mounted tabletsAnd we saw none of the digital try-on that worked, although it returned a to other stores.tactic within a larger omnichannel next to the shoes, offered no contenttechnologies that various publicationshigher price online than in-store. strategy. Content must tell a storytargeted at consumers and even had have lauded. Not only did we not see consistent with the brand. sales associates scold shoppers when virtual fitting rooms, but also someWhat didnt: Bath & Body Worksthey attempted to scan the shoes of the experiences that the industrymobile app included a scanner, but What worked: Cliniques iPad skinthemselves.raves about, like iPad kiosks, failed every attempt to scan a product evaluation has been out for to deliver. We also failed to find anyresulted in an errorthis issue was future-thinking examples similar to common across retailer apps assessed. Marks & Spencers touchscreen co- Guess app also promised to look upKEY FINDING 4: browsing experience (see image to prices and customer reviews, but also threw an error. And we already notedThe Right Tools Generate Positive ROIthe left) recently rolled out in Paris, or examples such as LensCrafters ALDOs tablet trap. New, Creative One of the key questions to consider unique advantages: immersion, direct Retailing Models prior to in-store digital investment is ROI. The cost of installing andsupport of sales associates, immediacyand focus, social elements and the KEY FINDING 6:Are Proliferating supporting these tools is significant, opportunity for fun. It makes sense to The Omnichannel Battle Has Begun but the question of a positive returninvest in the channel that represents The highly targeted assortment is too often unknown. Based on more than 90% of most retailers and short-term leases are a We awarded three retailers a five in thechannel purchasers. Across the seven low-risk way for Walmart to SapientNitros work in the space, we sales (even as ecommerce continues Cross-Channel Inventory & Fulfillment categories we evaluated, more retailers have found a significant increaseon to grow). reach new shoppers and capture category. This is the only category thatwere awarded top scores (4 and 5) in the order of 10% to 40% in additional shopping occasions it may not had more than two top-scoring retailerCross-Channel Inventory & Fulfillment in-store salesrelative to other stores. What worked and what didnt: and reflects, we believe, a growing than in any other. otherwise have access to. These benefits are primarily due toObviously, our audit of in-store interest in this area and increased Instoretrends.com, referring to Walmarts decreased lost sales, the ability to ship- experiences couldnt determine retailer awareness of cross-channel We also examined the flexibility of2011 Holiday Pop-Up Store Strategy130 to-home, improved in-store shoppingthe direct impact of each digitalbehaviors. This is the first of a series of cross-channel shipping. The abilityThe Marks & Spencer Paris location by enabling co-browse with sales experience. What weve found in ourto check store inventory in multipleoffered co-browsing for associates and steps towards omnichannel thinking. associates, and brand contribution.work in the space is a significant ROI channels is highly relevant to the%is a move towards the endless aisle,particularly important in the most Retailers with a physical presence increase in well-designed convergent We assessed how well retailers areomnichannel shopper. Additionally,profitable high-traffic, small need to play up the benefit of in-storeretail tools such as in-store kiosks facilitating cross-channel shopping three retailers pushed the bar higherfootprint stores.experiences. Quite simply, sales connected to the right technology on behaviors, specifically from the webto support cross-channel fulfillment. conversion is much higher in the retailthe back end.(and mobile web) to the physicalCoach, Crate & Barrel and Nordstrom store than anywhere else. It also offersstore. With the large number of gave shoppers the option to purchase consumers that research online andan item online and then pick it up atThe increase in online sales buy in-store, retailers have a significanta nearby store that had the item inover 3 months after Tescos opportunity to support these cross- stock. Though it does not offer theSouth Korean commutercampaign was 130%. 7. level of immediacy that in-store pickup usual specs like size or color, as well provides, some retailers also offered a ship-to-store service, which, when as nearby through which users can set a location and narrow products byCASE STUDY: MACYS offered for free, might appeal to the store availability. large number of shipping fee-averse Across nine floors and over two millionduring our audit. Though the five- shoppers.5What didnt: Among the surprises were square feet of retail space, the Macysinch LCD screens were not a vision H&M and UNIQLO, which did not haveflagship store in Herald Square hadof beauty, the kiosks provided basic What worked: Crate & Barrel had ecommerce offerings in the U.S. and more in-store touchpoints than any product specifications along with price, clear inventory visibility as well as the provided no visibility into store inventory.other store evaluated. Yet it was clearin which shoppers clearly saw value. option to see if larger furniture piecesAnd while several large departmentit was optimized for an analog world;There was a missed opportunity to were on display at a nearby location. stores provided at least some level ofdigital displays had limited functionality further engage, cross-sell and delight They also provided in-store pickupinventory visibilityincluding Macys,and the visibility of the tools in such acustomers at this already frequented services as well as an option of free JCPenney, Bloomingdales andlarge store held the retailer back fromtouchpoint.The Clinique skin evaluation in Macys shipping to a store. Nordstrom offeredSaksit was a surprise to see a few achieving a Good designation. offered clear instructions and a clean innovative functionality on its mobileexceptions, including Neiman MarcusOther areas of opportunity included theinterface, but was also featured at most of site, allowing users to filter by the and Lord & Taylor.Top experiences included the Cliniquedigital branding and merchandising their competitors. skin evaluation iPadsMacys mostdisplays throughout the store, whichScentsas design ubiquitous (available on three separatewerent as integrated as, for example,invited shoppers to try it out.CASE STUDY: SEPHORA floors) and successful implementation, Bloomingdales. In addition, the single although not unique to Macys. The gift registry in the ninth floor luggage sleek display of the Levis touchscreendepartment worked, but seemed While no brands achieved theThe location made the touchpoint less kiosk in the kids department, while oddly placed. Users could search for a Excellent status in this inauguralinviting to passersby if the station wastucked among the racks in the girls registry, but the output was a several- omnichannel index, Sephora didin use, but those that ventured to checkdenim section, drew attention. Users foot-long, receipt-style printout of emerge as a leader among its peers. it out found how-to videos and tips, an could browse very basic productproducts. Sephora had a seemingly well thoughtoverview of available in-store services,information related to kids denim out strategy for digital in its physicalsocial content from Sephoras networksstyles and snap a pic with the digital As a whole, the Macys digital in-store spaces, in addition to a relevant mobileand more. Shoppers could also share photo booth. Finally, the Macys mobileexperience has established several key offering and cross-channelboth dot-content via email or social networks, app was a strong point with a scannerpieces of a complete offering: cross- com and mobileinventory visibility.though some speed and system issues for price comparison (although itchannel inventory visibility, a mobile were encountered when we attemptedreturned a higher price than the scanner and the beginnings of in-store Inside the store itself, the Scentsato do the latter. physical tag) and its find in-storedigital content. Developing tools that touchscreen kiosk served as a function.enhance the brand and truly support centerpiece in the fragrance space. Sephoras mobile app also offeredshoppers in-store activities remain a The best-in-class interactive display shoppers a scan feature, providingPrice-check kiosks were easy to find significant opportunity. Beauty Studio iPads linkedlet visitors explore fragrances through easy access to additional product infoand were used frequently by shoppers shoppers to tutorials, social multiple paths, such as by brand or and reviews, which could help with content and available services. by fragrance note. The touchscreenpurchase decisions. The Macys Levis was responsive and easy to navigate,kiosk was visually striking. and offered shoppers helpful productEach touchpoint hit the mark across information. When a shopper found several criteria, but the overall The Macys The Levis kiosk something of interest they could emailexperience still fell shy of Excellent. mobile app was easy to it or scan the QR code to pull up the On reflection, we felt Sephora missedincluded a use, but product product on their phone. The screenmaking the final strong connection basic scanning information was also prominently displayed Facebook between shoppers in-store goals and capability, aslimited. links, but didnt follow through with experience. Scentsa helped shopperswell as the abilityto scan and social sharing capabilities.wade through the overwhelming add items to aSephora offeredA second touchscreen kiosk, Sephoras number of fragrances, but after findingregistry.email through itsSkincare IQ, offered a very similar the perfect scent on the screen, howtools (see emaillink in top-rightexperience catered to skincare needs. does it make its way to their cart?corner of image).There was no indication of whether In addition, Beauty Studio iPads were the fragrance was on the shelf at that positioned along the vanity mirrors atmoment and no assistance locating it. In-store scanning Sephoras makeover stations. with the Sephora app surfaced helpful reviews.5 When asked the main reasons they dont make online purchases, 36% of consumers cited the shipping costs. That made shipping costs the second-most common reason they balk at buying online, only slightly behind the 37% who prefer to see and touch an item in person before purchasing. (Internet Retailer 2012) 8. NASCARThe blurring of lines across online and experience. The opportunityto beoffline are not just impacting retailers.We work with multiple industries thatfair, as yet unrealizedis to surfacegreat analysis and social conversation, CASE STUDY: JCPENNEY Racesare addressing the same challengesand to see aspects of the event theyto their businesses. From travel andmay have missedwithout diluting theJCPenney has the opportunity to be was entirely unresponsive. Thehospitality to telecom, most consumer-intensity of the real-world experience. Towardsamong the leaders in relevant digitalpromotional material promisedfacing industries are, to some extent,For example, they are considering in-store experience, with several strong media-rich content and social sharingfacing similar challenges. However, leveraging digital signage, Jumbotron experiences. But in practice not onlyoptions, but we saw little of note.few have pushed as hard or as fastintegration, in-venue kiosks anddid a majority of digital touchpoints failOmnichannel as NASCAR.NASCAR is one of the premiumprofessional sports businesses, witheven mobile ticketing to make theexperience richer.Connecting Digitally at Hometo impress, too many were inoperativeor unsupported.The first touchpoint encountered was A more recent effortthe Levis Denim Barhit the mark across several criteria. Relative to the kiosks, visibility was improved, with in-store marketingmassive reachhosting 17 of the 20Similarly, while watching at home,the price-check, a staple in manymessages of a new way to shopmost attended sport eventswhilesecond screen viewing can extend anddepartment stores. Similar to otherfor jeans and a prominent locationdelivering significant results to increase the richness for consumers.retailers, the design did nothing to adjacent to an aisle. The Denimsponsors products and services. With Personalized experiences similar to boost the brand image, but the realBarwhich was only in the mensover 70 million fans worldwide, it is the ecommerce platforms in retail can issue was that the price-check was department of the location visitedwassecond most-viewed broadcast sport, allow fans to connect with existing non-functioning. The kiosk display well designed, with the feel of a store-and has the longest sustained seasonmedia broadcasts (e.g., follow theirindicated that the Price checkwithin-a-store. iPads were mounted onof any sport. favorite drivers audio or watch pitsystem is unavailable. Please see an the Denim Bar, and the interface wasrow videos), live data feeds (e.g., tireassociate. This message appearedsmooth and provided shoppers accessiPads at the Levis Denim Bar were easyYet their digital channels have state, fuel state, speed) and education at seven of the eight kiosks we visitedto basic information such as available to navigate.traditionally been under-emphasizedand analysis (e.g., history of the track, throughout the store location. styles and washes, as well as video andwith no YouTube channel (untillive analysis), or even enable socialimages highlighting the fit.recently), substantial conversation conversation (e.g., Twitter, Facebook)JCPenneys findmore kiosk offereddrop-off in the off-season and a fifthon NASCARs own platform. a strong visual impression, although Beyond in-store offerings, JCPenneyplace in online conversation after thethe content and functionality struggled. provided inventory visibility throughNFL, NBA, NHL and MLB.Building the BrandThe kiosk essentially brought shoppers both its dot-com and mobile site, whichNASCAR fans are some of the mostto the retailers website withoutsupports the omnichannel shopper.In addition, their customer basepassionate in the world. Part of thespecifically tailoring the experience to And though the Levis experienceis evolving. Their biggest fans are opportunity of digital is to deepen in-store goals. In terms of functionality, and inventory visibility resulted inincreasingly connected consumersthat connection by bringing great the touchscreen interface on the a slight lift in scoring, it was stillwho expect to be able to interact withcontent about the history of the teams, first kiosk was largely unusablethe overshadowed by inoperative kioskstheir favorite brands, drivers and teamssponsors, cars and drivers. There isnavigation would rarely respond to and price-checkers.through digital channels. incredible richness in the stories, which touchand the second kiosk testedcan be told through these platforms.The solution is to reinvent and And off-season, digital channels offerrecognize the strategic opportunity the opportunity to flatten seasonalityto evolve to a more connected fan and shape engagement.experience that extends before, duringand after events. In summary, just as retail storeshave started to consider in-store,Extending the In-Venue Experience NASCAR has started to think aboutAnalogous to the in-store experience, in-stadium and at-home digitalattending races used to be dominatedexperiences. Integration with liveby the cars and a basic scoreboardtelevision programming allows deeperwith positions. Yet today, NASCAR isengagementand more opportunitiesseeing fans arrive with smartphones for lifting the lifetime value of fans. The findmore kiosk had a fairly cleanwho expect a platform to extend their look but was not functioning correctlyduring our multiple visits. 9. 60+ Excellent50-59 Good40-49 Average30-39 FairCONCLUSION Omnichannel Scorecard29 and below WeakOur research teams visited over 70 We did find compelling experiences. Omnichannelretailers across New York City. What weFrom UNIQLO to the BloomingdalesRank Retailer Category Score6Class Descriptionsfound were major gaps in the in-storecosmetics section to Sephoras1SephoraBeauty & Skincare 59 GoodOur #1 for having a variety of useful interactivedigital experience. Substantial pressure Scentsa, it was clear that some tools that enhance the store experience, butis on retailers to meet the connectedretailers have made the necessary theres still room to push the envelopeconsumers push for a seamless conceptual and material investment.2Bloomingdales Department Store52 GoodExemplary use of video screens, delightful 59th @omnichannel experience, and while it But too often, we also found majorLex app for use in the flagship store and seamlessis inspiring retailers to consider new problems: broken devices, bolted-on execution of Clinique iPadsways to extend aisles, create adaptive displays and disconnected experiences.3Macys Department Store46 Average On the right track with a diverse range of digitalenvironments and deliver augmented touchpoints, but visibility and functionalitypackaging experiences, the reality isAchieving an omnichannel digitalneed a boosthumbling.vision has challenges. Our study found4Crate & Barrel Home & Gift 44 Average Competent implementation of gift registry, but that much work remains for retailersonly cross-channel inventory & fulfillment goesThat only two storesSephora and to achieve their visionbut this also above and beyondBloomingdalesachieved a Good means that we are even earlier in this5American Eagle OutfittersApparel 43 Average Kids section features fun, digital entertainment,rating in SapientNitros Omnichannel process than in ecommerce or pure plus displays and mobile investmentIndex reflects the substantial digital experiences and that, as6NordstromDepartment Store40 Average Cosmetics department screens, mobile app andchallenges that remain in developing a result, more opportunities remain.inventory visibility shine but the rest fall flata strategy for in-store experiences. Inthe end, no retailer received the topAnd the retailer who cracks this nut 6Saks Fifth AvenueDepartment Store40 Average A minimalist approach: branded video screens complement the fine-art feel of the storeExcellent rating because too few havewill receive a disproportionate shareovercome the underlying challenges ofof the reward. 8UNIQLO Apparel 36 FairBranded video screens around every corner enhanceexecution: organizational alignment, the stores high-tech feel but none offer interactivityclear strategy and an actionable9Lord & TaylorDepartment Store33 FairA sleek cosmetics department bolstersroadmap with quick wins. an otherwise mediocre digital experience10 Ethan AllenHome & Gift 32 FairTouchscreen kiosk is a strong step in the right direction, but location and in-store role need attention10 ZARA Apparel 32 FairHandful of well-placed digital video screens and a smooth mobile scanner, but no visibility into store inventory12 GuessApparel 31 FairSolid endeavor with its touchscreen denim finder, but system errors bring it down a notch13 JCPenney Department Store29 WeakValiant effort, but maintaining tools is a must13 LacosteApparel 29 WeakNo mobile integration, but bonus points for good design and appealing digital video content15 Barneys New York Apparel 27 WeakMounted ipads look sleek, but deliver only website content that shoppers can browse at-home15 Diesel Apparel 27 WeakiPads and video screens compliment the brand, but none blew us away15 Tourneau Watches & Jewelry 27 WeakUnimpressive screens, but online shoppers can schedule in-store appointments for an item of interest18 Steve Madden Accessories & Shoes 26 WeakDigital video experience is well-branded though underwhelming18 Williams-SonomaHome & Gift 26 WeakA basic gift registry kiosk with a print option sums up the digital offering20 AropostaleApparel 25 WeakDigital photo booth in kids PS store is a fun diversion, but limited in functionality and offers no sharing capability 6 A retailers maximum score is 75. See Methodology & Approach for more detail. 10. OmnichannelRank RetailerCategory Score Class Descriptions The following retailers received an overall score of 0 as all three components evaluated were absent:20 Bath & Body WorksBeauty & Skincare 25WeakDigital falls flat: uninspired marketing video and a mobile scanner that returns only errors No digital touchpoints were visible in the store location visited No native mobile app with relevant in-store functionality20 French ConnectionApparel 25WeakSingle video screen behind the cashwrap isintegrated and branded well No store inventory visibility on the retailers website or mobile site20 Ralph Lauren Apparel 25WeakClassic but minimal: on-brand video and RetailerCategorywell-designed displays, just not many of themALDOAccessories & Shoes24 Ann Taylor Apparel 23WeakOne poorly mounted screen tucked awayin the fitting room that serves up theCole Haan Accessories & Shoesdot-com leaves much to be desired Nine West Accessories & Shoes24 BCBG Apparel 23WeakRoom for growth: runway videos looped on aTumiAccessories & Shoescouple of screens7 For All Mankind Apparel24 H&MApparel 23WeakFloor-to-ceiling projector screen makes a Abercrombie & Fitch Apparelstatement, but still has no ecommerce in the U.S.Anthropologie ApparelClub Monaco Apparel27 Brooks BrothersApparel 20WeakNo digital to be had except for shoppers seekinga round of virtual golf practiceIntermixApparelJ.CrewApparel27 LindtHome & Gift 20WeakSingle screen mounted behind the cashwrapdoesnt grab shoppers attentions Juicy Couture ApparelLucky Brand Apparel27 Neiman MarcusDepartment Store20WeakMeager: Nothing beyond the Chanel runwayvideo screenlululemon athletica ApparelRugby Apparel27 Stuart WeitzmanAccessories & Shoes 20WeakBranding video facing the street may catch theattention of passers-by, but not of the in-storeLOCCITANE en ProvenceBeauty & SkincareshoppersLUSHBeauty & Skincare31 Gymboree Apparel 14WeakThe small TV encapsulated in protective The Body Shop Beauty & Skincareplastic may keep the kids entertained,but fails to impressBergdorf GoodmanDepartment StoreDean & Deluca Home & Gift32 bebe Apparel 9 WeakMobile scanner and inventory check are theonly pluses Godiva ChocolatierHome & GiftPottery BarnHome & Gift33 CoachAccessories & Shoes 8 WeakOnline shoppers can easily check nearby storesinventory, but wont find any digital content whenRestoration HardwareHome & Giftthey arrive West ElmHome & Gift34 TalbotsApparel 6 WeakThe website and mobile site highlight Cartier Watches & Jewelryin-store availability, but the digital offering Swarovski Watches & Jewelryends thereSwatchWatches & Jewelry35 A|X Armani ExchangeApparel 5 WeakGreat dot-com inventory check forTiffany & Co. Watches & Jewelryin-store pick up, but fails everywhere elseZales Watches & Jewelry35 American Apparel Apparel 5 WeakCan check inventory via dot-com, but lacks digitalin-store and mobile relevance35 Banana RepublicApparel WeakMobile scanner is the lone bright spot The following retailers were not evaluated due to limited locations in5 the geographies visited or lack of physical retail presence:35 ExpressApparel 5 WeakMobile app has a scanner, but it isdisappointingly glitchyHarry & David Home & Gift35 Urban Outfitters Apparel 5 WeakNo in-store touchpoints and does only Blue Nile e-tailerdot-com inventory check wellBluefly e-tailer40 GapApparel 3 WeakA frustrating mobile scanner is the extent of theNet-A-Portere-tailerin-store digital experienceShopbop e-tailer40 Victorias SecretApparel 3 WeakApp with scanner claimed exclusive offers, videosand info, but never delivered42 ChicosApparel 2 WeakThe in-store experience is void of digital and theonline offering to find a store is riddled with errors42 White House | Black Market Apparel 2 WeakStore inventory supposedly visible via mobile anddot-com, but worked not once when evaluated 11. Excerpt from the 2012 Digital IQ Index : Specialty Retail To access the full report, contact membership@L2ThinkTank.comKey Findings The Return of E-commerceWHATS OLD IS NEW AGAIN Brand sites continue to be the primaryincremental traffic, is employed by investing more on their sites than revenue-generation engine online, only 65 percent of retailers. Mostin mobile or social platforms.6 however significant low-hanging fruit notably, adoption of live chat fell to remains. Only 50 percent of brands26 percent, bucking the nationwideSite investments appear to pay offWritten by Scott Galloway, Clinical Professor of Marketing, NYU Stern, Founder, L2 incorporate conversion-enhancingtrend5 and suggesting that prestige Genius brands keep users on their sites two and a half minutes longerThe brave new world of social media has simmered as it appears that (thus Methodologyuser reviews. Similarly, the Facebook retail brands are not seeing ROI on Like API, a valuable source ofthe technology. However, brands are than Feeble brands do.far) hype has trumped impact. Meanwhile, 15+ years on, e-commerce hasbecome the disruptive force first envisioned in the late 1990s. In the firstL2 is a think tank for digitalquarter of 2012, online retail spending in the United States reached $44.3innovation. SapientNitro has Site Feature Adoptionpartnered with L2 to deliver the % of Sites with the Following Toolsbillion, up 17 percent YoY.1 E-commerce is expected to grow at a 13.3 percent highlights from their 2012 Digital IQJuly 20102012CAGR, reaching $361 billion in the U.S. by 2016.2 With brick and mortar retailIndex: Specialty Retail study. The 2010 n=842011 n=642012 n=76flat or declining, the percentage of sales (and growth) traditional retailers Index measures brands against theirpeers on over 675 quantitative andregister online could become the arbiter, sorting winners from losers. Manyqualitative data points, diagnosingtraditional retailers now register more than a quarter of their sales online. their strengths and weaknessesacross four dimensions:Size Matters capital in a supply chain marching to1. Site: effectiveness of brand site andScale is beginning to translate online.same day delivery, it eats away at one e-commerce operationsFor the first time, there is a significant of the few remaining advantages of 26%2. Digital Marketing: search, display, 28%23%relationship between the size of a terrestrial retailimmediacy. Amazon and email marketing efforts 65% 31% 37%retailers business and Digital IQ.is the retail oceans lone Great White 3. Social Media: brand presence,48% 56%44%The relationship strengthens whenShark, broadening its prey from slow community size, content, andlooking at the size of retailersfat seals to everything that swims.engagement on leading platformsProduct Facebook Like User ReviewsLive Chatonline businesses.4. Mobile: compatibility, optimization, Mobile: I Cant Believe and marketing on smartphones,Department Stores: Rumors of Their How Much Youve Grown!tablets, and other mobile devices Where Retailers Are Investing6Deaths Are Greatly Exaggerated What was supposed to take ten% of Retail Executives Prioritizing InvestmentsThis years Index ranked the digitalDepartment stores have found years took three. Everyone, includingin the Following Media n=100efforts of 76 retail brands. Based onsanctuary in the digital domain. Facebook, has been caught flat-footedtheir overall performance, brandsBuilding on the successes from 2011by the adoption rate of smartphones, were classified as either: Genius,59%35% 22%for the first time, the average Digitalwhich has reached 165 million usersGifted, Average, Challenged, orIQ for the category outpaced childrenin the U.S. alone.4 M-commerce isFeeble. More information on theof the medium, the e-tailers. The topnow the fastest growing retail channel ranking and methodology can befound in the full report.two spots in the 2012 Digital IQ Index: in history, and mobile devices areSpecialty Retail were (decisively) likely influencing more on- and offlineSiteMobile Social Networkscaptured by Macys and Nordstrom,purchases than traditional broadcast,respectively.let alone an in-store salesperson.and weaknesses and help brands E-commerce is now m-commerce. achieve greater return on incrementalStraight e-commerce sites serve a purpose, but to compete in a digitalAmazon.com: The GreatSocial media is now consumed viainvestment. We have modified ourWhite Shark of Retailmobile app. Digital marketing ismethodology, increasing the weightingspace a brands web presence needs to be more than pictures and aA peerless e-commerce experience now centered on mobile search and of a brands site from 30 percent to 40shopping cart. To compete in todays retail world, the brand needs to createcoupled with a 37 percent share of U.S.mobile-optimized email. percent and decreasing the weightingm-commerce3 make Amazon.comof social media from 20 percent tothat personalized, one-of-a-kind, unique online experience, presenting consumers withthe force reshaping retail. The most Digital IQ = Shareholder Value10 percent. In addition, we measuredoptions they didnt know they had. bill kanarick, worldwide cmo, SAPIENTNITROrecent victims are other e-tailers who The L2 study attempts to quantify the each retailers order and returncant compete. Amazon now has brickdigital competence of 76 global retailfundamentals, and purchasing and 1comScore Reports $44.3 Billion in Q1 2012 U.S. Retail E-Commerce Spending,4 Smartphone Adoption Rate Fastest in Tech History, Stephanie Miot, PC Magazine, August 27, 2012.and mortar peers squarely in its cross brands. Our aim is to provide a robusttracking from three distinct locations.Up 17 Percent vs. Year Ago, comScore Press. Release, May 9, 2012. 5 Live Chat Effectiveness- A Survey of Internet Shoppers 2012, Bold Chat Research Report.2Apparel Drives US Retail Ecommerce Sales Growth, eMarketer Press Release, April 5, 2012. 6 Website investment still key for online retailers despite the rise of social and mobile, Maria Wasing,hairs. As Amazon reinvests cheap tool to diagnose digital strengths 3Amazon To Book $2 Billion In M-Commerce This Year, Steve Smith, Media Post, September 29, 2011. Econsultancy, September 3, 2012. 12. Key Findings Red Light, Green LightKey Findings Movin On UpWhile Facebooks stock price may be emerged as a notable source of bothto retailers. Last year, 14.5 percent of around mobile. Seventy-eight percentdown, the platform is not necessarily upstream and downstream traffic. Amazon.coms 22.3 million hits7 Smartphone penetration is almost of brands in the 2012 index have atheir site on the tablet and likelylosing importance. Once again, on Black Friday came from social40 percent,9 and tablet adoption mobile-optimized site, up from adont want to obfuscate sales byFacebook is a key traffic driver of Analysis of traffic to and fromsites, up from 9 percent in 2010 8 skyrocketed from zero to 25 percentquarter two years ago.having an app in the equation.users to retailer sites, representing Amazon.com and other third party a powerful force. Overall traffic toin only two years.10 Sixty-nine percentNine brands removed their 201110 percent of upstream traffic. e-commerce sites reveals higherretailers fell 7.1 percent year over yearBrands are building apps for iOS and of mobile users have used their device iPad applications: Abercrombie &Conversely, Twitter does not representrates of downstream traffic than while Amazon.coms already massive Android, however iPad app adoption to get product information, and 82 Fitch, Banana Republic, Bath & Bodyany reportable upstream traffic,upstream, reinforcing the threat oftraffic rose 13 percent, suggestingdropped from 39 percent in 2011 to percent of smartphone owners use Works, bebe, Bergdorf Goodman,suggesting the medium is not a majorthe e-tailer. Facebook and Amazonit feasts on the traffic cookie while29 percent this year. Many retailers devices to help with shopping in-Bluefly, Diesel, Tiffany & Co.,e-commerce driver. Pinterest hastogether is an even bigger challenge everyone else fights over increasingly demonstrate higher conversion from store.11 All signs point to a future built & Williams-Sonoma. small crumbs.Referral and Destination Sites for Specialty Retail SitesMobile Site Features Upstream and Downstream Traffic to and from the Following Sources% of Mobile Sites with the Following Features July 2012 July 2012, n=59 % of Upstream Traffic% of Downstream Traffic44% 5% 41% 25% Average % of traffic to Average % of traffic from brand sites from thebrand sites forwarding to following sources:the following destinations: 56% 59%75%95% 53% 49%GoogleGoogle Product SocialMobile SiteCustomer Service M-CommerceSharing Search 10% 14%Facebook FacebookMobile Application Platform Adoption Rates2010 2012 3%3%2010 (n=81)2011 (n=64)2012 (n=76)60Competitors Competitors 51%50 2%BRAND SITE3%45%Percent of Retailers 39%40 Amazon Amazon 28%29%30 1.6%2% 20 21%Pinterest Pinterest10 6%3% 6% 0.8%2%0Other E-commerceOther E-commerce 0%0.05% iPhone iPad AndroidTwitter Twitter 9Smartphone penetration in the U.S. from 2010 to 2016, Statista, 2012. 10 Tablet Shopping Growing, but Retailers Must Keep Up, eMarketer, June 15, 2012. Download the full excerpt of the 7 Retail traffic on Black Friday up 2%, Experian Hitwise Blog, November 26, 2011. 11 The Retailers Definitive Guide to m-Commerce Success, 8 Social media helps big retailers drive traffic during the holidays, internet Retailer, January 30, 2012.Cheryl Sansonetti, 5th Finger, May 2012. 2012 Digital IQ INDEX: Specialty Retail Studyhttp://www.l2thinktank.com/research/specialty-retail-2012/ 13. Overview of TrendsWe call this experience-led business transformation. Brands are increasingly defined by theexperienceby the sum of the interactions and value exchanged. Today, experience is the brand.As we collected the materials for this section of the report, we identified four major trends thatdefine our space today and shape the future.TRENDSThe four trends are areas where experience is being re-conceptualized. From the consumersembrace of new devices and real-time control to the increasing global nature of marketing,these trends will be driving marketing priorities over the next three to five years.Trend 1: Trend 3:Real-Time Control: New Continuous Experiences: How CompaniesConsumer-Oriented Devices and Data Are Blurring the Online and Offline WorldAs the world of experience evolves, one of the The third trend in the evolution of greatmost critical trends is consumer demand forexperiences is the blurring of the online andreal-time control of their data, their lives and offline worlds into one continuous spectrum.the world around them. Great brands are increasingly using all theirWhile not always met, this expectation, andassets to reach their customers in the righthow brands are striving to meet it, is driving time, place and with the right tools to shapeFour Trends Shaping Marketing Prioritiessome of the most interesting developments inmarketing today. the purchase decision. A new conception of the story, the role ofThe future of television, the growth ofbrand, new strategies for content and newWe are witnessing fundamental changes at the intersection ofsmartphones, the rise of alternative methods retail models are all topics our authorsof payment and the development of new ways chose to address in this section.to deliver content: Our authors have exploredtechnology, business and customer experience. The collectiveeach of these ideas in detail. Trend 4: Globalization: The Global Marketerimpact of disruptive technologies on the human experience Trend 2: and the Rise of the Global ConsumerPredicting Desire: BuildingThe final trend in the future of experiencethe Infrastructure to Anticipate is the increasing globalization of theis causing chaos for companies. Old business models are Consumer Needs in Real Timemarketing environment.The second major trend were seeing is thatcompanies are predictingand even shaping No longer are marketing assets, brands andfailing. Communication and commerce are convergingin desire among their target customers. messages restricted within a single countrys borders. Information travels farther and fasterthe home, on-the-go and at the store. A combination of new technology, customer changestoday than in the past.and business viability is making this possible. To adapt to this world, marketers must Written by Hilding Anderson, Sr. Manager Research + Insights, Washington, DC,The rise of data warehouses and analytics, the rethink how they operate. Few regionsTodd Cherkasky, VP Research + Insights, Chicago future of mobile data, real-time analysis, the represent the magnitude of the challenge & Donald Chestnut, Chief Experience Officer, New Yorkuse of social networks to monitor and influenceand the opportunityas China.desirability, and ways banks can rebuild trustwere all topics our authors chose to explore inIn this section, we posit a new CMO mindsetthis category. necessary to operate in the new marketing environment. In addition, our authors focused on ecommerce and the luxury consumer in Southeast Asia. 14. Future of TVTREND 291 Customer ExperienceREAl-TIME Is on the Move35CONTROL Mobile Payments:The Future of Money 39OEThe Economy of One: The Consumer asProducer, InfluencerAs the world of experience evolves, one of the most critical and Purchaser 45trends is consumer demand for real-time control of their OEdata, their lives and the world around them. OE Invisible BrandHow Sensors AreWhile not always met, this expectation, and how brands areInterfacesConnecting the World52striving to meet it, is driving some of the most interesting and the Implications fordevelopments in marketing today. Experience DesignThe future of television, the growth of smartphones, the riseof alternative methods of payment and the development of 47 OEIs There a Terminal Velocity fornew ways to deliver content: Our authors have explored each Youth and Digital?56OEof these ideas in detail.Responsive Design101: Optimizing for Multiple Screens61 15. TREND 1 REAL-TIME CONTROL FUTURE OF TVAmerican teenagers spend an Providing content across screens isaverage of 100 hours per monththe new expectationand consumerswatching TVand that doesntwont have it any other way. Takeinclude computers, phones orNetflix. In June of 2011, the companytabletsproving there is somethingannounced price hikes on existing Written by David Hewitt, still special about the in-home TVsubscriptions, followed by plans toVice President, Mobile and Multi-Channel Experiences, Atlanta experience. But that archetype is split their streaming and mail order& Lucy Devassy, Sr. Manager, Global Shared Services, Atlantaabout to undergo a massive change.services into separate brands just twomonths later. The customer backlashIn the last few years, there has been was instantaneous and Netflix wasa substantial wave of new products, forced to backtrack. Today streamingstartups and ventures all circlingand mail order still remain under thethe TV ecosystem. Changes in social Netflix brand.TV, cable companies and satellitecompanies are a direct reflection of thecrossover between the traditional bigscreen and the growing integration of We know that people long to watch andsmart devices. However, the majorityshare TV experiences on their scheduleof innovation has been relegated toindividual silos with limited success,and in a social way.even though the technology is hereand consumers are showing recordengagement with emerging devices.We know that people long to watchSo why is the living room taking so and share TV experiences on their ESPN media found thatlong to evolve? Lets take a look atschedule and in a social way. And itsthe average consumer spentsome underlying dynamics of both theclear that the one-to-one, on-demand, just 7 hours a week watchingindustry and consumer behavior andonline environment will continue to TV, but when a second screentheir implications. take over.was used, time spent rose toThe television is set to change Evolving Consumption13 hours. With a third, timeHabits and Industry Trendsspent rose to 24 hoursjustThe New, In-Control ConsumerExpect to see other big changesveryby bringing more contentConsumer behavior has already soon. Some shifts that are affectingtouchpoints to the experience.changed to a channel-agnostic,consumer consumption habits are:anywhere, anytime multi-channelmentality. No longer are consumersProduct and purchasing lifecyclesonly watching programs on the TV, Prices for displays are down andtweeting on their iPhones or checking quality of content is up, hencescores on an iPad. The second screenconsumers are replacing their TV setsneeds to help blur the lines insteadmore often. This churn will allow theof relegating specific tasks to siloedlatest technology to enter the markettouchpoints.at a faster rate and opens up nextgeneration experiences to a largerconsumer base. The newer sets also 30 16. TREND 1 REAL-TIME CONTROLboast a higher resolution, giving in an improved experience. Theand take polls. Critical to advertisers,Those investing in second screenway for a wider variety of contentmobile application paradigm has the fanfare buzz and bragging thatinclude TV networks, cable companies,and applications. already made its way onto the set via surrounds the content often hitssocial media players and mediaSamsung, Xbox and Apple TV. Evenbefore and after the event; what brandpublishers, just to name a few.How can brands andConnected devices with mixed results, its clear that wouldnt want to extend their nameWeb 2.0 giants like Google, cableindustry players bestIn the past, the set-top box was king the simplicity and focus of the small in those conversations? And the company behemoths like Comcast prepare for secondand the web was confined to a screens user interface is influencingsecond a fan posts a tweet aboutand electronics manufacturers fromdesktop PC or laptop. That notion ishow big screen content gets traversed.their favorite show character, that Samsung to Sony are all making screen experiences?disappearing as broadband penetration Perhaps the greatest innovation device will ping the cloud and let thestrides to bring interactive to digital. Ask yourself:has reached maturity and as emergingpotential is already brewing on advertiser and producer know whodevices are highlighting the power of a leading smartphones. When Apple or what type of consumer is watchingAnd the more screens consumers Does the experience drive connected everything. Even gaming transformed the phone into an intuitive their sponsored content.use, the more time they spend with participation? What we do often consoles are standing in as set-top communication device and handheld the content. According to Patrick stays with us longer than whatboxes for the convenient pairing of computer, they solved more problems Format changesStiegman of ESPN, 85 million we see. The most impactful on-demand and entertainment. In through detection and fuzzy logic (e.g.,Bite-sized content continues to Americans consume TV and the web experiences will bring something addition, smartphones and tablets the proximity sensor that turns off the dominate the user-generated content simultaneously. ESPN media found more than passive content and continue to evolve as remotes,phones keyboard once next to an ear).universe. Those libraries contain boththat the average consumer spent leave the consumer with a reason schedulers and social input Samsung has built upon this human premium and standard broadcastjust 7 hours a week watching TV, but to share and come back.devices, while an ecosystem ofpattern-based logic. Their new Galaxy content by way of streaming boxes when a second screen was used, timepassive sensors will better predict III phones Direct Call feature allows aand services like Apple TV and smartspent rose to 13 hours. With a third, Does the second screen our viewing desires and shape anuser to initiate a call by just holding the TV sets. Amazon and Google aretime spent rose to 24 hoursjust by experience sync? While there are advertisers media spend. phone up to his ear and the Smart Stayinvesting in production capabilitiesbringing more content touchpoints to many hurdles, those that providefeature leverages its camera to ensureto drive longer-form engagement the experience. a differentiated and connected Measurement that the screen wont turn off when media. Along with those on-demand real-time experience have aSmartphones can identify us by abeing viewed. and streaming services, linearThe traditional publisher is also big advantage.phone number, check-in or log-in. programming will continue to diminish going after the second screen toOn a PC, visits are cookied and often Now put this construct in the livingand primetime events will get a boost.expand media dollars and consumer Does the experience gracefullybookmarked. At the end of the day,room. Instead of miniature predictive As engagement options continueengagement. Traditional players like adapt? The experience should bemost digital channels know who is moments of a smartphone userto build, trusted, curated contentThe New York Times are starting to ready for the Android tablet marketinteracting with what content and interface, we now have a collection offrom peers and providers will playposition their staff writers to pick up and be optimized for leadingbrand. This is all in stark contrastinput devices, sensors and displays a more important role. In addition, where passive TV is trailing off. During smartphone platforms.to the living rooms methods of that can work together. TVs could the mobile app store phenomenon isthe last Oscars, the staff writers craftedmeasurement. Expect brands to switch to power-saving modes when a shaping a more purposeful mentality complementary stories on tablets Does the experience supportcontinue to look for ROI and relevant person leaves the room or falls asleep. to proactively dive directly into that shared supplemental information an ad model that brands cantargeting with predictable outcomes.When a baby cries, the TV could let specialized content and features. where the program left off. In another participate in? Brands realizethe broadcast network know to serve example, The Huffington Post expanded there is power in messagingEmerging interfaces diaper ads instead of dating ads. The Evolution of the Experience from being a news site to a streaming across multiple touchpoints, so adTraditional IPTV access points areTV network. Soon, many content platforms and media buys need tofailing the consumer against a bevy Social mediaSecond Screen Takes the Stage producers and content-rich brands will support a connected, consistentof content options and consumer Social interaction and the viewingThe businesses and brands thatbecome networks themselves in an brand experience.behaviors. Clunky remote controls experience will be inseparable. Eachbest figure out how to dominate the attempt to capture the magic only theand program guides are not keepinguser can decide how he or she willsecond screen experience will bebig screen can deliver.up with our 130+ TV channels or on- socialize, and with whom. It will alsothe ones who capture the greaterdemand content. Voice and gesture offer the ability to share content around consumer mindshare. Second screen is perhaps mosttools will replace the remote, resultingfavorite shows, make predictionseffective with real-time content like 3132 17. TREND 1REAL-TIME CONTROLsports or awards shows; there wasquarterback who syncs with his teamchild for this challenge as so many of itsare vulnerable to nascent customera huge spike in second screen useand coordinates with coaches tousers are migrating to mobile without a experiences. The future of TV willduring the 2012 Olympic Games. NBC execute the best plays on field. complementary ad experience.reinvigorate the relationship betweenContent in the Cloudshowed more than 3,600 hours of This new cloud-centered world will not So why talk about TV and mobilebrands and consumers into an la carteOlympic coveragea stark contrast tomodel that caters to a viewers tastethe 2008 Olympic Games when NBConly ensure the right content reachesadvertising together? Each hasIn the past, we watched snail mail the right device at the right time and something to offer the other, especiallywas hesitant to live stream anything.turn into email. We all had oneplace, but will also provide the right as 41% of smartphone and tabletThis gave viewers in the U.S. a morecomputer and email account. Nowenjoyable viewing experience withanalytics to allow brands to spend their owners are using their devices while41% of smartphone and tablet ownerswe expect to read our email whereverand whenever. Traditional TV is ona front row seat through at leastmedia dollars in an effective, more profitable way.watching TV. Through fingerprintingtechnologies, mobile can enhanceare using their devices while watching TV.one channel.the same pathit has to be deliveredTVs measurement capabilities whileto every device while being optimized Another example is the IntoNow app Underlying Factors some of TVs premium media dollarsfor device form factors and consumerfrom Yahoo!, which identifies whatcan start to bleed into mobile screens The TV Advertising Model instead of programming bundles thatpreferences.a consumer is watching, and thenas advertisers look to drive more The advertising model for both TVsubstitute quantity for quality. Brandslooks beyond that content, giving participation and extend before and will continue to increase their power andWhile Google has largely failed withher related information she may find and mobile is broken. While TV is wellafter the moment. Samsungs newestinfluence while cable companies andConclusionGoogle TV thus far, it understands monetized, it isnt well measured.interesting as well. Yahoo! has alsosets have cameras built in and soon telcos struggle to maintain power.the importance of the cloud wherebyConversely, consumers are spending The future of TV remains difficultannounced responsive design capabilityadvertisers will be able to target basedmultiple channels, social tools, usersignificant time on mobile, butto cast. But the changingwith upcoming advertising products, on age, sex and number of people in Considerations and Challengesaccounts and viewing habits getadvertisers havent figured out how to consumer, shifting technologyensuring optimization across multiple the roomall capabilities of todaysfor Brand Advertisersaggregated into one universetobest meet them there. This conundrum and the breakdown of traditionalscreens and form factors. facial recognition technology. Seem With all the promise the future of TVthe benefit of both the consumer is reflective of an advertising modelbusiness models are all resultinginvasive? Dont forget the millions ofhas to offer, there are still some bugs.and advertiser. The Shift From Smart to Dumb that would need to work on a small in an environment where existingFacebook users who publically postBesides the fight for control, multipleAs devices and screens become more screen for a time-conscious, place-players are threatened andtheir most personal information.screens increase the touchpoints thatMicrosoft, Apple and Amazon are intelligent, the cloud will maturesensitive and task-driven consumer.new opportunities exist. Thehave to be managed. And, fragmentationall making heavy investments andunifying everything from storage toQuite simply, an effective model has not The Fight for Control underlying themes of connectivity,between devices, platforms andrealizing that the less the content streaming to personalization. And once yet emerged; Facebook is the posterTelcos and cable companies participation, personalization andnetworks, as well as a broken modelis tied to any one device, the more the cloud crosses a threshold among othersare vying to own for media planning, buying andprediction sit below many of thescalable it becomes. In addition, the of intelligence and ubiquity, TVthe viewer experience as theanalytics are adding to the complexity. emerging trends we see and aremore the consumer personalizes theit will put pressure back on42.5% business model changes. bound to change TV forever.42.2%experience, the more it pays off anddevices to become dumb again. For brands considering a newthe less likely they are to move to a InternetToday, cable companies have moreexperience for multiple screens,competing provider. Why is this? When multiple25.9% leverage over content companies there are additional risks. For one,21.9%devices try too hard to than telcos because many own cableis the experience complementary,Radioaccomplish everything for the stations (e.g., Comcast owns NBC) and redundant or cannibalizing? Also, how14.6%consumer, the bigger benefits Share of Average Time have been in the entertainment space10.9% does a multitude of available secondget lost through the limitedSpent Per Day With Select decades longer. But telcos have moreMobilescreen experiences (one from theperspective of any one device.Media by U.S. Adults vs. U.S. sophisticated IPTV and opportunities10.1% cable company, network provider andHowever, when an orchestrated0.9% Ad Spending Share, 2011 to dovetail with mobile devices. With content publisher) get reconciled for theset of devices feed a centralized Newspapers% of totalemerging technology companies and consumer? How do broadcast rightsbrain, the devices can work4.0% Time spent share complementary dispositions, dont beapply to second screen experiences?15.0%together to feed inputs andAd spending sharesurprised to see more partnerships as What is the optimal staffing required toMagazinesdeliver on commandsplayers realize the power of combined support new experiences? And, when it2.8%not much different than a 0.7%strengtheven the lovehate kind. comes to measuring ROI, is it worth theBoth cable companies and telcos investment? 3334 18. TREND1REAL-TIME CONTROLJust a few years ago, the idea ofWhile phone and text still dominatemobile taking the lead in customer usage, interactive usage has grownexperience would have seemed significantly in two major areas ofridiculous.mobileInternet and native apps.But in 2011, sales of smartphonesPeople now spend on average 32and tablets outpaced those of PCs forminutes a day using mobile Internetthe first time ever; in the final quarterservices, and more than 18 billionleading up to Christmas, Apple soldapps have been downloaded from themore iPads than any single computeriTunes App Store alone. Customersmanufacturer sold PCs. Mobile is are also increasingly comfortablenow significantly more important totransacting on mobile, which has ledmost brands, and has become an to impressive revenue figures. Onlineintegral part of their multi-channel retailer ASOS brings in more thanexperiences. 1 million a month through mobile transactions, Amazon brought inWithin three years, mobile web usage $1 billion from 2009 to 2010 andwill outstrip desktop Internet use,eBay sold $2 billion worth ofand brands must adapt accordingly. products last year.The brand is the experience and theexperience is the brand. In the nearfuture, mobile will be pivotal to thequality of that experience. Brandswill have to create great customer To understand how far mobile can go,experiences, and with this comes it is important to understand how farchallenges and questions that mustbe addressed. it has come.Is Mobile Working?To understand how far mobile can go,it is important to understand how farThe influence of mobile reaches farit has come. Mobile ownership is now beyond just direct sales. Brands arenearly ubiquitous. The phenomenalusing mobile to build awarenessuptake of tablets and smartphonesthrough advertising and createis driving huge change, and the need affinity through customer care andCustomerfor change, in the ways brands meetloyalty programmes, and consumersconsumers. are using mobile to research products both at home and in-store. Because ExperienceUntil recently, we were at a stage mobile devices are carried with thewhere technology was producing consumer constantly, they becomenew products and consumers werepowerful tools for creating multi-playing catch-up. Weve tipped overchannel brand ecosystems thatIs on the Moveinto a space where consumers are can deliver real value.familiar with the technology and nowhave a greater expectation than ever The enablement and freedomof what is, and should be, possible. of connection that tablets and smart-Written by Nigel Vaz, SVP and Managing Director, London36 19. TREND1REAL-TIME CONTROLphones have afforded is changingthe UK jumped 74 percent between Mobile behaviours should also be require access to back-end systemsour expectations. Whether in a store, 2010 and 2011. Worldwide tablet salesconsidered. This includes fillingsuch as product catalogues,airport or hotel, people are more in 2010 exceeded 17 million units, spare time, performing small jobsecommerce systems and accountused to having mobilised members of rising to a forecast 60 million-plus for that are ideally done on-the-go andinformation. Too often, companies The Takeawaystaff engage with them to complete a2011 and 99 million in 2012. offering a third screen at home. Then, do not consider their back-endtransaction without having to queuethe real value comes from detailed architecture sufficiently. As a result,at a fixed location. The ways in whichAvailability of cheap, fast data. Theunderstanding of your audience and mobile experiences that rely on goodpeople expect to be able to transactavailability of cheap data bundles, theunveiling key insights.access to back-end systems are oftenonline, without journeys beingrollout of 3G across the UK and the delayed or never come to life at all.broken, on mobile or tablet devices,launch of LTE/4G in 2014 will mean Craft the right experience. The rangeis far greater. We can see evidence greater mobile broadband speedsof front-end technology is broad and Think strategically. When creatingof that in the 20 percent of online and even more mobile growth. is changing by the day. They include consistently great mobile experiencessales over Christmas that wereAwareness of mobile services. Many native apps, hybrid apps, NFC, 3D andthat deliver customer and businessmobile-enabled. mobile solutions fall at the first good old SMS, to name a few. Fromvalue, strategy matters. The time forhurdle because firms fail to pay the business point of view, a deep one-off mobile experiments hasOn the other hand, some mobile understanding of the technology is now passed.services and experiences are farproper attention to launching theirservices. One example? There are not necessary. What is important isfrom perfect: 90 percent of apps are choosing the right technology. These The first step is to have a clearlyover 500,000 apps in the Apple App Could Mobile Leaddeleted after 30 days and 38 percent decisions have a direct impact on thedefined mobile strategy in place thatStore alone. To compete with the Your Customer Experience?of people are not satisfied with their consumer. For example, typing in a includes a roadmap. This needs tofavourite brands app. The mobile web saturation, smart brands are lookingat how to best tag apps, categoriseURL is very different than downloading be supported by a conviction thatThe simple answer is yes. And evendoes not fare much better: 25 percentan app. The end solution may warrants the growing investmentand drive participation. if it does not lead, it will withoutof people would not revisit a retailers accomplish the same goals, however required. Many analysts will suggest doubt play a critical role becausemobile site after a bad experience andBetter technology. In the past few the consumer expectations can be that there is no such thing as a mobile mobile is the primary channel to75 percent of the UK top 100 retailersyears, a range of improved technologieswildly different.strategyonly a multi-channel create and fulfill demand in realdo not have mobile-optimised versions such as cloud-enabled, NFC-enabledstrategy. While this is true, mobile time. There are a a series ofof their website, even though peopleand location-based services have See what the customer doesnt. often carries the load for innovationmountains to climb, butspend three-and-a-half times longer started to deliver more complexRicher mobile experiences frequently and business transformation. consumers are demanding itand look at three-and-a-half timesexperiences. Over the next few years,and the opportunities are huge,as many pages on optimised sites, technology will continue to improve. so the time to act in a seriouscompared with non-optimised.Can You Meet the Challenges? fashion is now.Will Mobile Continue Its Rapid Ascent?Just because the screen is smaller Originally published in Figaro DigitalThe demand for mobile servicesdoesnt mean the obstacles are anyand their commercial importance less. There are key challenges towill only increaseand quickly. keep in mind.SapientNitro has identified four areasthat have influenced mobile growth, Match your offering with yourand will continue to do so. audience. Understanding youraudience is the first step. ThisRise of the smartphone and tablet.is particularly important in mobileMobile has been propelled by theas audiences are fragmented byexplosive sales of smartphones andform factor and usage, which aretablets that give people a far richer also heavily influenced by cultureexperience. Sales of smartphones in and geography. 37 20. TREND 1 REAL-TIME CONTROLTheres a major transformationimplications of mPayment that willhappening between people andreflect regional needs. Below are 10their relationships to their money, implications to be aware of.a transformation enabled bythe arrival of mobile payments1. mPayment solutions will(mPayments). The magnitude of thisfundamentally transform consumerchangeand the disruptionwillrelationships with money. The notiongreatly impact consumers, banks,of making a deposit at a branch bankretailers, merchants and wireless used to give people a sense that theircarriers, among others, and will be money was being held in a physicalfelt across the globe. The mPayment place and a specific destination.landscape is rapidly evolving, with But with the advent of mPaymentsmany different players, technologiesand mobile wallets, as well asand alliances all fighting to assert theirthe emergence of unconventionalrelevance and control between the banks like PayPal and Amazon, theconsumer and the future of money. perception of money, what it is andwhere it lives has changed fromFrom entertainment and electronicsmoney at a physical location to moneyto train tickets and travel services, that can live anywhere, anytime,there are virtually no limits to what and is received, delivered andconsumers are using their phones topurchase. In fact, in Japan, its alreadya way of life: 7.6 million consumershave made a mobile purchase in a Today, there are approximately 30 millionretail or convenience store, 3.2 millionhave made a purchase from a vending NFC-enabled phones. By 2016, this number ismachine, 2.7 million have paid for expected to reach a staggering 700 million.2public transport, 2.6 million havemade a purchase in a grocery storeand 1.5 million have paid a restaurantbillall using their mobile phone transacted through multiple venues,instead of cash, card or check. And mechanisms and devices.47 million Japanese have adoptedtap-and-go phones in the last three There will be a paradigm shift in howyears. East Asians will continue to money works, and how its perceivedMOBILE PAYMENTS:lead this market.1and used, and that will lead to the endof physical currency as we know it.Its becoming clear that mPaymentsTHE FUTURE OF MONEYwill radically change the way Since the 1930s, the U.S. began aconsumers spend. And in this newworldwide effort to end tying currencyage of mPayments, retailers, financialto gold. At that point in time, theinstitutions, technology companiesnotion of money became abstract.and wireless providers will have theThis shift continues today with theWritten by Perry Chan,Creative Director, Experience Innovation, New York power to deliver it. Across the globe use of debit cards, credit cards, ATMswe will see different applications andand pre-paid mPayment services1IDTechEX (R&M), Feb 20112Berg Insight (BGR) - http://www.bgr.com/2012/03/26/shipments-of-nfc-enabled-handsets-reached-30-million-units-in-2011/ 40 21. TREND1REAL-TIME CONTROLthat let consumers access moneyfrom our mobile devices, will this home. As a result, mPayments element that satisfies a desire foranytime, anywhere. Peoplesmean the end of credit cards? Howwill challenge, and redefine, long greater convenience and control.perception of money is directlywill this impact card service brands?standing assumptions of how stores Additionally, it will give consumersconnected to trustand trust isHow will they redefine themselvesare designe