Visit the "Built for Change" microsite
for more insights and resources.
In the early days of retail,
there were three simple
things brands needed in
order to be successful.
You simply needed to:
Do you know which channels/outlets
(both branded and non-branded) they frequent?
These digitally native brands are also earning
high valuations. In the same month, Glossier and Rent the Runway both reached Unicorn status, which means they’re both valued at over $1 billion. These two female-run, digital-first brands have captured attention and outpaced competitors big and small by serving a unique market need and delighting customers across all channels.
Traditional, established retailers can learn lessons and seek inspiration from these disruptive brands
as they look to expand their digital footprints.
NURTURE YOUR
DIGITAL COMMUNITY
Digital disruptors and Instagram brands have specific missions and visions for their businesses. This essence is what makes their digital content stand out. Don’t lose sight of what makes your brand interesting by trying to imitate them.
The New Buying Journey
The advent of shoppable Instagrams and other tools that support
inspiration-to-conversion experiences have allowed brands to accelerate
the buying journey. While some consumers need more time to research,
compare and consider purchases —especially high value ones—others
want to capitalize on the value of these tools and capabilities. Shoppable
Instagram feeds serve as valuable “trigger points” that allow shoppers to
choose the journey that is most relevant to them. Giving your customers
power over the digital experience is crucial to keeping their attention.
Digital content, including images, posts and all other elements, must be authentic to your brand. It must be genuine and “you” in all forms. It also must strike the right tone. Whether funny or serious, your content must be true to what your brand personifies and represents to customers.
Read through the other steps and learn how to create an organization that's built for change.
Founded by mother-and-daughter duo Karen and Amanda Zuckerman, Dormify is a lifestyle brand
dedicated to dorm décor. Because its core audience is younger and digitally savvy, the brand was built
from the ground-up with digital content and engagement at its core. Moreover, this target audience
allows the brand to be a bit more casual with its messaging, acting as a “big sister” to its customers.
As a result, even product-focused content feels genuine and relatable.
What and who your customers like -- and how they behave -- is far more important than who they are or where they live.
SPANX
Midroll
Digital channels are where consumers discover you
and determine whether they
want to do business with you.
INITIAL
CONSIDERATION
Luxury e-Commerce retailer Net-a-Porter
takes a highly strategic, editorial approach to
its digital content. It is clear as you skim across
its website and social media accounts that the
brand focuses on authenticity first. Rather than having overly staged product shoots, Net-a-Porter shows women out and about, wearing and using items. Even blogs and articles on the site include these more editorial-style shots. When shoppers click on specific products, however, they see a
mix of staged images and even video clips of
models wearing the products, so shoppers can
more accurately see how a garment moves.
Tech DNA does not begin and end with the customer experience: it drives everything.
2022:
To better understand how these trends are impacting the industry,
we’ve studied dozens of retailers — retailers from different categories, pursuing a variety of target customers, and retailers executing different growth strategies.
Through this analysis, we found the organizations that are thriving in the era of constant disruption display a consistent set of behaviors and practices. We were able to break these methods into six key steps that we believe every retailer should follow in order to create an enterprise built for change.
USEFUL:
2
Innovation is a culture, not a strategy; foster a community that encourages communication and collaboration and rewards innovation.
1
LOLA
LOLA provides women with trusted period and sexual health products, so all of the brand's content is
designed to empower the audience in this area. And because this is an extremely intimate topic, LOLA
successfully walks the line between educating followers and connecting with them personally using humor.
YOUR DIGITAL-FIRST
FRAMEWORK
especially involving the introduction of a new
product or service that
creates a new market
6
1
SHAREABLE:
FIND YOUR WATERING HOLES
4
80% listen to all or most of each podcast episode.
Shoppers have access to so much content online, and new social algorithms are allowing them to tailor their social circles even more. When they like posts, reshare them or click on ads, their experiences are bound
to get even more filtered. By capturing their attention, you can activate engagement with a customer, which will get you in their “inner circle.”
But you have to stay there. Build
the relationship with intriguing posts and commentary. Ask questions, encourage discussion and most of all, respond to any feedback you receive!
Know your customers
(at a high level)
6
4
Podcast Insights
Remember, brands like Warby Parker and Rent the Runway
began their businesses online. They eventually opened showrooms and flagships to capitalize on the opportunities that brick-and-mortar can bring. However, their roots are in digital. Even today, when they have well-established omnichannel businesses,
digital is still core to how they connect with consumers.
63% of podcast listeners have bought a product
they heard advertised on a podcast.
2
Do you have to consider a transition from digital to physical, or vice versa?
In 2017, digitally native vertical brands grew nearly three times faster (44 percent) than the broader U.S. e-Commerce market (16 percent).
MEGATREND 1
58% of all retail sales will be digitally
influenced by 2022, up from 50% in 2018.
AUTHENTIC:
A NEW
MINDSET
DOLLAR
SHAVE CLUB
Back in 2016, Deloitte found that
digital interactions influenced
spent in retail stores. We know now
that digital’s influence on all shopping behaviors has continued to rise, and most shoppers use digital in some way as their first point of interaction with a retailer.
COMING SOON
MEGATREND 3
YOUR DIGITAL-FIRST
FRAMEWORK
DISRUPTION IS REAL.
AND IT’S A
REAL PROBLEM.
Podcast Insights
Winning retailers use digital properties to establish their brand promise and integrate that story into their stores.
Deloitte
In order to generate buzz around its TenderCrisp chicken sandwich, Burger King created the “Subservient Chicken” campaign. Across TV
and print campaigns, as well as a one-time
pay-per-view program, the fast food chain showed
a person dressed in a chicken suit, doing a variety
of ridiculous things because it was ordered to.
The character was brought back a decade after
its initial launch in 2004 with great success, garnering millions of views on YouTube. All videos are available on the campaign’s targeted website.
It is imperative that you are global out of the gate; find your tribe wherever they are in the world and be prepared to compete against global brands.
MOMENT
OF PURCHASE
44%
10
Nuture Your
Digital Community
Compelling and valuable digital content is:
Here are a few questions you can ask to determine whether you
should re-evaluate your buying journey and all corresponding tactics:
The path to building a scalable, successful retail business isn’t what it used to be. Rather than focusing on brick-and-mortar first, cutting-edge brands are starting online and then building digital, hyper-local communities.
Let’s face it, digital is all these brands know. It is in their heritage and how they were established. You can’t ignore
the fact that you have a brand history that likely includes a network of stores. Use this to your advantage by engaging local communities and incorporating store-level content.
Innovation is a culture, not a strategy; foster a community that encourages communication and collaboration and rewards innovation.
8
What and who your customers like -- and how they behave -- is far more important than who they are or where they live.
Being "Digital-First” is a new imperative for brands striving to not only achieve relevance but differentiate in the marketplace.
STAND FOR SOMETHING
Have the
right products
Tech DNA does not begin and end with the customer experience: it drives everything.
Leading retailers we studied invest in relevant experiences that directly align to target customers’ expectations, history and values as a key tenet of sustainable loyalty.
Being digital-first doesn’t just mean being accessible on digital channels.
You can’t simply publish content haphazardly and consider your task complete.
The art and science of being digital-first requires you to be thoughtful and empathetic. You must understand what your customer wants and deliver content that meets those needs — commerce-related or otherwise — in a compelling way.
disruption
Once you answer these questions, you can take stock
of your branded content, and determine whether
you’re truly creating stories that resonate with your consumers. Gaps and missteps will help you prioritize
your starting point. However, we’ve found that the
digital universe has sparked a completely new rulebook
for storytelling and brand marketing.
7
Leading retailers we studied invest in relevant experiences that directly align to target customers’ expectations, history and values as a key tenet of sustainable loyalty.
Research is fundamental to ensuring you’re prioritizing your efforts appropriately and not overlooking any new channels. For example,
more people are listening to podcasts, which is leading to significant advertising opportunities
for brands. Companies like HelloFresh, MeUndies
and SimpliSafe are betting big on the tactic and advertising on a variety of different shows.
A New Wave of Disruption Is Coming
Don't be afraid to fail fast. Digital channels can help.
10
TRIGGER
It is imperative that you are global out of the gate; find your tribe wherever they are in the world and be prepared to compete against global brands.
a radical change in
an industry, business
strategy, etc.
Casper isn’t just a mattress DTC brand; they’re connoisseurs of all things sleep related. Their knowledge
and passion for helping customers get a good night’s sleep is present in all content they create and share across channels. Tinged with a bit of humor, playfulness and cleverness, the content isn’t just helpful...it sticks.
Section Three Coming Up Next:
The Art and Science of Being Digital First:
We’ve found that digital-first “Instagram brands” have set a new standard for customer engagement. They are cultivating relationships with consumers that are mutually beneficial and support something much larger than their business.
You may be asking yourself:
Do you know what stages of the journey you can offer points of acceleration
or the opportunity for customers to “choose their own journey”?
Be in the
right location
Do you know where they prefer to purchase
goods and services (digital versus store)?
David Court, Dave Elzinga, Susan Mulder, and Ole Jørgen Vetvik, McKinsey
A NEW
MINDSET
After purchasing a product or service, the
consumer builds expectations based on
experience to inform the next decision journey
Do you know where they go for shopping-related information?
INFORMATION GATHERING, SHOPPING
Consumers add or subtract brands
as they evaluate what they want
BE GENUINE AND TRANSPARENT
5
Your customers are always changing and evolving. That means the information they want — and where they go to find it — changes, too.
That’s why you must always keep a pulse on new platforms and channels
and determine if they’re new watering holes for your customers.
HOW TO BE “DIGITAL-FIRST” IN AN OMNICHANNEL WORLD
The question is: are you
showing up for them?
In today’s decision journey, consumer-driven marketing is increasingly important as customers seize control of the process and actively “pull” information helpful to them.
Our research found that two-thirds of the touch points during the "active-evaluation phase" involve consumer-driven marketing activities, such as Internet reviews and word-of-mouth recommendations from friends and family, as well as in-store interactions and recollections of past experiences.
8
GUIDING PRINCIPLES FOR INCREDIBLE DIGITAL STORIES
STAND FOR SOMETHING
THE BUYING JOURNEY
HAS CHANGED FOREVER:
3
1
5
CASPER
In the Instagram era, people look for opportunities to share content about the food they eat and the beverages they drink. Starbucks has capitalized on this opportunity time and time again with its array of secret menu items and limited-time drinks. Releases are typically timed with a seasonal change, holiday or big cultural moment. To celebrate the near arrival of summer, the brand is promoting the return of its s’mores frappuccino. The Starbucks Instagram account is chock-full of s’mores themed content, including social content, a branded video and even old Twitter posts from the initial installment in 2017.
THE NEW
BUYER JOURNEY
2018:
56 cents of every dollar
Source: Internet Retailer estimate and U.S. Department of Commerce
It’s no secret that as an industry, we are tasked with navigating — and responding — to greater change than ever before. Not only are the disruptions themselves significant, but the rate at which these changes are happening has accelerated.
Although it feels like the sources of change and disruption are multiplying, we’ve found that they typically fall into three core megatrends.
NURTURE YOUR
DIGITAL COMMUNITY
2/6
IAB
51% of the U.S. population has listened to a podcast.
Once you know where you’re going to be sharing content, you can continually refine and optimize your digital stories. Immerse your customers into your brand by expanding beyond the written word. Embrace video, images – even podcasts! Or, mix in user-generated content to spotlight happy customers,
real-life use cases and success stories.
In the digital realm, the content possibilities are truly endless, so it can feel
a bit overwhelming getting started. In our analysis of top-performing, disruptive brands, we’ve uncovered three core storytelling best practices. These principles should be your North Star, influencing everything you create and share with your audience. You’ll even see a few brand examples along the way ...
3
Do you know what differentiators you should focus on in
order to capture their attention and drive conversions?
When it comes to time and dollars, consumers are feeling stretched. Their attention is being pulled in a multitude of directions — between work, family and personal wellness. As a result, consumers are focusing less on things and more on experiences.
“[Instagram brands are] addressing
chronic issues faced by the retail industry
through innovative offerings, personalization,
authentic engagement...and more.”
7
“Drawing inspiration from the emerging retailers, incumbent retailers should become ‘leaner, meaner and more agile’ — experimenting
with limited inventory, curated collections, smaller formats, blended
food-shopping outlets, and experiential gamification."
When Jamie Kern Lima founded IT Cosmetics in 2008, her goal was to help women address skin-related flaws and insecurities. With rosacea herself, she found that most cosmetics brands failed to show women with true flaws that could illustrate
the effect of using the product. IT Cosmetics
acquired a cult-like following as a result of social sharing and organic word-of-mouth. Today, Jamie and the IT Cosmetics team focuses on sharing content that aligns with her mission and story, and also solves a buyer pain point. All channels, even product pages, tout before-and-after images, shade swatches and videos, so women can feel confident in their purchase decisions and feel like they belong in the broader IT Cosmetics community.
Fulfilling a leaner, meaner and more agile mindset means experimenting (and failing) more. We know this is a big deal for established brands with established processes and a lot of brand equity at stake. However, we believe marketing and content is a great place to begin your journey. It’s easier to experiment with different marketing messages, photos and videos, and shifting direction is not as overwhelming for the broader business.
If you skim through the Dollar Shave Club Instagram account or even watch one of the brand’s
uber-silly ad spots, you’ll know right away who they’re targeting. The messaging is pointed, sometimes
in-your-face, and tinged with a bit of “bro humor.” Making men’s hygiene entertaining isn’t easy, but
Dollar Shave Club does it well — and the brand has garnered a loyal following as a result.
As of April 2019, there were 700,000 podcast shows
and 29 million episodes available worldwide.
find your tribe
DORMIFY
The realization that our relationships with customers extend well beyond the point
of conversion is important.
However, brands must also
note that consumer preferences
for content and information, especially in the later stages
of the buying journey (e.g. during the “active evaluation phase"),
are changing seismically.
You must be a community builder
first and a seller of products second.
CONTINUE YOUR JOURNEY
INTRIGUING:
1
Bring your unique brand promise to life.
THE HONEST
COMPANY
“I have a network of stores ... how could I be digital first when brick-and-mortar is already such a significant part of my business?”
The consumer considers an initial set of brands, based on brand perceptions and exposure to recent touch points
Make sure all content your team creates can be used across all of
your digital channels. Plan where
you want it to be shared and make
sure it fits all creative requirements. Also, make sure the content is useful to your customers! Does it add value
to their lives amidst of all the information flooding social media?
TRADITIONAL BUYING JOURNEY
How your target customer typically shops.
foster an innovation mindset
INTERACT WITH PERSONALITY
Podcast Insights
Sara Blakely came up with the idea for SPANX when she struggled to find the right undergarment to
provide a smooth look under white pants. After cutting the feet off her control top pantyhose, she set the
foundation for a groundbreaking new product. She would soon find, though, she wouldn’t just be bringing
innovative bras, underwear and apparel to market; she would be building a community that empowers women.
The SPANX team uses a variety of content formats — from videos to photo slideshows to written content —
to foster this community. They cheer on fans and followers, give them a Monday pick-me-up and offer a behind-the-scenes look at the SPANX business. Regardless of the post, a genuine and friendly tone is always present.
THE NEW
BUYING JOURNEY
How they want to shop with your brand.
Podcast advertising is projected to
surpass $500 million this year.
SEE FULL CHART
develop Tech-DNA
3x faster
This iPaper is the second in a series of six, where we’ll delve into each of the steps you must take in order to cultivate a culture of positive change and empower your team to conquer this disruptive era with gusto.
be global early
How Retailers Can Capture Attention
in an Era of Digital Deluge
As consumer behaviors have evolved to integrate more digital channels and touch points,
so too has the “buying journey,” which is largely used to help us plan our marketing and engagement strategies. McKinsey has conveyed this evolution perfectly, noting the shift
from traditional funnel, to a more circular model, which the firm calls the Loyalty Loop.
“Watering holes” are the places online and off where your shoppers gather. They are the ideal places for you to focus your marketing and community building efforts, so you can maximize reach, influence and impact.
Forrester Research
LOYALTY LOOP
9
Delight Customers
Remember: where you think your customers are isn’t the same as where they really are.
Traditional Approaches
to Growth
Are Dead
Retailers must prepare for “recombinant innovation,” which is the practice of using and recombining existing technologies to form completely new experiences and use cases. The key to adapting? Having a foundational technology platform to build upon.
EACH JOURNEY IS NOW COMPLETELY UNIQUE
Do you know what your target customer
wants out of the shopping experience?
ACTIVE EVALUATION
Do you know what challenges or pains they
have that your brand can help solve?
POST-PURCHASE EXPERIENCE
ONGOING EXPOSURE
INTERACT WITH PERSONALITY
NEW TOOLS AND CHANNELS
ARE ALSO SUPPORTING
ONE-STAGE BUYING JOURNEYS
We’re not asking you to overhaul your business. We’re asking you to rethink the way you connect with consumers and prioritize digital channels as your
first point of engagement.
Do you know if these condensed or one-stage
journeys are something your customers want?
Your Digital-First
Framework
Shopper Behaviors Will Only Continue to Change
Rather than see these brands as threats to their future, traditional
retailers should instead use them as inspiration, according to Deloitte:
But before you can learn from disruptive brands and “show up” for
your customers in new and exciting ways, you must do some
foundational work to get your strategy in shape:
2
Since its inception in 2011, The Honest Company has had one core mission: to empower people to live a happy and healthy life. Over the years, the company’s product portfolio has expanded well beyond diapers, and into baby bath goods, skincare, and even mother care (e.g. vitamins, breastfeeding products, etc.). As a result, the company’s content strategy has expanded, zeroing in on the importance of democratizing high-quality products and creating an empowered community of followers who want to connect on all things related to parenting — good and bad.
3
NOUN
With the rise of digital-first Instagram brands, it now takes so much more to cultivate customer loyalty. You must inform, inspire and bring people together.
MEGATREND 2
10 SIGNS YOU NEED A NEW
CUSTOMER JOURNEY STRATEGY
Do you know what primarily drives them to make a purchase?
Section Four Coming Up Next:
BUILD YOUR DIGITAL NARRATIVE
Part of this process entails understanding...
By taking cues from digitally native organizations, you can craft creative and compelling stories that resonate with your target customers on a much deeper level. Over time, you’ll be able to foster these communities and turn them into long-term, happy customers.
Researchers at VC firm Greycroft examined 35 different categories
in 2017. Only four categories did not have a disruptive startup trying
to change the game through a digital-native approach.
Section Two Coming Up Next:
be digital first
BE GENUINE AND TRANSPARENT
Integrate your stories into their communities.
Ultimately, the consumer selects a brand at the
moment of purchase
Who doesn’t love a good meme or
viral video? Consumers have the power to amplify all content they enjoy, so give them a reason to get the word
out. Share a profound statistic, funny image or beautiful video that gives them the urge to share with their family and friends. (But remember, whatever you use to “go viral” should be authentic to your brand.)
be global early
In our first iPaper focused on customer delight, we noted that
the foundation of creating immersive and memorable experiences is walking in your customers’ shoes. It’s about knowing who they are on a deeper level
— far beyond their names, addresses and birthdays.
BUT WHAT MAKES CONTENT GREAT?
Simply checking a box and being on social media and other digital channels will get you seen, but you will not pass the relevance test. Your target consumers will not engage with you and certainly will not actively seek you out when they’re in need. Constantly assess your digital content and ask yourself: Is this relevant? Is this timely? Is this helpful?
Delight Customers
Read on to learn the core practices these businesses have embraced to turn their categories, and the industry at large, upside down. And most of all, learn how you can adapt and apply some of these principles to your business to engage customers differently.
find your tribe
9
foster an innovation mindset
develop Tech-DNA
2