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The new era of
marketing magic.

Any sufficiently advanced technology is indistinguishable from magic.”

—Arthur C. Clark, science fiction author

Imagine a world where everything is connected and anything can be known. Where clothing gathers customer data, refrigerators do the shopping and companies tap into consumers’ subconscious thoughts.

This is the future of marketing. And it’s already happening.

While it may sound like a future controlled by machines and corporations, it’s actually quite the opposite. It’s a world where consumers reign supreme. And in this not-so-distant future where everything that can be connected will be connected, consumer power will keep growing exponentially, at the same speed and velocity of technology itself.

Already equipped with the ability to instantly know virtually anything about products and companies, today’s empowered consumers make decisions about which brands deserve their trust on a moment-by-moment basis. Whether they’re browsing product reviews on their phones, playing with a digital mirror in a traditional retail store, or receiving near-clairvoyant messages directly to their wrists, customers expect ultra-personal and truly authentic connections with brands.

New technology makes it possible to deliver on these expectations like never before. But using it to its fullest potential requires a sharp focus on cross-department collaboration, rapid cycles of experimentation and optimization, initiatives that are connected to your brand’s purpose and experiences designed around a sincere commitment to customers. Bring it all together, and the result is nothing short of magical — evoking wide-eyed wonder and spellbinding loyalty from customers.

This era of marketing magic is not an illusion. Here’s how brands are breaking free of traditional marketing boundaries to connect with customers everywhere they are — even in the innermost realms of their minds and hearts.

New ways to move beyond
traditional marketing.

Relinquish control.

"It's not technology that closes the deal or has the customer fill their shopping cart. It's what you put in to the technology—the content. It's the experience itself."

—Robert Rose, Author, Strategist, Storyteller

Image courtesy of Forbes.com

As marketing buzz shifts from the Internet of Things to the Internet of Me, consumers are quickly becoming the architects of their own hyper-personalized empires. And the sooner you embrace the change and put your customers in control of their marketing experiences, the more successful your initiatives will be.

For forward-thinking marketers, this means loosening the vice grip on brand voice in favor of a consumer voice that enables two-way communication and co-creation between customers and brands. This strategy has the potential to be even more powerful if marketers tap into what Altimeter Analyst Rebecca Lieb calls the “object voice,” which enables multi-way communication among brands, consumers and connected objects.

Take, for example, the Johnnie Walker “smart bottle,” which uses printed sensors to detect whether a whiskey bottle is opened or sealed. Consumers scan the bottle using their smartphones, and receive different messages depending on its state and location. If it’s unopened and in the store, the consumer may receive a discount or coupon. If it’s opened and at home? Instant cocktail recipes.1

“Personalized experiences in the Internet of Things enable far deeper, and much more relevant, conversations between brands and customers,” says Lieb.2 And this is precisely what consumers want. Kevin Lindsay, director of product marketing at Adobe, calls the new Internet of Me trend a “borderline narcissistic approach to consumers’ digital consumption. Customers are saying, I want what I want when, where and how I want it — and you, digital marketer, are going to deliver it.”3

To meet customers with this level of extreme relevance, marketers are using automated personalization, big data capabilities and broad-reaching analytics to create experiences that are both highly attentive and delightfully unexpected. The winners in this data-driven marketing world will be those who can use this customer information for good — not as a means for pushing out yet another messaging intrusion, but as a way to build deep and lasting relationships with customers.

Target wrists.

Smartphones are the center of the consumer’s digital universe — but they won’t be for long. With the launch of Apple Watch this year, along with a variety of other smart watches and a proliferation of smart clothing, smart appliances and smart cars, marketing is moving beyond the smartphone. And while all of these objects will connect to and through our smartphones, the smart watch will soon be the command center. “The Watch is going to replace the phone as the main remote control for our lives,” says Brent Hieggelke, chief mobile evangelist at UrbanAirship.com.4

Tamara Gaffney, principal analyst at Adobe Digital Index, agrees — and she believes, in spite of its seemingly slow start, that the new Apple Watch will be the go-to choice. “There’s a great installed base that’s ready to buy,” she says. “Especially among those who have bigger iPhone screens.”5

Image courtesy of Getty Images. Image credit: Stephen Lam/Stringer.

As customers interact with smart watches, other wearables and countless connected objects, they’ll be generating torrents of new data. One of the most notable new data types is biometric data — which presents intriguing opportunities for marketers. With insight into the wearer’s heart rate, blood glucose level, temperature, hours of sleep and more, you can actually interpret each customer’s physical and emotional state.6 Equipped with this detailed customer information, you can provide even more personal and relevant experiences.

“This is the next level of intimacy between brands and consumers,” says Ray Pun, head of strategic marketing for mobile at Adobe. Already, companies like Walgreens are deepening the bonds. With a platform that allows customers to track their wearable data, like number of steps taken each day, the brand can offer rewards and special gifts to customers who meet or exceed their goals.7

This is the next level of intimacy between brands and consumers.”
—Ray Pun, Head of Strategic Marketing for Mobile, Adobe

This is only the beginning. Imagine helping customers with sympathetic pricing or special discounts when you know they’re having a rough week — whether from lack of sleep, lack of exercise or other deviations from their typical health patterns. “This will require a very sophisticated mapping of the customer profile,” says Pun. “But it will also give us a much deeper understanding of what our customers need, when they need it and what types of messages will matter to them at any given point in time. It will allow brands to communicate as friends.”

Digitize the physical.

The lines between our online and offline worlds have never been so blurred. As consumers move through an increasingly “phygital” world, they expect a continuous and personal experience across devices, in stores, at airports and literally everywhere they go. But when it comes to delivering on these expectations, most brands are lagging far behind their customers.

Mobile beacons are one of the key technology tools that enable digital magic in the physical world. Using Bluetooth, the beacons emit signals that activate apps on people’s phones, allowing brands to send real-time personalized messages based on a person’s precise location. This might be a discount related to a product that a customer is walking by, or an instant pass to the front of the airport security line when a passenger is about to miss a flight.

Making the most of this technology requires more than creative ideas. In addition to keeping up with a rapidly evolving and complex beacon ecosystem, marketers must get over the fear that this technology is “creepy,” especially since consumers are asking for it. Adobe Digital Index surveys show that while only 37% of consumers have received location promotions, 57% believe an in-store promotion would be helpful and 77% say an in-store promotion on their smart watch would feel normal.8

"Digital innovation is really in our blood... We create very small but highly cross-matrix teams... This allows us to innovate very quickly. The feedback has been amazing from our guests."

—Chris Norton, VP of Customer Relationship Management & Channel Intelligence for Starwood Hotels & Resorts Worldwide

Starwood is one brand that has risen to the geomarketing challenge. With beacons installed in their hotel lobbies, clerks can instantly recognize guests who’ve installed the Starguest app. In the time it takes for those guests to walk up to the check-in counter, the clerk already knows all their room preferences and stay details—and is ready to greet them personally, by name. Entry to their room is keyless. There are no plastic keycards to lose—the guests unlock their doors with their smartphones.9

Beyond beacons, innovative retailers are using augmented reality, including 3D mobile cameras, next-generation Kinect technology and interactive touch screens to give their stores a digital remodel. Blending the best of online shopping with a traditional brick-and-mortar experience, large in-store screens connect the customer’s shopping experience across all channels. Now product research done at home — like specifications for a car — can be instantly accessed in the store, allowing customers to share their selections with sales associates and continue the buying process.10

In retail dressing rooms, digital mirrors outfitted with touchscreens make it easy for customers to access online catalogs, see their previous order history, request additional items from sales associates and even control the ambient lighting of the room. With beacons that allow marketers to know who is in front of these digital mirrors, and integrated analytics to access the customer’s complete profile, marketers can create micro-targeted experiences that speak directly to each individual’s unique needs.11

It's a phygital opportunity of epic proportions, and at this point, it's largely untapped — which gives early adopters a distinctive advantage over the competition. “By harnessing digital connections, we can foster deeper human connections,” says Rebecca Lieb, Altimeter analyst. “This is the highest opportunity in bridging the digital and physical worlds.”

Tap the subconscious.

Image courtesy of Getty Images. Image credit: Ben A. Prunchie.

Before consumers can even articulate their thoughts, their decision-making process is already underway. That’s why traditional focus groups can yield such flawed results — because we’re asking people what they think instead of actually understanding what’s in their heads. By using neuroscience to measure the inner workings of the elusive and increasingly distracted human brain, marketers can understand the subconscious reactions to messages and campaigns.

“Brain science is by no means new in the marketing field,” says Lindsay. “Remember the consulting psychologist on Mad Men? The difference is that we can finally observe, interpret and harness it all.” Neuroscience innovations now make it possible to quickly gather data from multiple nonconscious streams, including pupil movement, respiration, micro-facial expressions and brainwave activity.12

What’s more, as the price, complexity and turnaround time for using these technologies comes down, neuromarketing is becoming a more attainable testing solution for brands that were once priced out. Agencies like Nielsen Neuroscience conduct research for clients ranging from multinational enterprises to single storefronts, while the Rexi Media agency uses brain science research to help individuals and companies perfect their presentations and sales pitches.

Soon, neuromarketers won’t even need obtrusive gadgetry like EEG headsets to capture this data. Developers of thermal imaging and fNIRS (functional Near Infrared Spectroscopy) technologies are currently testing new tools that enable data to be collected covertly from a large subject pool at key moments — so we can actually understand which people in a crowd are interested in our messages.

Based on this information, marketers will be able to leverage remote dashboards to optimize messages in real time, so campaigns can be refined on the fly and more people can be influenced to pay attention, remember and act on your messages.13

Connect to the good.

“While FEED was really founded on the power of one — one purchase, by one person, helping one child — I believe that we are moving into a new phase for FEED, but also social business as a whole. Where we really are trying to activate our consumer base to participate in a conscious consumer lifestyle."

—Lauren Bush Lauren, CEO and Founder, FEED Projects

While customer expectations for me-centered content have reached an all-time high, that doesn’t mean consumers only think of themselves. In fact, they’ve never thought more globally. According to Nielsen’s 2014 Survey on Corporate Social Responsibility, 55% of consumers are willing to pay more for products and services from companies that are committed to positive social and environmental impact.14

“Today’s consumers are looking to engage with brands that are authentically associated with a cause,” says Brad Rencher, senior vice president of Adobe Digital Marketing. But rallying these digitally sophisticated customers in social change requires more than simply giving to charities that look good to stakeholders or pushing out traditional social responsibility messages.

As brands apply new standards of customer engagement across every touchpoint, they must also change the way they approach corporate citizenship and responsibility. Programs like Chase Community Giving, which let customers choose which charities the bank should support, used social crowdsourcing to give more voice to consumers.15

Images courtesy of ElectriCity.

Branded government initiatives like Volvo ElectriCity, which partners with the Swedish transit authority to create roads that charge electric vehicles, focus on real and meaningful civic change tied to the brand’s purpose.16 And Panasonic’s “smart town” outside of Tokyo uses data-driven predictive modeling to design the sustainable cities of the future.8

These initiatives resonate because they’re more than just marketing. They’re about fostering deeper relationships with customers and communities to make an authentic impact — all while building a stronger and more profitable brand.

Prepare now for a
radically different future.

The key to thriving in this new era of marketing magic? Move beyond your current definition of marketing. And move beyond your marketing department. As you branch further and further out, you’ll be gaining the experience and confidence you need to embrace whatever the future brings.

These five strategies can help you prepare now.

1

Foster a culture of content. There are content goldmines across your organization. And it’s your job to mine them for all they’re worth. You can also step beyond your organization and invite customers to help you co-create content. This allows you to create content that’s more personal and meaningful than anything your marketing department could’ve created on its own.

2

Be transparent. Today’s customers demand honest, unambiguous communications. And you need to be willing to give them just that. When you commit to transparency, you’re able to have more meaningful conversations with customers. And this helps them make faster decisions about your brand and products.

3

Work across teams. Customers don’t care about your org chart, they just want a consistent experience across channels. To deliver, put processes in place to organize content and campaigns across all business divisions — and begin to break down the silos that stand in the way of transformation.

4

Create a test-and-learn culture. Experimentation is the key to success. To make it possible to fail fast and keep moving forward, align your marketing team with forward-thinking technologists who can help you overcome technology barriers and test your wildest ideas.

5

Plan and prioritize your digital investments. Changing platforms isn’t easy. As you look at marketing investments this year, make sure you’re investing time, resources and budget in mobile, content development and optimization. Top online marketers test campaigns to make decisions — which in turn leads to higher conversion rates.