2020 COMMERCE TRENDS IN CONNECTED MARKETING - HubSpot
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2020 COMMERCE TRENDS IN CONNECTED MARKETING
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INTRODUCTION
Welcome to 2020! A new decade is upon us, and this one began With ever-increasing degrees of personalization, new methods for
on a highly industrious note. In a zodiac year of wit, alertness delivery, and tracking visibility, your consumer’s purchase journey will
and vitality, things are off to an eager start on the heels of the become totally experience focused. It's now overdue to drop the
CES and the exciting innovation that will shape our future. With commerce silos and manage businesses seamlessly, as one commerce.
all that to look forward to, this report is focused on the short- With shoppers’ demands and expectations at the epicenter of a
term future and the big shifts that will impact commerce as we connected commerce experience.
know it and how brands can impact change.
At its core, shopper behavior hasn't changed much: people have a
2020 will be the year of experience. We are undergoing dogma
want, a need, and/or desire to consume. Yet the classic fundamentals
shifts about exactly what shopper marketing is. Shifting from
of the sales funnel no longer apply as people shop at their own
trying to persuade and discount people into buying to prioritizing
convenience — anywhere, anytime, anyhow. Coupled by the limitless
experiences at every stage that will inherently keep people coming
growth in digital platforms and a return to IRL shopping experiences,
back for more. This is not only big, engaging experiences but
it is no longer about capturing the phase or infinite fragmentations of
down to the shifting definition of simplicity and convenience,
their path to purchase, but rather apertures of connection for them to
from time centric to ease of experience and process.
Find, Buy and Love your brands.
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From the beginning, IN Connected has been an agency rooted in retail. That work has given us deep and meaningful relationships
across 100+ retailers, and inside insights that lead to more impactful work. We can also anticipate the constant
disruption happening, both in the store and with our consumers and shoppers. When you give that advantage to a team that's built
around making things happen, that's how you get a truly connected experience and shape the future of commerce.
We create meaningful connections between brand, commerce companies, and consumers. We call this the Connected Journey.
These are not phases on a journey but rather measurable and humanized objectives to connect and create opportunities for
shoppers to experience brands. Transforming the way shoppers FIND, BUY and LOVE brands.
FIND BUY LOVE
AWARENESS + BRAND BUILDING INCENTIVE + EXPERIENCE LOYALTY + ENDORSEMENT
A look into how shoppers are discovering Diving into the expectation and relevance Understanding the evolving definition
and experimenting with brands of value and engagement of loyalty and role of todays of WOM
FUTURE CONNECTION
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We immerse ourselves in consumers’ lives, to learn
not only when and where to reach consumers, but
how to move them. Watching for innovation and
trends, but laddering that to cultural shifts that any
brand can impact. This report with take you
through the commerce trends for 2020.
CULTURAL SHIFT Cultural shift: An overarching movement in how
shoppers Find, Buy and Love products and brands
Trends: Focused on how commerce is shifting
TRENDS and driving the cultural shift.
IRL: The “in real life” examples of how this
IRL
trend is manifesting into
CONNECTION Connection: Impact on the marketplace
and how brands and commerce companies
can rise to the occasion.
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FIND
AWARENESS + BRAND BUILDING
A look into how shoppers are discovering
and experimenting with brands
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TRANSCENDENCE RETAIL
WHAT IT MEANS: WHY IT MATTERS:
Shoppers are increasingly expecting retailers With the emergence of 5G, virtual, augmented,
to link the online and offline worlds. Allowing and extended reality will be better powered
experiences to be more enjoyable and and continue to test new ways to personalize
unconstrained. Where shoppers can interact interaction and become embedded in human
and purchase day or night with solutions like behavior and offering real time, any time
interactive windows. sensory experiences. The traditional online
experience is no longer enough.
EXTENDED REALITY
Virtual and augmented reality offer retailers several ways to enhance the customer
experience. From browsing products to virtually “trying them on,” to additional details
and information consumers seek, this extended reality is already in use by many
retailers today, and the proliferation and expectation will only increase.
HOLOGRAM INFLUENCER TILLY’S HUNT
CoverGirl’s holographic influencer This teen surf and sports clothing
Olivia (powered by Google’s AI) retailer offered its customers a back-
greets consumers in this high-tech to-school scavenger hunt experience
“experiential makeup playground,” that helped their customers explore
directing them to products and different clothes and accessories.
promotions, and answers questions.
KOHL’S HOLIDAY AR FILTER C-HR DISCOVERY
Kohl’s ran a sponsored AR Snapchat Toyota launched an AR app that
lens that gave users the ability to overlays images of the inner
virtually transport themselves to the workings of the Hybrid drivetrain onto
holiday exclusive pop-up to shop physical vehicles to allow customers
around and make purchases. to gain a better understanding of how
its new C-HR vehicle works.
VISUAL SEARCH
Visual search technology enables consumers to snap a picture of something they’re
eyeing and let a visual search engine direct them to suggestions and product pages,
which is helpful in situations where an item has piqued someone’s interest, but
there’s a lack of information as to where to buy it.
GOOGLE LENS PINTEREST LENS
Google Lens now supports visual Pinterest Lens allows users to
search for things like shopping, highlight specific sections of a Pin
menus, and local search simply by and search to find visually similar
snapping a picture of a building. Pins. It also allows users to submit
their own photos and use those as
the query to find similar Pins.
SNAPCHAT LENS AMAZON STYLESNAP
Snapchat’s pilot for finding items on Activated with a click on the camera
Amazon has been rolling out icon in the corner, using any image,
gradually to a limited number of the AI algorithm will then determine
users. If the image has a successful and classify items of clothing which
match, a card appears with a link to are present and then look for the
the product, or something similar. most similar products on Amazon.
CONNECTION: Combining traditional shopping, digital functionality, and innovative application is the epicenter of great experiences. With shoppers finding much of what they want online, retailers and brands must focus and differentiate as an experience destination to keep them interested. Online, retailers and brands must differentiate and make the shopping experience more experiential. IMPLICATION 2020 will be the year where it is virtually unnecessary to see, feel, or test a product in person before you feel confident enough to buy it, thanks to augmented reality.
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ENTERTAIN-MERCE
WHAT IT MEANS: WHY IT MATTERS:
The intersection of entertainment and As online, specifically mobile, has taken
commerce. Utilizing interactive content over shopping, brands and retailers are
to provide shoppers with new and looking to drive more sales through
seamless ways to engage with brands engagement. This makes shopping more
and make purchases. seamless, driving interaction and
reducing the distance to purchase.IMMERSIVE RETAIL 2020 will see an increase of pop-ups and physical locations for digital natives craving analogue experiences. These physical footprints exist to enable interaction and engage the 5 senses that consumers are craving. NOMADIC RETAIL PRODUCT-LESS EXPERIENCE xNomad, a short-term retail space Canada Goose’s latest store has ice connecting brands and e-commerce cold rooms and a floor that cracks, stores. Allowing you to test your helping shoppers experience the artic products, try new locations, and with the comfort of Canada Goose. reach new consumers while boosting There are only coats to try and not brand recognition and awareness, coats to buy at the store. and creating an experience. SAMPLE RETAIL GAMIFIED COMMERCE Bonobos calls their retail stores Kenzo launched a gamified e-shopping guideshoppers. Here, shoppers experience where shoppers had to can try on products and get virtually defeat other opponents to then measured for tailoring to their fit and get access to buy one of the 100 shipped directly to them. exclusive pairs of sneakers.
SHOP-VERTISING Social shopping will rise to new heights in 2020 as predominate media for commerce, with essentially any form of social media available for short-link shopping and buying. SHOPPABLE POSTS SHOPPABLE TV Instagram appeared to be gradually QR codes displayed on screen allow transforming itself from a social media TV viewers to purchase relevant app to a mobile commerce hub. At the products from the program they are top of the year they fully streamlined watching. shoppers' journey from product discovery to payment and delivery. SHOPPABLE VIDEO ADIDAS GAMIFICATION Apparel brands, like Ted Baker, have “Baseball's Next Level" is a home run produced shoppable videos that derby game that can be played inside present products in new and Snapchat and lets users buy interactive ways. Clickable hotspots products directly from the game. allow viewers to read more information about and buy products.
MORE THAN A MEAL In the on-premise environment, consumers are demanding more than just good food and drinks – they expect an engaging, immersive experience to accompany their meal. PLAY WITH YOUR FOOD LATE-NIGHT TRANSFORMATION “Eatertainment” venues continue to Junzi restaurant in New York rise. Popular venues like Punchbowl completely transforms their layout, Social, Royal Palms Shuffleboard lighting, menu and signage at 9pm Club and TopGolf provide all the Thursday-Saturday to cater to a late- facilities and equipment needed to night crowd. play a variety of games and sports. DOING IT FOR THE ‘GRAM RISE OF THE ROBOTS In the age where it didn’t happen if it Spyce in Boston garnered a lot of isn’t on the ‘Gram, serving vessels, press and attention by serving warm table settings and food presentation food bowls prepared entirely by are more important than ever. Barton robots…although they are currently G (in Miami and Chicago) is known for under revamp and renovation! delivering menu items with creative props, plating and theatrics.
CONNECTION: For brands and retailers who want to thrive, marketing strategies must move beyond awareness and transaction to prioritizing experiences at every stage of the journey. With the possibilities being only limited by imagination, the digital and analogue are fair game for creating experiences that allow shoppers to find and engage with brands. This attention to shoppers’ desires will inherently keep them coming back for more. ACTION The consumer is now at the center of the shopping experience and brands/retailers must find creative ways to break through the clutter and engage with shoppers.
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BUY
INCENTIVE + EXPERIENCE
Diving into the expectation and relevance
of value and engagement16
PRECISION PERSONALIZATION
WHAT IT MEANS: WHY IT MATTERS:
Personalization may never stop being trendy, Between science, technology and
but it continues to reach all new heights in consumer demand, one-of-a-kind
2020. From the empowerment of consumers personalization is becoming an easily
to design their own products beyond color achieved, lucrative business that
and words, to the application and function of consumers are expecting.
DNA-specific commerce, personalization has
gotten very precise.ME-TAIL New norm in personalization is products that are entirely customized for the individual. Made-by-me product design showcases creativity and uniqueness. Many companies have interactive content to build entirely customized products for individual’s needs or preferences. NIKE-ID DIAPER DATA Nike is putting the full design power A data-collecting diaper, Lumi by in consumers’ hands with their co- Pampers, has two activity sensors creation tool. Allowing consumers to designed to tell parents when their make something they've never seen baby’s diaper is wet and track how before. they are sleeping. SWEAT ANALYSIS PATCH MEMODEL Available in 2020, Gatorade’s sweat AI platform built to find clothes that analysis patch measures your sweat truly fit. MeModel takes a few rate and the electrolytes in your measurements from customers and sweat through microfluidics. uses its machine-learning algorithm Consumers will use the patch to to suggest accurate and personalized better hydrate before, during and style and size recommendations. after a workout.
BIO DESIGN Biology data and usage has grown significantly over the last few years but has mostly been monetized as information or services, but now that DNA is moving into action. Medical, beauty, and nutrition industries have been disrupted from macro solutions to made-for-me product demand. L’ORÉAL LA ROCHE-POSAY GENETIC BEAUTY Through its skincare brand, L’Oréal Allél develops personalized beauty is piloting a patch-like sensor called products from consumers’ DNA and My Skin Track pH. The tiny device blood biology to find the key drivers reveals your skin’s health in for individual skin and aging, with minutes and identifies suitable scientific products to expertly skincare products. match their profile. DNA DINNERS PERSONA GenoVive provides meal programs Curated supplements, in daily packages designed with the best balance of by day parts for optimal ingestion. nutrients and exercise based on DNA, Created from a personalized quiz and ultimately creating a personalized interlinked to 23andMe results. diet and exercise plans. Complete Sustainably sourced from high quality with prepared meal solutions. ingredients.
CONNECTION: The rise of individualism in the last decade brought forth one central priority: to stand out. Of course, everyone can have the same product, but each individual customer would like to customize its size, color, capacity, etc. Equally, biology is becoming the technology of the 21st century to drive the made-for-me specification. IMPLICATION As consumers continue to seek and expect advanced levels of personalization, brands and retailers can look to capitalize on their expectation for higher costs and longer wait times.
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NEW DAY PAY
WHAT IT MEANS: WHY IT MATTERS:
As shoppers prefer a cashless commerce Payment trends have implications for
and have moved to digital wallets, payment more than just the financial industry: as
alternatives are evolving at a rapid pace. payments evolve, more industries are
They are becoming omnipresent, showing up finding ways to monetize and companies
in unpredictable places. are finding new ways to optimize their
software to deliver better customer
experience through payments.BIOMETRIC PAY
Smartphone technology and a variety of apps make the payment and checkout
process simple, seamless and password-free with the touch of finger – or a simple
smile. Mobile biometrics are expected to authenticate $2 trillion worth of in-store
and mobile payments globally by 2023.
SMILE TO PAY GOOGLE BIOMETRIC PAY
In China, a number of apps like Alipay Biometric security is coming to Google
use facial recognition technology, Pay. Authentication for access can be
allowing users to transfer and receive gained from a user’s fingerprints or
money with a simple smile. with a facial scan. For now, this
biometric authentication only applies
to sending money from the app.
SMART CREDIT CARDS IRIS SCANNER
Visa is currently testing both chip and Users of select Samsung Galaxy
contactless-enabled credit cards that phones can unlock their phones and
use a fingerprint as an alternative to authenticate payments with their
PIN or signature authentication. eyes using the Iris Scanner feature on
Hardware upgrades are unnecessary, their phones.
and the card is self-charging.FLEXIBLE PAYMENT
Payment conditions and terms have become more flexible and fluid as consumers
reject traditional methods of making purchases. There’s a clear generational shift
in payment preferences, as 63% of Millennials don’t own a single credit card.
BUY NOW PAY LATER THE NEW LAYAWAY
The app Afterpay strives to “trust Users of the Affirm app can shop
and empower shoppers” by allowing thousands of merchants in-store and
them the freedom to buy what they online with a one-time-use virtual
want immediately and pay over credit card. Qualified shoppers can
time in four payments. select a 3, 6 or 12 month payment
plan with 0-30% APR.
VENMO CROWDFUNDING SEAMLESS BILL SPLITTING
Millennials and Gen Zers have turned The Splitwise app makes it easy to
Venmo into a crowdfunding platform, organize, split, upload and settle up
using Twitter and other social media expenses for trips, living expenses
sources to ask for help with medical and other group activities.
bills, rent and daily luxuries like coffee
and manicures.
Source: AfterPay; Bankrate Financial Security StudyCONNECTION: Today’s consumers reject traditional methods of payment and prefer to have a more flexible, quick, seamless experience when they check out physically and digitally. Password, PINs and traditional payment plans feel outdated and cumbersome. IMPLICATION Brands and services must evolve and allow customers a number of ways to complete their purchases via tools and terms that are interactive, simple and tailored to their unique needs.
LOVE LOYALTY + ENDORSEMENT Understanding the evolving definition of loyalty and role of todays of WOM
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GET REAL ECONOMY
WHAT IT MEANS: WHY IT MATTERS:
Tech giants, from Facebook to Google, are The customer is now at the center of
under the spotlight of regulators and the whole process and is demanding
consumers, amid a growing crackdown on control of their data, weary of those
their burgeoning troves of our data, to protect misusing and overusing it, and want
from violations but equally authenticity and something of added
misrepresentation. Seeking brands and value from their loyalty.
retailers that are conscious and authentic.ETHICAL EDITS IN A PRIVACY ERA
With brands’ use of data largely perceived as underhanded and unethical, new
course-correcting efforts point to a future where consumers own their data and
are in full control of their digital identities.
DUCKDUCKGO COOKIELESS CHROME
DuckDuckGo, a search engine that Google recently announced it will
collects no personal info from its phase out the use of third-party
users, is quickly gaining momentum cookies in its Chrome browser by
in the search engine space. Cutting 2022. The solution is for advertisers
down opportunities for brands to to use Google's first-party data within
hyper target in the SEO space. its own tools.
JUMBO 1.1.1.1 WITH WARP
An iOS app that can make your Strengthens and speeds up your
tweets ephemeral, your Facebook internet through private VPN, while
more private, and your Google search preventing anyone from snooping on
history disappear. you by encrypting more of the traffic
leaving your phone. And promises
they won't sell your data, ever.VALUE-DRIVEN COMMERCE
Value-driven shopping is increasingly becoming part of the retail equation. When
deciding between brands, 83% of consumers report picking the one with the most
sustainable profile and 50% of US consumers would change their consumption
habits if doing so would have a positive effect on the environment.
PROCTER & GAMBLE/NATIONAL GEO PATAGONIA ACTION WORKS CAFÉ
In September 2019, P&G partnered with Patagonia opened a pop-up café offering
National Geographic and created a six- visitors to “learn how to make a positive
part documentary focused on inspiring difference.” The café offers curated
global activism. The documentary isn’t climate activist training course, workshops
tied to retail or brands, but aims to raise on topics such as carbon literacy, habitat
awareness of the company’s ethos. conversation and non-violent protest.
MICHELOB 6 FOR 6-PACK TERRACYCLE LOOP
Michelob’s announcement of their ‘6 For 6- TerraCycle’s Loop initiative gives CPG
Pack’ allows consumers to join Michelob brands a platform to have their products
Ultra’s mission to help farmers transition delivered in a reusable containers to
to organic soil. A portion of sales from people’s homes. The company garnered
each 6-pack purchase goes directly to a waiting list of 90,000 consumers
farmers looking to transition to organic. requesting the service in 2019.
Source: Springwise, 9 Retail Trends to look for in 2020, P2P, “Sustainable Packaging: The Reuse Revolution”FOOD AND DRINKS WITH A PURPOSE
Bars and restaurants are increasingly finding ways to differentiate themselves
from their competition with charitable offerings and meals that give back to the
community or the environment.
FREE MEALS FOR THOSE IN NEED ZERO WASTE RESTAURANTS
Jon Bon Jovi’s Soul Kitchens offer Nolla in Helsinki is a zero waste,
farm-to-table meals in a warm, trash-free restaurant with no garbage
welcoming, community setting where cans. Food is delivered without
patrons can pay whatever they can packaging, all parts of the meat/plant
afford, or get a meal in exchange for are used and leftovers arrive in
volunteer time. compostable containers.
LEFTOVERS FOR GOOD BREWS THAT CHANGE THE WORLD
An increasingly long list of major The Oregon Public house bar and
restaurant chains (Pret a Manger, Pizza restaurant invites patrons to “have a
Hut, Panera, Starbucks, etc.) donate pint, change the world.” All profits go
leftover items to food banks and/or to charity, and customers can choose
deliver charitable meals frequently. where their donation goes based on a
list of participating organizations.CONNECTION: Consumers have broken their love affair with targeted ads and now quickly place those brands in the annoyance zone. As ethics are becoming a key determinant in purchase decisions, brands are curating products by value to help consumers shop purposefully. ACTION For ethical and value based brands, loyalty means more than a transaction. By offering additional benefits and unexpected perks, brands and retailers can improve customers’ experience and get them talking about the brand, taking the relationship from transactions to advocacy. Brand trust is in the follow-through.
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COLLECTIVE POWER
WHAT IT MEANS: WHY IT MATTERS:
Today’s loyalty is not a consumer-to-brand Consumers are finding their tribe
relationship; it is a collective experience. Brands through brands that share their ethos
are finding their niche by enabling consumers to and experiences whose exclusivity
connect, be a part of, and enjoy the brand gains value when shared.
experience. Seeing the personal in the extended
network that makes badge value, valuable.SENSORY SHOPPING
Experience-hungry shoppers are being treated to next-level engagement through a
variety of sensory experiences designed to wow and provide a glimpse into the
evolving seamlessness of the digital frontier at retail.
LIVESTREAM SHOPPING EMPATHETIC ALEXA - VOICE
AND LUXE has launched the latest Retail revamped by emotion AI that
innovation in viewer-centric shopping. reads micro-expressions and hears
Think of it is as QVC meets Facebook predictive voice inflections. Alexa
Live. Shoppers can tune in and spruce monitors emotions, responding to
up with an interactive experience that how it interprets the person’s feelings
delivers a sense of immediacy. It’s the to make recommendations.
thrill of the shop!
RETAIL THERAPY USER GENERATED MERCHANDISING
Saks department called the Wellery New content at the click of a button as
offers wellness as a luxury experience, brands have begun to centralize and
where shoppers can experience share consumers’ digital interactions
products available on the floor through with their products. Beauty brand
wellness and group experiences and Glossier is at the forefront with its
services. Glossier Girls sharing their ”real life”
content.MODERN BRAND VALUE Today’s consumers seamlessly maintain their “brand image” by associating themselves with products and experiences that speak to them and for their truth. Today’s shopper is as savvy as ever and keeping pace with a need to self-identify with a collective is key to keeping messaging authentic and resonant. POLITICS AS PERSONAL STYLE BRAND SOUND: ASMR RISE Starting with the popularity of the MAGA What does your brand sound like? hat, the rise in consumers’ interest in Sound design in retail has evolved past literally wearing their politics on their in-store soundtracks to a more abstract sleeve has expanded into high-fashion understanding of brand sound. Recent branding such as Donald Glover creative- examples are the use of ASMR by directing the Andrew Yang campaign. brands like Bacardi and Ikea. PEER-TO-PEER INTERACTION KEEPING IT REAL Doritos replaced their logo with Body Positivity – Sozie (an app that pays “Brandless” bags and street art with people to try on clothes and upload “Logo Goes Here” in its place. Knowing measurements) is helping designers get their core audience’s distaste for overt data for real people. Gender Fluidity – Ipsos advertising, this allowed them to connect MORI has launched a gender-fluid store to their needs and wants in a unique way. with all items marketed to all genders.
CONNECTION: The once aspirational term “lifestyle brand” now applies to all brands, from their inception. In order to find an audience, resonate with that audience, and earn their loyalty, brands must first identify themselves across a series of touchpoints that communicate exactly what they want to mean to the shopper and the role they want to play in the shoppers’ personal brand image. ACTION Authentic marketing communications will articulate the unique properties of the brand, as well as showcase their priorities through language and imagery, which translates to the shopper as genuine like-mindedness and purposeful commerce. Success is in the empowerment of consumers to be a part of the brand story.
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Although the industry has always thrived on newness, 2020 will start the dawn of a new decade
where there are really only two strategic choices retailers and brands can make to survive and thrive
in the age of experiential commerce.
This means either selling something entirely unique or selling in a new and unique way. By breaking
category norms, evolving the experience and reinventing how shoppers FIND, BUY and LOVE brands.
FIND BUY LOVE
AWARENESS + BRAND BUILDING INCENTIVE + EXPERIENCE LOYALTY + ENDORSEMENT
• Transactional Retail • Precision Personalization • Get Real Economy
• Entertain-merce • New Day Pay • Collective PowerTHANKS FOR CONNECTING
To discuss how these trends can apply to your business,
contact Valerie Bernstein, EVP New Business, Valerie.Bernstein@inconnectedmarketing.com.
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