PowerPoint Presentation

INSPIRATION TO INNOVATION: USING THE CONSUMER TREND CANVAS

Victoria LoomesHead of TW:Premium TrendWatching

WATCHING TRENDS IS NOT ENOUGH

Knowing about trends is just the tip of the iceberg.This session will help you move from trends & insights to meaningful innovations of your own.2

The Consumer Trend Canvas - An easy-to-follow tool that will help you not only unpack and understand any consumer trend, but also help you apply it to launch successful consumer-facing innovations of your own.

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BEFORE WE DIVE IN

CHANGE

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BASIC NEEDS

BUT

On the other hand there is human nature, whicn fundamentally does not change much over time. Human beings are driven by this set of BASIC NEEDS & WANTS

think safety, fun, value, connection

they dont change from month to month, or season to season.

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INNOVATIONS

The third strand of this model is INNOVATIONS. They play a central role in our methodology.

We can see trends emerge via the new innovations that address these BASIC NEEDS in novel ways.

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EMERGING EXPECTATIONS

So what changes then are consumers expectations towards products and services weve seen the startups you mentioned plus the uber, airbnb, tesla and how they change your expectations across industries. So there is a constant expectation gap btw what customers want and what they currently have this is key when it comes to applying trends. Because this gap becomes THE sweet spot to target your innovations, it uncovers innovation areas where you can be sure youre meeting customers expectations.Were going to see how all these elements comes together in the CTC.

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ANALYZE - The left hand side of the CTC will help you unpack and understand the trend.

INSPIRATION how are other businesses applying this trend? We always turn to real-world examples to illustrate trends. Why? Because actually seeing what other actors are already doing with the trend is a great way to better understand it (and gain inspiration ;)

BASIC NEEDS which deep consumer needs & desires does this trend address?Consumer trends and consumer behaviors more broadly are ultimately driven by basic, fundamental human needs and desires. Identifying these underlying needs is central to understanding any consumer trend.

DRIVERS OF CHANGE why is this trend emerging now? Whats changing? There are no consumer trends without change. Change can be analyzed in terms of Shifts (long-term, macro changes playing out across years or even decades) and Triggers (more immediate changes, such as political events, economic shocks, new technologies, environmental incidents, and more).

EMERGING EXPECTATIONS what new consumer needs, wants and expectations are created by the changes identified above? New consumer trends emerge when basic human needs bump up against external change to create (or unlock) new needs, wants and desires. When identifying these newly emerging feelings, look for expectation gaps between what consumers want, and what they currently have.

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VISIONNEW BUSINESS MODELSNEW PRODUCTS, SERVICES, EXPERIENCESMARKETING, ADVERTISING, PR

WHERE?

When youre asking that question, theres a couple of things to bear in mind. First, WHERE in your business will you apply the trend. We always talk about four levels of application.

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WHO?

APPLY - The right hand side of the CTC will help you identify the opportunities this trend presents to your business.

INNOVATION TARGET how and where could you apply this trend to your business? Consumer trends can trigger both BIG and small innovations. How could you apply a trend to your: Long-term vision Business model Product/ service Marketing/ Campaigns

WHO which (new) customer groups could you apply this trend to? Trends often emerge in certain demographics. Think about what changes you would have to make for this trend to be relevant to other (new) demographics. 12

Why a process? It helps structure your thinking, acts as a reminder and most of the times, constraints foster creativity.13

The Consumer Trend Canvas - An easy-to-follow tool that will help you not only unpack and understand any consumer trend, but also help you apply it to launch successful consumer-facing innovations of your own.

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CURRENCIES OF CHANGE

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Show us a consumer who isnt trying to improve their lifestyle (or aware of the need to). But high costs, inertia and inconvenience mean action is often lacking. Brands that offer discounts and deals as self-improvement incentives will be welcomed.CURRENCIES OF CHANGE

This is about digital services making intelligent decisions to solve real human problems.

Weve already seen users embrace intelligent, automated infrastructure that provide REAL BENEFITS:

convenience, cost-savings, relevance, entertainment!

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Mexican government Free subway tickets offered in exchange for exercise

January 2015 saw the Mexican government install 30 motion-sensitive machines at subway stations across Mexico City. The machines issue a token that can be redeemed for a subway ticket (which usually costs five pesos) to any commuter who completes ten squats. Pedometers were also offered to the first 80,000 participants. The scheme was introduced in response to an escalating obesity crisis in the country; according to a 2013 UN report 32.8% of the Mexican population is obese.

Link: http://en.presidencia.gob.mx/17

Commercial Bank of Dubai

Bank rewards customers for getting active

August 2015 saw The Commercial Bank of Dubai launch the CBD Active Saver app. The mobile app rewards users with higher interest rates on their saving accounts when linked with a Fitbit or Jawbone activity tracker device. Higher interest rates and transaction limits are tied to the number of steps taken in a day, which the free app sets as goals. These goals start at 5,000 steps and increase up to 15,000 steps. Interest is accumulated according to a customers average monthly average balance.

Link: https://www.cbd.ae/personal/bank/accounts/savings-account/active-saver18

Hotel rewards guests for making ethical choices

HOTEL CAPPUCCINO

Opened in Seoul during December 2015, Hotel Cappuccino offers accommodation for socially-conscious travelers. With 141 rooms, the hotel features an Earn & Giveaway program assuring that any unused amenities from stays are donated to local nonprofits and charities. Every room features a full box of amenities such as towels and toiletries, with a label attached to each item reading Do you really need me?. Guests can also opt to leave behind any unwanted apparel after their stay which is then donated to a local charity. In exchange for their ethical decisions, guests receive free beverages. Rooms at Hotel Cappuccino are priced from around USD 90.

Link: http://hotelcappuccino.co.kr/en19

Festival-goers receive discounts for donating bloodUNTOLD FESTIVAL

Attendees of the Untold music festival could purchase discounted tickets in exchange for donating blood. Discounts of 30% were available to anyone giving a donation at centers across Romania, with those donating at specific Bucharest hubs receiving free one-day passes for the July 2015 music event. Artists playing at the festival included Avicii, David Guetta and Armin van Buuren.

Link: https://untoldfestival.com/ro/pay-with-blood/20

CURRENCIES OF CHANGE

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ANALYZE - The left hand side of the CTC will help you unpack and understand the trend.

INSPIRATION how are other businesses applying this trend? We always turn to real-world examples to illustrate trends. Why? Because actually seeing what other actors are already doing with the trend is a great way to better understand it (and gain inspiration ;)

BASIC NEEDS which deep consumer needs & desires does this trend address?Consumer trends and consumer behaviors more broadly are ultimately driven by basic, fundamental human needs and desires. Identifying these underlying needs is central to understanding any consumer trend.

DRIVERS OF CHANGE why is this trend emerging now? Whats changing? There are no consumer trends without change. Change can be analyzed in terms of Shifts (long-term, macro changes playing out across years or even decades) and Triggers (more immediate changes, such as political events, economic shocks, new technologies, environmental incidents, and more).

EMERGING EXPECTATIONS what new consumer needs, wants and expectations are created by the changes identified above? New consumer trends emerge when basic human needs bump up against external change to create (or unlock) new needs, wants and desires. When identifying these newly emerging feelings, look for expectation gaps between what consumers want, and what they currently have.

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Hotel CappuccinoUntold festivalCommercial Bank of DubaiMexican government

Regular readers will know that we always turn to real-world examples to illustrate trends. Why? Because actually seeing what other businesses, entrepreneurs, non-profits or even governments, are already doing with the trend is a great way to better understand it (and gain inspiration ;)

Indeed, very few innovations are totally new. Most (successful) innovation comes from combining seemingly unrelated elements, or taking something and deploying it in a new context.

So try this: look at existing business innovations, understand* them, then adapt them to your business. To gain as wide a perspective as possible, look specifically at other industries, other regions or cultures, or other types of business (e.g. corporate versus startups).

*Understand from the point of view of those people living this trend, which of course may not necessarily align with your own personal likes and aspirations.23

Consumer trends are ultimately driven by basic, fundamental, rarely-if-ever-changing human needs and desires. Identifying these underlying needs is central to understanding any consumer trend. Where to start? How about these:

Social status

Self-improvement

Entertainment

Excitement

Connection

Security

Identity

Relevance

Social interaction

Creativity

Fairness

Honesty

Freedom

Recognition

Simplicity

Transparency24

Self-improvement

Accomplishment

Recognition / flaunt achievements

Consumer trends are ultimately driven by basic, fundamental, rarely-if-ever-changing human needs and desires. Identifying these underlying needs is central to understanding any consumer trend. Where to start? How about these:

Social status

Self-improvement

Entertainment

Excitement

Connection

Security

Identity

Relevance

Social interaction

Creativity

Fairness

Honesty

Freedom

Recognition

Simplicity

Transparency25

Health as a lifestyle

Human brands

Tracking and wearable devicesSocial media pressure

There are no consumer trends without change. Savvy and switched-on business professionals constantly ask Whats changing?, looking for shifts that make it possible to service consumers basic needs and wants in novel, exciting better ways. To analyze change, think Shifts and Triggers:

Shifts are the long-term, macro changes that are playing out across years or even decades, that while not consumer trends themselves, will shape both the direction and flavor of a specific trend. For a summary of the macro shifts currently shaping the world, see the Macro Trends section of the 2014 Trend Report.

Triggers are the more immediate changes that drive the emergence of a consumer trend. These can include specific technologies, political events, economic shocks, environmental incidents, and more. For example, developments in visual search technologies are driving the POINT & KNOW trend. Look at the data behind the trend: rapid growth or sudden shifts, even if the absolute numbers might be small, are worth attention. Think sales volumes, consumer behaviors or attitudes, social media chatter, etc.

TIP: Strategic frameworks can be useful tools to analyze external change. Check out the PESTLE model (Political, Economic, Social, Technological, Legal and Environmental) and its various adaptations.

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Brands take the role of a coach

Improve behavior

Seamless access to doing good

Tangible rewards

To identifyemerging needs, wants and desires,look for expectation gapsbetween what consumers want, and what they currently have in the light of the trend. Areas to innovate succesfully as youll not only find out what they want but EXPECT from you.Try asking yourself"What do the consumers embracing the brands, products and services that embodythis trend now want and even expect?".One further tip: pay careful attention to other industries. Consumers dont think in industry silos. Newexpectations of quality or service will usuallybe set outside your industry, but they won't remain there for long.

New consumer trends emerge when basic human needs bump up against external change to create (or unlock) new needs, wants and desires. When identifying these newly emerging needs, wants and desires, look for expectation gaps between what consumers want, and what they currently have.

For example, the epic social shift away from strict formality has led to people embracing more human and irreverent brands such as Zappos, Ben & Jerrys and a whole host of others. Disillusionment with the big, bad and dirty corporate world continues to stoke consumer enthusiasm for transparent, honest CLEAN SLATE BRANDS (from Toms to Tesla).

Another example: in the music industry, digital technologies triggered consumers to expect infinite choice and instant access to music, on their terms. The ACCESSHIP trend exemplified by services such as Spotify was a natural response.

Ask yourself, what do the consumers embracing the brands, products and services that exemplify this trend now want and even expect*?Write down answers, using these prompts (and others you can think of) to start your sentences:

The ability to / Improved access to / Freedom to / Freedom from / The experience of / A service that / A more affordable / A better quality / A more enjoyable / A more social

*Pay careful attention to other industries. Consumers dont think in industry silos. Once a level of quality or service has been established in one industry, consumers wont care about why its different in your industry. Rather, theyll enthusiastically rush to whoever gets it right first (whether thats your competitor, or a new startup).

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Tangible rewards

Self-improvement

Recognition / flaunt achievements

Untold

Hotel Cappuccino

Mexican Government

AccomplishmentCURRENCIES OF CHANGE

Brands as coaches

Improve behaviorSeamless access to doing good

Health as a lifestyleCommercial Bank of DubaiTracking and wearable devicesHuman brandsSocial media pressure

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Business model

Vision

Product & service

Campaign

Weve long said that when thinking about a consumer trend, it helps to consider how and where it could impact your business using these four areas:

Long-term vision

How will the deeper shifts underlying this trend shape your companys long-term vision?

Business Model

Can you apply this trend to launch a whole new business venture or brand?

Product / Service / Experience

What new products and services could you create in light of this trend? How will you adapt your current products and services?

Marketing/ Campaigns

How can you incorporate this trend into your campaigns, and show consumers you speak their language, that you get it.

So, consumer trends can trigger both BIG and small innovations.

If youre the CEO, youre probably more interested in whether the consumer trend youre analyzing is going to lead to deep, brand-shattering (or -building!) disruption. If youre a brand manager, youll be thinking more about how to use the trend to inform and improve your marketing campaigns.

Not all trends will apply equally to all businesses or regions.

TIP: List 20 assumptions about your brand/ current business model/ product range & service design/ marketing. Then imagine how this trend might overturn them. What do you uncover?29

From niche to mass

Extreme users

Post-demographics

New parents

When it comes to applying consumer trends, try thinking beyond those who are currently living the trend. Indeed, thinking about what changes you would have to make, to make this trend relevant for other (new) demographics is a great way to come up with new innovations.

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Extreme users

Post-demographics

Business Model

Vision

Campaign

Product/Service

From niche to mass

Tangible rewardsUntold

Hotel Cappuccino

Mexican Government

Brands as coaches

Improve behaviorSeamless access to doing good Commercial Bank of DubaiCURRENCIES OF CHANGE

Self-improvement

Recognition / flaunt achievementsAccomplishment

Health as a lifestyleTracking and wearable devicesHuman brandsSocial media pressure

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Put all your insights and ideas together, and you should easily be able to dream up compelling, new, consumer-focused innovation ideas!

Congratulations ;) 32

NOW, ITS YOUR TURN!

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VIRTUAL EXPERIENCE ECONOMY

MOTIVATED MINDLESSNESS

VISIBLE INDIVIDUALS

INCOGNITO INDIVIDUALS

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ANALYZE THE TREND

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APPLY THE TREND

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INNOVATE!Document your new idea on the one pager

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PITCH!60 seconds per team

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VOTEWith prizes for the winner ;)

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Weve been listening but this session is all about doing so lets get you set up to do that.Some of you looked a bit awkward while doing it ha?Heres some advice on the perfect high five

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Heres a bit of advicehttps://www.youtube.com/watch?v=hb2cAsxVTog 42

TEAM UP!

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ANALYZE THE TREND

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APPLY THE TREND

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PITCH60 seconds per team

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LETS VOTE!

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APPLY! APPLY! APPLY!

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EMERGING EXPECTATIONS

So what changes then are consumers expectations towards products and services weve seen the startups you mentioned plus the uber, airbnb, tesla and how they change your expectations across industries. So there is a constant expectation gap btw what customers want and what they currently have this is key when it comes to applying trends. Because this gap becomes THE sweet spot to target your innovations, it uncovers innovation areas where you can be sure youre meeting customers expectations.Were going to see how all these elements comes together in the CTC.

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THANK YOU

vicki@trendwatching.comdavid@trendwatching.com

& HAPPY INNOVATING!

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