Welcome to the Summarin - your weekly dose of commentary and summaries of the most interesting topics from the world of culture, media and commerce. If you are new around here and like what you read, hit the subscribe button below.
In today’s edition (14.5.22):
The social layer of the digital experience
A primer on community building
Subscriptions as NFTs
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The digital experience is experiencing a transformation. It is addressing an urgent need from its users - the need for human connection. In a world where it is easy to lose sight of the fact that we are social beings and fall for the thinking that its just machines and algorithms that are responsible for what we see and hear, it is human connection that is most in-demand.
Let’s just look at this through the prism of retail and e-commerce.
E-commerce has long been the dominion of quant-obsessed operators who continuously optimize the customer experience, observe patterns of behavior and aim to automate transactions - resulting in a cost-effective, highly optimized business machine. But on the other side of a business transaction sits a human being that more often than not needs a bit of hand-holding and asks for attention. Companies have been trying hard to remove the need for this by aiming to reduce what are known in the industry as barriers to the customer journey. However, this may result in a successful conversion funnel but not in building a strong brand. The two are different and a brand must have both.
A relationship with a customer has many layers. The more you care about your brand, the harder you have to work to ensure the human aspect is central to the evolution of the brand. Neglect it, and people will look elsewhere. Somewhere where their need for attention is met. Where they are made to feel heard, made to feel special.
Overlooking the “feeling” layer a brand evokes is detrimental in the long-run. A company may do OK with a few short bursts of hype generated through ads or influencers, but what happens down the line? Will those people who tried a product come back? Would they feel welcomed?
Interestingly, addressing this need is becoming easier than ever thanks to technology - the same thing that has been the cause for a lot of faceless experiences. Technology today provides a multitude of opportunities establish connections in real time between customers and brands. Whether through live chat, live-video, community servers or NFTs - people can build relationships digitally that span across time zones and continents.
To hear and to be heard is easier than ever.
Klarna rolls out its first social-shopping tool (Retail Brew)
“The company rolled out its first social-shopping tool, which connects online shoppers with retail employees through live messaging and video.”
The retail experience is evolving - not only offline but online too. From my personal experience, the “build it and they will come” mantra does not work in direct to consumer. In fact, the real work starts once your product and idea is out of the gate. Getting to customers is a challenge and in an ever-shifting digital landscape, oversaturated with messages from all types of brands, an operator must constantly be on the lookout for creative new ways to earn a share of the attention. Well, it seems Klarna - the buy now, pay later platform, is tipping its toes in a concept they call “Virtual Shopping”. The approach is focussed on personalization, direct communication and the utilization of video and live-streaming. It’s worth paying attention to. Read story
To Start Building a Community, Master These Two Concepts (Future by a16z)
“One common misconception, I’ve noticed, is the idea that “community” and “customers” are synonymous terms. They aren’t. Understanding how they differ is critical”
For everyone thinking of organizing the community around their brand, this article is a great starting point. First, you need to differentiate between customers, evangelists, community members and ambassadors. Then, you need to implement a customer > community member funnel that converts the relationship from transactional to emotional. Next, you need to ensure you have the right infrastructure in place - both technical and human, to offer a welcoming and simple onboarding of new members. Read story
Are NFTs the Future of Subscriptions? (Creator Economy by Peter Yang)
“Because NFTs are programmable, what you offer is only limited by your creativity”
One of the first ideas that comes to mind when exploring the potential for NFTs in a brand’s strategy is as infrastructure to empower memberships and subscriptions. The ability to issue a token which represents access to a community or to brand specials can supercharge loyalty, exclusivity, and the relationship with the audience. The value of this approach lies in the promise of future value that can be derived from the ownership of that NFT. That can be in the shape of exclusive early access, invites to events, access to people (influencers, brand ambassadors, executives), shaping the strategy of the company, etc. These benefits don’t come without certain caveats. For instance, the volatility of price and speculation are issues that need to be addressed before a brand commits to an NFT push. In addition, environmental concerns and negative PR from less-informed media (which you have to assume are the majority) can throw a wrench in the plans of any brand that has a serious sustainability commitment. In this article, you’ll get an overview of NFTs as subscriptions - the pros and the considerations and why they are a good addition, not substitution, to traditional digital subscriptions. This is relevant not only for content creators but for any brand that is engaging in the digital space. Read story
Gucci to start accepting crypto in stores (Morning Brew)
“In-store shoppers who want to reinvest their bitcoin into a crossbody will be emailed a QR code that allows them to complete the transaction using their crypto wallets.”
Keeping up with the trend, luxury fashion once again demonstrates it ability to push for innovative ways to attract and service customers. While crypto may be in a slump price-wise, the long-term trend is here to stay and those brands that build during the volatile, scary times, will ultimately reap the rewards when the dust settles. Read story
How goes the revolution? (Mike Darcey)
“But the extinction of the old ways didn’t quite happen – and, indeed, those jumping ship started to find that the water was a little chilly.”
A deep dive into the business of television and streaming. This is for the media nerds out there. The process of unbundling and then bundling again is playing out in the industry rapidly. What seemed like the only way forward for some (streaming) may not have been the best option for others. Content licensing is still in the picture and it may not go away. With the exceptions of a few established streamers, expect to see the proliferation of hybrid, pragmatic approaches in a quest to maximize profits. Read story
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That’s all for this week.
DO the work,
Marin