BRANDS IN MOTION THE FUTURE OF - Senior business leaders look toward mobility as a fuel for profitable expansion while consumers demand fresh ...
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THE FUTURE OF BRANDS IN MOTION Senior business leaders look toward mobility as a fuel for profitable expansion while consumers demand fresh experiences.
CHAPTERS 01 EXECUTIVE 02 INTRODUCTION & 03 INITIAL 04 OUR POV 05 MOBILITY SUMMARY METHODOLOGY FINDINGS ON MOBILITY INSIGHTS Pg. 3 Pg. 6 Pg. 8 Pg. 10 Pg. 14 06 PARTNERSHIPS 07 KEY 08 INDUSTRY 09 CONCLUSION 10 ACKNOWLEDGEMENTS OUTCOMES PROVOCATIONS Pg. 31 Pg. 37 Pg. 39 Pg. 45 Pg. 47 2
The world sat still for several months officers, chief marketing officers, in 2020, and many industries were growth leads, and CX specialists across radically disrupted — entertainment, four industries, and conducted a travel, transportation and retail, to name quantitative assessment of 300+ US a few. Consumers have slowed down general population consumers to and reinvented their lives to live a more increase our understanding of both local experience; virtual work is the sides of the conversation. norm, and delivery and curbside pickup We found that consumers are in a state are standard practice, with no signs of EXECUTIVE SUMMARY going away. of evolution — trialing, trained and ready to adopt all kinds of new products and The Future of Brands in Motion: As it turns out, mobility is the key to helping businesses turn these new services. There is no greater proof that the pandemic is an accelerant than when How any company can (and will) challenges into opportunities. Over the next few years, we believe we look at the demand for new and improved mobility experiences. become a mobility company. that mobility, the movement of people Business leaders are eager to react to and goods, will quickly evolve from a consumer demand, though some category of transportation products companies have opted to press pause and services to a pervasive platform on innovation, while others depend on impacting all kinds of business models it to survive the pandemic. And when We're in the middle of the biggest and brand experiences — from shopping it comes to mobility experiences, we mobility deprivation study ever conducted. and delivery to entertainment, healthcare see a large spectrum of readiness — and travel. several companies are already thinking this way while many (both in and Businesses of all types will radically outside of transportation) are just now transform their customer experiences by awakening to these changes. harnessing technology and partnerships to deliver new consumer expectations, So, as we look ahead to a future media opportunities, mobility business underpinned by mobility as a platform, models, and products and services. this report will help you internalize not only consumer, but category and But in order to grab these opportunities, competitive challenges as well. we need to understand the current gap Our research matters because between the vision of business leaders businesses that learn to leverage and the expectations of consumers. mobility as a platform will earn growth So, we spoke with 16 chief innovation opportunities and customers for life. 4
Now more than ever, brands need to future-proof themselves to stay at the forefront of change inside and outside their categories. The pandemic has only accelerated consumer expectations in technology and innovation and offering unparalleled convenience at speed has become an essential part of people’s lives. Companies that embrace mobility as a platform can fuel profitable expansions and create dynamic, future-forward strategies for growth. –KYLA JACOBS, EVP, MARKETING & GROWTH, WPP 5
INTRODUCTION & METHODOLOGY BUSINESS LEADER INTERVIEWS CONSUMER QUANTITATIVE STUDY We interviewed 16 chief innovation We conducted a quantitative assessment officers, chief marketing officers, of 300+ US general population growth leads, and CX specialists consumers. We measured things like: We completed the ultimate mobility across four industries: • Entertainment • Expectations, anxieties, and preferences related to mobility experiences gap analysis to understand all sides • Retail • The kinds of new behaviors people are of the conversation. • Telecom or planning to experiment with - What products/services people • Transportation would like to see stay after Together, we explored our hypothesis the pandemic around mobility as a platform and Through the Spring, Summer and Fall of 2020, we built - How quickly people adopted new assessed their respective industries’ habits and learned new technologies locations on the adoption curve.[1] upon our own experience by conducting interviews • We also conducted 30 qualitative with senior business leaders to explore how brands from consumer interviews to understand the feelings behind their answers.[2] four key industries were approaching the future of mobility. We then compared these findings to quantitatively measured consumer attitudes and expectations from all over the US. The points of parity and dissent led us to create four imperatives. KEY BUSINESS IMPERATIVES Businesses must understand how consumers are thinking about mobility. Sources: [1, 2] Business leader interviews were conducted during April/May of 2020. The Consumer Survey is an original piece of WPP Research featuring a representative sample of US participants who were surveyed May-June of 2020. More information on 7 methodology for primary and secondary research featured in this report can be found in our Colophon on page 49.
INITIAL FINDINGS BUSINESS LEADER INTERVIEWS CONSUMER QUANTITATIVE STUDY Current planning cycles are tightening. Consumer schedules now look and feel completely different. • Many businesses are surviving week to week, making quick adjustments to • The mobility circle has gotten stifle revenue loss smaller, trips are now local, everything comes to us • For some, innovation and What we saw at a glance: The experimentation have been put on hold in order to minimize expenses; for • Maximizing cleanliness and convenience is here to stay; there pandemic has disrupted business others, they’re a key path forward will be more curbside shopping, ordering in, virtual events, and planning cycles and served as a • Balancing the new demands from consumers and regulators with the quicker outings customer experience “reset button.” long-term viability of current business models is a major challenge • The pandemic has made us slow down and stop hurrying...and afterward we won’t be so quick to run around again; running errands at four different stores in one day may be a thing of the past Out of necessity planning cycles are There’s a 1950s nostalgia to be around RESET really tight, often 24 hours to one week. people again, to put your phone down But we’re also trying to ask — what do and connect…and this was only possible we want to look like when we come out because we had it all taken from us.” of this one to two years from now?” –SENIOR MARKETING EXECUTIVE, AIRLINES –SENIOR MARKETING EXECUTIVE, AIRLINES “There’s a real humanity coming out of this “There are no rules for the future and time. Are the Instagram filter days over? there is no clear timeline for when –SENIOR MARKETER, ENTERTAINMENT things will open up. We’re on our own. –SENIOR GROWTH LEAD, ENTERTAINMENT Sources: (Business Leader Interviews, 2020), (Consumer Survey,Source: 2020) 9
OUR POV ON MOBILITY Like digital before it, mobility is evolving into a platform that will radically change how we move people and goods around the world. Mobility is the movement of people and goods. OGETHER S EVOLVE T S MODEL USINES ND B NOLOGY A TECH EMERGING FUTURE MOBILITY PLATFORM ECONOMY Companies will harness technology and TODAY partnerships to transform the movement DIGITAL PLATFORM ECONOMY of people, goods, and services. Companies develop digital exchanges to facilitate transactions between consumers and 2009 ERA producers, radically changing how we work, STILL TO BE DETERMINED… DIGITAL BUSINESS REVOLUTION socialize, and create economic value. Companies integrate internet and computer systems, transforming commerce, supply chains, and customer management. 11
As everything accelerates, growth can be either elusive or overwhelming for any business, in almost every sector. With mobility as a platform, any company can take advantage of mobility as a strategy for growth. Companies that invest in new kinds of mobility experiences will see growth in not just customer retention and revenue, but also brand relevancy, as we expect that those who get it right will earn customers for life. –SUSAN MACHTIGER, EXECUTIVE PARTNER, BRAND & MARKETING STRATEGY, OGILVY CONSULTING 12
OUR POV ON MOBILITY RTATION SOLUTIO RANSPO NS T PEOPLE + PRODUCTS FROM We believe that any company A NARROW DEFINITION Mobility as the providers can become a mobility company. moving people and products. And we are living in a time when only the savviest survive. PROD UCTS & SERVICES TO E DEL A MOBILITY PLATFORM ENC CO NVENI IVE RY Any brand tapping mobility A post-pandemic opening of the All companies, not just those invested TY TOUCHPOIN economy will accelerate opportunities in moving people or goods, need to MOBILI TS to transform the customer T experience. EN EV HE for forward-looking businesses and rethink their business and experiences to AV INM ALT RTA HC brands to leverage mobility as a capitalize on new mobility opportunities. Co Cars ARE Fina ile nn ENTE e nc Mob ecte platform to create new and different d experiences that set them apart PEOPLE + PRODUCTS S m aply from their competition. rs Sup in Cha nso RC E IN VE rt Se K FO NT S Ro m a r t es OR OR u ti D ro n ng Y W PE O MY ER -TO ON -P E E EC NG R S H ARI 13
05 MOBILITY INSIGHTS 14
MOBILITY INSIGHTS Why now? Consumers are in a state of evolution — trialing, trained and ready for new products and services. Even consumers who aren’t AND THEY’RE Business leaders and consumers agree experimenting with many new activities EXPECTING IT SOON that the pandemic has accelerated demand during the pandemic have benefited from a mobility experience… for new and improved mobility experiences. 35 …and the more adventurous consumers expect rapid innovation. 67% believe the activity they want to try the most is either currently available 30 or will be within the next 2 years. % of people who want to try these new activities 25 20 15 10 Less adventurous consumers People who tried 3–4 new experiences 5 during the pandemic More adventurous consumers People who want to try 10+ more mobility activities 0 Contactless Drive- Drive- Tele- Delivery Shop at Contactless Contactless Concierge Try on Travel Contactless Receive Stay in 3D Print Take a Ride in Charge AV/AR Delivery through through medicine on the Go a Mobile Hotel Stays Flying Delivery Clothes Virtually Car Buying Drone/ a Mobile your Purchases Drone Taxi an AV an EV Live Concerts Delivery Activities Retail Store Virtually Robot Delivery Hotel Room Locally [2] Which of these activities have you not tried but would try in the future? Please rank up to 10 options, with #1 being the activity you would most like to try. Sources: [2] (Consumer Survey, 2020) 15
As companies push category boundaries, they often struggle to define what kind of company they are. And that’s OK, as long as they know why they exist. Companies with a strong sense of purpose earn the right to evolve and defy convention in a way that’s authentic to their core. And bold, visionary, passionate leaders are able to bring all key stakeholders along. –BROOKE HOVEY, CHIEF GROWTH OFFICER, BCW 16
MOBILITY INSIGHTS The future of mobility is shattering category boundaries and competitive sets. Forward-looking brands know that any company with the ability to offer a better experience is a threat. Shopping, payments, entertainment “Our airline spends more time thinking and telecom can all be brought toward about players such as Disney, than we mobility as a platform. It very much do our direct airline competitors. The changes how I’ll think about mobility future of travel is for tech companies, in the future.” it’s going to be about the marriage –SENIOR MARKETER, TELECOM of new experiences. –SENIOR MARKETING EXECUTIVE, AIRLINES “This is an opportunity to redefine business models and build a more sustainable, progressive future for the fashion industry.”[3] –MATTHEW DRINKWATER, FIA LONDON, VIA FORBES Sources: (Business Leader Interviews, 2020), [3] (Roberts-Islam, Forbes, 2020) 17
MOBILITY INSIGHTS Thinking about the number 1 mobility-related activity you would definitely try in the future, what brand would be most likely to deliver that experience?[2] 1. 2. 3. 4. And consumers are giving all types of brands the permission to build 5. 6. 7. 8. mobility experiences. Power mobility users are actually turning to non- 9. 10. 11. 12. traditional mobility offerings to fulfill new demand. 13. 14. Whether Nike, Amazon, Uber, or Playstation, consumers are expecting their favorite brands Indicates brand was chosen by respondents to show up in new ways. who participated in more than 8 activities. Sources: [2] (Consumer Survey, 2020) 18
MOBILITY INSIGHTS THOSE WHO PICKED THIS BRAND… Miss family Miss traveling Are worried Miss going to (9.8%) but will (11.6%) and about public work/school The people who chose each continue video conferencing going to bars/ restaurants transport (23.3%), and (8%), socializing (10%) and of these brands have specific (14.9%) and exercising (11.6%), but are worried about will continue video exercising outside (8%) post-pandemic anxieties. online (15.7%). running errands (13.9%) post- conferencing (14.9%). but are exercising pandemic. online (16%). The brands consumers picked to deliver new mobility experiences are supported by people with clear needs and anxieties. Miss concerts Miss dining, Will continue Are afraid of ride (11.8%) and going shopping using AR/VR hailing (16.7%). to restaurants (12.5%) but will (11.1%) as well as They will and bars (11.8%). continue drive-in theaters continue using Post-pandemic streaming (11.1%) after telemedicine they’re afraid of (30.8%) and the pandemic. (15.8%) as well as having less time gaming (15.4%) They’re anxious AR/VR (10.5%). for entertainment as well as about losing time [2] Thinking about the number 1 activity you would definitely try in the future, what brand would be most likely to deliver that experience? (14.7%) and family ordering food for entertainment (14.7%). for delivery (20%). (15.4%). Sources: [2] (Consumer Survey, 2020) 19
Weaving mobility experiences into the fabric of the core consumer experience is critical, along with using data to deliver highly relevant, intention-predictive content and information to increase perceived service value and brand favorability. These experiences are not just about dressing up existing surfaces but are about fundamentally rearchitecting consumers’ expectations of the category and are central to future product and marketing strategic efforts. –JUSTIN CLAASSEN, CLIENT PARTNER, AKQA 20
MOBILITY INSIGHTS IMPORTANCE OF PRODUCT ATTRIBUTES TO THE GENERAL POPULATION AFTER THE PANDEMIC 01 Safety 18% Cleanliness HIGHEST 21% RANK Privacy/Data 6% 02 Convenience But product attributes have 10% also shifted, with accountability SECOND Trust 13% leading the way. RANK Transparency 7% Exclusivity 3% 03 Value 14% Recommend THIRD 5% RANK Demonstrated respect/empathy during the pandemic 7% Local 6% Consumers who’ve tried 10+ mobility activities care less about trust, Company values cleanliness, and comfort and care 5% more about safety, value, convenience Comfort and transparency. 9% [2] Which of these qualities of a brand or product/service will be most important to you after the pandemic? Please rank up to 3 options, with #1 being most important. Immediacy 2% Sources: [2] (Consumer Survey, 2020) 21
MOBILITY INSIGHTS IMPORTANCE OF PRODUCT ATTRIBUTES TO THE GENERAL POPULATION AFTER THE PANDEMIC URBAN Safety 55% Recommend 10% Company Values 12% Demonstrated respect/empathy during the pandemic However, accountability means 22% different things depending Exclusivity 7% on where you live. Immediacy 7% SUBURBAN Value 41% Trust 39% Transparency 22% Local 14% RURAL Convenience 28% Cleanliness 47% Comfort 24% [2] Which of these qualities of a brand or product/service will be most important to you after the pandemic? Please rank up to 3 options, with #1 being most important. Privacy/Data 21% Sources: [2] (Consumer Survey, 2020) 22
MOBILITY INSIGHTS Privacy is primed in the minds of consumers. Consumers know that everything from contactless shopping to telemedicine will require a host of new data trade-offs, and they have mixed feelings to say the least. The pandemic will force those moving people and goods to adopt a new set of screenings and privacy standards, which has consumers watching carefully. MOBILITY EXPERIENCE-BUILDERS BEWARE Hyper-personalization has weaponized Privacy was the top-listed product personal data, and irresponsible What 9/11 did to personal security, the “Privacy will have to be totally attribute by respondents when retargeting ads have trivialized identity. pandemic will do to health checks. The revisited; the CDC may demand health asked to rank what's most important Post-pandemic, consumers say their way travel is arranged and organized screenings and who knows what else. when choosing a product or service concerns will only grow as more has or will change permanently.” –SENIOR MARKETING EXECUTIVE, AIRLINES post-pandemic.[2] information is collected to track –SENIOR MARKETING EXECUTIVE, AIRLINES and trace movement, and to stop the next pandemic. “Mobility has become much more Going forward, business leaders may personal; during COVID-19 you want to have access to more data, but at the know exactly who you’re riding with.” –INNOVATION LEAD, HOSPITALITY risk of dehumanizing or driving away their audience. [2] Which of these qualities of a brand or product/service will be most important to you after the pandemic? Please rank up to 3 options, with #1 being most important. Sources: (Business Leader Interviews, 2020), [2] (Consumer Survey, 2020) 23
MOBILITY INSIGHTS The challenges mobility as a platform can help you solve depend on the kind of company you are today. Look at the top 10% of the S&P 500, the companies that have performed really well… they are all mobility companies. Amazon, Business leaders note that the world’s top Uber, Tesla, even Apple have mobility strategies companies are experts in mobility. that are so advanced, I would argue they are mobility companies. [1] –SENIOR GROWTH EXECUTIVE, AUTOMOTIVE TRADITIONAL MOBILITY PROVIDERS ANY OTHER COMPANY Mobility as a Service Mobility as an Experience Companies Profitability Sustainable, Scalable Innovation Challenges Strategic Partnerships Establishing Partnerships Consistent Brand Experience Integrating the Brand Experience Sources: [1] (Business Leader Interviews, 2020) 24
MOBILITY INSIGHTS Many business leaders now consider mobility an imperative, but readiness and investment vary dramatically. Toyota to invest Mercedez Benz and GM invests $500 MILLION Zhejiang Geely Holding $2 BILLION Most traditional mobility companies have seen it coming. in Uber and expand its Group Co Ltd said they to increase electric vehicle collaboration to bring would each invest manufacturing in the US, autonomous vehicle ride- ¥2.7 BILLION including $4.25 million sharing to scale. Pilot-scale to build "premium and toward additional deployments are set to intelligent electrified" production of its Cruise begin in 2021.[4] vehicles.[5] AV test vehicle.[6] The companies that are going to be really successful in the next three to five years adopted your framework around mobility as a platform a couple of years ago. I think the real forward VW invests Self-driving car company Audi invests lookers are already there. –SENIOR GROWTH EXECUTIVE, AUTOMOTIVE €2.6 BILLION Waymo raises €12 BILLION in AV program $3.2 BILLION in electric vehicles as part alongside Ford.[7] in first external round of an acceleration plan.[9] of funding.[8] Sources: (Business Leader Interviews, 2020), [4] (Toyota), [5] (Reuters), [6] (GM), [7] (Reuters), [8] (Waymo), [9] (Electrek) 25
MOBILITY INSIGHTS All other companies vary in readiness — with tech players leading the way. “I have never even "Your framework has “We’ve made the switch from considered the thought made me think about ‘we have this thing, here come that my company is part this question totally get it’ to ‘we want to help you, of a mobility ecosystem." differently now, actually." or even build a new experience, –SENIOR MARKETER, ENTERTAINMENT –SENIOR MARKETER, TELECOM how can we get it to you?’” –SENIOR GROWTH EXECUTIVE, RETAIL LAGGARDS FORWARD THINKERS READINESS “I’ve been hesitant to invest in “This is exactly why we’re trying VR because the shared human so hard to keep the narrative experience seems like the best part within our own mobility options — of a live event. Maybe I need to get we want to extend our experience over my GenX fear and start seeing on both sides.” this as a real way that people are –SENIOR CX SPECIALIST, ENTERTAINMENT going to experience live events.” –SENIOR MARKETER, ENTERTAINMENT Source: (Business Leader Interviews, 2020) 26
MOBILITY INSIGHTS Some brands have adapted quickly, leveraging mobility + contactless. CONTACTLESS FIT And these new products or experiences are here to stay. Savvy retailers are already seeing big returns on smart devices that Human touch was common in fashion, When delivery without human help shoppers try clothes on luxury, food, and beverage, but the interaction makes our experiences digitally, minimizing risk.[10] pandemic has made contactless, safer, will adding a human touch or no human touch, the norm. become premium or petrifying? Source: [10] (Boldmetrics, 2020) 27
MOBILITY INSIGHTS Everything is being delivered. Last-mile delivery has exploded in the past four months, triggering new habits we expect to far outlast the pandemic. PLAYERS TO WATCH: Target’s acquisition of Shipt Soon to be acquired by Uber, enables same-day delivery Postmates is more than a food from 1,500+ stores in 48 delivery service. Uber’s board states.[11] was also attracted to what Postmates refers to as its Walmart's InHome Delivery “delivery-as-a-service” service allows Walmart platform — the white-label associates to drop off service for retailers wanting groceries inside the home of to offer same-day delivery.[14] WHAT CONSUMERS SAID customers.[12] "Share a few vehicle details It can often be very hard “It would be great to have An alcohol marketplace and and Carvana will extend a carrying a bunch of groceries better quality groceries delivery service saw nearly real, firm offer in 2 minutes. in the city, taking them on when traveling to a new city 1,600 percent growth in year- No haggling. No hassles.”[15] to the subway and being in — rather than getting airport over-year new customers at a crowded train, trying to food or takeout, I would love the end of March.[13] avoid people sneezing on fresh food to be delivered to or crowding you. I'd like my Airbnb or hotel.” to just see more accessible –ELENA, 25, CA ways of using transport to do everyday activities.” “Food delivery is so wildly –PRIYA, 25, NY inconsistent — I don’t want a sweaty styrofoam box! –SCOTT, 38, IL Sources: (Consumer Survey, 2020), [11] (Target), [12] (Walmart), [13] (The Hill), [14] (Financial Times), [15] (Carvana) 28
MOBILITY INSIGHTS And frictionless commerce is becoming a reality. Contactless payments and experiences are giving further The majority of new mobility innovations consumers are eager to try simply remove friction from pre-existing experiences. rise to the idea of frictionless commerce: finding and removing common barriers or challenges to enabling TRADITIONAL CONSUMER FRICTIONLESS or fulfilling a purchase. EXPERIENCE FRICTION EXPERIENCE Scheduling, wait times, HERTZ FAST LANE POWERED BY CLEAR To remove this point of friction, Doctor appointment Telemedicine Imagine: you’ve just been on a flight sick patient contact Hertz has partnered with Clear, a for hours and all you want is to get to provider that brings Hertz credibility your final destination. Instead, you’re and expertise in air travel-related Delivery times, Cash tip, Food/package delivery Contactless delivery greeted with a long wait at the car queue management. The result is Contact safety rental counter. a reimagined, faster, contactless car rental experience. Hotel stay Queue for room registration Contactless hotel stay [2] Q7: Which of these activities have you not tried but would try in the future? Please rank up to 10 options, with #1 being the activity you would most like to try. Source: [2] (Consumer Survey, 2020) 29
MOBILITY INSIGHTS Leading us all to a period of experimentation. The pandemic has accelerated mobility innovation. WHAT BRANDS ARE DOING: Airbnb offers virtual Using public transportation (46%) and experiences such as dance attending a concert (40%) once the and cooking classes.[16] pandemic ends gives people the most anxiety — an opportunity for brands Walmart has launched a new to delight consumers. membership service that gives members unlimited free home delivery, fuel discounts, and faster in-store checkout WHAT CONSUMERS SAID via the Walmart app and Walmart Pay. Many subway locations offer I’ve become more “I recently started a new contact-free delivery of limited technologically capable job. It was actually the first Sephora has increased how-to groceries at a time when over the last few weeks. job I've ever gotten, just a and Q&A content on social many Subway dining rooms I’m learning a lot.” hundred percent through and is arming beauty advisors are closed.[19] –TASHA, 41, MD Zoom interviews.” –CHRISTOPHER, 49, NY with apps that allow for virtual makeup application.[17] Allstate is providing full “I've had to learn to use “I would like to try a coverage insurance for car grocery app delivery contactless hotel stay, Ticketmaster quickly shifted owners and borrowers services, which I've never and I’d be up to trying gears, helping artists launch participating in Avail's Park & done before. And I think I on clothes virtually. drive-in concert series.[18] Share car sharing program.[20] would continue to learn and –JACQUELINE, 66, PA experiment with these types of apps after COVID-19.” –PRIYA, 25, NY Sources: (Consumer Survey, 2020), [16] (Airbnb), [17] (Beauty Packaging), [18] (Billboard), [19] (Subway), [20] (Avail) 30
06 PARTNERSHIPS 31
PARTNERSHIPS UCTS & SERVICES PROD NCE DEL ENIE IVE RY NV CO TY TOUCHPOIN BILI TS MO T EN EV HE AV INM ALT RTA HC Co Cars ARE Fina ile nn ENTE e nc Mob ecte d PEOPLE + PRODUCTS S m aply rs Sup in Cha nso RC E IN VE rt Se K FO NT S Ro m a r t es OR OR u ti D ro n ng Y W TRADITIONAL MOBILITY PROVIDERS PE MY Regardless of current position or O ER -TO -P E E R S H ARI N GE C ON SINGLE BRAND Entertainment + industry, partnerships will be key. Mobile Finance + AV Sometimes you can’t make it on your own. PROD UCTS & SERVICES ANY OTHER COMPANY ENC E DEL BRAND PARTNERSHIPS ENI IVE RY As the competitive landscape widens “The Year of the Brand Mashup,” CO NV Convenience + Healthcare + TY TOUCHPOIN BILI TS and threats appear from every sector, noting that aligning two brands MO Smart Supply Chains + Drones T EN EV HE so do opportunities for non-traditional from different industries can drive AV INM ALT RTA HC partnerships, ripe to reward daring exponential impact.[21] Co Cars ARE Fina ile nn ENTE e nc Mob ecte brands with PR, relevance, and While 2020 will go on to earn d consumer loyalty. PEOPLE + PRODUCTS other distinctions, out-of-category S m aply rs Sup in Cha nso We are living in a world where mashups partnerships between traditional RC E IN VE rt Se K FO are the norm, and the remix mobility providers and everyone NT S Ro m a r t es OR OR u ti D ro n ng outperforms the original track. else noticeably extended the Y W In January, Forbes dubbed 2020 impact of a few smart brands. PE O MY ER -TO ON -P E E EC NG R S H ARI Source: [21] (Rosnowski, Forbes, 2020) 32
Mobility partnerships have the potential to highlight shared values across brands, heighten the ‘mobility experience’ in unforeseen ways, and put bold companies in the position to grow the value of products and services. –LATHA SUNDARAM, GROUP BUSINESS LEADER, EXECUTIVE DIRECTOR, MEDIACOM 33
PARTNERSHIPS Provocative partnerships. High risk…high reward. TOYOTA X YOUR BRAND Toyota is combining AVs and retail into futuristic pop-up shops. The new TRAVIS SCOTT X FORTNITE In a world devoid of 72% of consumers expressed active interest concept, called e-Palette, is a vehicle concerts and mosh pits, or neutrality in brand partnerships.[2] similar to a food truck that is highly Epic Games partnered customizable by the brand or retailer. with Travis Scott to usher When I think about what is to come Uber and Pizza Hut are both partners.[22] in the era of interactive virtual in terms of new experiences, the performances. Over 12M companies with winning solutions concurrent viewers attended will be the ones who realize their the opening show in April.[23] weaknesses and just partner with the best companies who can fill the need. [1] –FORMER SENIOR VICE PRESIDENT, TELEVISION Sources: [1] (Business Leader Interviews, 2020), [2] (Consumer Survey, 2020), [22] (Toyota, 2020), [23] (Holmes, Rolling Stone, 2020) 34
PARTNERSHIPS But consumers have an opinion on who pairs with whom. The pandemic has renewed a love for small business — a potential opportunity for localized partnerships with WHAT CONSUMERS SAID WHAT BUSINESS LEADERS SAID large tech players. I think everyone wins. The “Brands who do interact will need to Consumers don’t want just any Business leaders added that synergy local company could get share some synergy in terms of desired partnership, they want to see their in brand purpose is key. the big company pricing experience, brand ethos, values. The local businesses come out on top, benefits, the consumer business case alone will not suffice.” supported by larger players who could have a wider array of –SENIOR INNOVATION LEAD, HOSPITALITY put community needs first. choices, and we could still “The mashup brands should be able keep our local storefronts to move faster, be more nimble and open, I see that as a win.” –RENNIE, 40, CA impressive. We’re long past partnering for novelties sake.” “A monopoly of large tech players is not “I am totally okay with local companies partnering with –SENIOR INNOVATION LEAD, HOSPITALITY appealing to me, I don’t want the major players bigger companies. In fact, “Those most capable to leverage I think that's a great idea for mobility as a platform can also be to continue dominating the world and further them to grow.” the most loathed, small business –KOFI, 31, VA needs to win here too. aggregate small companies. It’s important that “I think it's great that a local –SENIOR MARKETING EXECUTIVE, AIRLINES local, more fragmented brands remain in play — company has a chance to partner with a bigger they offer a feeling of community that even company who could help sustain and advance them.” big data can’t create.” –CONSUMER SURVEY PARTICIPANT, CHRIS, 49, NY –STEPHANIE, MA, 30 Sources: (Business Leader Interviews, 2020), (Consumer Survey, 2020) 35
PARTNERSHIPS Of course, these new experiences must align with business goals. Mobility strategies are not the same as mobility ideas — the big question is how will a new experience pay for itself? CUSTOMER ACQUISITION AND meals and transportation was reduced RETENTION WERE CONSIDERED by 36%, enabling many young families KEY METRICS IN PILOTS to take the vacation they had only One former theme park executive said dreamed of previously.[24] mobility experiments were subject to strict internal debate — all ideas were welcome, but each had to fit within a certain framework: does it make the experience cheaper OR substantially better for visitors? Separately, faced with the challenge of For us, if something doesn’t help with making a week-long vacation at Disney customer retention, no matter how World more affordable in an increasingly great it’s killed.” –SENIOR MARKETER, ENTERTAINMENT competitive theme park market, Disney implemented Magic Your Way. “When we think about mobility The strategy pulled guests into optimal experiences, the question we ask is, behavior with the ability to customize how is it going to evolve and impact their vacation travel, leveraging the our business in 1,2 and 3 years? strategic application of non-core assets If it’s not clear, it doesn’t happen.” (such as airport to hotel transportation –SENIOR GROWTH EXECUTIVE, AUTOMOTIVE and inter-park shuttles) to improve the guest experience and capture higher “The more we can move people around our spend. Upon launch, the cost of an all- property, the more money we can make. inclusive seven night vacation with –SENIOR CX SPECIALIST, ENTERTAINMENT Sources: (Business Leader Interviews, 2020), [24] (Integrated Insight, 2019) 36
07 KEY OUTCOMES 37
KEY OUTCOMES New Consumer Expectations Harnessing mobility as a platform New Media drives four key outcomes. Opportunities New Products & Services New Business Models Source: 38
08 INDUSTRY PROVOCATIONS 39
INDUSTRY PROVOCATIONS A look at how mobility as a platform solves key challenges across four industries. As we look ahead to a future underpinned by mobility as a platform, we focus on how a strong mobility strategy can help to solve not only consumer, but category and competitive challenges as well. RETAIL ENTERTAINMENT TELECOM TRANSPORTATION Challenge Responding to new New distribution channels and Maintaining relevance Establishing new, consumer expectations production methods (not just a commodity) profitable business models Opportunity Not just about offline or online Delivering social and emotional Becoming the face of Improved brand experiences and anymore, but how to flex retail (potentially virtual) experiences IoT services at scale tech-enabled disruption of how models around expectations at scale we move people and goods or even reinvent them 40
INDUSTRY PROVOCATIONS Consumer Expectations in Retail FROM TO Come and get it. How can we get this to you? Going forward, consumers will expect evolved experiences in both physical retail and mobile commerce — from ones that are one-sided today, to multi-way, mobile exchanges of goods, information and experiences. THE TRANSACTION NETWORK FOR DELIVERY WHERE YOU ARE WITH MOBILITY: Car parts manufacturer DOMINOS: With the launch of ZF Friedrichshafen’s Car eWallet is Domino's Hotspots in 2018, the first automotive block chain customers can have their pizza that enables cars to become delivered to parks, beaches, I think there will be a consumer business entities on their own to and more.[27] expectation of information. You’re autonomously consume services walking by a retail store and you see like parking or charging.[25] something you like, you can get a lot of information about that particular WALMART'S NEW “SCAN & GO” product. I think augmented reality is TECHNOLOGY allows customers to going to be a standard in every walk of scan items as they shop, and pay Convening in- life — from museums to car dealerships. category, adjacent using Walmart Pay for a quick, –FINANCIAL EXECUTIVE, RETAIL industry and out-of- category partnerships easy, touch-free payment experience.[26] Sources: (Business Leader Interviews, 2020), [25] (Car eWallet), [26] (Walmart), [27] (Dominos) 41
INDUSTRY PROVOCATIONS Consumer Expectations in Entertainment FROM TO Live Connected, Shared Experiences In the new age of mobility, and even during the pandemic, entertainment providers must deliver experiences that go beyond “live.” Consumers crave these events for the shared human experience, and it will be imperative for providers to replicate the social and emotional sensations loved about live events. TESLA'S VIDEO GAME HUB, TESLA HOLORIDE is turning vehicles into ARCADE, allows Tesla owners to moving theme parks, transforming play a collection of classic video everyday journeys into hyper-immersive games on the car's display console experiences by combining navigational while charging the electric car.[28] and car data with XR.[30] EPIC GAMES is becoming a Mobility as a platform goes much deeper. destination to watch concerts and Maybe in addition to building your shows, debut movie trailers. Nearly 28 you are developing your AR and VR million fans flocked to an April strategies. Maybe we need to focus on concert by rapper Travis Scott, how to get the experience to people who which was held virtually in Fortnite.[29] Convening in- don’t want to leave their homes, or can’t. category, adjacent –SENIOR ENTERTAINMENT EXECUTIVE, GROWTH industry and out-of- category partnerships Sources: (Business Leader Interviews, 2020), [28] (Wired, 2019), [29] (Bloomberg, 2020), [30] (Holoride) 42
INDUSTRY PROVOCATIONS Consumer Expectations in Transportation FROM TO A to B Everything in Between In a future underpinned by mobility, transportation players will see their roles elevating and broadening — from getting consumers and goods from point A to point B, to creating meaningful experiences in every in-between moment. [ HYUNDAI'S HIGHLY VERSATILE PURPOSE-BUILT VEHICLES CONCEPT can be transformed into nearly any mobility of choice — from In addition to their core product, Airbnb home delivery vehicles to mobile is also exploring online experiences such restaurants, or even medical clinics.[31] as online trivia, masterclasses, and cooking experiences [during COVID-19].” AUTONOMOUS TRAVEL SUITES –MARKETING LEAD, HOSPITALITY could allow travelers to reach their “We want to make travel easier, more fun destination in what's essentially and safe, anything that reduces friction a mobile hotel with built-in beds, (from one click checkout to the bus on a private bathroom, a kitchen and Convening in- the tarmac). category, adjacent room for entertaining.[32] –SENIOR MARKETING EXECUTIVE, AIRLINES industry and out-of- category partnerships Sources: (Business Leader Interviews, 2020), [31] (Hyundai), [32] (Travel and Leisure) 43
INDUSTRY PROVOCATIONS Consumer Expectations in Telco FROM TO Utility Becoming the Face of IoT Services at Scale In the future, telcos will be both the backbone and most important enabler of any and all mobility experiences. Faced with the threat of commoditization today, a strong mobility strategy will be the way to growth, and strong partnerships will create renewed relevance and customer engagement. AT&T'S ACQUISITION OF DIRECTV AND VODAFONE AND AT&T ARE TEAMING UP TIME WARNER helped grow AT&T's TO WORK ON: free cash flow, which is expected to • 5G and autonomous vehicle technology be in the $28 billion range in 2020.[33] • V2X capabilities (vehicle-to-everything) • In-vehicle entertainment [In the future] you are going to see that LAMBORGHINI, POWERED BY ALEXA. • Connected car applications bringing consumers rich experiences is Lamborghini drivers can use Alexa and services going to take three to four people who voice commands to control car • Global service quality models didn’t necessarily work together in the features like climate control, • Connected car/smart cities intersection[35] past. Imagine having the smart watch that interior lighting, seat heating, and monitors people, the healthcare provider drive modes without having to take who gets that information, the pharmacy their hands off the wheel.[34] Convening in- that is then able to fill prescriptions category, adjacent immediately. That’s one example of a richer industry and out-of- category partnerships healthcare experience and what anchors it is the person at the center. –SENIOR EXECUTIVE, TELCO Sources: (Business Leader Interviews, 2020), [33] (AT&T Annual Report, 2019), [34] (Motor Authority), [35] (AT&T) 44
09 CONCLUSION 45
CONCLUSION Mobility is emerging 1 as a pervasive platform. Business leaders and consumers agree, mobility is accelerating as a pervasive platform, extending into just about every industry. 2 Partnerships. Partnerships are key in harnessing mobility as platform, but consumers are experts in brand collaborations and will vet Four things to remember. your pick for parity in core values, community benefits and more. 3 Experimentation is key. Experimentation is a necessary part of building new mobility experiences, but you don’t have to start from scratch; consumers have made their anxieties and expectations clear. 4 Consumers are primed and ready to adopt new mobility technologies. The pandemic has rapidly accelerated the adoption and interest of new mobility technologies. For anyone encouraged to stay in place, brands that effectively move services to meet consumers are being rewarded. 46
10 ACKNOWLEDGEMENTS 47
ACKNOWLEDGEMENTS Authors Contributors These individuals created the report, providing research, analysis, insight, and editorial. These individuals and companies contributed additional expertise and perspective. ASHLEY WOOD SHELIN MEI JUSTIN CLAASSEN Strategy Development Senior Global Consulting Partner, Global Consulting Director, Client Partner Brand Strategy & Communications APAC AKQA KYLA JACOBS OGILVY CONSULTING OGILVY CONSULTING BROOKE HOVEY EVP, Marketing & Growth WPP Chief Growth Officer BCW CARLA HENDRA Global Chief Executive, LATHA SUNDARAM Growth & Innovation; Global CEO Group Business Leader, OGILVY CONSULTING MICHAEL LOMBARDI LEIGH ENGEL Executive Director Global Consulting Partner Global Analyst MEDIACOM OGILVY CONSULTING OGILVY CONSULTING Design & Production ILANA NOLTE President, mPlatform CHIDO TSENMUNHU MEDIACOM Director, Marketing & Growth WPP ANNE BRINICH MANOJ GOPALAN CARLA HENDRA Design Director Global Consulting Partner Executive Sponsor MAKERHOUSE OGILVY CONSULTING OGILVY CONSULTING ARLENE ZHAO Designer MAKERHOUSE REID LITMAN SUSAN MACHTIGER Global Analyst Executive Sponsor OGILVY CONSULTING OGILVY CONSULTING 48
ACKNOWLEDGEMENTS Colophon PRIMARY RESEARCH [9] https://electrek.co/2019/11/29/audi-accelerates-electric-vehicle-plans-12- [24] The Making of Magic Your Way. (n.d.). Integrated Insight. Retrieved July [1] Business Leader Interviews, 2020. Qualitative Interviews were conducted billion-investment/ 28, 2020, from https://integratedinsight.com/wp-content/uploads/ April-May 2020 with industry leaders across Transportation and Travel, [10] https://www.boldmetrics.com/case-studies/ 2016/01/The-Making-of-Magic-Your-Way-2016.pdf Entertainment, Telecom, and Retail. Expert names and titles have been [11] https://corporate.target.com/about/products-services/pickup-delivery [25] https://car-ewallet.de/ blinded as pursuant to standard use agreement. [12] https://corporate.walmart.com/newsroom/2019/06/07/were-taking- [26] https://corporate.walmart.com/newsroom/2020/09/01/walmart- walmart-grocery-delivery-one-step-further introduces-walmart [2] Consumer Survey 2020 conducted May-June 2020 included 320 panelist [13] https://thehill.com/business-a-lobbying/business-a-lobbying/491922- [27] https://www.prnewswire.com/news-releases/redefining-delivery- selected to reflect U.S. averages in income, location, and sex. Names, coronavirus-business-booms-for-alcohol-app-drizly convenience-over-150–000-dominos-hotspots-launched- ages, and locations of participants are sourced in this report [14] https://www.ft.com/content/0503496a-4cbc-44f1-b46c-5c268e401834 nationwide-300630059.html as pursuant to standard use agreement. [15] https://www.carvana.com/sellyourcar [28] https://www.wired.com/story/bored-charging-your-tesla-play- [16] https://news.airbnb.com/enjoy-the-magic-of-airbnb-experiences-from- videogame-your-car/ the-comfort-of-your-home/ [29] Fortnite maker Epic Games nears funding at $17 billion value. (2020, June SECONDARY RESEARCH [17] https://www.beautypackaging.com/contents/view_experts-opinion/ 16). Bloomberg. Retrieved July 28, 2020, from https:// [3] Roberts-Islam, B. (2020, April 6). Virtual Catwalks And Digital Fashion: How 2020–04–13/mintel-reports-on-the-impact-of-covid-19-on-beauty-retail/ tech.hindustantimes.com/gaming/news/fortnite-maker-epic-games- COVID-19 Is Changing The Fashion Industry. Forbes.com. Retrieved July 26, [18] https://www.billboard.com/articles/business/touring/9406554/live- nears-funding-at-17-billion-value-71592273395241.html 2020, from https://www.forbes.com/sites/brookerobertsislam/ nation-drive-in-concert-series-lineup-dates-cities [30] https://www.holoride.com/ 2020/04/06/virtual-catwalks-and-digital-fashion-how-covid-19-is- [19] https://shop.subwaygrocery.com/ [31] https://www.hyundai.com/worldwide/en/brand/time-to-stop-wasting- changing-the-fashion-industry/#3f31fea7554e [20] https://availcarsharing.com/car-sharing-insurance time [4] https://global.toyota/en/newsroom/corporate/24330817.html [21] Rosnowski, S. (2020, January 15). 2020: The Year Of The Brand Mashup. [32] https://www.travelandleisure.com/hotels-resorts/self-driving-hotel- [5] https://www.reuters.com/article/us-geely-daimler-jv/geely-mercedes- forbes.com. Retrieved July 28, 2020, from https://www.forbes.com/ rooms benz-launch-780-million-jv-to-make-electric-smart-branded-cars- sites/forbesagencycouncil/2020/01/15/2020-the-year-of-the-brand- [33] https://investors.att.com/~/media/Files/A/ATT-IR/financial-reports/ idUSKBN1Z7162 mashup/#3b150cd46082 annual-reports/2019/2019-letter-to-shareholders.pdf [6] https://investor.gm.com/news-releases/news-release-details/gm- [22] Swant, M. (2018, January 10). Pizza Hut's Self-Driving Delivery Trucks With [34] https://www.motorauthority.com/news/1126657_lamborghini-becomes- investing-2-billion-transition-spring-hill-tennessee-plant Toyota Could Be on the Road by 2020. adweek.com. Retrieved July 28, first-automaker-to-integrate-alexa-for-in-car-control [7] https://www.reuters.com/article/us-volkswagen-argo/volkswagen- 2020, from https://www.adweek.com/digital/pizza-huts-self-driving- [35] https://about.att.com/story/2019/iot_in_automotive.html closes-2–6-billion-investment-in-self-driving-startup-argo-ai- delivery-trucks-with-toyota-could-be-on-the-road-by-2020/ idUSKBN2390E6 [23] Holmes, C. (2020, April 24). I've Never Played Fortnite, But Was Forced to IMAGE SOURCES [8] https://blog.waymo.com/2020/03/waymo-raises-first-external- Attend Travis Scott's Fortnite Concert. rollingstone.com. Retrieved July P. 22, 24, 26, 27, 28, 29, 33, 35, 40, 41, 42, 43: Adobe Stock investment.html 28, 2020, from https://www.rollingstone.com/music/music-features/ P. 39 Getty Images travis-scott-fortnite-concert-989209/ 49
THANK YOU Visit wpp.com/mobilityfutures to learn more. Kyla.Jacobs@wpp.com Ashley.Wood@ogilvy.com EVP, Marketing & Growth Senior Global Consulting Partner WPP Ogilvy Consulting
APPENDIX 51
APPENDIX Research Factoids 1. Which of the following activities are you 1. Going to restaurants 5. Which of the following activities or 1. TV/Movies/Streaming missing during the pandemic? Select all 2. Socializing services will you continue to use after 2.Gaming that apply. 3. Taking vacation / traveling the pandemic? Select all that apply. 3.Grocery / meal delivery 4. Visiting Family 4.Video conferencing 5. Shopping 5.Online exercise 2.Which of the activities are you able 1. Driving 6. Which of these qualities of a brand or 1. Cleanliness to do despite the pandemic? 2. Outside exercise product/service will be most important 2.Trust Select all that apply. 3. Shopping to you after the pandemic? Please rank 3. Safety up to 3 options, with #1 being most 4. Privacy / Data important. 5. Convenience 3. Which do you think will give you the 1. Attending a concert 7. Which of these activities have you not 1. Wear a mask in public most anxiety after the pandemic ends? 2. Having less time for entertainment tried but would try in the future? Please 2. Telemedicine 3. Taking public transportation rank up to 10 options, with #1 being the 3. Contactless delivery activity you would most like to try. 4. Spending less time with family 4. Contactless hotel stay 5. Try on clothes virtually 4.Which of these activities have 1. TV/Movies/Streaming 6. Delivery on the go you tried during the pandemic? 2.Video conferencing 7. Travel virtually Select all that apply. 3.Gaming 8. Drive through delivery 4.Grocery / meal delivery 9. Shop at a mobile retail store 5.Online exercise 10. Drive through activities The Consumer Survey is an original piece of WPP Research featuring a representative sample of US participants who were surveyed in May-June of 2020. More information on methodology for primary and secondary research featured in this report can be found in our Colophon on page 49. 52
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