JANUARY 2021 PERSONALIZED CONTROL - TracyLocke
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JANUARY 2021 PERSONALIZED CONTROL
PERSONALIZED CONTROL
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On January 21, 2021, we hit As January resolutions tell us, With increasing cases and
one year of the Coronavirus in the beginning of a new year is vaccine rollouts, the future
R Y
the U.S. For this pandemic the best time to set new continues to feel unclear.
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milestone, we are seeing structures around our daily Many consumers are hopeful
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consumers continue to look lives. This year, consumers are of a return to some sort of
J A N
for ways to gain control during turning to things that help normalcy by the summer. In
an otherwise unpredictable them add some freshness into the meantime, brands and
time. a somewhat stale routine products that can help people
through new products, feel in control through
R O P :
What does a new year look recommendations and personalized offerings will
like under continued content. stand out.
restrictions? Many people are
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reflecting on the past year. To Increased interest in things Please enjoy our January
a time when parties and like subscription boxes, DTC edition of The Drop.
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gatherings with friends and offerings and personalized
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strangers didn’t seem so media is flourishing as a
strange. result.
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JANUARY 2021 THE TRENDS COMFORT IN A BOX S O C I A L S A F E H AV E N UNBOXING THE FINAL TOUCHPOINT MAINSTREAM BRANDS GO DTC CLARITY CONTROL M E D I A M Y W AY
Hello Fresh
TREND 1 COMFORT IN A BOX
What Is It
Before COVID, boxed subscriptions were trying to find their niche in-market. However, during the painfully boring,
stressful, stay-at-home pandemic, many shoppers turned to subscription box services, driving their growth across many
verticals. Most shoppers were subscribing to efficiently get their basic needs while avoiding in-store exposure, while
others were doing it to sample hard-to-find “niche” supplies/brands and a few were doing it for the much needed
predictability and simple pleasures they offer.
DOPAMINE SUBSCRIPTION
Everyone can relate to that excitement of ripping open a present or the anticipation before discovering what a
package in the post contains. In fact, the rush of good feeling is very similar to what gamblers experience and it’s
this type of psychological effect that box services rely on, especially during these tough, unpredictable times.
Bark Box
FROM FUNCTIONAL NEEDS TO EMOTIONAL HIGHS
It’s no surprise food services like HelloFresh gained 120% new subscribers from the pre-pandemic year. More
notably, other industries are also taking flight. Before the pandemic, The Box of Style subscription from Rachael
Zoe was declining by 20-30%2; today, subscriptions have rebounded and they are currently 20% higher than first
quarter, while increasing sales on their eCommerce platform by 30%. COVID has created a lot of anxiety, so it’s
no surprise that CBD newcomers like Equilibria are seeing 20% month-over-month growth, removing stigmas by
giving shoppers personalized recommendations and private delivery3. Some shoppers prefer a little caffeine with
Drop photos in here their dopamine, so coffee box provider Grounds & Hounds is seeing 35% growth of sales from moms4.
Most popular subscriptions in 2020: HelloFresh (21%), BarkBox (20%), Blue Apron (19%), and Dollar Shave Club
(18%).3
By 2023, 75% of organizations selling DTC will offer subscription services, with global subscription commerce accounting
for 18% of the market1. This allows retailers to collect customer data, under the guise of making the box “tailor-made” to
suit each individual customer; in turn, they share this data with the brands that provide the products. If done well, data
can be used to create an ongoing, loyal, win-win-win experience for all.
Equilibria
Shopper Implications
• As shoppers continue to expect brands to personalize, surprise and delight them, the question becomes: how relevant
will box subscriptions be once stay-at-home orders are lifted? If your brand is invested in one of these boxes, the game
will become a loyalty play, if not, there will surely be churn, so you should find new ways to deliver personalized joy and
comfort to your shoppers.
Drop photos in here Sources: 1 Subscription Trade Association (SUBTA), 2 Glossy, 2020, 3 BizJournal, 2020, 4 Forbes, 2020
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TREND 2 SOCIAL SAFE HAVEN
Over the last few months, fears of infection, combined with lockdowns and movement, restrictions, have pushed more
people than ever online and onto social media. On social media, users feel that they have a safe space to interact, be
entertained, distract themselves, and find inspiration without any risk of contagion.
As they spend their lockdown time online, consumers are moving onto new platforms and discovering entertainers and
brands they hadn't noticed previously, such as TikTok. Between people stuck at home who felt excited to unlock their
creative potential and others who were searching for new diversions after tiring of their usual channels, two social usage
trends remain prominent:
Audience wants to be entertained
• Gen Z is particularly bored, with 42% saying they want more fun content, "fun" being the most commonly preferred
emotional style for video content.
• Video content has long been one of the highest-engagement content formats, and the newly increased demand for
diversions and distractions makes it an even better choice for marketing.
• Research by Kantar found that most people want to suspend reality when seeing ads, finding advertising a useful
escape from the stresses of the coronavirus.
People want connection and comfort
• Stuck at home, people are desperate to overcome their isolation and connect with others, which has manifested
shared media consumption experiences.
• Community engagement events, such as themed weeks in a brand's Facebook group or an influencer hosted/
moderated Twitter chat can provide shoppers a space to rally around their shared experiences as they talk about the
product and how they use it.
• Developing hashtags that encourage people to share images of themselves using a product is a clever way to create a
sense of togetherness and encourage creativity at the same time.
Shopper Implications
• Brands should satisfy shopper social needs with diverting, fun and positive content that drives creativity and weaves a
sense of community that will ultimately improve consumer engagement and brand sentiment despite the difficult
marketing environment.
• Shoppers are likely to embrace brands that create and strengthen communities through dedicated branded groups and
niche communities.
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TREND 3 UNBOXING THE FINAL TOUCHPOINT
What Is It
2020 has changed the way shoppers get things and has officially brought the storefront home. An estimated 3
billion packages were delivered in the US during the 2020 holiday season alone, up 800 million from 2019. With the
massive influx of package deliveries, the branded shopping experience has extended into the home itself. It’s now
more important than ever for brands to prioritize the last step of the shopper journey and design with the unboxing
moment in mind.
Oftentimes, delivery packaging is the last touchpoint shoppers have with a brand or retailer. Delivery packaging has
the power to create a joyful unboxing moment and even spark brand advocacy:
• 76% percent of people in the US say they are more excited when their online purchases arrive in the mail
than when they buy things in-store.
• 40% of online US shoppers said they would share an image of their purchase on social media if it came in
branded packaging.
• Viewers have spent upward of 40 million hours watching unboxing videos — a staggering statistic when
one considers more than half of shoppers say online video has helped them decide which specific brand or
product to buy and 90% of people say they discover new brands on YouTube.
Opportunities exist to think beyond just ensuring an end-to-end positive experience. The package itself can be
leveraged as ad space to reach passersby on front porches and in apartment lobbies. There’s also untapped
potential in leveraging the unboxing touchpoint as an opportunity to offer a highly personalized offer or experience
in order to build shopper loyalty and spark an additional purchase.
Shopper Implications
• The shopping journey does not end once the purchase is made— a negative unboxing experience has the
potential to seed purchase regret in shoppers’ minds, ensuring the brand experience is positive up until the final
moments.
• Explore ways to leverage packaging as a means to deliver personalized offers designed to seed repurchase and
brand loyalty.
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Sources: Fjord 2021 | BigCommerce | Quartz | RazorFish | Think With Google
TREND 4 MAINSTREAM BRANDS GO DTC
What Is It
The pandemic has drastically shifted consumer purchase habits and truly made it possible for shoppers to live by the
mantra “I want what I want when I want it.” One area that has thrived during the pandemic is direct-to-consumer (DTC)
brands and selling models. Seven in 10 shoppers say they have made a direct-to-consumer purchase in the past year.
With this shift away from traditional retailers, mainstream merchandisers have been forced to find or create outlets to sell
their brands online. More and more, we are seeing big brands introduce DTC models to meet shifting consumer demands.
PEPSICO/FRITO-LAY LAUNCH ONLINE SNACK ORDERING
To respond to an increase in turning to online ordering for their food and beverage needs during the COVID-19
pandemic, PepsiCo, Inc. launched PantryShop.com and Snacks.com, two direct-to-consumer websites where
shoppers can order an assortment of individual Frito-Lay snacks and PepsiCo beverages as well as specialized
bundles for pantry stocking.
OCEAN SPRAY LAUNCHES INCUBATOR BRANDS IN DTC
To expand beyond cranberry juice and meet consumers where they are shopping, Ocean Spray has chosen to
launch new innovations exclusively in DTC formats. They have rolled out Atoka, a line of herbal tonics; CarryOn, a
CBD sparkling water line; Dabbly, an edible gummy supplement to help protect skin from the sun; and Tally-Ho, a
line of functional water enhancers for dogs.
KRAFT HEINZ INTRODUCES “HEINZ TO HOME”
Amid stockpiling and out-of-stock frustrations, Kraft Heinz introduced the Heinz to Home online service, which
enabled shoppers to order pantry staple “bundles” to be shipped directly to their home.
Shopper Implications
• With shoppers and brands bypassing traditional retailers, it is more important than ever to provide omnichannel
solutions that allow shoppers to interact with and buy from our brands anywhere, anytime.
• Bundling solutions are common in DTC channels for CPG brands - how can we offer complete solutions for our
shoppers both in-store and online?
• As DTC infrastructure is formed, shopper marketing programs can leverage the delivery models to provide enhanced
shopper value with prizing, buy/gets, surprise and delights, etc.
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Sources: Multichannel Merchant, 2020; Frito-Lay 2020; Stylus 2020
TREND 5 CLARITY CONTROL
What Is It
In the physical world, COVID-19 has taken much of our individualism away. We have to wear masks. We have to stay
home. Many of the things that made us unique, like different movies, shows, restaurants and sports, are all on hold. And
while it may feel a bit dystopian on terra firma, the digital world of streaming offers something for just about everyone.
More diverse content gives people greater control over what they watch, who they share it with and easier access to
discover new content.
Increased Content Diversity
Traditional TV tries to appeal to as many people as possible, casting the proverbial wide-net. Streaming services
aren’t concerned with any one show trying to gain mass audiences. Instead, they aim to provide hyper-specific
content for an ever-more-diverse audience. Some are geared toward reality TV junkies while others target sci-fi
superfans, but with so many streaming options there truly is something for everyone. Shows like “The
Mandalorian” and “Love at first sight” couldn’t even get in the door of traditional TV are now global successes for
streaming. And this method is working with 45% of consumers saying they’ll make streaming a part of their
regular viewing moving forward and 66% of viewers indicating a dramatic increase in viewing.
Vision of Confluence
When one show ends, every streaming service’s algorithm kicks into overdrive to serve up the next binge-worthy
content. But unlike traditional TV, the content recommended to consumers is based on their unique viewing
habits. And consumers have unprecedented control and vision over what content is served up to them. This
leads to long and often enjoyed watch lists full of custom content for every consumer.
Streaming Going from Me to We
With consumers having more clarity and control over their content, they’re naturally going to want to share it with
their friends and family. Finding ways to connect with friends and family was very important to consumers in 2020
as they had to isolate due to COVID-19. Streaming services responded by adding new “Group Watch”
functionality where consumers can video chat with friends and family while syncing up their shows so they’re all
watching at the same time and can talk like they’re in the same room.
Shopper Implications
• With all of the ways streaming consumers can watch, discover and share, brands need to offer their products in much
the same way. Not only is it about reaching the right consumers, but turning them into advocates for their brands
through added sharability much in the same way consumers become advocates for their favorite shows.
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TREND 6 MEDIA MY WAY
What Is It
How people are consuming media has changed during the COVID-19 pandemic since more are able to work from home
who weren’t able to previously. They are consuming less news on their mobiles and have switched to streaming services /
radio on the big screen (TV) instead.
WORKING FROM HOME
The pandemic saw a sudden and drastic increase in the number of workers who were able to work from home,
were furloughed, or even lost their jobs. This in turn changed how they were consuming (and on what) their
media content. 66% of workers spent some time working at home in second quarter 2020.
COMMUTE TIME IS NOW SLEEP TIME
People who used to spend time commuting to work are now able to wake up later and go to sleep earlier. This
clearly changes when and how they’re consuming media. Nielsen found 54% of workers from home got up later
in the morning and 49% stayed up later at night. This means that many switched from consuming content on
their phones/car radio to the big screen (TV), or their AM/FM radio.
INCREASE IN STREAMING VIDEO AND LOCAL INFORMATION
People suddenly found themselves having to stay home instead of being able to go out to bars/restaurants/
movies, sporting events, etc. This led to an onslaught of people adding different media channels in order to
entertain themselves and their family. 25% of adults added a streaming video service in the past three months,
AND 47% surveyed had watched/streamed the news. Other popular genres were comedy at 40%, movies at
36% and drama at 30% (an escape from the news).
ONLINE SHOPPING IS MORE COMMON
With so many retailers closed, consumers had to increase their online shopping to not just Amazon but to
grocery stores as well. Retailers very quickly ramped up their buy online and pickup in/at store/at curbside and
subscription/delivery capabilities, so that shoppers could still get what they needed. In fact, 13% of stay-at-home
workers bought a product or service online every day and 48% at least once a week.
Shopper Implications
• “Drive time” content should no longer be limited to just before and after work hours. It should be used throughout the
day in different mediums as some workers will continue to commute, some will do a hybrid of WFH/commuting, and
some will work strictly from home. TV, radio, and mobile will continue to play roles throughout the day.
• Brands can use media to engage with consumers through a mix of big screen and small screen (scan a QR code on a
TV commercial to get coupons) by sponsoring the pause button on streaming media to remind streamers about snacks
in their pantry, or to add something to their shopping list.
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Source: Forbes
TIMELINE
SHORT-TERM I MPLICATIONS LONG-TERM IM PLICATIONS
SOCIAL SAFE HAVEN MEDIA MY WAY
Social provides a safe space to MAINSTREAM BRANDS GO DTC Media loyalty is a thing of the
interact, distract and inspire Shopper and brand behavior past and content must be
without any risk of contagion shifts to online-only channels engaging to maintain relevancy
COMFORT UNBOXING THE CLARITY CONTROL
IN A BOX FINAL TOUCHPOINT Personalized
People turning to boxed Delivering joy in the recommendations at
subscriptions for basic needs final moments the touch of a button
and emotional lifts
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