But first, let’s take it from the beginning. While it has been coming up as a buzzword for the past few years, the term ‘metaverse’ was actually first coined by Neal Stephenson in his sci-fi novel, Snow Crash, in 1992. His construction of the metaverse was an all-encompassing digital world in parallel to the real world. This parallel world is certainly the big-picture aim of big tech companies today, and they are making it known that they are betting big on it. Most notably, the Facebook company rebranded itself as Meta, communicating founder Mark Zuckerberg’s vision to build the future of social connection through the Metaverse. After the rebranding, the term ‘metaverse’ found itself becoming a hotter buzzword across the globe.

What is the Metaverse?

Just like the term ‘cyberspace’, the term ‘metaverse’ has a relatively fluid definition with dozens of different ideas of what it could mean. Broadly speaking, the metaverse is essentially a shared virtual space that is immersive, interactive and hyper-realistic. People are digitally represented by customisable avatars, through which they interact with one another in a variety of settings. The metaverse can be accessed using virtual reality (VR) headsets, smartphone apps, augmented reality (AR) glasses, or other devices. You’ll also be able to own digital assets such as NFTs, and navigate around the virtual space just like how you would physically navigate around the real world. According to technologists, users will be able to do everything from attending live concerts to even buying a piece of virtual land.

Singer Justin Bieber’s Metaverse Live Concert in March 2022

Sounds grand, doesn’t it? While this virtual universe boasts of the potential to be a boundless reality that allows humankind to transcend many physical limitations (think: you can be anyone and do anything) – it also poses its own set of challenges. Issues such as heightened internet harassment, addiction, and even more invasive data breaches are just a few of the issues that could potentially arise. Particularly, the rise of the metaverse has also brought about a startling concern – will society undergo dehumanisation?

We’ve seen the negative social effects video gaming and the internet have had on people who spend too much time being immersed in the virtual/cyber world. But with this new level of virtual immersion that the metaverse offers, follows the concern that people will over-immerse themselves in this pseudo-reality to escape from the harshness of the real world. All that’s left would then be a society filled with dehumanised interpersonal relationships, leaving shells of humans who would forget how to interact with one another normally. While this paints a scarily cold picture of our potential future, the rise of the metaverse does not necessarily have to lead to a society of soulless humans. Rather, used well and wisely, it can even fulfill the vision of Microsoft’s CEO – to create more presence and human connection in the metaverse. 

Some brands are already hopping on the metaverse train, and innovating new ways to enhance the customer experience. An example of such a brand – to no one’s surprise – is Nike. Nike has leveraged the Roblox platform to create Nikeland, which is the name of its metaverse space. It allows users to socialise, chat, and interact with one another, and has even had celebrity appearances from sports stars like LeBron James. 

What can brands learn from current examples? 

A particularly interesting example is Nike’s combination of a virtual and physical experience. In their Space Drip project, launched in March 2021, customers could purchase Non-Fungible Tokens or NFTs (Also check out: A beginners guide to NFTs: The New and Exciting Investment Asset Class) that were designed by 19 digital artists using their Air Force Ones as a base. The NFT could then be redeemed for real-life shoes that would be in the same designs as the NFT purchased. With fans of Nike being drawn by the novelty of the hybrid experience and the exclusivity of the famed shoe designs, the Space Drip project was undoubtedly a huge success.

Nike Space Drip Project Sneakers. Photo: RTFKT

Learning point #1: Nike

Instead of only facilitating a solely-virtual experience for people, Nike created a smooth and exciting hybrid experience that married virtuality with our physical reality. By owning a pair of exclusively-designed NFT sneakers in the virtual space, customers were also able to enjoy their purchase through owning a physical pair of sneakers in the same design. Furthermore, as their physical shoes would have been obtained through such a novel route and customer experience, it would certainly also be a talking point for them. Brands can learn from this example and create novel hybrid experiences for their customers, facilitating points of conversation in social interactions. In addition, creating a way for customers to be able to enjoy an asset both virtually and physically means double the satisfaction gained.

In Nikeland, people can interact with one another as avatars and even check out one another’s digital Nike assets.

Learning Point #2: Gucci

Gucci has also ventured into the Metaverse in Roblox. With a plot of digital land named Gucci Town, the luxury brand set up this dynamic destination “to express one’s own individuality and connect with like-minded individuals from all over the world”. 

Gucci Town on Roblox. Photo: Gucci

Gucci Town is home to vaults and boutiques showcasing latest product drops, a creative corner where visitors can create art pieces, and even a portal that transports them to an arena of Gucci-inspired competitions. 

Following this vein of leveraging the metaverse space as an interaction enhancer, brands could look into creating virtual spaces to facilitate social connection that would have otherwise been unattainable. Imagine shopping in the metaverse, and instead of asking your friends for their opinions on the apparels you tried on, you would be able to ask other shoppers from all over the globe for their opinions. This way, your brand could be doing the opposite of facilitating a dehumanised world, and instead, fostering human connections at an even greater degree.

Learning Point #3: Monkey Shoulder

In 2021, Monkey Shoulder organised a Metaverse Festival after party on Decentraland. 

Metaverse Festival on Decentraland. Photo: Monkey Shoulder

A DJ Set with DJ A.Skillz & DJ Kraftykuts was created for the after party, as part of the brand promotion. Attendees were able to attend the festival after party from anywhere they wanted, and dance along to the DJ set that was brought to them by Monkey Shoulder. Through creating this fresh virtual experience, Monkey Shoulder effectively positioned themselves as an innovative, fresh and fun brand that is forward-thinking.

What brands can learn from this example is to create fun, fresh and inclusive experiences. As one of the early ‘metaverse’ pioneers, Second Life found its value in creating a virtual haven for all to experience and be whatever they wanted to be. This concept particularly appealed to people with certain mental and physical disabilities, as the platform provided a way for them to connect, socialise and forge meaningful relationships with others. In other words, what the physical reality inhibited – the virtual reality enabled. Through the metaverse festival after party, Monkey Shoulder not only created successful brand equity, but also an inclusive experience that transcends physical limitations. Attendees who might not be to attend a physical festival can now experience a live virtual festival from the comforts of their own home.

There’s no escaping the growing trend, that is the metaverse, as technology and platforms continue to advance in this digital age. Brands will either be able to make their move to get in and win successfully, or get left behind as the world evolves. But while the metaverse cautions us about potential threats of a dehumanised society, brands actually have the power to leverage the platform to enhance human connection instead. Or in Canadian philosopher Marshall Mcluhan’s words, “We become what we behold. We shape our tools, and thereafter our tools shape us”.

Tangible is a brand strategy and business consulting firm, synergising our consulting and creative offers to give clients comprehensive solutions. We believe brands are strategic management tools that should go beyond simply delighting customers. For more information on how Tangible can assist you with your branding, or other related digital services, please contact us here.

The post Issue 41: Q3 2022 appeared first on Tangible.

Insight 1: New consumer behaviours are reshaping the retail industry

Digital shopping is here to stay

According to a PWC report, there has been a significant shift to online shopping as people have been confined by lockdown and predominantly work from home. The pandemic has changed people’s lifestyles, values, and purchasing habits, and according to Global WebIndex research, most people are focusing more on wellness and self-care. The results are consumers all over the world are purchasing items that were rarely purchased online prior to the pandemic, such as groceries, over-the-counter (OTC) medicine, household supplies, personal care products, virtual health care, fitness products, and home improvement products.

The main drivers for online purchases are home delivery, cheaper prices and the convenience of shopping anytime, anywhere.

Source: Statisca

You can see that consumers desire for convenience, immediacy, and simplicity has increased. According to a Shopify study, the shift to online shopping will likely continue even after the pandemic. However, behaviour changes are not linear, and their stickiness will be determined by how satisfied they are with their online experiences.

Pivoting to digital channels and devices

Source: Statisca

As more people buy products online, there is an increase in demand for contactless payment. According to eMarketer, the number of people who used proximity mobile payments in 2020 increased by 22.2% year on year. In Singapore, it was reported that the number of UOB customers using PayNow for the first time increased by 64% year on year in the first three quarters of 2020.

According to a Euromonitor study, consumers are increasingly turning to their mobile devices to complete purchases, demonstrating how mobile has become the center of the consumer’s world and commerce activities. More than half of all digital commerce spent globally was done using a mobile device for the first time in 2020.

As consumer behaviour changes, so does their relationship with the digital channels they use to research and purchase products. Consumers are increasingly connecting with brands virtually, making purchases via livestreaming, and demanding new technology and delivery methods to support the e-commerce boom.

Opportunity: Establish digital operations & create innovative digital shopping experiences

The shift in consumer behaviour and digitalisation are causing unprecedented change in the business world, disrupting operations, business processes, and customer experiences. Businesses must innovate in three areas in order to establish a digital operations and presence for their customers:

1. Business models
2. Product and services
3. Business processes

Digital Business Model

Businesses that want to grow and stay ahead of their competitors must embrace digital transformation. It is time to explore a new digital business model that places the customers at the centre of digital strategy.

The following are 8 kinds of digital business models:

Source: FourWeekMBA

Visit here to learn more about each model and choose the right model for your business.

Developing a successful digital business model 

 To achieve organisational innovation, every aspect of a business must work together in the same direction. A Business Model Canvas (BMC) is an excellent tool for assisting businesses in visualising and positioning business models for growth and innovation.

Source: Strategyzer

The Business Model Canvas is a standardised language for describing, visualising, evaluating, and changing business models. It describes the logic behind how a company creates, delivers, and captures value. Using a BMC will provide you with insights into your consumers, which value propositions are offered through whatever channels, and will help you communicate your goals to the team.

The BMC breaks your business model down into easily-understood segments:

1. Customer segments
2. Value proposition
3. Revenue streams
4. Channels
5. Customer relationships
6. Key activities
7. Key resources
8. Key partners
9. Cost structure

By delving into these aspects of your business, you can identify and address areas for improvement. It also reveals clear paths for you to follow when developing your organisational innovation strategy.

To learn how to use a business model canvas, check out this site for a step-by-step guide.

Product & Services

As consumers desire for convenience, immediacy, and simplicity grows, businesses must focus on developing innovative digital experiences that make consumers lives easier. Begin by connecting the online and offline worlds so that customers can do business with you whenever they want.

Prioritising mobile shopping experiences

Consumers want everything in the palm of their hands, which is why many of them use their mobile to research product information, compare prices, and read consumer reviews before purchasing the product. Businesses must improve their online capabilities in order to compete with competitors who are only a click away.

It is critical that your mobile site or app delivers what customers want while also providing a good mobile user experience that keeps them coming back for more.

​​To provide a good user experience, the mobile site or app should:

• Be functional and simple to use
  Include features that allow users to complete tasks and achieve their goals on the mobile site or app 
• Clutter-free
  Make sure that pages are not cluttered with information and that navigation steps are kept to a minimum. Arrange the functionality and content in a logical order to assist users in finding information and completing tasks
• Have an excellent user interface design
  The interface design is the first thing that users see, and it influences their perception of the mobile site or app. It is critical to enhance your brand’s visual elements within the interface and use visual aids to guide the user through the interface. Perform a heuristic evaluation to improve the usability of your digital product

Live-streaming

With an unprecedented health crisis keeping people indoors and limiting in-person engagement, consumers are turning to live streams to discover, research, and purchase products (part of customer decision journeys).

Consumers can watch models or influencers showcase and demonstrate a product by modelling the clothes for them, as well as ask questions via the chat function and make purchases during live stream sessions. Aside from interaction, live stream gamification enables customers to participate in quizzes and contests to bid on products or win discounts. These addictive elements in live stream shopping simply keep customers returning for more sessions.

Platform to consider for live-streaming:

• Instagram Live
• Facebook Live
• Tiktok live
• Twitch
• Linkedin Live
• Youtube Live

Augmented Reality (AR)

The incorporation of augmented reality (AR) aids in simulating in-person shopping experiences, enriching the relationship between consumer and brand at any time and from any location. When customers shop, customers can use AR to visualise and customise products in a 360-degree realistic experience. According to Treekit, 61% of consumers prefer stores that offer augmented reality experiences, and 40% would pay more for a product that could be customised in augmented reality.

The benefits of using AR can:

• Increases conversion rates and decreases returns for clothing stores
• Combines traditional retail and digital experience
• Improves brand recognition; strengthens advertising campaigns
• Displays additional information about the products displayed, enhancing the shopping experience

Source: Retaildive

Making delivery quick and simple

Today’s consumers expect everything to be delivered quickly, including options for home delivery or self-pickup in your online checkout process is the way moving forward. According to Shopify data, self-pickup customers are 13% more likely to complete their online purchase and spend 23% more than regular shipping customers. Self-pickup options are faster and less expensive than shipping, and they provide another opportunity for customers to return to your store and interact with your brand in person.

Business process

Consumers today expect businesses to deliver products and services quickly and with a seamless user experience. They are demanding a complete overhaul of business processes from companies across many industries – such as intuitive user interfaces, 24-hour availability, real-time fulfilment, personalised treatment, global consistency, and zero errors.

Companies must speed up the digitization of their business processes by minimising the number of steps required, reducing the number of documents required, developing automated decision making, and dealing with regulatory and fraud issues.

These transformations will improve collaboration and communication among teams, customers, and the achievement of customer-facing and internal goals.

Insight 2: Understanding consumer shopping journey 

Before, during, and after an online transaction, consumers usually follow a logical sequence of procedures. Understanding how consumers behave during the journey of shopping for certain products or services can help brands and businesses to acquire new customers, while also engaging and retaining existing ones.

The consumer journey is made up of all the stages taken by a user to achieve their goal. 

Source: Insightsinmarketing

1. Discover
Find out more about the items and services to buy

2. Consideration
Reading online reviews and conducting research both online and in-store before making a purchase

3. Conversion
Decide when and where to purchase a product or abandon the cart

4. Purchase
Making a first-time purchase of products or service in a store or online

5. Evaluate
Rate and review the product and experience using a mobile device or computer

6. Re-purchase
Choose whether to buy products again online or in stores, or to abandon a brand

7. Brand Advocate
Use word of mouth, social media posts, and online reviews to inspire other consumers to discover, consider, and purchase products and services

According to Think with Google 2021 report, hundreds of millions of people use Google every day to find, discover, and shop for the things they care about. There are numerous touch points along the consumer shopping journey where brands or businesses can reach out to them while they browse, engage with them while they research, and eventually convert them from browsing to purchase. By implementing SEO strategy, brands will be able to easily reach out to consumers while they browse on Google.

Opportunity: Align your SEO strategy with your consumer’s journey

In order to align with consumers during the discovering / consideration or deciding stage of the journey, it is important that the topics or keywords are optimised to what the consumers are looking for. That is where SEO (search engine optimization) comes into play. In layman’s terms, it refers to the process of improving your website to appear more prominently when people search for products or services related to your company on Google and other search engines.

Rule of thumb: Be the answer when they search.

Put yourself in the shoes of the customer and consider their goals, pain points, and objectives when looking for a product or service. You should be able to identify keywords, problems, goals, and terminology used by your consumer once you have a clear understanding of them. Then you can begin implementing them on your website, such as H1 tags or headlines, page titles, page copy, and image alt text.

The next step is to understand the different traffic channels and how it helps drive traffic to your website.

There are 5 core traffic channels:

1. Organic traffic
Visitors did not find your website through a paid campaign or any other means. They were brought to your site based on the keyword that they entered in the search engines

2.Direct traffic
Visitors landed on your site by typing your website address directly into the browser

3. Referral traffic
Visitors came to your site via direct links on other websites (exclude search engines). This helps to increase your overall web authority. The more authoritative the website that links back to you, the higher your “page rank” in Google’s eyes

4. Paid traffic
Visitors landed on your site through paid banner ads. Paid social ads are advertised directly to your targeted consumers

5. Social traffic
Visitors visited your website through social media channels – Facebook, Instagram, Linkedin, Twitter and others 

Once you have a better understanding of the various traffic channels, you can begin implementing various methods to increase the traffic to your website. The more visitors your website receives, the more potential customers you will have.

Insight 3: Lower brand loyalty

With the shift in consumer shopping behaviour during the pandemic, businesses must digitise their offers, such as online shopping and live streaming. Simultaneously the pandemic has accelerated the deterioration of brand loyalty as:

• Search engines provide more choice
• Consumers are exposed to different brands as a result of more reviews
• Online shopping incorporates price and/or delivery into the decision-making process

Source: eMarketer

As a result, consumers are shopping out of necessity, and brand loyalty is lower than it has ever been. According to Mckinsey research, more than 75% of US consumers intend to continue with their new shopping behaviour after the pandemic. Brands must capture consumers attention and strengthen their engagement with customers

Opportunity: Build trusted customer relationships

To build brand loyalty, businesses must first understand customers priorities and purchasing habits, and then align what they stand for with what their customers care about. This will make a good first impression and improve the customer experience.

Questions to ask to elicit insights that will strengthen people’s perceptions of your brand:

• Brand Positioning:
  How do you differentiate your brand from competitors, but what is your brand doing to address issues that really matter to your customers?
• Brand Perception:
  Does your brand make an immediate and favourable first impression?
• Brand Awareness:
  Does your company solicit customer reviews and respond to it?

To deliver your brand’s purpose consistently across all touch points, you should use a brand strategy framework that provides you with a long-term plan to achieve goals that will result in customer identification and brand loyalty.

For more information on how Tangible can assist you with your branding, or services such as designing a user-friendly mobile optimized site or app and improving your site SEOs, please contact us over here.

The Tangible team wishes you a hopeful, successful and fulfilling new year as we enter 2022. And, of course, thank you for stopping by. See you next year.

The post Issue 38: Q4 2021 appeared first on Tangible.

As a result of the Covid-19 pandemic, normal life has changed significantly and as a work-from-home culture has become part of the new normal, we have witnessed a shift in how we snack that may suggest a precedent for the future.

Insight 1: Snacks brands need to stand for something

Brand has always been a key factor in how well a business does in the long run but that’s even more true during the pandemic. More and more people are looking for snacks while working from home and this means brands need to stand for something more than just filling the consumers. 

More than half of snacking instances were prompted by a need for nourishment, wellbeing, or health. However, some of the reasons individuals snacking have changed. We’ve witnessed a multi-decade evolution in the snacking market to a point where consumer attitudes are drastically different.

43 percent of respondents said they snacked to relieve boredom or frustration, while 55 percent snacked for comfort.

Consumers in Generation Z are more likely to munch for comfort, with 72 percent identifying this as a motivator, compared to 60 percent of Millennials who snack to cope with stress. Snacking for sustenance is very important to Generation X. This age group is known for their indulgences, but they also believe in snacks as part of a healthy lifestyle. Baby Boomers do not appear to be particularly motivated by emotional drivers for snacking such as stress or boredom, or even factors such as sustenance and eating to promote physical and mental alertness.

As a result, brands should consider how they tell their stories and how they engage with their customers on a more personal level.

Read More: How the pandemic is reshaping the snacking occasion

Insight 2: Increased Snacking
Before COVID snacking kept us satiated between meals and sometimes serves as a meal alternative for people on-the-go. Now nine out of ten adults (91%) said they are snacking more or the same amount, and 37% said they have been snacking more since the pandemic began. The increase in the number of people working from home has clearly been a driver for an increase in consumer snacking. 

Obviously, when more individuals choose to snack more, this has an impact on health. Consumers admit to gaining weight as a result of their nibbling throughout the pandemic. As well as physical changes consumers are also seeing rising grocery food costs however, individuals all across the world are spending less money overall than usual. 

Read More: Snacking on the rise during COVID-19 lockdown

Insight 3: Online shopping is here to stay
Over the last year, the motivation for getting a snack has altered. It’s apparent that emotions are playing a bigger role in their decision-making. Some consumers stated they snacked to relieve boredom or stress, while others said they snacked to maintain alertness or focus.

The way consumers are seeking snacks is also changing. Factors such as gamification, personalisation and prizes all now maximise the digital experience. Experts anticipate that the trend toward online purchasing will continue even after governments loosen their prohibitions, with many forecasting that e-commerce will play an even bigger part in the “new normal.”

Read More: Pandemic Snack Attack

Insight 4: Home baking is back!
During the pandemic there has been a significant surge in consumers cooking and baking their own snacks. According to Google Trends (which is an indexed estimate of how popular a topic is in any particular location at any given time), there have been more searches for flour than for other staples such as noodles or milk.

Aside from necessities like rice and oil, shoppers have been stocking up on snacks, ice cream, and beverages like Milo, according to shopkeepers. This tendency began in the early weeks of the lockdown period and was eventually supplanted by frozen food searches.

Read More: How Covid-19 is changing what Singaporeans shop for online

Insight 5: Emerging healthier lifestyles
Despite the fact that Covid-19 has led to a rise in snacking (with related overconsumption and health concerns) what appears to be developing is a push to live a healthier lifestyle while consuming more.

In Australia, consumers’ snack choices appear to be quite responsible, with 58% saying they pay attention to the types and substance of snacks they eat, and 64% saying they want to manage the quantity sizes they eat. 

Millennials and Centennials are more likely to seek snacks that reflect the latest wellness trends, such as high protein, immunity-boosting, and plant-based, while Boomers are more likely to seek traditional methods of controlling their intakes, such as portion-controlled or bite-sized snacks.

Over the last year, the popularity of healthy snacks has skyrocketed. Although flavour remains the most important factor in snack selection, consumers are significantly more health-conscious now than they were a year ago. Preservatives and artificial colours have become market outcasts, and products using them are having difficulty finding consumers.

What does this mean for the future of snacking? 

1. 1. Develop a strong connection with your customers: Consumers aren’t snacking just to fill themselves, so ensure your product has a strong brand that stands for something. 
   2. Know your audience; different demographics are driven by different preference drivers.
   3. Authentic and ethical producers are becoming more important, so ensure your products are made right and have healthier options that also prioritise taste.
   4. There are opportunities to create new ingredient brands for home baking.
   5. Leverage every channel: More consumers are looking online for their snacks, so ensure your products leverage both physical and digital channels.

As we start to live through the pandemic, a more active, mobile lifestyle will serve as a stimulus for category innovation. Many long-term changes and habits have become entrenched. Expect a flood of new snack products developed with alternative ingredients, extra health advantages, and bold tastes, all to fulfil the on-the-go consumer’s constant demands for health, convenience, and fun.

Read More: From convenience to conscious: Covid-19 pandemic leads to shift in snacking priorities – experts

Banner Image: Unsplash

The post Issue 37 : Q3 2021 appeared first on Tangible.

Read More: Amazon profits increased nearly 200% since start of Covid-19 pandemic

To paint the picture, we’re categorising SMEs as: Independent firms employing less than 500 employees. The nature of SME businesses mean they have been more negatively affected by shutdowns, social distancing, and related measures than larger companies. Think about the industries which employ under 500 staff: retail, construction and engineering, hospitality and tourism, manufacturing, food and beverage, and the list goes on. Not a great picture, right?

We need to be realistic about just how damaging Covid-19 has been for the SMEs as they have been hit on both the supply and demand side of the economy. On the supply side, reduced resources in both labour and raw materials have disrupted production. On the demand side, consumption and spending have decreased. The result is a drastic fall in revenues and the inability to maintain liquidity. With such downturn and low economic activity, unemployment starts to rise – further lowering demand and spending. To add to the pain, SMEs typically have lower cash reserves than larger enterprises. In the US, less than 50% of SMEs have enough cash on hand to cover 15 days of expenses, and the ‘healthy’ SMEs have under two months of cash reserve to cover expenses. It’s clear that access to capital quickly becomes an issue.

Enough of the bad news, so what can SMEs learn from the past year of uncertainty? What follows are five opportunity areas that could help SMEs become leaner, greener fighting machines.

Read More: COVID-19’s Impacts on SMEs and
Policy Recommendations in Response

Opportunity 1: Digital transformation

Before Covid-19, the mention of the words “digital disruption” or “digital transformation” would be met with blank looks or vague interest. Many SMEs were unclear of what ‘big data’, ‘data analytics’ or ‘cloud computing’ were. According to one study of 575 SMEs in Singapore, 70% cent of SMEs had not leveraged data analytics and of these, about half have no intention to. This situation has changed rapidly since, with many SMEs looking out for the opportunities that digital solutions bring. In Singapore, of the 63,000 SMEs who have adopted digital solutions from SMEs Go Digital, 40,000 signed up in 2020 (offered by Infocomm Media Development Authority).

In a nutshell, data can help SMEs:

1. Understand what makes customers tick. There are many Customer Relationship Management (CRM) tools designed specifically for SMEs (nutshell). Social media is also an obvious source of valuable data, allowing SMEs to identify customer behaviour, key markets and get customer feedback much easier and cheaper than before.
2. Identify trends. Online services collate trends or answer specific questions for businesses, such as Trendera and Trend Hunter.
3. Check out the competition. Google Trends offer insights on a brand’s popularity and social media analytics can illustrate popularity.
4. Improving operations. Depending on your business, smart-sensors, GPS tracking and social media trends and predictions can give you the data to maximise production, increase sales and reduce unwanted stock. Let’s not forget all the cloud-based applications specifically designed for SMEs to manage a business’ finances (Xero), project processes, and communications (internal: slack and marketing: sendinblue)
5. Recruit and manage talent. Combining your existing data with online services should allow SMEs to find the best candidates (Indeed),
   identify the best recruitment channels and help to better employee engagement. (Qualtrics).

Read More: The new challenge facing SMEs is how to be deeply digital

Opportunity 2: Speed and innovation

Many SMEs suffer from slow processes and rigid hierarchies. The pandemic has encouraged rigid systems to be flexible, procedures skipped or accelerated, rules side-tracked and autonomous decision-making without formal approval. Remote work has empowered many employees, and counter to leaderships misconceptions, productivity often improves.

The Covid-19 response has proven that habits can shift and change much quicker than previously expected. Restaurants shift to delivery, schools shift to remote learning, work shifts to home. Remember how contentious ‘hot desking’ was? These shifts may not be permanent but hybrid solutions could be the future.

Opportunity 3: Better meetings

Apparently, employees spend 23 hours a week in meetings. Half of these are considered unproductive. We’re not saying that Zoom is the answer but no one seems to schedule meetings longer than an hour anymore and when the hour is up everyone’s gone. Post-crisis, can you imagine people going back to the inefficiencies of the old ways?

Opportunity 4: Re-evaluation

With so many routines being interrupted, SMEs have the opportunity to rethink, re-evaluate and make changes. This may be around its business model, personnel, marketing, product offer or environment. As with many aspects of life, we learn the most in difficult times, so SMEs should utilise this time for deep reflection.

Opportunity 5: A cleaner environment

The pandemic has dramatically reduced industrial activities. Factories, traffic and air travel have all slowed down. Covid-19 led to a significant reduction in greenhouse gas and other polluting emissions. Thinking of the other clichéd term, “build back better” seems appropriate as corporations and governments are making pledges to decarbonise and become carbon-neutral by specific dates. This represents a golden opportunity for entrepreneurs, start-ups, and SMEs to develop businesses for the ‘Green Decade’. Because 2020 is the decade that this has to happen.

Finally, let’s look at what policy makers have learnt. SMEs are a fundamental sector of the economy representing about 90% of businesses and, depending on your sources, between 50% – 70% of employment worldwide. Thus, SMEs are critical to public policy in most functioning economies and governments have been quick to respond with measures in place to help SMEs survive and thrive for the future. 

Here are the 10 focus points in policy-making for SMEs
as a result of Covid 19:

1. Ensure the rapid delivery of SME and entrepreneurship policy
   support by simplifying access to support and ensuring effective
   digital delivery systems
2. Prioritise viable companies and start-ups;
3. Focus on start-up policies to enhance the potential
   of innovative new ventures
4. Ensure that support measures are inclusive and reach vulnerable segments of the SME population
5. Rethink policy approaches with regard to self-employed entrepreneurs
6. Avoid SME solvency crisis by exploring non-debt support
7. Prepare responsible exit strategies for emergency liquidity
   support measures
8. Include a strong focus on the digitalisation of SMEs.
9. Ensure effective and inclusive multi-level governance mechanisms
10. Ensure SMEs and entrepreneurs, and the organisations that
    represent them, are consulted and included in the government
    decision-making processes

Covid-19 has affected everyone’s lives in vastly different ways but life goes on. We hope you can draw some optimism from this article and continue to support the little guys who are the lifeblood of every economy.

Read More: Small and medium enterprises (SMES) finance

Banner Image: Unsplash

The post Issue 36 : Q2 2021 appeared first on Tangible.

Today, more than 90% of CEOs state that sustainability is important to their company’s profits and success. In the report ‘The Next Phase of Business Sustainability’, Andrew Hoffman cites that “Companies have developed sustainability strategies, market sustainable products and services, create positions such as chief sustainability officer, and publish sustainability reports for consumers, investors, activists, and the public at large.”

Although no one person or company can take credit for the current state of sustainability, there are individuals who played an integral role in building the momentum. We will be shining the spotlight on some of these sustainability pioneers and 4 key insights that have changed their organisations, resulting in others following their lead. 

Insight 1: The cost of inaction is higher than the cost of action

In a 2017 interview, Paul Polman, the CEO of Unilever, said “The cost of not investing, is more expensive than the cost of investing in sustainable practices.”

Polman continues “Today, the cost of climate change on the world is over five trillion dollars. The cost of wars is 8-10% of our global GDP, which is equal to about eight trillion dollars. If we solve these problems, not only will we not lose seven trillion dollars every year, but we will also create 26 trillion-worth of new market opportunities.” Polman challenges anybody to find another market opportunity that offers a 15-times payout — it doesn’t exist on a scale this big.

The Unilever Sustainable Living Plan (USLP) was launched in 2010 with its triple goals of 

1. Improving health and well-being
2. Reducing environmental impact 
3. Enhancing livelihoods

The Results of Investing in Sustainable Efforts

Since the launch of USLP, Unilever has grown from strength to strength. “Meeting evolving customer expectations for responsible behaviour, creates benefits for a company’s brand. Brands that have a stronger purpose are brands that are more profitable.” Polman asserted, “It is cheaper to attack the issues and invest in solving them than to deal with the costs”

Polman explains that beyond saving lives (which should be reason enough) if businesses invest in the UN’s Sustainable Development Goals (SDGs) they will be more profitable, employees will be more engaged, and the employer brand will be stronger.

Businesses must dedicate resources – their people, profits, products, and processes towards the SDGs.

Read More: Yale Insights- Paul Polman: Should Companies Lead on Sustainability?

Insight 2: Big change has to begin from the top 

In sustainability circles, Walmart is perhaps best known for its environmental efforts. In 2005, the company announced 3 goals:

1. To be supplied with 100% renewable energy
2. To create zero waste
3. To sell products that sustain people and the environment

However, arriving at this stage did not come without challenges. Lee Scott, the former CEO of Walmart, faced disapproval from the inside and outside the company. Although many stakeholders approached Scott, telling him that he was wrong to be spending time and money on environmental efforts, Scott was steadfast in his vision.

“The great thing about a business is, it’s not a democracy. People can have a say but they don’t necessarily get a vote. The Board gets a vote.”

This courage and guts to create change from the top led Walmart to a 12.7% reduction in greenhouse gas emissions, preventing 80% of waste from going into landfills, and over 180 renewable energy projects. CEOs have to take the lead for real change to happen.

Insight 3: Harness your uniqueness and tell the world about it

Michael Porter,  co-creator of “Creating Shared Value”, outlines sustainability from a competitive strategy perspective.

Any business can claim to be sustainable and it might be just another buzzword being thrown about. But what can your business do to make your sustainability efforts stand out from other companies?

Michael Porter, Harvard Business School Professor and co-creator of “Creating Shared Value” comments “becoming successful in sustainability relies on similar philosophies of competitiveness. What does your company do uniquely well and how can you capitalise off of it? If a company is going to be really effective on sustainability,” he explained, “it’s got to pick its spots. It’s got to figure out where it has the greatest leverage in the business.”

In addition, companies are often either too humble or too fearful to communicate their success. Porter said, “I would say there are still companies who seem embarrassed by talking about the fact that sustainability approaches produce profits. There still is this sense that if it’s profitable, that’s somehow bad. If it’s profitable, ‘that makes us seem greedy.’ I think we’ve got to get over that. I think if we can align societal interest and economic interest, then we will make dramatically more rapid progress.”

If your company’s sustainability policies have resulted in positive change, celebrate it.

Read: Creating Shared Value

Insight 4: Predict The Future

To ensure your business continues to be sustainable tomorrow and many years to come, you need to predict the future. Peter Senge, Founder of the Society of Organizational Learning, believes that the future of sustainability lies in the hands of the younger generations of businesses and people.

“We need the big companies to get things moving in the short term because they have the clout,” Senge said. “They have the market clout, they have the brand clout. But if you look over 10 to 30 years, the big story will be the companies that are relatively smaller today, but who will grow up with this DNA embedded in them. They’re growing it from the inside and these are exactly the companies who will matter over 10 to 30 years.”

Senge also spoke of the role of new technology in the future: “The Internet firms to me are the perfect example of an opportunity that people still haven’t quite seized. The new industries are where the real changes could be.”

Setting an example for tech companies

Sundar Pichai, Google CEO, said the company will be eliminating its entire carbon legacy, by 2030. In a blog post outlining the company’s sustainability plans, Pichai wrote: “We were the first major company to match our energy use with 100% renewable energy in 2017. We operate the cleanest global cloud in the industry, and we’re the world’s largest corporate purchaser of renewable energy. “

“In our third decade of climate action, we are going even further to help build a carbon-free future for everyone.” He estimated that the commitments Google announced on carbon neutrality and sustainable energy will directly generate more than 20,000 new jobs in clean energy and associated industries, in the US and around the world, by 2025.

“Our data centres are large power consumers, and if we can achieve 24/7 carbon-free energy for our entire fleet, economically, we can demonstrate that a carbon-free economy is possible.” comments Urs Hölzle, Google senior vice-president for technical infrastructure.

Watch: Google’s Third Decade Of Climate Action

To conclude, changing the way your business operates for the betterment of all stakeholders, including shareholders, is what sustainability is all about. Real change has to begin within the company, right from the top and it requires boldness, visionary thinking, passion and courage.

Read More: Pioneers of Sustainability

Banner Image: Unilever Headquarters, Jakarta

The post Issue 35 : Q1 2021 appeared first on Tangible.

Let’s talk about what makes them who they are (unique characteristics typically observed), what drives their preferences, and zooming into two brands which have captured the hearts of the millennials.

What the millennials are about

Source: Istock Images

They are firstly described as digital natives

We have to bear in mind that they were born into a technological world and, naturally, growing up in such a defining period makes them stand out for their tech-savviness. Millennials are more likely to depend on technology in making informed decisions compared to Boomers or Gen X-ers – both generations we consider digital immigrants.

Source: Getty Images

Millennials place a huge importance in the meaning of their work

A research by Gallup tells us that they don’t work solely for a pay check, but instead focus on purpose-driven work and relationships. They also believe that the main purpose of a business should be to improve and better the society rather than the single-minded pursuit of profits.

Not surprisingly, millennials want their lives to make a positive impact, whether it be through the businesses they support, or issues that they believe in. I should also add here that no other adult generation has education qualifications as high as the millennials. They have a desire to change the world and are not shy to show their support for a cause through voluntary work, activism or by engaging on behalf of people who might not be able to stand up for themselves or speak for themselves (due to constraints such as language, backgrounds or education levels).

Influenced by their peers

Millennials are also largely influenced by their peers when making a decision. Online reviews and recommendations matter in their purchasing decisions.

Millennials’s preferences

Millennials are very happy to pay for experiences. A study by Expedia and the Center for Generational Kinetics revealed that millennials lead the charge in placing a newfound value on experiences over things – where the memory of an experience is becoming the product itself.

What is it about experiences, you ask? Well, it makes them happy. Research supports this fact that sharing experiences and making that social connection is a source of happiness that amplifies emotions.

This also ties in closely with the experience economy, with companies like Airbnb, SoulCycle and Apple doing exceptionally well in delivering unique brand experiences. They have found a way to either engage and create customer participation, or build a connection with their customers.

Watch:

It is especially important to this group that brands pay attention to being ethical and kind. Businesses that resonate with millennials should be committed to making societies better and recognise the holistic way of doing business by placing importance on the 3 Ps of people, planet and profit. Millennials ask: What is your purpose? What is your mission? What are you trying to build for the community or society?

Brands that continually refresh, innovate and improve their product offerings to make millennials’ lives better and more convenient are appreciated by this cohort. Millennials enjoy novelty and are highly experimental, this translates into their willingness to try new and original products and services.

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Gen Z. Source: Medium

Gen Zers are born from 1996-2010, after millennials. They grew up with the internet & mobile technology, hence are no strangers to social networking. Having been exposed to technology from an early age, they are very used to having information at their fingertips within seconds. As the first digital natives, they are more than comfortable with finding and comparing large pool resources online, which in turn affects their decision making. 

A Gen Zer is not confined to having only one way to define themselves. They love the concept of being “free” and are constantly experimenting with different ways to express themselves. They do not discriminate between friends whom they meet online or offline.  As such, they appreciate and value online communities as they serve as platforms for Gen Zers to connect with people with similar hobbies and causes from different walks of life. 

“Our study based on the survey reveals four core Gen Z behaviors, all anchored in one element: this generation’s search for truth. Gen Zers value individual expression and avoid labels. They mobilize themselves for a variety of causes. They believe profoundly in the efficacy of dialogue to solve conflicts and improve the world. That is why, for us, Gen Z is “True Gen.” 

It is key for companies to understand what Gen Zers are greatly motivated by – The search for truth; which plays an important role in influencing their take on consumption and relationships with brands. 

Here are 5 key points to help communicate with Gen Z more effectively:
Source: Medium

1. Create an empowering design for Gen Z

Since the birth of Gen Z, they always held answers to any questions within the palm of their hands. Having a great sense of self-reliance, they are able to discover anything they want without any help, by navigating their way seamlessly through technology.

Gen Zers are innovative ‘unique-seekers’ who like to constantly push boundaries. To better resonate with this generation, design needs to be ‘empowering’ and displayed in a way that is capable of shaping their environment, inspiring personal growth. This could be exciting for designers to play and experiment with bold colours or images that may seem clashing, yet confident. 

In a recent concept exploration of an online beauty rebranding — a scope by design to exploit the ‘unintended’; it was discovered that in the developmental phase, a bold concept with a challenger proposition of “Breaking the Rules” resonated the most with Gen Z. When designing for this audience, it is not simply about aesthetics and good looking design. It is important for Gen Zers to understand how a brand can improve their daily lives, wellness, and productivity. 

To instill loyalty in a Gen Z consumer, design needs to not only be beautiful, but functional. Content should also be adaptable across different platforms and work well in different spaces from mobile to desktop, ensuring fonts are accessible and legible.

2. Flexible Branding

Gen Z wants to associate themselves with brands that mirror their desired identities & personas. With a lifespan of less than 5 years, a brand can get dated easily. In order to compete against young emerging brands that are targeted towards the new generation’s needs, brands need to deliver consistency, reinvent themselves regularly and stay refreshed.

Brands need to be flexible, consistent and stay true to their brand values in order to keep up to date with the rapidly changing Gen Z end user. This can be attained by using designated brand assets such as colour palette, logo, and typography while still producing seasonal assets such as icons and colours to keep in trend and make the brand exciting. The entire brand can be easily refreshed with a flexible brand system in place. 

3. Sharable content

Gen Z has an absurdly short span of attention. Gen Z, the first generation born in the digital age, is so used to switching between multiple screens. They are more easily distracted than any previous generations, so it goes to say capturing their attention is no easy feat. 

The most effective way to tackle their short attention span is to design in their language – making use of short videos, image loops, text overlay images and quotes. Readable fonts throughout all platforms are a must. Utilizing vivid, eye-catching color combinations can make a brand stand out from the crowd.

Gen Z is only concerned with genuine, casual and informative content, even better if it is shareable ASAP. By making your content instantly shareable, you have an opportunity to mobilize an army of social media natives who can help boost and increase your brand awareness exponentially.

4. Real users testing

The digital age offers us opportunities to grasp real-time customer behaviour, both within a brand’s platform and on social media. Designers no longer have to hope that their design will resonate with a particular target audience as they are now able to test designs with real audiences and adapt their design as consumer behaviours. 

It is important to forge a connection and offer what Gen Z needs at all touchpoints; either through the brand’s platform or other social media platforms. In order to be genuinely consumer-centric, the only way to know if the result generates a favorable response is to test with real users and improve with new insights. However, it is important to note that what works for one brand competing for the attention of Gen Z might not work for other brands.

5. Design based on brand value

The launch of a new brand identity can revitalize an old and dated company. Any new identity should still reflect the brand’s core values & culture. Gen Z are sharp-witted and are not afraid to call out a brand on social media if it is not authentic or trying to be something it is not. 

The challenge for well-known brands to execute a brand refresh and appeal to younger customers is how close it stays to its core values. The new brand must not deviate from its core values too much, but be part company’s DNA. 

To be effective in this field of design, explore the company, study its culture and target audience in scrutiny. All rebranding has to start internally with everyone living and breathing the brand as one, so that communication to external stakeholders will be consistent and compelling. Companies can build a rapport with employees to determine the company’s vision and how it can adapt to communicate and connect more effectively with Gen Z.

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Gen Z

This latest generation was born from 1995 onwards, with the Gen Z (current age, between 5 – 25 years old). Many of them grew up playing with their parents’ mobile phones or tablets, making them the true digital natives who are exposed to the internet, social networks, and mobile systems at an early age.

This generation is also known as the “True Gen”, people who value individual expressions and are always in search of the truth. Such motivations influence the way Gen Zers view consumption and their relationships with brands. Companies should be attuned to three implications for this generation: Consumption as access rather than possession, Consumption as an expression of individual identity, and as a matter of ethical concern.

Consumption means having access to products or services, not necessarily owning them. As access becomes the new form of consumption, people want unlimited access to goods and services, with companies like Grab which provides ride-hailing services and Netflix with its subscriptions for video streaming, creates value. Products become services, and services connect consumers.

Millennials

Millennials, known as Gen Y,  were born between 1980 to 1994 (current age, between 26 – 40 years old). This generation had ready access to cutting-edge technology from birth, iTunes, Youtube has taught them that instant gratification was just a download away.

They believe that they are entitled to actualisation and understand brand personalities better than anyone as they have grown up crafting their personal brand identities online on the once prominent social networking platform – Friendster.  Social marketing and self-fulfilment is the key to Gen Y.

Gen X

Born between 1965 to 1979 (current age, between 41 – 55 years old). They were raised watching MTV and Star Wars, and are the line between the pre-and-post-digital world. The way to market to Gen X is  “anti-marketing”. Less is more for Gen X and they devour information in sound bite-sized chunks. 

Baby Boomers

Born between 1944 to 1964 (current age, 56 – 76 years old), Baby Boomers are the biggest consumers of traditional media like television, radio, and newspapers. This generation has begun to adopt more technology by having Facebook accounts in order to stay in touch with family members and reconnect with old friends.

The effective way to sell products and services to this generation is through story form. One thing to consider is creating compelling videos to convey the brand messages and information to them. Use Facebook to reach out to them effectively as baby boomers use Facebook more than other digital platforms. 

The post Issue 31: Q1 2020 appeared first on Tangible.

My second point: Who should be responsible for making things work better?

What follows are some observations around the subject.

1. Who should be responsible for making things work better?

Over the years C-Suite titles have alluded to those responsible for the job of making things work better:
– CTO (Technology circa 1960’s)
– CEO (Executive circa 1970’s)
– COO (Operations circa 1980’s)
– CFO (Financial circa 1980’s)
– CIO (Information circa 1980’s)
– CINO (Innovation circa 1990’s)
– CBO (Brand circa 2000’s)
– CDI (Digital circa 2010’s)
– CXO (Experience circa 2010’s)

As the focus of different business sectors is very diverse, the blurring of job titles can be forgiven but from the array of C-Suite titles, we would suggest that the job of making things better starts with the CEO. The COO is next in line as they define the strategic direction and empower people for whatever project is at hand.

Change and innovation need to start at the top, the CEO needs to endorse change and align his or her colleagues. If the CEO does not fully endorse change, you can start to plot the gradual decline of the business.

2. Why bother hiring change consultants?

We’ve heard the arguments that the responsibility for the strategic direction of a business should be driven by the C-Suite; that’s why they’re paid the big bucks – right? We wouldn’t suggest that C-Suite executives don’t know where business is going or which new technologies are relevant. Most CEOs realize they need to empower their employees and gain customer insights to enable their businesses to adopt or adapt technologies to give them a competitive advantage. That’s where C-Suite executives need to create the stage for innovation and that usually means letting go. This is a great opportunity for co-creation between business, customers and innovation partners.

3. Change is a great opportunity to collaborate & grow.

Sounds philosophical, doesn’t it? One observation from the UK was how often change consultants were given problem statements and not specific briefs.

If you’re given a problem statement, a few interesting things happen. Clients, consultants, creatives and customers can collaborate to define the objectives, that address the problem statement. This helps break down the client-supplier relationship and allows ideas to flourish. It also means that the team from the client side can start thinking of the most effective ways to get their colleagues to adopt any new ideas.

Hopefully, this also stops consultants leaving PowerPoint decks behind, with the hope that the client will somehow change their business by a process of osmosis.

In summary, it’s time we collaborate more.

Read more:

• When did we start naming corporate honchos with 3 letters?
• Research says these are the 5 essential elements of a successful team

How collaborative leadership delivers sustainable innovation

The post Issue 25: Q3 2018 appeared first on Tangible.

New news

The Mail Online is now the No. 1 online newspaper. So how’s it stormed to worldwide domination? The website’s success is in part down to a decision to break with the editorial priorities of its print counterpart.

The Mail went from being a relatively conservative paper in the UK, to essentially, a showbiz-driven US news site. Those at the paper argue they are simply doing what makes commercial sense.

Read more: MailOnline: what is the secret of its success?

More than print

Remarkably, National Geographic is now better known for its TV channels than for the magazine. Moving from print to TV has allowed the brand to develop new content & appeal.

The National Geographic Channel is a joint venture with News Corp. and features programs you might expect: ‘Great Migrations’ & ‘Explorer’, but it also produces the ‘Dog Whisperer’ & ‘Banged up Abroad’.

National Geographic has gone from most doctors waiting rooms to places none of us would have imagined!

Read more: Reinventing the National Geographic Society

Not a happy snap

Kodak employee Steve Sasson is credited with building the first digital camera in 1974, and yet Kodak filed for bankruptcy in 2012. Kodak thought low margin digital images would cannibalize its high margin film business, so Kodak did not take decisive action to combat the inevitable challenges.

What if Kodak created Instagram, Pinterest, YouTube or even made really good digital cameras..?

Read more: Barriers to Change: The Real Reason Behind the Kodak Downfall

Wrong number

In 2008, Nokia had one of the most valuable brands in the world, but it failed to appreciate its customers’ appetite for innovation.

Oddly, innovation was part of Nokia’s history, but in the 90’s they focused on handsets & became complacent. Imagine if Nokia had ploughed its huge resources into touchscreens, built a great operating system & allowed developers to create apps for its eco-system… You may be paying for your groceries with your Nokia phone today!

Read more: Where Nokia Went Wrong

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