With or Without You
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Products and services will arrive almost as soon as we know we need them—and maybe even before. Companies that want to avoid the background will have to make an even greater effort to communicate directly with end customers and place or keep themselves front of mind. Entertainment Brands, retailers, and entertainment are already beginning to blur into each other.
Just look at any blockbuster movie with its spinoff merchandise, such as toys, clothing, and video games, and character appearances on screens and at live events. Anyone who enjoyed the immersive Star Wars: Secrets of the Empire VR experience offered in shopping malls around the world had a meaningful interaction with the Star Wars brand—and with the technology brands that enabled it. Connection Big-box retailers nearly eliminated the experience of connecting with neighbors and catching up on local news in local shops.
For example, boxed meal services like HelloFresh and Blue Apron let people go online to order complete meals with cooking instructions and all the ingredients, premeasured and precut. These companies push the most intimidating aspects of the home cooking experience to the background, while allowing families and friends to connect by cooking together, enjoying the resulting meal, and creating an experience worth talking about.
Services that send regular curated deliveries of clothing, wine, or toiletries follow the same model: backgrounding the boring, foregrounding the fulfilling.
They could do this with curation, online and in-store classes, and gamification. A mobile phone manufacturer competing on the quality of its cameras can go beyond offering in-store and online photography classes to allowing students to submit their photos to a digital art gallery where the public votes on the best images. Another possibility is to embed technology into the product so that using it becomes an additional opportunity for the company to deliver information. Aspiration The craving to improve ourselves and our surroundings is a core human trait.
Companies can also tap into that desire by offering, sponsoring, or partnering in tools and communities where customers can share goals and monitor progress for both personal aims, such as weight loss, and societal needs, such as charitable fundraising. Influence marketing is a variation of this approach.
Dozens of companies are already hiring celebrities to post pictures of themselves enjoying a product on social media, resulting in increased sales to people who aspire to a similar lifestyle. The more of these avenues companies can use to deliver meaningful experiences to customers, the better their odds of remaining relevant in the age of background shopping. The ideal solution to avoiding backgrounding is to create a shopping experience so phenomenal that customers actively seek it out. Audi, BMW, and Mercedes stand apart from the Japanese brands that offer lower prices and better repair records by giving American customers a unique experience.
They can pick up their new cars at architecturally breathtaking delivery centers in Germany. There, they first enjoy a hands-on demo and a meal with automotive experts and visit the neighboring museum of classic cars. At the end of the trip, the cars are shipped home at a lower sticker price than the buyers would have paid in the United States.
In these cases, companies need strategies for marketing to the AI assistants, largely by emphasizing features the human customer might want. Even the humble roll of toilet paper can stand apart from the pack in the right context: made from recycled materials or with eco-friendly processes for resolutely green shoppers, unscented for shoppers with sensitive skin, or in industrial-sized packs for those buying for a big crowd. Smart speakers and other AI-assisted technologies are being adopted at such a blazing pace that Dawar predicts that every household will have some kind of AI handling many tasks as soon as Indeed, he believes AI will become the dominant shopping interface, with customers automating all but the most meaningful tasks.
Manufacturers pay retailers for the best spots on the best shelves in the store. And when a manufacturer wants to increase sales volume with a promotion, it drops prices, which gives the retailer a financial incentive to put more product on the shelves for the length of the sale.
In the era of AI-enabled background shopping, we will need a digital version of trade promotion management that creates new customer channels driven by product placement within the AI platform.
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Dawar suggests that to become solid background brands, companies will have to master the equivalent of premium shelf placement for AI. Indeed, he predicted in the May issue of the Harvard Business Review that AI-assisted shopping will induce companies to make significant cuts in their current spending on advertising, listing and shelf placement fees, and commissions for brick-and-mortar retail. He foresees them redirecting that budget toward offers and innovation strategies designed to get AI shopping assistants to suggest or even automatically offer their products. For one thing, Dawar says, companies will have to figure out how the AI decides what to show customers and how to appear in as many search results for the target market as possible, at the lowest possible cost.
While this collected data will help companies understand their markets and identify opportunities to address a particular individual, group, or segment more precisely, it will also require them to optimize continually for each of those individuals, groups, or segments. When purchasing decisions are being made by AIs rather than customers, brand managers will have to include AI providers in their strategies for getting products offered and featured.
With or Without You | Building for the Arts
A manufacturer will likely make deals directly with AI providers that are themselves retailers, such as Amazon or Google. However, the growth of the Internet of Things and smart appliances suggests that we can also expect an explosive increase in third-party AI providers. The combination of multiple vendor and third-party AIs potentially creates millions of sales channels. For example, providers could offer discounted or free smart devices for accessing a specific AI platform. Or they could offer discounts on specific items, house brands, or entire orders to people who shop using that platform.
When AI is making more of the decisions about what to buy and when, companies will also have to draft their own AIs into the fight for relevance. It is now testing AI in its bakery to predict demand across multiple variables and change production runs accordingly. Similarly, Chinese fast-fashion shoe brand Aimiqi has developed an AI application for intelligent product design that keeps track of hot colors, top-selling fashions, and design trends in real time.
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With Or Without You
Jobling, John U2: The Definitive Biography. New York: Thomas Dunne Books. McGee, Matt U2: A Diary. London: Omnibus Press. Rooksby, Rikky Inside Classic Rock Tracks. Hal Leonard Corporation.
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