More innovations to come! More breakthrough events and rule breaking! Here’s what’s in store for us in the years to come. This goes for marketing with branding as well. The now relevant channels of communication with consumers will no longer play such an important role. Changes will occur at the intersection of areas and industries. Competitors will arise suddenly and in unpredictable places. All of this leads to this: branding is going to change radically. Five major changes can be predicted now. And if we’re warned, we’re armed.
Trends in marketing 2018: the coming of code
Brands will code consumer behavior according to real codes, but not in the same way as before. Customers will be offered a consistent and unchanging experience no matter where or when they encounter the brands.
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Blockchain
Blockchain is already changing the world and giving marketers impressive tools. Right now it is best known for supporting bitcoin, etherium, and other cryptocurrencies, but it has potential for other areas of business as well.
Here’s just one example of a blockchain-related marketing ploy. Long Island Iced Tea is an American company engaged in the production of non-alcoholic beverages. In 2017, it changed its name to Long Blockchain Corp, after which its share price rose 200%. The company made a huge profit just because of the blockchain-related name. Moreover, this is not the only company that has done so.
Public authorities and big business are now developing projects to utilize the technology for their own purposes. After all, blockchain is able to provide the necessary transparency and security in information processing.
New technology could change the way brands are managed, if only because all transactions made on the blockchain remain immutable and cannot be rewritten. As a result, the concepts of trust and trustworthiness will change, as well as how buyers are authenticated and identified.
Imagine a company whose key message is, “Great customer service.” The marketers decide that all customers who use the brand for more than a year will not pay for shipping of goods. Blockchain will help the company realize such a solution. Whether a business employee is familiar or unfamiliar with the policy, the rule will always be enforced.
IBM has proposed blockchain for transaction monitoring, customer security and fraud prevention. From supplier to consumer, blockchain acts as a digital registry with all the records that prove the legality of production.
Algorithms
A slightly less radical way is computerized algorithms. They can also set the necessary parameters to ensure that digital channels are aligned with brand values. The algorithms monitor everything from motherfucking messages to inappropriate images, and make it virtually impossible to leak data to the public.
Instagram and Twitter use similar algorithms to filter content and comments to keep their platforms positive and supportive of consumers.
AI is becoming more and more human
Tech that talks to people is on the rise right now. With that comes more questions about how she can behave in a more human way. Chatbots interact with shoppers through texts, photos and videos. They can bypass the website or social media platform and communicate directly with consumers via messengers. Chatbots feel more like friends than machines and help build trust between brands and customers.
The development of AI is forcing a rethinking of the “brand voice” problem. Marketers will have to keep track of every little detail from speech patterns to the choice of architecture to recreate human communication. They need to decide what the brand should sound like: a male voice or a female voice? Friendly or formal, proactive or waiting for a response? These solutions are vital to creating a connection with your customers.
As the example of Microsoft’s Tay chatbot showed, AI mistakes can have serious consequences. The developers had to shut it down 18 hours after launching the Twitter bot because as the chatbot explored the Twitter network, it began posting profanity-laced, offensive messages on its page. That’s what people have taught him.
And the Russian-speaking chatbot pBot is already pleasing its interlocutors with humor very similar to human humor.
Products are getting smarter
Machine learning allows gadgets to keep up with consumer needs. LG’s SmartThinQ refrigerator communicates through the Amazon Alexa assistant on your cell phone. He can make more ice for the party or warn you that the door is open. And even order more milk from the store if you run out.
Read also: “ Appliance design: ask how the refrigerator is doing “
Nest thermostats learn the user’s daily routine to automatically switch to energy-saving mode when needed. They also calibrate their sensitivity depending on how often the user changes the settings. The more often Nest is touched, the less sensitive it becomes, allowing it to withstand some people’s compulsive desire to constantly press the button.
Trends in marketing 2018: the rise of trade technocrats
Retail development will be more strongly influenced by consumer communities. Vendors will increase sales by being more creative and deviating from standard schemes.
At short notice
Customers want what they want, where and when they require it. And they will consider different brands to achieve this goal. “On-demand” has already become a necessary element. Retailers continue to find new ways to meet consumer demands quickly and without interruption. All services from food delivery and banking to social network shopping will join the race.
Online pharmacy MedExpress in the UK announced in August 2017 that it plans to deliver Viagra and contraception to customers using drones. Pharmacists believe this service will come in handy for those who live in the middle of nowhere or had too much fun last night.
Read also: “Retail branding of delivery service”.
Augmented reality
Advances in virtual and augmented reality allow consumers to have a deeper, more interactive experience with brands. Try a VR test of the new Tesla, for example. The new WebVR-like technology invites shoppers to view products from any angle while sitting at a monitor. No helmet is required. Augmented reality technology will be useful for brands that rely on online sales for the lion’s share of their profits.
Two examples are Ikea Place and MakeupGenius by L’Oreal. The first app shows you what new furniture will look like in your home, while the second allows you to “try” cosmetics before you buy.
Hyperpersonalization
Predictive analytics, 3D printing, real-time feedback, machine learning, DNA profiles – All of these innovations will allow brands to further personalize their products and services. The product can be modified according to the buyer’s demand, and the recommendations will one hundred percent hit the ten and push the purchase.
Vans is already putting personalized designs on shoes in less than 15 minutes. Campbell Soup Company uses DNA profiles to adjust products by taste preference and offer dietary advice. Spotify and Pandora use machine learning and algorithms to provide playlists based on user preferences.
Design Trends 2018: smart products and packaging
In developed countries, consumers pay attention to the environment and take care of their condition and health. Companies are fighting for this audience and offer, for example, smart packaging that monitors the safety of products. Breakthroughs in material development and manufacturing are changing the way brands approach the presentation of their products.
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Thinking packaging
Packaging has taken a step beyond functional containers. Pharmaceutical companies have developed medication packaging that measures the dose, reminds patients to take their pills, and alerts doctors of missed appointments. This is leading to a blossoming healthcare industry – technology is helping patients suffering from chronic or severe illnesses. And patients, in turn, reward the manufacturers with money.
Modern packs monitor the freshness of food and let customers know the expiration date of their lunch. Brands are becoming active participants in conscious consumption and waste reduction.
PhutureMed, a smart packaging developed by Palladio Group, uses electronic ink on its blisters and records the time of each medication administration. Such records will provide doctors and patients with reliable data.
What did they say about trends ahead of 2017? Read also: “Marketing and Branding Trends 2017”
Anti-packaging
Sometimes the best packaging is its “absence”. This is a good marketing move by companies trying to please consumers. Ooho – bubbles that use seaweed extract to create a tasteless, biodegradable and digestible membrane with water inside. Consumers eat bubbles and drink water at the same time.
Design studio Tomorrow Machine has designed a packaging for olive oil composed of caramelized sugar and beeswax. You just have to crack the package like an egg and pour in the required amount of oil. By the way, the beeswax-based rice wrap from the same company comes off the product like the peel off an orange.
Trends in marketing 2018: the transportation revolution
Companies are coming up with new ways to get around – transportation itself is changing radically.
The explosion of sharing
Uber is just the beginning of a megatrend in transportation. Shared mobility will become a common standard for all modes of transportation, even private jets.
Partnering with the government can be key in this endeavor. Municipalities in China have recently banned shared bikes in many major cities in an attempt to deal with parking lot chaos. Therefore, it is better for companies to negotiate with the authorities.
Regular customers make regular purchases
For all brands, it’s important to create long-term relationships with consumers. Consider automobile companies, because auto purchases are declining. Manufacturers need to change their mindset and move away from “romance” as a key inducement to purchase.
To become the brand of choice, car companies should focus on comfort, costs, affordability even eco-friendliness. All of this will encourage people to remain long-term customers.
Autopilots
The transportation industry is gradually adopting autopilots. It’s still in the concept stage, but a work in progress nonetheless. Mercedes-Benz recently announced the Future Truck 2025 project: autopilots for heavy-duty vehicles. Company officials plan to begin mass production in 2025.
What happens when autopilots enter everyday life? This will affect the entire transportation infrastructure. Governments will lose revenue from parking and speeding fines. Insurance companies will have to come up with new insurance models.
How will this affect brands? Changes in transportation will affect logistics and delivery of goods. Consumers’ tastes in choosing personal automobiles will change.
Trends in marketing 2018: prioritizing purpose
Today’s brands need to be purposeful and offer customers the service they need. In doing so, they need to meet strict requirements for the reliability and transparency of the organization. The business model of the future will require more giving back – to employees, communities and the planet.
More than corporate social responsibility
Brands can no longer just perform a one-off social responsibility activity and consider their duty done. Today’s consumers want more. Brands build responsibility into their values by making it part of the service.
Luxury brand Stella McCartney solves the problem by refusing to use materials such as vinyl, polyester and leather. These materials have a negative impact on the environment, and the brand positions itself as eco-friendly. The house of Gucci has abandoned the use of natural fur, following the example of Armani, Hugo Boss and Vivienne Westwood.
Read also: “Eco-trends in packaging and the Ukrainian market of organic products”
Transparency
Technology makes it easy to catch a company red-handed – for good or bad. Customers want to know the truth about everything from ingredients to worker labor. People can now submit public petitions and complaints through social channels. Brands are required to respond immediately.
The ubiquity of online reviews and testimonials is a prime example of the requirement for such transparency. In some cases, brands have adopted reviews as a business model (e.g., Yelp and TripAdvisor). Others use them to create feedback or calibrated selection of recommendations (Uber and Amazon).
Transparency has become a key concept for retail businesses – for example, for Weleda and Everlane. The latter company details on its website how its products are made: in which factory, with what costs, materials, transportation, etc.
Attentive approach
Brands are becoming more conscious and responsible. Consumers are doing the same, paying more attention to their condition and health. They watch their diet, exercise, sleep and balance work with leisure time. According to MediaLeaks, Millennials in particular value experiences more than things. They approach brands and products differently: they are not interested in the history of the company or the prestige of the product. They are interested in new adventures, self-expression and the joy of being.
This desire is followed by thousands of companies. Under30Experiences, for example, focuses strictly on millennials and offers adventure travel around the world. Another brand is ClassPass, a fitness company that invites users to try a wide range of different disciplines, from breathing exercises to boxing.
Be prepared
These five trends will shape the marketing and branding of the next decade. Change is coming fast and brands should not be complacent and rest on their laurels. Every new opportunity is about breaking boundaries and breaking the rules. It’s time to look to the future!
Consumer branding takes 2 months to develop, and profits from a competent brand grow for years to come. Order branding at KOLORO branding agency!
