AdAge IDEA Conference: Be Big, Act Small
Commerce used to be personal. Customers would talk to a retailer before being recommended a product or service. Then mass production came along. Standardization allowed for scale while effectively killing personality. That was yesterday. Today’s brands are returning to personalization, but making it possible on a mass scale.
At AdAge IDEA Conference, Tim Westergren asked conference attendees whether or not they use Pandora. The entire room raised their hands. Tim is the founder of Pandora, an online music service that entertains millions. He’s not about forcing the Top 20 on you; he's about custom tailoring radio for your specific needs. Pandora is able to learn and evolve in order to provide each listener with varying experiences. Tim told us about one older man who came to a town-hall meetup thinking Pandora was for listening to the 'US Navy Marching Band.' He might not had known that Pandora wasn't made specifically for him.
Even big brands can learn to act small. Coca-Cola VP of VEB Group Mary-Ann Summers presented on the 'art of emerging.' Her group, Venturing and Emerging Brands, can be considered Coca-Cola trendspotting and incubation lab, a group built for scaling good ideas. The company has moved on from its core soft drink product to discover and invest in tomorrow's billion dollar brands. While plenty of Coca-Cola's products play in the middle of the distribution curve, VEB lives on the left. This means that they develop things that not everybody will like. This is critical for global success. Fermented soda Krushka & Bochka KVASS is bigger in Russia than Coke itself.
4food, a restaurant we covered in June, has successfully designed a business fueled by social interactivity and personalization. After telling the brand's story, founder Adam Kidron explained that there are 96 billion ways to make a 'whole burger.' When ordering, customers are asked to make their own burger from a number of ingredients. Because it is so open-ended, the ordering process becomes an act of personal expression and creativity. Your burger says something about you. It's only natural that people should share and "politicize" their creations. If people sell their recipe, they are paid with 4food credits. Popular combinations are presented on a real-time and dynamic menu, updated according to supply and demand. Adam and his partner have embraced social behavior to crowdsource their menu, automate R&D, and even save themselves money on marketing. Personalization means working smarter, not harder.