Saltwater’s Strategists live in the future, constantly thinking of what’s next. Even though we are only halfway through 2021, we are already thinking about and preparing for 2022 and how to successfully position our clients in the coming year.
Now is the perfect time to reflect on the first two quarters, prepare for the last half of the year and kick off your 2022 planning process. Struggling with where to begin? We’ve outlined some ways to help get you started:
Analyze Market Trends
Although 2020 was an anomaly, it’s crucial to consider how it affected your business and more importantly how it impacted your customers. While challenging for so many, 2020 and the start of 2021 demanded innovation and pivots you may want to continue in 2022 and beyond. By analyzing market trends within your industry over the past two years, you’ll gain strategic insight on where you should spend your time and money in the coming months.
Conduct a Brand Survey
Speaking of customers… there’s no better way to understand your customers’ needs than by asking them directly. Brand surveys will give you a deep understanding of how your brand is perceived by the general public and will allow you to identify any gaps in communication or opportunities for improvement.
Optimize Social Media Channels
Social media has become a life support for most businesses over the last year. Are your platforms up-to-date with relevant information and content that speaks to the right audiences? Is your content plan aligned with your business goals? Are your channels optimized so people can find you and recognize you when they visit your page? Now is a great time to make sure the reach of your social channels is maximized and, if it isn’t, make a plan to prioritize your content and platforms in the second half of the year.
Reflect on Your Current Marketing Plan
Have you taken the time to check in on the KPIs you identified at the beginning of the year? It’s time to track how well your initiatives and campaigns are performing and if your goals and KPIs are still well aligned. If you’re missing the mark, dig through the data to determine why. Where you succeed, are there further optimizations you can make or key learnings you can implement in other areas of your plan? These insights can inform your strategy for the remainder of the year and guide your plans for 2022.
Prioritize Your Goals for the Upcoming Year
Work with a partner to conduct a KPI worksession to identify measurable objectives and goals that will directly help your business thrive. Data is most valuable when your marketing efforts clearly ladder up to specific objectives, allowing you to definitively show how you’ve helped move the needle.
With the initial steps above, you’ll be prepared to start your 2022 planning. Utilizing your research and insights to help build your strategy and having solid KPIs identified will give you a head start to build your roadmap for 2022 and will also, ultimately, save you time and money.
6 FINTECH TRENDS THAT BANKS & CREDIT UNIONS SHOULD MONITOR
The financial industry exists in a state of flux, impacted by economic, technological, and cultural factors. As the industry undergoes radical changes due to soaring technological development, credit unions and community banks will be forced to adapt. It is imperative that you understand these emerging marketing trends so you can pivot your business strategy and introduce new products and services when consumers expect them.
CROWDFUNDING
Summary:Flowmotion and ZERA Food Recycler. Virality leads to money in a social world. Crowdsourcing campaigns have skyrocketed in popularity as several high profile, highly viral products have used it as a primary source of capital. Along with the engaged audience you develop immediately, you’ll benefit from product ideas, feedback, and validation.
Popularity: Crowdfunding volumes grew 145% in 2016 to a tune of $9.46 billion, with business and entrepreneurship demanding over $6.7 billion and real estate contributing $1.01 billion.
Big Picture: Crowdfunding has the potential to cut into small business and real estate loans, but there’s still a lot of pie left to go around. Local businesses, small startups and mom-and-pop shops usually will stick to traditional loans so you should still cater to the local draw.
RIDESHARING APPLICATIONS
Summary: Thanks to urban millennials, ride-sharing applications like Uber and Lyft have surged in popularity. Much rarer are the yellow taxis and black town cars, mostly replaced by a diverse workforce of supplementary earners. Thanks to increased ease of access, more millennials are relying solely on ride sharing, along with public transportation, to get around.
Popularity: Uber and Lyft combined have more than 8.5 million users. There are more Uber cars in New York than yellow cabs. The proof is abundant, and if you’re really interested, check out this infographic: The Year The Rideshare Industry Crushed The Taxi.
The Big Picture: Ridesharing applications will almost certainly cut into car ownership in the future. The urbanization of America’s youth will decrease ownership and increase alternative transportation. And while it might seem like a far-fetched futuristic nightmare to some, there might come a time when fleets of autonomous vehicles are a popular mode of urban transportation. With Google, Uber, Tesla, Ford, Intel, Apple, Amazon, Chevy and others heavily investing in this technology, expect the future to become reality sooner than you think.
THE FINANCIAL APPLICATION ECOSYSTEM
Summary: Many of you have probably already heard about the robust personal finance tool, Mint and the P2P payment service, Venmo. But have you also heard of Acorns, Robinhood, Qapital, or Digit? These are just the tip of the iceberg, demonstrating the rate at which app-based startups are penetrating the financial industry. While not all of these applications compete for consumer’s money, they are raising the baseline expectation for bank services.
Popularity: Mint has more than 13 million users and Digit has raised $36 million through two rounds of funding. PayPal recently invested $30 million in Acorns Investing. Big players are taking notice of the little guys and working diligently to capitalize on the popularity of these services.
The Big Picture: Even though services like Mint aren’t directly taking your member’s money, they’re advertising competing credit cards and loan options using the trove of data they collect from each user. They’ve also created a dashboard that tracks all of your accounts and integrates easy bill pay. This means your members have less of a reason to go to your website than ever. When it comes to investment apps or incremental savings services, they’re directly taking money out of your pocket. You can’t be complacent and offer bare-minimum tools. Start thinking of how you can add real value to your online banking platform.
PAYPAL ONE TOUCH
Summary: You’ve probably noticed that little PayPal button at the checkout of your favorite online retailers. Yes, PayPal has made a comeback with their One Touch service, sparking growth not seen since their eBay heyday. One Touch allows users to pay for items with, you guessed it, one click, which instantly alleviates the headaches associated with mobile e-comm. PayPal also recently acquired TIO Networks, signifying a service growth into mobile bill pay.
Popularity: 75% of the top US retailers have a One Touch button on their website and 50 million people are now using the service. It’s been a business-saving gamble for PayPal, and they’re poised to reposition themselves as a fintech boheemeth.
Big Picture: Between One Touch, P2P transfers, PayPal Credit and mobile bill pay, it’s hard to ignore PayPal’s popularity and superior user experience. Their credit offerings, mobile bill pay, and P2P capabilities directly compete with the likes of Visa Checkout.
EWALLETS (APPLE PAY, GOOGLE WALLET, SAMSUNG PAY, ANDROID PAY)
Summary: You have two options here. Pair with a third-party provider (Apple, Samsung, Android) or develop your own mobile banking technology.
Popularity: Even though mobile payment has been on the rise, “eWallet” technology has been sporadically adopted. Consumer’s reluctance to ditch their plastic has been fueled by a lack of retailer adoption.
Big Picture: Even so, 27% of smartphone users say that they have used either Apple Pay, Samsung Pay, or Android Pay at some point. Not too shabby.
THE GOLIATHS
Summary: Amazon. Google. Facebook. Apple. Microsoft. These goliath technology companies have repeatedly and unrelentingly disrupted industries. Let’s not put the blinders on and pretend that they aren’t going to invest more in America’s largest industry.
Popularity: According to Fortune, about one in three banking and insurance customers around the world would consider switching their accounts to Google, Amazon, or Facebook.
Big Picture: Let that one sink in for a minute, because the bullies are on the playground and they want your lunch money.
ALEXA…
Turn the heat up to 71°.
Order me an Uber.
Play Van Halen.
Write me a blog post.
Okay, maybe writing a blog post is beyond the abilities of Alexa, the “wake word” for the artificial intelligence software inside the Amazon Echo smart-home device, but “she” does have more than 1,400 unique skills. Amazon took a gamble with the Echo in 2014, but today the e-commerce giant has a huge hit on its hands that will likely become one of the next big marketing trends.
Virtual assistants aren’t perfect (yet?!). Alexa is great with basic tasks like playing music, ordering products, and telling you what time the Boston Red Sox play, but she suffers from unreliable communication from time to time.
Still, consumers are growing more accustomed to having a personal assistant living on their kitchen counters and in their family rooms. With success comes competition, though, so Amazon is about to get a deep-pocketed competitor in the virtual assistant market.
Google Home has arrived, running its own version of Alexa, the Assistant. And while the Assistant didn’t exactly dig deep for an original or fun name, Google’s years of experience in natural language processing and machine learning should allow them to build “a smarter digital assistant that builds on its stronghold in search and years of research in artificial intelligence.”
VIRTUAL ASSISTANTS ARE NOT A FAD, ARE HERE TO STAY, AND YOU CAN CONSIDER THIS A HUGE OPPORTUNITY.
See, aside from ecomm connectivity, language processing, machine learning, and all of the nifty tech that makes these kittens purr, virtual assistants can help brands connect to consumers on an emotional level.
As Marketing 101 taught us all, creating a more intimate experience between brand and consumer builds loyalty while bridging the gap between arbitrary emotional connection and personal interaction.
Consumers watch videos, listen to podcasts, and read ad copy. But only virtual assistants allow brands to speak back, which creates addictive closure to the dopamine loop that other mediums cannot accomplish.
SO WHAT ARE SOME OF THE COOL WAYS BRANDS ARE CURRENTLY LEVERAGING ALEXA?
It’s never too late for that beach body! Fitbit lets you track your daily stats and receive progress updates on your daily & weekly goals.
Book your next vacation with Kayak or make sure your flight is on time before heading to the airport. But do that the day after Scotch and Domino’s.
Make bill payments, check your account balance, and track your spending with Capital One. Super, another person telling you you’re spending too much!
Spotify ✓ Pandora ✓ Amazon Prime Music ✓
Forgot Mother’s Day? Valentine’s Day slip your mind? Order a heart-melting bouquet with 1-800-Flowers.com. Oh, and good luck to you.
Samsung actually integrated the Alexa software into their newest smart fridge. So yes, now you have a companion to talk to during your midnight snack.
Smart homes, smart homes, smart homes. There are way too many products to name here, but GE, Philips, Google Nest, Samsung, and Belkin are just a few of the players in this game.
OH, AND DISNEY OF COURSE.
The key takeaway here is your brand has an opportunity to become part of the early adopter ecosystem. The dev team here at Saltwater recognizes the future opportunity in this space so we’re actively exploring the Alexa Skills Kit, looking for a brand ready to lunge at the opportunity.
It’s time to start thinking of how your brand might leverage this new technology.
WE LIKE BEER. THE BEER INDUSTRY IS CHANGING. CRAFT BEER IS THE “COOL THING TO DO.”
There it is. In three simple statements I just covered what you’ve probably either read or assumed about the beer industry (and Saltwater) so far. It’s no secret that the rise in craft beer is changing the competitive landscape, as made evident by Budweiser’s decision to ditch puppies and Clydesdales and instead fire a shot across the bow of micro-brewers everywhere in their most recentSuper Bowl commercial. (Note: The original anti-craft beer commercial, “Brewed The Hard Way,” has been made private on Budweiser’s YouTube channel).
While the overall beer industry’s growth is generally stalling out compared to spirits, craft beer continues to slowly chip away at the macro-brewers’ massive market share. Consider this Google trends chart showing the increase in craft beer searches vs Budweiser searches since 2005:
It just so happens that they’re slowly but surely catching up to the King of Beers, and might have even overtaken them if the February Super Bowl spikes weren’t skewing the averages.
But make no mistake, large brewers are starting to feel the pinch. Just don’t consider them down for the count quite yet (or in the foreseeable future).
First off, 11 brewers stillmake almost 90% of all beer in the United States; Anheuser-Busch InBev, MillerCoors, Constellation Brands, Heineken USA, Pabst, Boston Beer Co., North American Breweries, Diageo North America, Craft Brew Alliance, Gambrinus, and Duvel Moortgat. Secondly,4,269 craft breweries make up the other 12% of the market. Yes, that means the average microbrewery accounts for a whopping 0.0028% of the entire beer market.
When this blog was first conceptualized, the idea was that there must be a craft brew bubble and we should be talking about it. After all, how many IPA’s can be made before there are just too many options on the shelves? We asked Nick Garrison ofFoolproof Brewing of Pawtucket, R.I., for his take on the potential of a brew bubble.
“I don’t know if there’s necessarily a craft beer ‘bubble’ since that implies something was popular and then all of a sudden it’s not,” Nick said. “I do think we’ll be looking at a craft beer ‘shake up’ eventually, where smaller, less experienced breweries really begin to feel the pinch of increased competition. Shelf space is limited, and everyone is vying with their distributors for mindshare since there are just so many craft beer options.”
While competition is fierce and making it difficult for some, Nick acknowledged that lack of effort or talent are definitely not issues.
“The issue isn’t that they aren’t talented brewers, it’s that you could create an amazing beer and still not succeed,” he said. “While obviously taste and flavor are important, many enthusiastic, talented breweries don’t understand the fundamental economic aspect of operating. Lack of experience creates issues when breweries fail to scale their business and make it sustainable over time.”
Enter marketing strategy.
Sam von Trapp, ofvon Trapp Brewing, believes communicating your brand’s story and remaining true to your brewery’s core values are also vital to success. In the case of von Trapp Brewing of Stowe, Vermont, Sam notes that the story about how his father, Johannes von Trapp, began the brewery resonates with fans of the beers and guests at the Trapp Family Lodge.
“We’ve been approached many times by people with suggestions for branding our family name on various products, but my father always wanted to keep it genuine, and was reticent to commercialize the family name,” Sam said. “Finally when we started brewing beer and received requests from people wanting to buy our beer in other states, we realized this a genuine way to bring our brand into new markets with a product we really believe in. My dad is an amazing guy. It’s been a lot of fun to work with him and I’m really proud of everything he’s done.”
Sam continued, “While the underlying quality of the liquid is most important, staying true to yourself and getting your story out there is extremely meaningful. If people like your brewmaster, your brewery, and the story behind your beer you can find success in this competitive market. Communicating this message and making people understand what makes you tick is essential to success.”
To Sam’s point, theBrewer’s Association has recognized that “instead of recognizing a brand by a name or a logo, millennials find true value in the experiences they co-create with the brand.”
Well, well, well. It might not be all doom and gloom for this crowded party! One significant reason is the demographic of the craft beer drinker and the rise of the millennials, arguably the most coveted and sought-after generation when it comes to marketing efforts. Millennials present a unique opportunity for craft beer since they are potentially the generation that will help grow the overall size of the craft beer market to accommodate the influx in breweries.
As it stands, yes, there might be a bubble. But the bursting of this bubble depends largely on whether the craft beer industry can continue to grow their overall market share. Consider this:in 2014the largest age group by total population was 22-year-old’s. Second and third place went to 23 and 21-year-old’s. Oh, and the good news for craft brewers? Beginning in 2018 there will besteady growth in the number of 18 to 24-year-old’s in the United States.
Craft beer’s market share has also doubled since 2011, with a goal of20% by 2020.Fortune also points out that “In other beverage markets, like spirits and coffee, high end drinks can generally commandas much as 40% market share – implying there is a lot more room for the industry to grow.”
Despite all of this juicy quantitative data that will seemingly support the boom of craft breweries, the qualitative data is just as compelling. Millennials value experiences over ownership and that bodes well for craft brewers looking to stand out. Due to the many options, unique flavors, and social aspect of drinking, millennials are flocking to bars, pubs, and breweries for a unique tasting experience.
It directly caters to their creative needs as well as their adventurous tendencies. Foolproof Brewing takes pride in their“experience-based brewing,” in which they focus on where and when their customers will be drinking a particular type of beer. For instance, their Raincloud Porter “is the perfect stay at home brew; dark, smooth, and mysterious.” The bitterness of the Backyahd IPA pairs perfectly with spicy foods coming straight off the grill. Their new Queen Of The Yahd is brewed with real raspberries as a “refreshing, delicious, and totally crushable IPA.”
However, Garrison cautions that a lack of differentiators on the product and brand level can lead to problems once the initial buzz around a beer wears off. “It really is all about the experience for the customer, which obviously includes branding and packaging, but also the interactions you have through customer service, events and personal relationships with customers, retailers, and wholesalers.”
Millennials’ tendency to support local is another distinguishable trait that should bode well for craft breweries;40% of millennials claimed to prefer buying local, a statistic in which Sam believes many smaller breweries will be able to capitalize on.
“I think the trend towards people shopping local is also supporting the rise of craft beer. I don’t think local agriculture is a fad, and I think people will always enjoy a craft beer brewed locally or regionally. As they say in Austria, “the best beer and bread come from around the corner,” Sam said. Obviously you have to scale your business to become profitable and sustain operation, but beer doesn’t need to travel across oceans. I also think there’s a good amount of room for those in the industry just interested in opening a restaurant with their brewery, distributing locally, and keeping costs down.”
So while fewer millennials are simply running into the store and picking up a 6-pack of Bud Light, increased browsing creates a different type of challenge as craft brewers grapple for limited shelf space. The convenience store channel has shown thelargest amount of growth for craft beer sales, but they also have less room than grocery stores to stock a plethora of options.
Challenges certainly exist and competition is surely steepening, but if breweries can create not only good beer, but a good experience around their product, the millennial consumer base has the potential to support such a booming industry. The challenge lies in finding the right balance of good beer, solid business IQ, and the ability to create a brand experience that’s desirable for both consumers and distributors.
NOT QUITE SOLD YET? TAKE A LOOK AT THESE INTERESTING STATISTICS.
While millennials are price sensitive, they tend to seek out high value as opposed to lowest price.
Among weekly craft drinkers, millennials try 5.1 different brands per month. 15 percent try 10-plus brands per month.
44% of regular craft beer drinkers said they are drinking more craft beer than they did last year.
So what does the future hold? Will this prove to be a bubble that bursts, or are these breweries here to stay? It’s hard to tell. Were one to judge solely based on supply and demand, one would think the number of new breweries will begin to slow in the near future and many of the smaller, less competent ones will be weeded out by stiffer competition. It may all hinge on millennials and whether or not craft beer turns out to be a fad or a paradigm shift in how we consume alcoholic beverages. That’s a great responsibility, millennials. You know what you have to do.