Matter/Anti-Matter

2009 will be a year of major uncertainty. The doom and gloom of the economic downturn, the deterioration of mass markets, the pervasiveness of the digital lifestyle, a host of explosive political conflicts, and the fragmentation of traditional societal institutions are causing anxiety and propel a new search for simplicity and non-economic value systems.

Consumption-driven wealth and status are being replaced by identity, belonging, and a strong desire to contribute and do something "meaningful" rather than just acquire things. Trust and reputation are no longer enablers for the exchange of goods, services, and information, they are replacing them. Values are the new value. Meaning is succeeding experience and customer satisfaction. "The job of leadership today is not just to make money. It's to make meaning," writes management consultant John Hagel. Out: Bottom-line-pragmatists and financial wizards. In: philosophers and ethicists.

This new cultural climate presents a historic opportunity for brands to transform themselves into arbiters of meaning. Becoming Chief Meaning Officers, business leaders must move beyond simply connecting products and customers with the goal to facilitate transactions - they must now create "meaning" through actions and interactions. When your brand is a vector, your base becomes a movement - that's what we learned from Barack Obama's campaign.

In 2009, we will see more examples of "meaningful marketing" and businesses generating value that goes beyond just meeting consumers' needs. This will imply several profound paradigm shifts: essence instead of luxury, free sharing instead of monetized scarcity, radical transparency instead of brand control, authenticity instead of image, empathy instead of focus groups, conversations instead of messaging, collaboration instead of dissemination. A "meaning surplus" will become imperative: Only brands that give more than they take will be able to create sustained brand loyalty.

Location matters. Black Swan-author Nassim Nicholas Taleb finds "living in big cities invaluable because you increase the odds of serendipitous encounters – you gain exposure to the envelope of serendipity." That's particularly true for romance. People move to big cities not to advance their careers, party, escape, disappear, be a star, and so on. The chick-flick fan that I am, I remember very well that candid line from Sex and the City (the movie): "I came to New York City to fall in love." Exactly. "Anyone who's predicting the decline of big cities has already met their spouse," writes Clay Shirky.

One of the most effective places for random but potentially life-defining encounters is the public intimacy of the subway. The underground is not only an object of affection but also its catalyst. As reported by The Australian, a recent study commissioned by the Paris Transport Authority ("L'Amour Mobile" – why studies in French sound better than poems in English is another topic) found out that the majority of Internet messages posted by Parisians seeking a stranger whose path they had crossed stemmed from a look, a smile, or a conversation on the Métro. More than 80 percent of the messages were from underground passengers, typically between 18 and 25 years old, and divided almost equally between men and women. They were often reading books or listening to iPods – activities that apparently unite passengers more than they isolate them.

"The Metro is without doubt the foremost producer of urban tales about falling in love," Frank Beau, the author of the study, commented. Mr. Beau further suggested that the physical proximity of passengers fueled romantic tension. The slightest contact – a glance, a word, a jacket brushing against your shoulder – becomes an "extraordinary experience," he said, adding that the seats by the doors were the best spot for romantic exchanges. Encounters in museums, parks, cafes or on the street were far less likely to produce passion.

A second study commissioned by public transportation executives in Paris showed that 12 percent of Parisians had begun a lasting relationship, as friends or lovers, with someone they met for the first time on the underground.

Despite Paris being the "city of love," one can probably find the same pattern on other underground systems: London, Berlin, Moscow, or Shanghai. The "Missed Connections" section on Craigslist is a popular compilation of frustrated amour in US metropolitan areas. In New York, the story of a romantic subway rider going many extra miles to find his subway acquaintance was a hit on local media outlets.

As The Australian suggests, companies should think about developing mobile web services to enable passengers to reconnect with a random encounter. Ultimately, of course, all this would be much easier if everyone just carried an ID tag (on an opt-in basis) – a Clear Card for Metromantics.

Ps. Frank Beau will discuss the findings of the studies at the LIFT conference in Geneva.

Yes, we live (again) in the "age of conversations." There is something reassuring about listening to smart people having cultured conversations. When I was young, I would listen for hours to music-free radio programming that sounded like black-and-white movies.

Today, Monocle Magazine brought some of that magic back by launching Monocle Weekly, a 30-minute audio podcast. Hosted by editor in chief Tyler Brûlé, the short-form show extends the publication's monthly print content by offering fresh angles on stories in current and past issues, discussions, previews, field reports, and interviews. The light conversations on serious issues are entertaining and informative, and the old-fashioned stereo split of voices evokes the coziness of good old vintage radio.

Highlights of the first issue include FT markets correspondent Rachel Morarjee revealing why 'under the mattress' has become a favorite place to keep your savings (at least in the UK), and philosopher Alain de Botton explaining why happiness will be more important than watching your salary in 2009: "There is no wealth but life, so concentrate on your portfolio of life, and not your portfolio of cash."

Well said. Although this may not be the most effective response to someone who just lost his or her job, the longing for new meaning in private and public life ("why exactly do we work?") will likely be an overarching theme in the forthcoming year. This presents a huge opportunity for brands of all kinds and industries: they are the arbiters of meaning.

Listen yourself: http://monocle.com/The-Monocle-Weekly/ (also available on iTunes)

by Robert Fabricant, Executive Creative Director, frog design

"I had lunch with my kids at our local Middle Eastern restaurant in Park Slope, Brooklyn, yesterday. It has been there for a long time in a neighborhood that has exploded with cool cafes. The smell of warm pitas, fresh from the oven, practically brought my kids to tears. This place is getting more and more attractive to me these days. They provide good, cheap, fresh food – I can stuff the whole family for less than $30. But that's not all: at the end of the meal they always bring out some free honey semolina cake along with the check (they divide one standard portion into four little cubes for us). What a wonderful bonus...or maybe not. I would argue in this economy that cake is a critical element of their survival strategy. My neighborhood is flush with tasty restaurants competing for my shrinking budget. They all better be thinking of new ways to delight me.

In this economy the most pressing business imperative is customer loyalty. You better be thinking hard about how you are going to retain your customers over the next two years (even if you lose some real money doing it). I am paying close attention to the businesses that get this. The ones that are working extra hard to recognize regular visitors like me, even if I rarely buy (and never at full price). My presence in the store alone has rising business value these days.

This is the great challenge of the Google economy in a recession - we all know how much our eyeballs are worth. If you are willing to pay $$ for me to see a tiny advertisement alongside a set of search results - how much is my visit to your store worth? If I pay you for your products or services then you should pay me for my time and attention - right? And this doesn't even begin to recognize the business value you realize from me wearing your stuff or driving your car. Think about all the extra 'eyeballs' I am reaching. (For two interesting takes on this check out these posts by Rob Walker and Jan Chipchase). 

This is the paradox facing every business today and it will be a huge area of innovation over the next two years. You can read it in the paper every day. Here are two recent articles that ran in the New York Times Business section on the same day, one on Starbucks and the other on the hotel business and how they are adopting game technologies. As a design firm we are always looking for new ways to engage and inspire people. It starts with talking to your customers and observing what they do. Trying to identify fresh opportunities to delight them. Some of the best ideas may have little do with your core products and services.  Look at the auto industry: one of their biggest challenges is that I have NO reason to visit a dealership unless I want to buy a car.

Every business today should take a fresh look at the context surrounding their customer interactions. The goal is to identify the highest value, least expensive way to delight them. Here are some guidelines:

1. Make sure it is something that your customers encounter regularly (not something reserved for special occasions).
2. Make sure that it will be visible to others.
3. Make sure it is available to non-customers.

Businesses that survive will get very good at identifying the cheapest service that has the most impact in this area. But they won't stop there –  they will keep on innovating and trying new things to stay ahead in this game. These skills are not just crucial to their immediate survival but will position them to thrive in the future. The good news is that more and more customers are sharing their stories about these recession-era delights. So please send me yours. If I had any money left to start a new stock portfolio this is how I would do my research."

It's a few weeks old but still worth pointing out as another recent example of "Disruptive Realism" - a clever twist on the slogan of the New York Times: 'All the news we hope to print:'

Good News! from Blake Whitman on Vimeo.

From the press release (linked to the Prankster group The Yes Men):

"Early this morning, commuters nationwide were delighted to find out that while they were sleeping, the wars in Iraq and Afghanistan had come to an end. If, that is, they happened to read a "special edition" of today's New York Times. In an elaborate operation six months in the planning, 1.2 million papers were printed at six different presses and driven to prearranged pickup locations, where thousands of volunteers stood ready to pass them out on the street. Articles in the paper announce dozens of new initiatives including the establishment of national health care, the abolition of corporate lobbying, a maximum wage for C.E.O.s, and, of course, the end of the war. The paper, an exact replica of The New York Times, includes International, National, New York, and Business sections, as well as editorials, corrections, and a number of advertisements, including a recall notice for all cars that run on gasoline."

[via the Gothamist]

In May this year, frog design founder Hartmut Esslinger spoke at the German Trend Day in Hamburg. The Trend Day is an influential annual forum that gathers thought leaders from business, media, and academia to discuss emerging social and cultural trends. This year's theme was "Identity Management," and other speakers besides Hartmut included Richard Florida, Danny Choo, and David Bosshart.

The organizers have synthesized the research, interviews, and lectures of the two-day symposium into a manifesto that is worth reading:

http://www.slideshare.net/TrendBuero/identity-management-manifesto-presentation

The paper argues that today's "attention economy" will be succeeded by a "recognition economy," in which opportunities for design will continue to increase: "Compulsory self-responsibility will force consumers to optimize their self. This self will call for deliberate decisions and new orientation frames. Identity will become a management assignment. Recognition will become the new key quantity." The result is what the authors call "Egonomics - an economy geared to the own self." Egonomics comprises of the following pillars: Body: Healthstyle; Security: Authentification; Relationships: Connectivity; Recognition: Reputation; Self-actualization: Creativity.

Jonah Staw, co-founder and CEO of LittleMissMatched, heads-up a lifestyle brand that is based on "innovative and creative mixing and mismatching." LittleMissMatched launched in 2004 with a collection of mismatched socks sold in odd numbers to encourage girls of all ages to express themselves. The "nothing matches but anything goes" philosophy knocked people's socks off, and sales jumped from $5 million to $25 million in just three years. Today, the LittleMissMatched product line includes everything from socks, winterwear, and sleepwear to books, bedding, and furniture for mismatched mavens of all ages. LittleMissMatched products range in retail price from $5 to $1,200 and are available at specialty boutiques and department stores nationwide. The company recently announced $17.3 million in private equity funding, expanded distribution, a new flagship store in Manhattan, and a series of new products.

How do you define innovation?

Innovation is such a broad term. I was recently on a McKinsey panel discussing innovation, and we opened by going around the room. There were more than 25 chief strategy officers from major US corporations. The moderator asked what was the most innovative product, and 90% of the audience said the iPod. I said the Post-It Note. Why? It is so simple it's obvious. It has become a fixture on the physical American desktop. It is useful. It invented a new category...before there were note cards, stationary, thumb tacks and more. Now we have the Post-it. Innovations are simple, elegant solutions that make things better. Better doesn't necessarily mean more efficient...it could be more fun, easier to use, beautiful. You get the point.

What are the most important areas of innovation in your organization?

My company is 100% based on innovation. We created a company that was founded on the premise of selling three-packs of non-matching socks. Talk about a challenge -- we were completely changing the way people got dressed each morning. We set out to tell the world that it was okay to not match your socks and as such, you should buy them in a novel way. Our socks are uniquely paired to look great together. What we discovered is that our socks are something that are simply FUN. They are so fun that people what to tell their friends about them. Our customers lift their pant legs and say, "Hey check out my socks!," this is certainly innovation in the world of socks. Our challenge is to translate this innovation into other product categories so that our brand is cohesive. At LittleMissMatched we believe that simple product innovations make our success. People will talk about our products if we give them unique products that are easy to talk about. We have furniture that you can draw all over with a dry erase pen. Why have you ever done that before? We have bedding that flips and switches to make 192 combos in one bed set. For us, innovation is key to our long term success. The good news is that every product category in the world can be missmatchified.

What is your most successful innovation? How did you find it?

It depends on how we define success. I personally love our furniture. Maybe that is because I flew to China to help finalize its development. It was a brutally challenging trip so I am enamored with the end result. If we look at units sold, our socks win the award. If we look at dollars/SKU sold, then our bedding wins. Each of these innovations were found by breaking conventional norms to bring a true value proposition to our customer. Imagine a world where now one bed in a bag we sell gives you 192 combos when all of our competition only gives you one option. When we are at our best, we subvert the marketplace...in other words, we don't talk about thread count, we talk about combos. What this means is that we don't actually have competition. Why? Because of our version of innovation!

Which innovation "failure" did you learn the most from, and why?

I don't ever believe in failure. I believe in learnings. Our first sock package almost disintegrated in your hand, but it was a totally unique package...it failed functionally, but it led us to where we are now. We are only four years old as a company, so each step we take is a learning. Success never happens spontaneously. As they say, "practice makes perfect."

What lessons can you pass on to others from how your organization has changed to make itself more innovation driven?

The kind of people who are innovation seekers are what I call "yes to no" people. They are the type that says, "Hey that is a really great idea, but I think it would be even better if..." They are expansive thinkers. They are not the type that says, "Nope, that idea won't work because xy or z." We have worked as hard as we can to hire "yes to no" people. We want everyone to have an open mind, but ultimately, we want them to be filters/curators at the right time so that they can make the hard decisions that will grow our business. If I can pass one lesson on, it is to hire "yes-to-no" people!

In your opinion what are the biggest barriers and challenges that stand in the way of organizations becoming more innovative?

We are a small company with a short history. Our historical benchmarks are not relevant yet because we are rapidly growing. I think the biggest barriers are companies that say they want to be innovative but they don't truly plan for innovation. They look at their historical benchmarks instead of forward at the possibilities. At the McKinsey panel I described earlier, a chief strategy officer from a Fortune 500 company said, "20% of our new products are now required to be driven by innovation." I asked, "Is the company setting aside 20% of your time to develop innovation?" Of course the answer was no. Innovation doesn't just happen. Organizations must understand that they must change culturally and structurally to enable innovative thinking. Ultimately, I believe the executive office suite must also be populated by innovative thinkers or innovation doesn't have a chance of success.

Beyond your organization, who do you admire for risk-taking innovation and what do you think makes them successful?

I admire everyone trying to think differently. There are so many people innovating there isn't just one person to name. I think ultimately innovators are successful because of their passion for success. Remember Steve Jobs failed his first time at Apple and was fired by the board. A good idea isn't the key to success. It is execution, timing, market conditions and a whole lot more.

What innovation are you still waiting for?

If I had a list, I would be working on those innovations instead of what I am doing at LittleMissMatched! With all seriousness, I am very focused on building a brand based on creativity and innovation. I believe our brand has a broad enough foundation to explore the world!

After reading and talking so much recently about the concept of "democratic exclusivity" (first coined by Ed Cotton on the Influx Insights blog and then promoted by the relentless Piers Fawkes), I was delighted to finally experience it myself when I was strolling the streets of Paris last week. I spent a day (a micro-vacation!) in the not-so-touristy 6th district around Metro Vavin in Montparnasse (in fact, I rarely left it, which was a much more satisfying experience than zig-zagging from the left to the right bank all the time as I used to) and discovered "Le Timbre," (French for "the stamp"), a true micro-restaurant in the size of, yep, a stamp. Literally squeezed into a hole-in-the-wall, this place has a total of 12 tables and 24 tightly packed seats, and one is forced by proximity to engage accidental dining partners.

Space is not the only thing that's micro about "Le Stamp:" The fixed price menu is very limited with only two or three choices of every course. The chef is from Manchester, UK, but the food is French and excellent. Reservations are competitive but democratic: As with the Momofuku Ko restaurant in New York, status doesn't matter for landing one of the few tables; everyone can make a reservation, even on short notice. Nonetheless, the dining experience is exclusive -- the night I was there, the waiting line of people exceeded the number of guests still working on their meals, which struck me as a very obvious manifestation of "artificial scarcity." Blend scarcity and timing and you create buzz and intrigue, writes Ed Cotton. Oui!

In this new age of "radical transparency," British firm Garlik has unveiled a new way to gauge popularity on the internet. The "QDOS" digital status rating system factors in how many times a person's name appears in a search, as well as a person's popularity, impact, and activity, among other criteria. Garlik's system plays on the phenomenon of "vanity searches:" googling" and comparing oneself to others. I couldn't resist the temptation: My QDOS score is Q3176 -- that's less than Nelson Mandela (Q6624) and Woody Allen (Q7764) but more than "Home and Away" star Paul O'Brian (Q2929). Yay! Other interesting comparisons: Pope Benedikt (Q6889) scores higher than the Dalai Lama (Q5749). And Barack Obama (Q9983) trails Ron Paul (Q10233)...

Garlik plans using its system to eventually guide people into investing in identity protection services. This is an interesting strategy that we will see more often: creating a service as a value-added teaser to in fact market another, commercially more viable service. Let's dub this "proxy marketing." Want to promote a product? Launch another (free) product! That way, you build awareness, goodwill, and a community of users that you can then implicitly educate on the value proposition of your actual offering. Sooner or later, they'll be ready to open their wallet.

Another recent example of this strategy is Ideablob, the much hyped crowdsourced idea-sharing site, which essentially is a proxy service run by Advanta, one of the largest credit card companies in the US. DEMO judged: "By providing the more than 25 million small business owners in the U.S. with an interactive environment for advice, counsel, and idea exchange, Advanta is defining the power of community in its truest sense." Ideablob touts itself as "a place to grow your ideas" but it may in fact be a means to grow Advanta's client base.

Of course "marketing by proxy" isn't really a new thing as marketers have always partnered with other "proxy" third-party services to move into markets where they had only limited expertise and brand elasticity. And yet, what's new is that marketers seem to become more aggressive in marketing the proxy product itself. Proxy and actual product are often under one and the same corporate roof, and the boundaries between them are blurring. Smart marketers think of proxy strategies as win-win's, designing the proxy product to ideally become its own profit center.