The eCommerce paradigm has undergone a profound change during the last decade. The development of technology expanded our ecosystems, and the creation of new models of interaction reframed our priorities and expectations as a customer. In this new landscape, inhabited by a new breed of mindsets, companies need a novel strategy to generate tangible value and therefore develop sustainable business models. In this session, we will understand how the evolution of the business paradigm of retail impacted the development of your strategy. We will then understand how the new psychological foundation of consumer behavior affected the perception of your brand experience. We will, in the end, understand how to shape your company to remain profitable, navigating the new eCommerce business.

1. The New Retail Paradigm
How the Psychological foundation of consumer behavior
evolved and redefined the business requirements
Andrea Picchi
www.andreapicchi.it
@andreapicchi

2. www.andreapicchi.it - @andreapicchiwww.andreapicchi.it - @andreapicchi
April 9, 2012
san francisco, california
The Evolution of Ecommerce

3. Facebook
acquires Instagram
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4. 85M
book value
35M one week prior to acquisition
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5. 1.1B
total value
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Value
5 types meaningful *
identity
emotional
financial
functional
QUANTITATIVE
QUALITATIVE
+
* This is governed by 15 core meanings
(Diller, Shedroff, and Rhea, 2008)
The Evolution of Ecommerce

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Value
quantitative: identified by the question
Does this do what I need?
Functional
Does this have a good cost/benefit ratio?
Financial
The Evolution of Ecommerce

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Value
qualitative: identified by the question
How does this make me feel?
Emotional
Does this reflect myself?
Identity
Does this fit into my world?
Meaningful
The Evolution of Ecommerce

9. Qualitative Value
emotional
identity
meaningful
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10. Premium Value
how much more a customer would pay for a product or service
over an equivalent replacement
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11. Premium Value
intangible but real
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12. Premium Value
intangible but real
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13. Premium Value
it’s an effective competitive advantage because it’s hard to copy
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Value
can only be exchanged in the context of a relationship
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15. Relationships
complex and multi-dimensional
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16. Engagement
dependent on the context
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COMMITMENT
Source: Fournier, Consumer and their Brands, 1998
PRICE
FLING
ONE NIGHT STAND
STRANGER
MARRIAGE
BEST FRIEND
VILLAN-VICTIM
TEACHER-STUDENT
DEALER-ADDICT
reduced version
Beyond Omnichannel

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Engagement
dependent on the context

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Engagement
dependent on the context

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Engagement
dependent on the context

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Relationship
must be designed on customer time
experience
TIME
INTENSITY
Beyond Omnichannel
movie
tv
park
movie
cruise
store
Source: Diller, Shedroff, Sauber, Blind Spot, 2016

21. Relationship Business
if you don’t remember anything, remember this!
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22. Quantitative value is minimal.
Qualitative value is intangible but real.
Qualitative value can generate premium value.
Premium value can be a competitive advantage.
Premium value can only be exchanged in the context of a relationship.
Relationships is a connection generated by a series of experiences.
Relationships are various, complex, and multi-dimensional.
Andrea Picchi
www.andreapicchi.it
@andreapicchi
Summary
design is the perfect tool to design relationships