Debit and credit cards are so last year. Checks have all but crossed the line into social taboo. And cash is basically, like, archaic.

Ugh, it’s like retailers don’t even want our money.

But wait! A few days ago, a Pew study found that 65% of surveyed tech critics and stakeholders believe mobile payments will replace cash and credit by 2020.

Even though mobile payment is still in its infancy, it seems like everyone is hopeful about its future, especially when it comes to improving the process with updated technologies.

Unfortunately, good citizens, we have cynics among us – those who worry about things like security, standardization, and the cost of new gadgets.

But fear not. We wouldn’t want you stranded in the Dark Ages of outdated currency. With this handy guide, follow us into the realm of information so you, too, can help welcome this brave new, digital-financial world.

What Is This Sorcery?

Put down the torches and pitchforks, townspeople. Brands that you already know and love have signed on to create promising mobile wallet apps, using these new technologies:

NFC, or Near-Field Communications, allows you to pay simply by waving your mobile phone at an NFC receptor at the register.  RFID, or Radio Frequency Identification, is like NFC but can be used at a longer range. And 2D barcodes can even be scanned at the register from a customer’s phone to charge a pre-paid account.

Rather than producing your credit card at every purchase, mobile wallet apps store your financial data and use these technologies to pull it for you automatically, at the point of purchase.

The Google Wallet app, which uses NFC, currently only works with Citi Mastercard and the Google prepaid card, but it does sync with your Google Offers and hopes to soon hold all card types.

Acceptance is liberation. (credit: fullissue.com)

Like Google Wallet, ISIS, a joint venture of AT&T, Verizon, and T-Mobile, will also use NFC and will hold credit cards, loyalty cards, and promotions.

PayPal also plans to release its PayPal Wallet app soon. Unlike Google Wallet, it won’t use NFC but will let you change your payment method up to 7 days after you pay.

These apps will soon be able to hold multiple card/account numbers and allow you to choose which account you’d like to charge when you wave your phone at the receptor. They will also have the ability to store coupons, receipts, and past purchase information to facilitate discounts and returns easily.

However, as mentioned earlier, there are dissenters. They wonder if it could be easy for someone to access your bank accounts just by waving their phone near yours (no.) They don’t want to have to buy NFC-enabled phones (they’ll change their minds). And they complain about the lack of standardization in mobile payment technologies (ok, that might be a good point).

How Can Marketers Conjur This Black Magic?

What the dissenters don’t see is that evolving mobile payment platforms are prime real estate for marketers!

Imagine the ease of distributing targeted promotions! Using NFC, mobile wallet apps can already track a consumer’s location and purchase history, allowing brands to send her coupons for the store she’s browsing in or updates on items she frequently purchases.

Think of the social media integration! What if a check-in immediately rewarded her with a coupon loaded to her mobile wallet, and her purchase was discounted automatically at the register? And if she allows Facebook to post which coupons she was receiving, not only would it encourage more check-ins, but it would encourage her friends to adopt the app, too.

Plus, there’s potential to move into other forms of media – MasterCard’s QkR app can pull purchasing information from just about anywhere, including QR codes, TV signals, and the Xbox Kinect. Praise technology of the future!

Say NO to the tyranny of physical currency! Demand your NFC-enabled smartphone today!

(credit: venturebeat.com)

The opportunities of mobile payment are looking promising. While the technologies and full capabilities of the apps are still to be cemented, brands are sure to see significant benefits when the rough edges are smoothed out regarding standardizations and security misperceptions. But, once mobile payment technology is ready for the mainstream, brands can use it to inspire action and usher in the glorious age of mobile finance!

The industry needs to embrace new technologies and rethink how to engage with the younger shopper, but I don’t believe that replacing people with technology is the right solution. Shoppers simply want their new online expectations met in the offline retail environment. We shouldn’t be replacing people with technology; we should be enabling and empowering them with technology. This applies to the sales or customer service representatives and shoppers.

There are wonderful examples of this approach that have popped up around the world. At Burberry in China sales associates are armed with iPads that allow them to check the company’s entire inventory and recommend items that aren’t available in that particular store. If the shopper wants the item, it can be purchased on the spot and is shipped directly to their home. Neiman Marcus has been testing a new opt-in location awareness app that notifies the sales staff when a loyal customer walks through the door and provides them with information to guide the shopping experience (e.g., previous purchase history, Facebook profile). Macy’s uses QR codes on their apparel tags that allow shoppers to watch a video from the designer discussing the particular line or item. Both New Balance and LL Bean use RFID to cue shopper information videos when an item is picked up.  Whole Foods is even testing a gesture-controlled shopping cart that follows you around the store tracking your purchases and your shopping list.

So let’s keep the people, but make them better with technology.

Now the concept is evolving, and brands are catching on. The same grocery shopping wall is currently being tested on a smaller scale in several bus stops throughout Seoul, and household needs giant Procter & Gamble executed a wall in four major subway stations in Prague featuring razors, laundry detergent and the like at the end of 2011. Just weeks ago, consumers in New York were treated to a shoppable apothecary wall by Conde Nast’s Glamour magazine, and Chicago’s own O’Hare airport is currently sporting a wall by Sears with popular toys for boys and girls (seen in the photo above). Business traveling parents take note—if you forgot to grab little Susie or Bobby a souvenir from your trip, this wall could be your saving grace on the way to baggage claim. Just a few clicks and the latest Elmo-doll sensation could be yours!

While many of the executions noted are using the more widely recognized QR codes for scanning purposes, SpyderLink’s Snap Tags are also starting to make appearances in the world of (literal) window shopping.

With brands on the lookout for new ways to target consumers, technology takes center stage with virtual walls providing a seamless, simplified shopping experience.

Why is this? The common answer is that business people (apparently unlike “normal” people) are totally rational and can’t be influenced by anything as squishy as “emotion” in sales or marketing pitches. I just don’t buy that. People don’t change how they react to marketing when they’re at work.

We recently put this theory to the test and set out to prove —rationally, with quantitative research that would convince the most cynical B2B marketing client—that affecting emotion is a more effective way to influence all kinds of B2B decision makers. You can check out the full study here. The gist of it is, absolutely: tapping emotions is more effective.

So what does it mean?

Emotion is a powerful tool and deeply affects the way business decision makers react to marketing communications. The widely held belief that B2B decision making is rational and pragmatic is wrong. The research proved that just as in consumer marketing, emotions are a valuable tool.

Effective B2B marketing should affect the target’s emotions while delivering its selling message. It follows that the creators of marketing communications should work to inspire their audience with their creativity, be it a conference event, a website, a sales presentation or advertising.

And finally, the excuse, “Ah, but my business is different,” isn’t enough to justify lazy and uninspiring creativity in B2B marketing.

Gender Bender, an examination of shifting gender based demographics and dynamics, featured in our Ten Trends for 2012 report, builds on a theme we’ve been following and writing about over the past few years. Namely, that with women’s educational ascendancy and growing economic power we’re now witnessing one of the most dramatic cultural upheavals in this country’s history.

In her new book, The Richer Sex: How the New Majority of Female Breadwinners is Transforming Sex, Love, and Family, best selling writer and Washington Post reporter Liza Mundy presents a fascinating perspective on what she calls the Big Shift. Drawing on many of the same sources we’ve cited in our own observations about these changes, Mundy outlines a broad variety of current indicators which speak to what’s in store for our culture as women wield greater influence in the workplace and the marketplace. For instance, fifty-seven percent of undergraduates are now female, and women earn the majority of doctorates and master’s degrees, leading some experts to predict that in the next two decades, medicine and law will be dominated by women. Already, according to a 2009 U.S. Bureau of Labor Statistics Survey, in 4 out of 10 working couples, wives out-earned their husbands — essentially doubling this figure in just two decades. Mundy does note that women have not quite shattered the glass ceiling given that they still face a wage gap; women working full time earn a median wage that is eighty-one percent of what men make. Still, when we look at single women in their twenties in major metro areas, women are already out-earning their male twenty-something peers. Look out!

As we’ve noted before, many marketers continue to either ignore or misinterpret what these changes mean for today’s household dynamics. One of the Mundy’s most important observations centers on how increasing income parity is redefining relationships and changing younger Americans’ notions of masculinity and parenting. With so much evidence pointing to a more egalitarian approach to raising children, a sophisticated marketer like Kimberly-Clark recently sparked what Advertising Age called a poop storm of controversy when outraged fathers launched an online attack on a Huggies campaign which portrayed fathers as clueless and inept. At Internet speed, one outraged Pennsylvania father started a petition entitled “We’re Dads, Huggies. Not Dummies.” Armed with his own powerful demographic stat, Routly pointed out that according to the most recent U.S. census, one in three fathers acts as his family’s primary child caregiver. Lesson learned, Kimberly-Clark quickly apologized and retooled the campaign.

A broad spectrum of cultural norms will be reshaped as gender roles shift and evolve. And smart marketing will reflect these changes without distorting or misinterpreting what they mean for both men and women. Yet the road to enlightenment can be a winding one, so while we expect to see more intelligent depictions of involved fathers like those in P&G’s new Vicks campaign, we may also have to witness a few more poop storms.

But could it have the same effect on what people think about the world that frames the characters and complexity – the world of marketing? As consumers become bored with traditional advertising techniques, brands evolve by producing more entertaining, interactive, and insightful campaigns, so consumers can’t help but enjoy the creativity and innovation in content. However, they’re still wary of advertising claims, believing that brands are more interested in bolstering sales than providing consumers with products to benefit their lives.

Much like Mad Men’s uncanny ability to change culture through its poignant human insights, the show could be beneficial to the public’s perception of marketing as well. In “The Wheel,” the final episode of the first season, Don Draper pitches an idea for a slide projector to prospective clients at Kodak, who made it clear that they’re interested in running with an ad theme of technological advancement in their new product. However, by putting his personal photographs onto the projector, tainted by the heartbreak of his inner turmoil and crumbling family life, Draper effectively shows the clients at Kodak, and the viewer, that marketing is not about shiny new things. It’s about human insights, the personal relationship people have with certain products, and the opportunities brands have to capture the memories and emotions that surround human relationships.

It could just be that, with Mad Men’s gaining popularity and the growing interest in advertising (The Pitch, a new reality show centered on agencies pitching marketing ideas to brands, was hatched to strategically bask in Mad Men’s glow), the show has the power to change consumer culture’s suspicion of marketers. With a carefully-curated storyline, consumers now have an insight into Don Draper’s perspective that campaigns are made by humans for humans, with complexity and emotion both delivering and receiving each message.

There are a number of useful nuggets tossed out in the video, including the idea that curators get people to see normally-overlooked connections between things and think about what those connections mean. But it’s worth noting the two words that come up again and again in the video: “trust” and “interesting.” The connection is no coincidence. People (and brands) that become successful curators do so by earning the trust of their audiences, and that trust is built by continually prioritizing what’s interesting over what’s new (in the words of one speaker in the video). Trusting a curator really means trusting his or her guidance to information that’s worth your time, because you respect the curator’s perspective, opinion, motivation, and insight. Boy, that sure sounds like a strong foundation on which you can build your brand, doesn’t it?

Oh, and we shouldn’t overlook the company that brought you this video. Percolate offers a particularly valuable viewpoint on curation because of their publishing platform, which is specifically built to help brands create content that straddles both Guruism and Collective Curation. Central to Percolate’s approach is the concept of “stock and flow” content, which means striking a healthy balance of long-form insight pieces (“stock”) and quickly consumable bites that keep an audience returning on a frequent basis (“flow”). Taken together, stock and flow help a Curator become both a durable resource for timeless insights and a vigorous generator of easily shareable (read: tweetable) snippets. You can see this concept (and the Percolate platform) at work on the Healthymagination site from GE.  Trying to humanize a complicated (and typically B2B) organization like GE isn’t easy, but it’s a simple sell to get consumers excited about a site that provides visitors with a wealth of wellness information through homegrown, long-form content from health experts, augmented with a steady stream of short-form content captured from around the web.

Recently hitting 10 million unique monthly views faster than any standalone site in US history, Pinterest is becoming too big to ignore, especially for brands and marketers. Curious about what this site is and how to utilize it? Check out our new Potty Posting, which takes a look at how brands can use this site to “pinspire” consumer action.

The Ego to Her Id

Do you often find yourself planning a hypothetical wedding, decorating a hypothetical house, or building a hypothetical shoe closet out of items you probably can’t afford?

If so, you might have a Pinterest problem.

At least you’re not alone. Apologies in advance to anyone who’s already familiar with it, but Pinterest is a social media site for users to gather, organize and share things they find on the Internet in a visually-stimulating, digital scrapbook. With over 11 million unique monthly visitors in January and referral traffic equaling that of Google and Twitter, it’s gaining a lot of attention.

“NOOOOOOO!” you exclaim in a fit of rage. “I can’t keep track of all these stupid social networks anymore! What makes this one different?!” Geez, calm down.  Have some pins to help you relax.

A user’s Pinterest boards, or categories in which she “pins” items, are filled with inspirational quotes, entertainment ideas, parenting tips, recipes, decorating palettes, and everything else she can relate to. Even if the user doesn’t have the time, money, or energy to achieve or own all of the cool things she pins, she can still customize her scrapbook so that it becomes a visual representation of her ideal self, or what she would do if she could. Essentially, Pinterest is the organizing, rational helper to her passionate, impulsive instincts – the ego to her id.

In this way, Pinterest is the perfect platform for brands to connect with users. Whether they realize it or not, brands and marketers have been tapping in to the id and ego for decades, convincing consumers to satisfy their impulses by rationalizing those choices for them. That’s why brands have really started taking notice of this new platform. Some active brands on Pinterest, like Chobani yogurt and Gap clothing, post photos of recipe ideas and clothing combos (respectively) to allow users to save the brand as a “maybe someday” wish, without the immediate commitment to buy.

And when these brands trigger her lustful impulse to pin their attractive or delicious products, she shares it with the entire Pinterest community (there are no privacy settings on boards yet), and it guarantees that she’ll recognize it and be more likely to purchase it when she sees it in real life. Plus, on Pinterest, brand content doesn’t come in the form of a sponsored story or a traditional ad – it’s mostly re-pins from other users, which is, essentially, a recommendation of that brand by other community members. This recommendation is invaluable, because every marketer knows that people trust friends and virtual strangers more than advertising.

There’s only one problem: brands have to make it seem like they’re not selling anything. This is easy when it’s other users re-pinning a brand’s content, but with the ability for brands to create their own profiles and boards, the directness of the brand’s self-promotion could make users wary. A user’s boards are really personal – they’re an open exhibition of her philosophies, goals, dreams, and lifestyle. This puts brands at a disadvantage: a Pinterest user is not going to respond very well to impersonal ads and marketing messages taking advantage of the personal information she shares on her boards and cluttering up her ideal-self-collage.

This makes it necessary for brands to use Pinterest’s platform, and the nature of a user’s impulsive id, to do the marketing for them. On Pinterest, images take center stage, so brands should focus on eye-catching photos of their products to encourage re-pinning. Descriptions should be kept short and sweet, with just enough information to warrant a click. An important but often overlooked rule of thumb is to make sure pins are added to the right boards; if a brand offers a great product for a user browsing a “Midnight Snack” board, it’ll be a perfect match.

In addition, since Pinterest doesn’t have an established revenue plan, brands can leverage this user-driven community for creative advertising. For example, Corona could host a “Pin Your Beach” contest based on its “Find Your Beach” campaign, in which users pin images of their perfect getaway and win prizes. Her re-pinning the image, and the next user re-pinning it from her, will ensure a degree of separation that still brings a brand’s image to a user’s board, but without the directness of something that could be considered an advertisement.

The opportunities Pinterest offers brands is enormous, and by getting savvy to the platform and inspiring action in re-pinning, a brand can target a user’s impulsive instincts and ensure its place on her ideal-self-collage.

How it Works

Pick your movie details. You start by choosing a film you want to promote and the city you want to watch it in. Then enter some basics about your social network—how many followers you have on Facebook, Twitter and Google+ and how many you’ll email about the event. This helps them determine the size of theater and potential to fill the seats. (Guessing they have some fancy algorithms and combobulators to figure that part out.) At this stage you also have to agree to their promoter terms, basics on what you can and cannot do.

Promote your event. Then it’s up to you to get the word out about your event, via social networks, email, etc., and get people to sign up. Their website will soon have an area for users to browse local events to hook up with others. And depending on the film (and licensing agreement), they’ll provide digital images, clips and/or sound recordings for you to advertising the event.

Attend movie. Once you hit the required amount of RSVPs—it tips similar to Groupon-type services—you can enjoy the movie in a theater with your friends and community.

What They Offer

Tugg works with film studios and independent filmmakers to offer a rich content library. They continually add new titles including the biggest blockbusters, film festival favorites, award-winning shorts, repertory classics, and everything in between.

It’s a great opportunity for movies that have limited release or go straight to video. Right now their site is promoting two films: The Tree of Life which had limited release; and The Loved Ones, described as “Sixteen Candles meets The Texas Chainsaw Massacre” which sounds like either.

It doesn’t look like there are any limitations for brands using the service. So I’m looking forward to Pacifico’s event and screening of The Endless Summer (hint, hint).

The argument for permanent change is that frugality is the new reality, as people turn their backs on conspicuous consumption. Many pundits link this ‘new attitude’ to popular support for the Occupy Movement, which is seeking to replace consumerism with a more utopian society. Very idealistic but as far as there being a long-term shift in consumer sentiment, forget it.

Yes there’s a mountain of data to show I’m wrong. Only yesterday I read a shopper study from a well respected research group, which described the consumer’s new and apparently permanent mindset: designer purses, high-end cosmetics, high-end jewelry, maid service, facials, new jeans and new shoes, to name but a few ‘expendables’ are all out. Other media reports even tell us the recession has a silver lining, either because it’s a ‘teaching moment’ on family finance or because it has freed people from the treadmill of spending.

Now I don’t dispute the recession has had a terrible impact; nor do I challenge that much discretionary spending is way down, just as coupon use and spending in the Dollar Channel is way up. My argument is this behavior is caused simply by a lack of cash and not by any cultural shift.

But wait I hear you cry, what about the explosion in bargain hunting? What about the success of Chicago’s own Groupon? Or Rue La La? Surely that’s a behavior that will stay? Yes, but then haven’t Americans always loved a bargain? The 1980s and 90s saw the rise of Walmart, feeding consumers’ desire for “everyday low prices.” People have always lined up outside stores with big sales: last Thanksgiving it was Walmart and Best Buy. 30 years ago it was Sears and Marshall Fields. While today’s shoppers are better informed, I don’t believe they’re any more bargain hungry than earlier generations.

In any case, my point here isn’t that people won’t carry on looking for deals; it’s that even after the worse recession since the 1930s, their emotional drive to shop for things that make them feel good remains a strong as ever. Sure actual spending has dipped because the money dried up but that visceral desire to consume remains. And if I’m right, brands that tap into that pent up demand will do far better than those who behave in line with the ‘conventional wisdom’.

For support of my thesis, look at Gfk Roper’s latest Annual Perspective. Gfk Roper asks some smart questions that give a better glimpse into people’s minds than most polling.

First, over the last 3 years the percentage agreeing with the statement “I am really turned off by people’s obsession with material possessions today” has declined, from 67% to 61% for the whole population, and from 67% to 55% for those earning over $100k.

Then take a look at this Gfk Roper chart, showing the percentage of people who agree with the statement “I like to buy prestigious brand names.”

What hits me about this chart is that it clearly shows that what I’m talking about isn’t restricted to the very rich, but is shared by many middle-income households.

On a more anecdotal level, think about the current success of glitzy brands like Audi, BMW, Mercedes and even Detroit’s own Cadillac. And to judge from the crowds at this year’s Chicago Auto Show, the appeal of these high-end brands is pretty universal: their stands were far busier than Ford or Chevy. Sure most people were probably fantasizing but that’s my point: the desire for brands with style and cachet still outweighs the appeal of more worthy options like the Toyota Prius and Chevy Volt.

Finally, talking of cars leads me to the Mercedes-Benz sponsored New York Fashion Week, on as I write. The coolest aspect of fashion today isn’t the on-going success of couture classics like Chanel and Armani (nor even Marc Jacobs’ simply marvelous hats shown above), but the spread of designer labels into the real world. Olivier Theyskens at Theory, Marni at H&M and Mizrahi at Target are all brilliant examples of hip designers and savvy retailers tapping into consumers’ desire to wear a ‘designer piece’, albeit at a relatively affordable price.

My point is not that consumers aren’t hurting, they are. My point is that despite the last few years, people still yearn for possessions that truly make them feel good, be that a killer pair of Louboutins, a new Audi or a bottle of 20 year old Elijah Craig Single Barrel bourbon at over $150 a pop. And as times improve, people will go back to their old ways (check out this recent CNN article on consumer spending.)

I’d add that even if it takes years for the economy to fully recover (sadly that’s the consensus of most economists), people are going to find ways to spend on what they really love, even if it means shopping at Dollar stores for everything else. What they will not do is stop being consumers, in the full-up capitalist sense of the world.

The take-away for marketing people is that you need to think very carefully how to tap into today’s Zeitgeist or spirit of the times. Do you stick with the conventional wisdom and try to connect with the ‘frugal’ consumer mindset? Or with the consumer who really can’t wait to indulge in some spending again? My money is on the later but what do you think? And if you disagree with my argument let’s have a debate. Post your thoughts. Start a conversation. It’s what blogs are for.