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THE FEAR OF CHANGE IS CHANGING

Writer
James Penfold
Likes 0
Expected time to read 5 min


Innovation, by its very nature, involves change and disruption. This is
undisputed, but many businesses can, naturally, have some reservations about
disrupting themselves too much. After all, change can often seem like a scary
thing. But businesses have now been forced to change by something well beyond
their control. The aptitude to risk has changed and ‘pandemic’ will be
referenced in the PESTLE analysis of every university student's dissertation for
years to come.

At Rehab, we’ve witnessed this attitude shift first-hand and several of our
clients are now looking at previous ‘no go’ areas to ensure that their
businesses are future-proofed and able to meet new behavioural change. This
includes direct-to-consumer strategies and external brand partnerships to offer
something bigger than they are individually allowed to offer. This seems
obvious, but this mindset is not natural to some businesses. Especially those
with established retail supply chains and fulfilment processes that have taken
decades to develop.

They’re experimenting with new models and a renewed understanding that certain
technology solutions are no longer ‘nice to have’. To quote Scott Galloway:
“Things won’t change as much as they will accelerate. While other crises
reshaped the future, COVID-19 is just making the future happen faster.”

Specifically, we’re seeing renewed focus on cross-department collaboration with
companies, creating steering groups and bringing in trusted advisors from lots
of different departments. Finance teams are working with digital teams to
develop new revenue models, sales teams are informing digital strategy, and so
on. A fake product, a series of banner ads and a considered social media test
generated more insight into buyer behaviour for one client than they had seen in
months. It took us three days. Marketing? No. They were product development.

Innovation is happening like never before and it’s all being driven by changing
consumer behaviour and the need to understand who the consumer actually is. And
quickly.

And data is front and centre. Ecommerce orders have sky-rocketed over the last
12 months. Sales are one thing, but the data and insight this generates is on a
whole other level and this is really where the major change is happening. A lot
of businesses have not been able to make the most of this and have failed to
embrace behavioural consumer trends like D2C or subscriptions. Peloton, Heights,
HelloFresh - these are incredible businesses that deserve every success, but if
I was a VP working at one of the major global conglomerates I’d be really pissed
off. These are exactly the sort of companies that should have been incubated by
a multi-billion turnover organisation. But they weren’t. Large companies don’t,
can’t or won’t think like that. Change means effort and upsetting that status
quo.

But they don’t really have a choice now. It’s make or break and the businesses
that have properly invested in technology, data science teams, and sophisticated
R&D and innovation programmes will reap the rewards.

Based on the brands we’re working with, there is, in particular, a real focus on
understanding how the retail and online journeys can help feed into one another
to generate behavioural insight. Nike is a standout example here. Their app
ecosystem - SNKRs, Nike App etc. - provide insight, trends, and touchpoints to
their fans. This insight is then also used to tailor the in-store experiences,
providing exclusive promos, rewards, or experiences.

LuLu Lemon is another brand that understands the power of the digital ecosystem.
The app obviously provides commerce functionality, but also brand stories and
opportunities to connect their fans and user base to each other via yoga events
etc. And with the recent acquisition of Mirror, it’s clear to see their ambition
is to have all aspects of the fitness market covered, and with it - a
subscription based business model that provides insight and information back
into the LuLuLemon marketing and product teams. They now have the power to use
this insight to inform highly personalised experiences, offers and loyalty
programmes that will be so targeted and so incredibly relevant that consumers
will simply refuse to consider other brands. 

Omnichannel has been a buzz word for years, but the last twelve months has
really galvanized senior leadership teams to make this happen. They’re now
properly integrating teams and implementing the ‘nice-to-haves’ that, lets face
it, were ‘must-haves-put-off’ because they would upset the status quo and cause
additional stress, pressure and work. COVID-19 has forced a change that has been
hovering on the periphery of business and marketing strategy for close to
decade.

Going back to how department interaction is changing, it’s important to
emphasise that large corporate structures, policies and politics can stifle
innovation (but not always), and incredible ideas might get overlooked or
ignored because they haven't come from the ‘right’ department or stakeholder.
Building on this, we’ve found an increasing number of companies are needing to
operate and innovate outside of the main corporate structure with entirely
separate skunk-works type teams. They have the funding and support of a major
business, but are able to operate with more autonomy and agility. Testing and
development is faster and insight can be generated quickly before being brought
into the fold when proven, leading to faster change at less risk. If you feel
restricted by the speed and agility of your organization then this may be the
solution for you.

I’d argue the days of the 2 or 3 months research programmes are now gone. The
last year has proven that you can test a single proposition or product within
days (hours, in some cases) to gather just enough insight and feedback, in near
real time, to make an informed decision. The fear of failure has been wiped out
by the need to survive and it's incredibly exciting to witness.

We constantly reference the McSpaghetti test at Rehab. Whether it’s myth or
reality, it’s a proven concept that we know various businesses use. Put a fake
product online (or in-restaurant in the case of McDonalds) and if enough people
click to purchase or enquire about it, you accelerate it’s development. Simple.
Ever seen an unusual dessert on the Domino’s website? Sold out? Know anyone
that’s tried it? Thought so. This painted door test is a well established and
proven way to test consumer demand and you can do this on your products without
blowing the bank. Smart, highly targeted contextual paid social advertising
leading to a single page website can deliver more insight than a month's worth
of traditional research.

Traditional marketing teams are now embracing new thinking like this. It is how
startups operate. It’s how your new competitors are operating and it’s how your
brand should be operating, if you’re honest with yourself. But are you willing
to change?





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Startup Details


STARTUP DETAILS

TOTAL FUNDING AMOUNT
CB RANK (COMPANY)
 * WEBSITE
   https://www.rehabagency.ai/
 * CONTACT EMAIL
   hello@team.rehab
 * 


REHAB AGENCY

rehab helps brands create scalable, one-to-one relationships with people through
the tech they love.

 * Headquarters Regions
   London, UK
 * Founded Date
   2005
 * Founders
   Robert Bennett
 * Operating Status
   Active
 * Number of Employees
   51-200


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