New Year New You

Happy New Year to all our readers here at XLA. We are dubbing 2024 as the year of the customer & the consumer. With the past year being heavily influenced and crazy about generative AI and how it will lead to further automation and job loss, technologists tend to forget about one big thing about innovation.

Innovation means better choices and more options to pick from for customers like you and me. The saying goes, “In the sea of choices, the consumer sails the ship of demand.” Therefore, 2024 will definitely be a customer’s paradise. But, its important to note that an abundance of choices can create a poverty of decisions. So with that, be sure to ask yourself this year whether you are in the shoes of a customer in your professional or personal lives, what can I do to be a happier consumer?

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Lets Raise The Stakes

XLA Predictions For 2024

Customer Experience: Convenience Is No Longer Just For Convenience

The phenomenon of 'Amazonization' shaping customer expectations continues to accelerate. For those over 25, memories of pre-Amazon delivery speeds linger, but a new, younger demographic is emerging for whom Amazon's rapid delivery is not just a convenience but a baseline expectation for all brands. This year, we anticipate a pivotal shift in consumer priorities, with speed and convenience poised to eclipse price as the paramount concern. In fact, the value placed on swift service and an enhanced customer experience is likely to reach new heights, to the point where consumers may be willing to pay more for these benefits than for the actual products themselves. This marks a significant evolution in consumer behavior, where convenience is no longer a luxury but an expectation, a fundamental part of the purchasing decision.

Consumer Brands: Sell Online, Experience In Person

The emerging trend of physical experience stores is rapidly becoming a standard step in the brand-building playbook. For growing consumer brands, the lifecycle is evolving to first focus on cultivating a strong community, then developing products that resonate with this base. The initial sales strategy often revolves around direct-to-consumer (DTC) online platforms. However, the journey doesn't stop there. The next strategic move is the establishment of physical storefronts, conceptualized not as traditional retail outlets but as immersive experience centers. These locations are increasingly seen not as direct revenue drivers, but as vital marketing and branding tools. They serve to solidify the brand's legitimacy and stature in the market. In essence, a physical store has transitioned from a mere sales channel to a symbol of a brand's maturity and its entry into the 'big leagues'. For consumer brands looking to make their mark, the strategy is clear: invest in experience centers in key strategic locations, prioritizing cities that align with their customer demographics, even if the primary goal isn't immediate revenue generation. This approach underscores the importance of brand experience in today's retail landscape.

Big Mistakes: Fool Me Once Shame On Me And You

As the market landscape evolves, the patience and forgiveness of customers, whether in B2B or B2C sectors, are noticeably diminishing. Increasingly, brands are finding themselves in a 'one-strike' environment, where they might only get a single chance to impress or rectify a mistake. This shift is underpinned by a prevailing 'what have you done for me lately?' attitude, where ongoing loyalty is contingent upon continuous satisfaction and immediate benefit. Loyalty is no longer a given, even for established customer relationships; it needs to be earned and re-earned with each interaction, and this is particularly crucial for first-time customer experiences. The upcoming year could be a challenging period for large brands that prioritize product over experience. In this emerging market dynamic, the brands that understand and cater to the evolving demands of their consumers, focusing on loyalty through exceptional experiences, are likely to emerge as the winners

AI: AI Will Not Replace Any Jobs This Year

While advancements in AI have been significant, we firmly believe that this year will not see AI fully replacing customer-facing roles. Instead, its role will be more about augmenting and enhancing the capabilities of human staff. AI technologies like chatbots, AI telecalls, and automated customer interaction systems are still in their nascent stages, grappling with complexities in truly understanding and addressing customer issues effectively. Current offerings from OpenAI and other large language model (LLM) providers have yet to unveil a model that fully aligns with our vision of AI-driven customer support. This means that, for now, customers may not have to endure the frustration of overly simplistic chatbots and basic support levels that often lead to a diminished service experience. The hope is that AI will soon evolve to be more of a robust assistant, complementing human efforts rather than frustrating them, thereby expanding the capacity for quality customer interactions without replacing the human touch.

Public Domain Day

Mickey Mouse and Tigger Are Free Use

Last Monday was public domain day meaning all works from 1928 and all sound recordings from 1923 are open to all to be used however you like. Therefore, if you think A.A. Milne’s “House of Pooh Corner” should have had a different meaning, you can do so now.

But what does that truly mean for customers and consumers?

Public domain availability plays a crucial historical role, offering significant benefits to consumers like us. It represents a rich reservoir of knowledge and culture, free from the restrictions of copyright, allowing unrestricted access to a wealth of literature, art, and scientific information. This open access fosters creativity, innovation, and education, as it allows artists, scholars, and the general public to build upon and reinterpret these works without legal barriers. For consumers, this means an enriched cultural landscape and greater access to diverse educational resources. The importance of the public domain lies in its ability to democratize information and culture, making it a key asset in the pursuit of knowledge and creative expression for all.

Check out Public Domain Review to see what else is available.

Free Latte For Your 20% Off Shoes

Claim is revolutionizing the way we think about shopping and social interaction, merging them into a unique, value-driven experience. This innovative platform turns the concept of consumer rewards into a multiplayer game, similar to trading cards but for brands, making shopping a shared, enjoyable venture among friends. Users not only earn and exchange rewards but can also collectively redeem them, fostering a sense of community. This approach transforms the traditional shopping experience, making it not just about transactions but about creating real-world connections and communal experiences. It's a fresh take on consumer engagement, focusing on shared enjoyment and savings.

Interestingly, Claim started as an invite-only beta, specifically targeting university and college students in Boston, emphasizing its appeal to a younger, tech-savvy demographic. This exclusivity adds to its allure as it slowly builds its user base with a focus on quality interactions and meaningful brand connections. Recently, the platform received a significant boost, securing $4 million in seed funding from Sequoia Capital. This investment is a strong endorsement of Claim's potential to reshape the landscape of consumer-brand relationships, promising an exciting future for both shoppers and marketers alike.

To learn more about how Claim is blending shopping with social connectivity and transforming consumer experiences, check out the link here.

Consumer Investment Outlook

In 2024, the landscape of funding series is poised for a resurgence as a steady stream of deals begins to invigorate the consumer sector. Recognizing the trials and tribulations faced by startup brands over the past two to three years, investors are now looking at a more promising horizon. Recent months have already hinted at this shift, revealing a growing eagerness among investors to open their checkbooks, albeit selectively, with a keen eye for the right company.

In an article with Modern Retail, several venture capitalists shed light on their strategies and expectations for the year ahead. Some of the key objectives they have their sights set on are companies with strong fundamentals, healthier consumer packaged goods, and celebrity brands.

There’s still an allure to your favorite actress or YouTuber starting a soda and chocolate brand. Let us know who you would like to see start a consumer brand.

Consumer Startups

This week may not bring fresh deals to the table, but it's worth reflecting on the insights shared by a16z as the year drew to a close, particularly their vision for the future of marketplaces influenced by AI.

As consumers, we stand at the vanguard of these evolving landscapes. Each new technological platform shifts the dynamics of our transactions. The advent of the internet transitioned us from the realm of classified ads and community bulletin boards to online giants like Amazon, eBay, and Craigslist. Similarly, the rise of mobile technology has paved the way for app-based services such as DoorDash, Uber, and Instacart, further reshaping our purchasing behaviors.

We will be here to share with you how things unfold.

Customers Care

Stand Clear and Stanley: Stamped at America’s store “Target” for the new Valetines Day Version of Stanleys. In January?

Best Travel Experiences: Travel + Leisure has released their best experiences worth traveling for this year and we are all about Experience here at XLA

Design Trends: Canva shared their design trends for 2024 but personally we think Bold Rebrands should be number one

Default To Yes: No one wants to hear no from customer service, how to default to yes

Thank You, Come Again

Thank you so much for joining us on this edition of our newsletter! We're thrilled to have you with us on this journey through the ever-evolving world of consumer and customer experience. Our goal is to keep you both informed and entertained, bringing you the latest and most intriguing insights in this dynamic field. We're always eager to hear from you, so if you've encountered any amazing customer experiences or stumbled upon some standout products, please do share your stories with us.

If you've found even a smidgen of value in our newsletter, we encourage you to subscribe and spread the word among your friends. Your support means the world to us. Here's an exciting milestone we're aiming for: reaching 1,000 subscribers. And believe us, we have something truly special in store for our readers once we hit that number. So, stay tuned, keep sharing, and let's make this community grow together!