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If you own a successful small or medium sized retail business but you’ve never sold your products online, you might be wondering whether you need to. Or perhaps you’ve just bought a business that has a healthy balance sheet and proven track record but no online presence and you want to supercharge growth. Either way, it’s time to go digital. Here are our top five reasons to embrace e-commerce.
Some industries have been decimated by the rise of ‘digital first’ giants. It’s hard to predict which sectors could be hit next. From Amazon closing down department stores, to music streaming sounding the death knell for your local music store, if you aren’t yet selling online, you are more vulnerable than most.
Statista claims that in 2019 there were 1.92 billion digital buyers worldwide with e-commerce sales accounting for 14.1% of all retail purchases. If 14% doesn’t sound like enough of a reason to go digital then think again. This share is rising year on year and e-commerce is the biggest driver for growth in the retail sector overall, both in North America and Europe.
Every business wants to make more money. Numbers vary from business to business but BigCommerce says that physical stores that open an online store are making 28% more in revenue via their online channel within just six months. You are tapping into an audience who may only shop online (or even only on their phone) for convenience. A whole new audience you couldn’t get into your store. A larger customer base means more revenue.
The modern consumer has honed in on their affinity for certain brands. They don’t just choose the company that is geographically closest to them anymore, they choose the brand which is most aligned with their values. An online store gives you the opportunity to communicate to a wide audience who you are as a company, what your values are and why you do what you do.
Modern e-commerce platforms are sophisticated. They can sync with inventory management and fulfillment systems. You can build your audience with search engine optimisation, social media campaigns and paid online advertising. You can even send out emails to customers who filled up their cart and then got distracted, to try and tempt them back to complete their purchase. Opening your online store can form part of a wider project to digitise analogue, outdated processes across your business. Saving money and making more money at the same time. What’s not to like.
This is where we come in. Den can help you get your brand ready for digital, design and build your online store, or help you with digital transformation across your business.
Creative thinking can have a huge impact on business and in a climate where businesses must innovate or die, this is more true than ever. Aspiring creatives leave university or college with a basic set of tools, but what they do with them and the impact they can have are really wide open. Den went to the University of the Arts London (UAL) Creative Futures week to inspire the next generation to think about design thinking and the impact it can have on business.
Our growing team of designers and developers have between them an amazing breadth of skills and experience. One thing they have in common is that they never imagined the impact they could have on the business world, by applying the kind of thinking they have learnt in their education and work lives to date, to business problems.
Den regularly undertake transformational brand and web projects for our clients but since teaming up with Elixirr, we also take part in the design thinking process that Elixirr, the challenger consultancy, have made their own.
We headed over to UAL at Elephant & Castle to tell the story of this kind of work.
I acted largely as a kind of master of ceremonies, with the real content coming from Cat, an Elixirr Consultant, Vanessa, one of Den’s Creative Designers (and incidentally my inspiration for putting us forward for the talk) and Rob, Den’s Creative Director, there to answer questions about career success in the creative industries.
We took the assembled students through our process:
At the start we help our clients to define their challenge (a problem they want to solve). Then we aim to expand their thinking by showing them cross-industry content about innovation and how consumer’s expectations are being raised by other industries to the point where they are no longer happy for signing up to a bank account (for example) to be a lengthy, paper based, in-person process.
With minds expanded, our team take the clients through a process of refining a solution. The idea is not just to improve their current offering but to move into a space they might not have imagined before they defined the problem, but to really aim high for their consumers. The outcome of that workshop process is often some very low fidelity wireframes of a potential application, dashboard or similar that is going to do more than just solve their problem.
At this point the design input really ramps up. We go through a process of rapid prototyping and user testing until the design is ready for the team to build the MVP (minimum viable product). Sometimes we can take advantage of time zone differences and clients will go for dinner leaving hand drawn app screens on the wall and wake up in the morning to a working clickable prototype. We move from low fidelity prototypes to high fidelity designs making sure that the UX is slick and the look and feel is inline with the brand and enhances the user experience.
We then talked through translating the designs into the final product through the build phase of a project. As our developers are part of the Den team, they work closely with our designers and the consultants to make sure development is not only fast but accurate. We can sometimes go from defining a problem to launching a new application live in the space of four months.
Vanessa inspired me to suggest Den take part in Creative Futures because she said to me that she loved the work she was doing. At the time she was working to solve extremely complex user experience issues on a trading platform. She added that never in a million years would she have imagined that this is what she would be doing a few years on from leaving her design training at UAL. It feels really good to be making such an impact with the tools she left university with and adds to every day.
We had a great audience who asked lots of questions about how their skillset might fit in to the journey we had discussed, as well as seeking more general career advice. It felt important for Den to be part of this Creative Futures event. If we don’t reach out and tell our story then we only meet the creatives who have already made the leap to see their value in the business world, and we aren’t necessarily meeting the very best thinkers from the creative talent pool. We always look forward to welcoming new creative and technical talent to our team!
I am not a savvy shopper, definitely not a committed bargain hunter, but I am obsessed with brand identity, authenticity and the emotional connection between brands and their consumers.
Everything about walking into a shop in sales season puts me on edge – the jumbled rails of mismatched items dangling by a shoulder from the hanger, the elbows, the frustration and palpable anxiety bubbling just below the surface in my fellow shoppers. There’s also the stories of people getting stretchered away after midnight stampedes and security guards getting battered out of the way, around the world. Online sales are a little easier for me – less elbows, less bubbling rage, more filters. But, you can still trawl pages and pages of ‘load more’, find exactly what you want and then discover it’s only available in a size 6 (not my size by the way). I’ve often used up the last of my short attention span to get to this point and the frustration is too great, I bounce.
So, it’s no surprise that on Black Friday, rather than queuing from 3am to get my hands on an Xbox, I’m analysing how brands have approached the dangling carrot of a revenue feast and whether they’ve managed to hold on to the meaning of their brand, the message they want their consumers to believe that they believe in, or if they’ve left it trampled on the floor below the shelves piled high with goods, bought in to flog to the frenzied crowds. Have they harmed or enhanced the loyalty consumers feel towards their brands?
Some brands have nailed Black Friday. They’ve cut through the noise and most importantly, they haven’t lost themselves along the way:
Dewerstone are an outdoor lifestyle store and brand. The first line of their ‘About Us’ page on their website says ‘We’re people that love the outdoors.’ And what did they post on Black Friday? ‘We’re shutting the shop, office & warehouse doors on Black Friday, we’re just not into it. We’re going adventuring instead.’ They don’t just talk the talk, they walk the walk. They are prioritising their team and the outdoors for a day. As a brand who want to be part of the outdoor community, who typically are interested in quality, and the environment, the risk to their revenue in not taking part in Black Friday, was outweighed by the risk to their brand if they did. In case it isn’t clear enough whether they care more about their customers’ loyalty or their bottom line on Black Friday, they even take a moment to thank their followers for being customers every other day of the year.
Patagonia, another outdoor brand, state very clearly on their website that their mission is that they are in business to save ‘our home planet’. In 2016 they launched their Black Friday campaign ‘100% Today, 1% Every Day’. They pledged to donate 100% of their Black Friday sales to grassroots nonprofits working on the frontlines to protect our air, water and soil for future generations. And guess what the final sales tally was for Patagonia that day? $10 million. Good call.
Pieminister turned Black Friday in to Black Pie Day in 2018. Since their inception, Pieminister have donated pies to good causes, from homelessness hostels to community fairs to fundraising banquets. They call these donations Little Acts of Pie-ness and their website states that they’ve put over 200,000 pies to good use in this way already. Every Black Friday they give away pies in their shops and pop up shops around the country in exchange for donations to Shelter, raising thousands of pounds. The purported values of the brand, what they care about, what they think matters is clear to any consumer. It isn’t a gimmick, it’s who they are. So, they lose a days sales, but they gain a loyal band of pie eaters in the process.
They have always maintained a policy of no deals, no discounts, for their game. Before Black Friday 2013 the game had always been $25,and the makers felt that doing any kind of deal or discount would undermine the simplicity and honesty of the game. This is a really important brand value and really difficult to uphold in the maelstrom of deals that is Black Friday. In 2013 they settled on their angle, they raised the price of the game by $5 and saw a huge sales spike as a result. Their campaign parodied the slightly stomach turning marketing concept of establishing scarcity, leading people to purchase when they wouldn’t (or shouldn’t) normally, due to a manufactured sense of urgency. They crossed out the $25 dollar price tag and listed the new $30 dollar tag, with phrases like ‘Today only!’ And ‘Once-in-a-lifetime-sale!’.
This year they’ve gone fully dystopian pitting their human staff against a bot to see who can come up with the most popular pack of new cards. Again, no discounting and a perfect illustration of their playful brand identity, hopefully creating new encounters with their brand for new customers.
A sustainable fashion brand, founded by a group of surfers committed to protecting the oceans have turned Black Friday in to Green Week: ‘Black week turns green – one order = one tree’. They offer to plant a tree for every order placed in Green Week. They haven’t ignored the discounting element of Black Friday, offering ‘special discounts for a better future’, but they’ve added meaning. To date (since Sunday 24th November – in 6 days) they have planted 4673 trees. That gives me, as a consumer, 4673 reasons to believe them when they say they care about the oceans, and that they believe that without green, there is no blue. They are acting in support of their words and getting my buy in as result.
Defining what your brand means, and what you believe in is the first step in any branding journey. Long before you have a logo and a colour palette, you define your identity. Then, you need to build and protect consumer belief in that message. Once lost, never regained. The excesses of Black Friday leave me feeling a little queasy and, particularly in a time of environmental disaster, a burgeoning debt crisis in the UK, and increases in homelessness and poverty, the idea of manufacturing a sense of urgency to encourage people to spend when they might not if they had longer to think about it seems wrong. It leaves me cold.
Offer to plant a tree with every order? I’m pulling out my wallet. Shut up shop to go adventuring on Dartmoor? I’ll be queuing up the next day for you to open the doors. No brands can afford to ignore huge retail events like Black Friday but what you do about it can help you define who you are as a brand, or it can destroy the identity you’ve worked so hard to communicate.
We as humans have started using natural language processing commonly in our everyday lives. It’s a digital trend which has emerged alongside the prevalence of AI. It is predicted to be a large part of businesses innovation going forward and we, as consumers will be interacting with and using it on a daily basis in addition to implementing it our products.
Natural language processing is essentially voice or text recognition software also known as NLP. It’s the process of taking a human user output processing it with artificial intelligence, transforming it into something that a computer can process and determine an appropriate action to take. For example, when you talk to you mobile phone and ask siri or the google assistant to write an email for you, this is considered NLP.
For NLP to understand human language the program needs to be trained for it. This usually means processing thousands of items of text or speech in order to get a base understanding of the human language. This includes words, grammar and names in addition to the natural flow of the language.
NLP services are usually trained with text books for example since these have correct spelling and grammar throughout. It’s important to remember that the AI will be trained on a specific language such as England or Spanish so if it’s to be used in another language / culture it we need to be trained specifically for it. It can be trained on anything, you can make up your own language and then train the NLP model to respond in the way you want but it might not be a very popular service.
For example “I would like to buy size twelve shoes”.
The intent might be “purchase item” and the entities would be “size 12” and “shoes”.
If this sentence was used with a bot on ASOS for example it may then direct the user to a page of shoes size 12 that they can purchase.
Often NLP models will be designed to work for a specific purpose so they will be expecting a type of intent, this makes it much easier to train and use. For example an ASOS bot will be expecting questions about its products, company or orders and not questions about if the earth is flat.
The NLP software is likely to be running on a server and accepting requests from lots of sources, this means any users with a device connected to the internet should be able to send a request to the software.
Natural language programs that can process human speech usually work by being trained on transforming the voice speech into text. Once they can transform the speech into text they work the same was as other NLP services by processing the text as intent / entities.
A simple use is to direct a user around a website, when they first navigate to a site they might not know where to find what their after so if there is a chatbot on the website they should be able to ask “Where can I find the benefits application form print out” and the bot can reply with a link to the correct page or download.
A very practical use is being able to talk to a GPS in your car, you can ask for directions to the location of the distance left on your journey all via voice speech. This means users don’t have to take their hands off the wheel or their eyes off the road making it much safer.
Another use could be analysing all the posts in a forum, this could generate lots of useful information such as the general sentiment of what users are discussing (games / sports / clothing) their attitude (happy / sad / angry), this feedback could be used to make appropriate improvements. This could also be used to discover anyone using the forums for nefarious uses such as scamming or planning terrorism attacks (yes really!).
There are a couple big players in terms of NLP, most of them are paid services, lets cover them first. This is not a comprehensive list of all the NLP systems available just a few examples.
With the emergence of NLP there has been an explosion in the amount of companies trying to offer their software solution. Several of the big players like Microsoft and Amazon have very capable systems. I would recommend if your looking to experiment and get started in NLP to use Rasa since its open source and has a lot of tutorials and guides on getting started in the world of NLP.
They are usually trained for specific uses so will not be able to handle anything they are not already expecting. For example, if you try asking the ASOS chatbot bot for directions to Leicester, you’re probably not going to get a satisfactory answer.
They also need to be trained for specific languages so if they need to be accessed in an alternate language they will have to be entirely retrained for it.
One issue I encountered when developing a chatbot for a website designed for British Muslims looking to regain their faith was the issue of dual language. I found that often British Muslims will use a mix of English and Islamic words and this caused confusion in the processing. The solution to this was to use a more generic AI to process the input which didn’t rely on knowledge of a specific language but instead used traditional AI techniques of comparing raw characters and words with a very large training data set in order to best match up the user input to a defined intent.
NLP can take a large amount of processing power, training the model to process the inputs can take some time depending on the complexity and the amount of training data. Requesting the model to do the processing on the input can also take a lot of processing power but nowhere near as much as the initial model generation. While this in preventive it is something to consider when developing an NLP system.
When it does go it wrong it can fail spectacularly, for example “how I can I deal with bullies” could be interpreted as the user wants to sell their bike to an bullie rather than how the user should act when confronted by a bully.
A key aspect of the NLP models and technology is that its constantly being improved. As people use and play with the NLP services available, they are being tracked and when a model predicts something correctly or incorrectly, this is being logged down and can be included as training data in the next iteration. As time goes on the NLP services as well as the models we are training are going to get better and better at predicting our language.
As the software and methods for NLP improve over time we will be able to use it in more sensitive areas for example someone’s entire medical history could be processed by NLP and the important and relevant points to the task at hand can all be surmised to a doctor.
We don’t know all the areas we can implement NLP yet but as the world’s data is consistently increasing in quantity (expected to double every two years), we will need to find methods of processing this data in an efficient and error prone manner, NLP could be the solution.
By 2020, it is predicted that 85% of consumer interactions will be handled without a human agent (Chatbots Life, 2019).
67% of US millennials said they are likely to purchase products and services from brands using a chatbot (Chatbots Magazine, 2018).
With four key speakers from various industries, including JustEat, there was plenty to take away from last week’s Tech Talent Forum hosted by Makers Academy.
Just off Commercial Street near trendy Brick Lane, Makers nurtures technical talent and partners with global clients to help with the hiring process and placement.
Focussing on creating a culture of learning, the evening was sure to be interesting for anyone from a technical background, but also as a manager, improving culture is an ongoing item raised at monthly meetings.
In all honesty, I wasn’t sure what to expect from the event. A learning culture can be tricky to get right when faced with ongoing client requirements and project deadlines, however I’m glad to say I’ve taken away some key thoughts that we will aim to implement across our business. It can’t hurt to try, right?
A-ctivity – Inherited attributes that are difficult to teach
S-kill – Needed but can be taught
K-nowledge – Required but will grow
In short, creating a good culture starts with a good hire. We know this already, but what is that in reality?
Looking for a team member that has an abundance of skills and knowledge, is not necessarily going to add to the culture. The third piece of the puzzle is Activity and inherited skills. Is this person going to be difficult to manage or do they already have the attributes to integrate smoothly with the team?
A bold statement which will ring a bell with many hiring managers. How we define a problem is down to the individual company but in a nutshell, Jeremy Burns (News UK) described this as a team of perfectly lined bowling pins being knocked over by the ball. Disruption to the team can have positive and negative effects, usually the latter.
Instinctively we don’t like change. Occasionally we need to throw a curveball at the team but in a positive way. A disruptive addition to the team can have serious consequences. Follow your gut instinct and watch out for a lot of “I, I, I” and also a lot of “we, we, we” answers when interviewing. A balance in the middle is usually a good start.
Kate Richardson from Just Eat spoke about how her team have reviewed job titles and aimed to demystify senior positions by introducing tiered mentoring within her team. Allocated time and tasks are distributed and solutions are thought through and tested.
In theory this sounds great, but in agency land, we tend to require the team to utilise 90% of their time on billable work. The other 10% should be spent on personal development but striking a balance between client v internal tasks makes this sometimes impossible.
Institutions are failing our teams. This was the view of Fred Scholldorf, (Global Relay) who stated that it’s a digital world and still our education institutions are not prioritising this in the way they teach. In the technical world, teaching students how they learn opposed to a specific subject, will nurture a more useful skill set for budding developers.
Strange huh? Well, Makers believe that every error provides a learning experience and now it makes sense. “Why did this happen and how can we avoid this in the future?” A normal reflection we have when something goes wrong. Pointless if we don’t learn from it.
Build, learn, improve. Don’t engage with an error at a concrete level, the black and white, right and wrong way. Pass on your knowledge of how to learn a process to fix the error and your team will enhance their skill set along the way. This applies to all roles within your company.
Give a developer a solution and he’ll apply it, teach a developer the process of finding a solution and he’ll always (eventually) complete the puzzle…
In summary, there were a lot of points raised that I already see in practice here at Den, but with an ever-growing pool of skilled resources and varying skill sets, consistent communication and knowledge sharing is first on the list to get right.