Tightrope 2022 Growth Trends
Thriving in the new reality
Not ignoring the challenges we’ve faced during COVID, the last two years have been a catalyst for a lot of businesses (both old and new) to step up and increase the pace of their transformations to survive and grow, amidst a climate of uncertainty and change.
Looking at 2022, brands who want to thrive and create lasting profitable relationships, will need to capture the opportunities that have arisen from evolving and heightened customer expectations.
We know the winners are those with a strong brand identity and purpose. Those whose story aligns to customer values. Those who live up to the promises they make, through the experiences they deliver.
Tightrope’s 2022 Growth Trends provides a brief overview of the key trends we believe are at the forefront of business’ strategic agendas, and what this means for them as they navigate the next horizon of growth.
Don’t worry about sounding professional. Sound like you. There are over 1.5 billion websites out there, but your story is what’s going to separate this one from the rest. If you read the words back and don’t hear your own voice in your head, that’s a good sign you still have more work to do.
Be clear, be confident and don’t overthink it. The beauty of your story is that it’s going to continue to evolve and your site can evolve with it. Your goal should be to make it feel right for right now. Later will take care of itself. It always does.
Trend 1: A new normal
Leading the way through blended online & physical channels.
With social distancing, border closures and lockdowns commonplace, more people turned online for the things they needed – including things they never wanted to buy online (from toilet paper to cars). For many households, shopping online was not only a necessity, but usually more convenient (24/7), faster (same-day delivery) and with access to more product information.
In 2022, businesses will need to consider the interplay across both physical and digital channels, to not just adapt to this ‘new normal’ but thrive and lead the way products and services are delivered to customers.
Let’s take a traditional industry, like the bedding industry as an example. We saw the rise of pure play online retailers, such as Koala, emerge with disruptive value propositions - including products designed and delivered direct from manufacturers, compact and free delivery, and 100-night risk-free trials. Incumbent brick & mortar businesses, such as Forty Winks and Snooze, have been forced to rapidly transform in order to keep pace with shifting customer expectations and heightened competition.
Trend 2: Connected experiences
Adapting to the needs of customers through simplicity and convenience.
Poor digital experiences may have been forgiven in 2020-2021, while we were all adjusting to find online alternatives. In 2022, however, consumers have adapted and increased their expectations from brands to connect with their specific needs.
To win the customer, businesses need to consider how they orchestrate seamless and connected customer experiences across the end-to-end customer journey. Data and connected platforms will need to be heavily leveraged to create, what now needs to be, personalised and simple experiences that creating lasting relationships. Key to this will be eco-systems and partnerships to deliver integrated services across organisational boundaries.
Well-known Australian neobank, Up Bank, quickly saw strong uptake amongst Gen Z and Millennial generations since its inception in 2017. The mobile app, which is the primary channel for the bank, allows for sign-up in under 3 minutes, effortless savings tools aligned to individuals’ goals, and real-time insights on spending. As a contrast to traditional banks, Up Bank is designed around convenience and fundamentally shifting the felt experience of a bank by connecting to the needs of their customers.
Trend 3: Brand purpose & trust
Aligning to customer values and creating meaningful relationships.
Beyond convenience and experience, consumers are increasingly “choosing” brands with a clear articulation of purpose and values that resonate with customer segments. Not only are brands a part of an individual’s identity - they also form the fabric of culture, and the way people connect with each other in communities. Moreover, conscious consumers expect brands to consider the sustainability impact of their business, which becomes a critical factor in a consumer’s purchasing decisions.
Businesses need to position their brands as a holistic service with a broader and clearly articulated purpose, rather than purely a product with a particular type of utility. This positioning plays out in the way the business communicates to its customers, how products/ services are purchased, and how loyalty and trust is maintained after the customer has made the purchase.
‘Who Gives a Crap’, a young business started in Melbourne, took a simple household product – toilet paper – and engineered a unique value proposition of bulk-buying rolls online, plastic-free packaging, free shipping and 50% of profits donated to build toilets. Effectively, they changed the relationship with the customer from pure transactional and utility (typical of the experience at supermarkets), to a more effortless and meaningful experience that resonated with its conscious loyal customer base.
So, what do these trends mean for businesses?
Whilst the trends remain broad, they impact both legacy incumbents and new digital native businesses.
Legacy incumbents
Whilst legacy businesses may previously have stood the test of time, many have been forced to pick up the pace of transformation to deliver digital experiences during COVID. At the core, there is a disconnect between what customers now expect from brands, and what the business itself offers – and the challenge is now connecting these gaps.
Next steps for legacy incumbents:
Understand the customer: Invest in creating a connected view of the customer, using data, to enable a targeted value proposition and personalised offerings.
Be distinctly different: Continue to build on the strengths of past successes whilst developing new offerings which reflect shifting consumer expectations and innovative models from adjacent industries.
Test & pivot: Avoid the trap of the 2-year transformation and kick-start change incrementally, testing with customers and pivoting as new insights emerge.
Digital natives
Not hampered by legacy, digital native businesses have truly exploited the opportunity in the context created by COVID, to accelerate their growth and become disruptive players within their industries. The challenge for these businesses now, is considering the means for sustainable growth.
Next steps for digital natives:
Strengthen the brand: Look beyond the product or service to ensure it’s connected to an overarching brand story that’s relevant to customers and their surrounding culture.
Scale sustainably: Maintain the momentum of growth and innovation, supported by the right operating model (i.e. structures, capabilities & processes).
Explore new markets: Look for the next logical horizon of growth through new offerings and future customer segments.
Our 2022 aspiration
We believe 2022 is the year to again focus on growth. It is a great time for businesses to now lean into the opportunities presented from shifting consumer behaviours and disruptive business models across industries.
At Tightrope, we’re excited by the dynamic nature of the digital economy and the influence it has on the way we work, live, socialise and ultimately, what we value as consumers and creators.
Our vision is to be a part of the transformation stories of organisations, new and old, that are paving their unique trajectory in 2022. Our team brings together traditional strategy capabilities integrated with design, data and tech advisory to deliver outcomes which have impact.
Get in touch
If you’d like to get in touch and chat about your organisation’s story, then contact us at info@tightrope.com.au.