Clubhouse is starting to gain traction and fast…

At the start of December 2020, new audio-only iPhone app, Clubhouse, had 3,500 members worldwide. Fast forward to the end of February 2021 and the Silicon Valley founded platform surpassed in excess of 10 million downloads, with 2 million weekly users.

Granted, these figures are low in comparison to the 500 million Instagram users that post stories on a daily basis, but it’s clear that Clubhouse is starting to gain traction and fast.

For individuals yet to receive an invite, Clubhouse is a new and exclusive members-only iPhone app that connects users via audio. Once ‘inside’, users can join ‘rooms’ to listen to members talking at any time, providing a space for debates, discussions and even performances. The only rule is that no audio content can be recorded.

Already valued at $100 million despite only marking its first year since launch this April, Clubhouse founders are now in the process of making the app available to the wider public.

The burning question, therefore, is how the app will work on a mass scale? And whether it will provide a new and exciting opportunity for brands to reach and directly engage with their target audiences, following in the footsteps of SnapChat and TikTok.

Let’s explore:

People buy from people

The Instagram era will always be synonymous with the creation of social media influencers, with millions utilised by businesses and brands on a daily basis to help support their latest campaign or promote their newest product.

Since the launch of Instagram stories in 2016, the popularity of the platform has accelerated, where monologues to camera or snippets of ‘behind the scenes’ type content are now the norm.

In essence, Instagram works because people like to engage with and buy from people. As an app that encourages online audio engagement between individuals, Clubhouse, therefore, has the potential to provide a seemingly authentic avenue for target audiences to engage with brand ambassadors online – providing the opportunity for ‘story’ type snippets to be extended into lengthier discussions, debates or even brand masterclasses.

For example, current Clubhouse entrepreneurial discussions amongst the elite could quickly turn into make-up tutorials conducted by an influencer, using the latest Charlotte Tilbury line. You can see how this would work and would bolster brand awareness and product sales as a result.

Interest and Demographics

When joining Clubhouse, the algorithm integrates with your iPhone and shows you what friends or family members are utilising the app. In addition, the app also suggests other people for you to follow and engage with based on your individual preferences.

To ensure you find suitable ‘rooms’, Clubhouse also provides a ‘Find Conversations About…’ option which lets you select and follow relevant topics and interest points.

From a brand perspective, this suggests one clear thing: Clubhouse already has a growing dataset on user demographics and interests, which means there is scope to create advertising opportunities within the app.

Just as we have seen with TikTok, a dedicated Clubhouse advertising model seems a clear and obvious move and if the app continues to gain traction at the same rate, it is likely to work – providing another digital platform for brands to utilise to directly engage with target audiences, increase brand awareness and drive sales.

The negatives?

Clubhouse came out of the starting blocks at a time when consumers were faced with the sheer destruction caused by the COVID-19 pandemic, which resulted in brands shifting their focus to remain relevant and continue to resonate with their target audiences.

Essentially, brands with purpose won in 2020 and you can’t but help think despite the clear genius behind Clubhouse that its exclusive ‘celebrity only’ approach was ill-timed, particularly as people across the globe were sat in their homes under lockdown restrictions and very likely to engage with a platform that promised open conversation.

It will, therefore, be interesting to see public response to Clubhouse as it removes its barriers and tries to engage a wider audience. What we do know, however, is that if mass users sign-up to Clubhouse, it won’t be long until brands follow… So, watch this space.

Over half [55%] of SMEs believe that their competitors have a better digital presence than they do, according to new research by leading creative agency, Sparkloop.

The research, which questioned 500 decision makers from SMEs across the UK on how much time, budget and resource they have invested into their digital brand presence, also revealed that despite believing their competitors had a better brand presence, 45% of respondents had not reviewed the performance of their website in over 18 months. 

In addition, 25% of respondents advised that they rarely, or only annually, make changes to improve the performance of their website to engage potential customers. 

When questioned on the level of investment SMEs made into their digital brand, 46.3% advised they invested under £2,000, 53.7% invested £2,500 plus and 10.9% invested £10,000 plus.

However, a quarter [25.8%] of SMEs haven’t invested in their website and wider digital brand presence in over 2 years. 

Other key take outs from the research include:

  • Only 31% of SMEs believe that they have a stronger digital brand presence than their competitors.
  • 44.3% of SMEs have developed their website using ‘off the shelf’ platforms like Wix, Square Space or WordPress, with 31.6% opting for creative and technical input from an external agency. 
  • A staggering 62.3% of SMEs have not taken advantage of tech features, like chatbots, blogs and feedback to increase stakeholder engagement or improve the performance of their website. 

This new research comes as the majority of UK SMEs are forced to review and pivot their existing growth strategy following the impact of the current situation. 

Gayle Carpenter, Creative Director of Sparkloop, confirmed: “This latest research is incredibly telling and effectively demonstrates that SMEs UK wide do not place enough value into both creating and maintaining a strong brand and digital presence, which could be damaging to their business. 

Currently, SMEs are facing the significant challenge of survival following recent events. Those with the strongest brands, an engaging website and integrated digital presence will instil confidence and drive growth, both during and following this time of uncertainty.

For business owners looking to use this time to disrupt and develop, it doesn’t necessarily mean investing tens of thousands into your website and wider digital presence, but it does mean evaluating your brand by ensuring it represents your business and attracts the right target audiences. This is consistently overlooked by the majority of SMEs, as demonstrated by the research, but could be fundamental to future growth and success as we return to some form of business as usual.”

Established in 2004, Sparkloop has successfully delivered bespoke design and communication strategies for brands and businesses across the UK and overseas, with long-standing clients including Red Bull and HomeServe. 

Founded by design and branding specialist, Gayle Carpenter, the firm is headquartered in Camden, London, with a South West regional office based in Bath, Somerset. 

Since the outbreak of COVID-19, the agency has launched its Virtual ‘Spark-Up Sessions’ initiative, designed to help businesses quickly solve problems and identify achievable outcomes when establishing a clear and effective digital brand presence.

To find out more about this latest research, download a copy of Sparkloop’s SME Digital Brand Presence Report 2020 at www.sparkloop.com.

In today’s market expectations are growing and the stakes are high, with one mistake potentially costing a retailer their reputation….

In today’s market expectations are growing and the stakes are high, with one mistake potentially costing a retailer their reputation. Due to this level of risk, brands find reducing their hands on approach to processes difficult, but what they don’t realise is that technology such as Artificial Intelligence and Machine Learning could prove to be their hero, not their villain. Entrusting their data and brand values to such technologies may seem like a scary step, but as David Griffiths, Senior Product Marketing & Strategy Manager, Adjuno, discusses, it’s one that will free up retail teams to add value and cut costs.

In AI should we trust?

There is a great deal of obstacles to overcome when it comes to the stigma attached to AI. A key challenge facing the progression of this technology is that individuals simply do not trust it. The fear of the unknown is one concern that pops up most commonly, with people battling a perceived perception that those who use this technology will lack control.

But a new age of retail is approaching and there is now an even greater need for brands to define their processes in order to keep up. Consumers want to receive products that are of a high-quality and they want to receive them now. These expectations are taking us beyond the traditional methods of retailing and leading us into a world immersed in technology, a world that benefits from the helping hand of AI.

Informing key decisions

With AI, retailers will be able to gain valuable insights in warehouse management, logistics and supply chain management, and make more informed and proactive decisions. This technology makes it easier to analyse huge volumes of data in an efficient fashion, helping to detect patterns and providing an endless loop of forecasting. Using this knowledge to identify factors and issues impacting the performance of the supply chain, such as weather events, retailers will be able to take a forward-thinking approach to decision-making. An approach that will lead to reduced costs and delays. 

By extending human efficiency in terms of reach, quality and speed, this technology can also help to eliminate the more mundane and routine work that’s faced by employees across the retail spectrum. From tackling flow management by assessing key products to ensuring there is enough stock available to improving production planning, a more informed use of time will help equip brands to face every consumer request and demand.

This is particularly important for those brands whose product line extends further than apparel wear, and steps into the realm of hardware. With diversity comes a need for more proof points and in turn, an extended volume of data. Retailers will be battling to work across an even greater number of suppliers and distribution centres, and accommodating the expectations of a larger customer base. Considering this, it is fundamental that every last bit of data is refined and utilised to streamline processes. AI is providing retailers with a platform to do this, offering the potential for significant changes across the entire product journey.

A data conundrum  

The benefits of using AI to consolidate data are endless. Traditionally, teams have relied on spreadsheets to collate information, hindering their ability to forward plan. With AI this is no longer the case, a much more accurate picture of the hero products, sizes and colours likely to sell, can be achieved by looking at multiple scenarios in real time and pulling them together.

This doesn’t mean that AI will replace creative buying teams. AI doesn’t forecast trends, it can’t predict what consumers will be buying in 2020, it can only report on the product lines. It can however help buying teams assess partners, analyse stock patterns, track costs, enable capacity planning and help optimise shipments. This data is invaluable to teams, especially for any new buyers who may need extra guidance. 

Conclusion

AI is set to transform the retail scene as we know it. But in order to make implementation a success, there shouldn’t just be a focus on the evolution of data management, there must be an evolution of mindsets too. After all, if a retailer fails to jump on board with AI and embrace a new era of change, then their customers will be the ones who suffer.