🏋️ ChatGPT Will Soon Be Like 'Siri On Steroids'

Soon ChatGPT Will See & Talk - Like ‘Siri on Steroids’

I liked the phrase ‘Siri on steroids‘, which was how the New York Times described the upcoming version of ChatGPT, which has been announced by OpenAI.

Last week we talked about Google how their new AI model, Gemini, which will be the future of AI. But OpenAI has plans, and they’re big.

Last Monday, OpenAI announced that they’re rolling out two new features to their flagship chatbot, which will allow you to have voice conversations and share images with it. In other words, tell it and show it what you’re talking about.

One example, which Open AI outlined in their announcement of the new features, was by taking a picture of your pantry, where ChatGPT can see what food you have in stock and suggest suitable recipes.

Or maybe the kids are stuck on their maths homework? Well just take a picture of the mathematical problem to share with the chatbot, who will ably assist. Of course, it can just give you the answer, but what’s potentially even better, is that it can further patronise your parenthood by giving you hints to help your child.

The Outpost’s Opinion: This is exciting and possibly a bit scary (but mostly exciting). AI can now talk, see and hear - this is the future. The announcement will no doubt have been timed deliberately to fight off any scepticism around comparisons with Gemini, Google’s powerful AI model in the making. We’ll see what the next few weeks hold. Siri on steroids? We’re waiting for you.

Google’s Messy Middle

Last week we gave an overview of the AIDA funnel and its purpose, as well as touching on its greatest criticism, simplicity. This week we’re expanding on "Google's Messy Middle", a concept that emerged to describe the complex and often unpredictable journey that consumers take when making purchasing decisions online.

In contrast to the process-driven AIDA model, Google's Messy Middle recognises that consumers often engage in a more intricate or even spontaneous decision-making process. They don't always follow a linear path, and they almost always don’t follow the path you expect them to take. They might loop back, research extensively, read every bad review they can find or consider multiple options before making a choice. This messy middle stage involves two key factors.

1. Exploration: Where Consumers explore different brands (your competitors), products, and alternatives. They gather information, read reviews, and compare options. This is where your USP really stands out.

2. Evaluation: Consumers scrutinise their options, weighing up the pros and cons. They might seek input from friends, online communities, or influencers. This stage can take some buyers 5 minutes, while it takes others weeks to make a decision.

Consumers cycle between these two stages, by searching for and being exposed to content until they are satisfied to purchase or lose interest for one reason or another. The time it takes for consumers to transition from the messy middle to making a purchase varies from one person to another. For some it can take minutes, for others it can take weeks.

So, why does this matter for your online business and conversion funnels? How do you navigate the messy middle? Here's how:

• Content is Key: Create informative, engaging and customer-first content. Provide detailed product information, customer reviews, and comparison guides to support their decision-making. Don’t make them go elsewhere to find answers to their questions.

• Multi-Channel Approach: Be present across various online platforms, from social media to email marketing. You want to be visible to your customers on their native platforms.

• Personalisation: Tailor your marketing messages based on customer behaviour and preferences.

• Remarketing: Don't lose potential customers who've entered the messy middle but didn't convert. Use remarketing strategies to re-engage them and provide the information they need to move forward.

Google's Messy Middle can be a bit of an unknown which audience research can help with. But what we do know for sure is that it isn’t as black and white as the linear AIDA model would have us believe.

It’s about acknowledging that the customer journey is not always straightforward and varies from one customer to the next. By embracing this complexity and adapting your marketing and conversion strategies accordingly, you will ultimately drive more conversions for your online business.

But it doesn’t have to be one or the other - mixing the two user journeys together will give the best overview for your business. For example:

1. Awareness Stage (AIDA): The awareness stage best fits the AIDA model. This is the top of the funnel (ToF) and where you first engage with your audience.

2. Interest Stage (AIDA): You have their attention, now build interest. Provide valuable content, such as blog posts, videos, or infographics, that educates and entertains.

3. Desire (AIDA) and Consideration Stages (Messy Middle): This is where consumers enter the Messy Middle by conducting their own research, reading reviews, and comparing options. This could be on any website they deem relevant or your own. This is where you can easily lose customers to competitors if your content doesn’t answer their questions.

4. Action Stage (AIDA): Finally, your customer has made the decision to purchase through your site. Make the checkout process easy for them. Encourage them to make a purchase, sign up for a newsletter, or take another desired action. Use clear CTAs and optimise your website or landing pages for conversions.

The Outpost’s Opinion: Google’s Messy Middle is complex, but is a crucial aspect of any conversion funnel. You don’t need to know every step your customers take in the messy middle, but build your online visibility with relevant and engaging content and ensure you’re answering the questions your potential customers want to know the answers to. That’s the best way to ensure they purchase through you.

The Rise, Fall & Resurrection of Toys ‘R’ Us

Everyone’s favourite store as a kid, Toys‘R’Us is being resurrected from the dead. The former retail giant was a household name in the 90s & 00s, with an annual turnover of over $11.5bn, a product range of over 18,000 items and stores across 1,450 different locations around the globe.

At its peak, it controlled 25% of the toy market.

So where did it go wrong? It’s hard to find a word to describe the nature of its decent, catastrophic only comes close. Mistakes were made.

The issues for Toys’R’Us actually started way back in the early 90s, when other retail giants like Target and Walmart started undercutting their prices. Maybe no surprises there given the level of success they’ve gone on to have.

But its real decline came in the .com boom, and specifically the rise of e-commerce. Toys’R’Us initially tried to ride the wave and adapt, as any good business would, by launching their own online store. But their operations and logistics failed them.

In 1999 this became apparent, with a Christmas season to forget. They failed to deliver a large proportion of their orders in time for December 25th. The backlash was huge.

At the turn of the century, it was clear that e-commerce was the future. With the failed festive season of ‘99 still fresh in their mind, Toys’R’Us did something drastic - they handed over their e-commerce rights to the emerging e-commerce giant, Amazon, who in return signed an agreement of exclusively sell their toys on their site.

At first, this agreement showed promise. But as Amazon continued to grow in the early 2000’s, it wasn’t long before they broke their contract of exclusivity, by selling other toys on their platform. The money they made from selling a wider range of toys ultimately outweighed the implication of exclusivity with Toys’R’Us.

In 2006, after a 5-year legal battle, Toy’R’Us successfully sued Amazon for $51 million. The two corporations parted ways once and for all.

Over the next few years, online stores like Amazon, continued to grow into the renowned force we know today, while Toys’R’Us entered freefall. They were still mainly relying on traditional shoppers who were willing to come into brick-and-mortar stores and pay more than they would if they shopped online. Kids were also becoming less interested in physical toys, resulting in a change in demand for video games and digital toys.

With sales drying up and stores closing one by one around the world, 2017 was the year when the chain filed for bankruptcy. At this point, they were drowning in over $5bn of long-standing debt.

However, unlike many who enter bankruptcy, their story doesn’t end there.

Toys’R’Us were bought by WHP Global in 2021. This time around things seemed different. WHP Global partnered with Macy’s stores in the US, which gave Toys’R’Us an e-commerce outlet to sell through, in the form of their online store. A positive change that its predecessors had failed to successfully navigate almost two decades earlier. In 2022, they further expanded their online offering to the UK market.

Now in 2023, things are looking up. In the last 18 months alone it has relaunched its much-loved stores in the UK, with 9 branches now open. While last week, the brand announced that in 2024, it will be launching as many as 24 new flagship stores in the US.

So what can we learn from this?

1. Someone will always be cheaper than you. But to have a fighting chance, you have to get the fundamentals right, such as logistics.

2. You can’t sit on debt forever. It will catch up with you.

3. If you want to survive, you must adapt. Toys’R’Us, failed to adapt to the rise of e-commerce and market changes, resulting in them quickly falling behind their competition.

The Outpost’s Opinion: We’re glad to see the re-emergence of a classic brand. But mistakes were made and there are some really important take-aways from this. The biggest one is the importance of being adaptable. Adapt to your customers, adapt to your competitors and adapt to the market. Don’t be left behind. We’ll be watching them closely in the months that follow.