[Webinar] Customer Experience in the Internet of Things: !Five Ways Brands Can Use Sensors to Build Better Customer Relationships!Jessica Groopman, Senior Researcher @Jessgroopman!

Charlene Li, Founder & CEO!@Charleneli!

Event hashtag: #IoTCX!

Source: The Connectivist, 2014

Welcome!!•  The Myth of IoT!•  Five Use Cases for Applying IoT !•  Taking a Holistic Approach to IoT !

Demystifying the Internet of Things!

are unfamiliar with the term “Internet of Things”!87%

65% Plan to adopt connected technologies in the future.!

Everyware

Internet of Everything (IoE)

Machine2Machine (M2M) In

dust

rial I

nter

net

Ubiquitous Connectivity

Ubiquitous Computing

Connected Environments Spim

es

Situ

ated

Com

putin

g

Physical Computing Wireless Sensor Networks

Physical Internet

Futu

re In

tern

et

Smarter Planet

Web of Things

Sentient World Ambient Intelligence

Connected World

Pervasive Internet

Interaction on Demand

Phygital World

The interconnection and interaction of the digital and physical worlds !

!wherein uniquely identifiable embedded

technology connects and integrates physical ‘things’ to information networks via

existing and emerging Internet infrastructure. !

!!

IoT is not about the technology.

IoT is a platform for connecting people, objects, and

environments to inform and enable visibility, engagement,

and innovation. !

IoT’s Potential for Win-Win !

What’s in it for consumers?!

Visibility

Empowerment

Autonomy

Efficiency

What’s in it for brands?!

Context, Context, Context

Insight into Customer Journey

The World’s Largest Focus Group

Consumer-driven Optimization

The more consumers are inspired to DO within the context of their interactions, the more brand

and consumer agendas can align.

Utility, service, & tangible value

creation

P Is your company actively planning an IoT initiative for the next 12

months?!oll!

Consumer-facing Use Cases in the Internet of Things!

What does this look like? And how is it different?!1.  Sensors!2.  Online à Offline!3.  New communication standards!4.  Cross-functional!

Reward consumers for their time, money, effort, and engagement!

Reward enabled by sensors incentivizes engagement and purchase by drawing from contextual elements

Walgreens and other retailers piloting AR apps to gamify in-store experience. !

Pact Health offers businesses and their employees sensor-based cost savings on health insurance!

Diageo connects bottle to smartphone to social for a personalized content experience!!

•  72% é sales during pilot •  Expanded program to 6 countries •  100k unique QR code downloads •  é supply chain efficiency/visibility

Consumer POV!The brand rewards me for my interaction (time, loyalty, purchase, location, product/service use, behavior, etc.).!

!

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Brand POV!We use an incentive (monetary, promotion, points, content, etc.) derived from online and/or offline data to drive customer interaction.!

!

Reward: What’s in it for me?!

Information and Decision Making!Empower Consumers with the Ability to Access and Act on Intelligence !

Hyper-relevant information increases intelligence and assists in more informed and rapid decision-making.

IKEA ‘augments’ e-furniture shopping experience, bridges online capabilities with ‘offline’ needs

Home Depot integrates dot.com shopping cart with mobile for improved in-store experience

Jawbone fitness tracker adds meaningful data to post-quake coverage!

Consumer POV: "!The brand helps me make informed decisions by providing me the most relevant information precisely when I need it.!

!

Brand POV:!We use informational media designed to aid consumers with product and service decision making, delivered at the most convenient time, on the right platform, and at the right place.!

Decision-Making: What’s in it for me?!

Foster Easier, More Accessible, and Convenient Brand Experiences!

Facilitation is about rendering the way consumers engage with products and services easier, faster, and more efficient

Starbucks a pioneer in ‘platform and hardware-agnostic’ mobile payment

•  In-app, in-store •  In-app, pre-pay •  Via tap in-store •  Microsoft Band •  Galaxy Gear •  Pebble •  Apple Watch

Belkin’s Wemo Switch is one way to streamline identity authentication across products…

Chamberlain smart garage door openers revolutionize how they engage customers!!!

“Over time, we see the opportunity to increase the utility of this through integration with security, thermostat, lighting, and beyond.”

Maureen Silber, Senior Marketing Manager, Chamberlain Group

Hilton empowers guests with smartphone-based check-in and room keys

But just because we can add sensors to anything doesn’t always mean we should…

Consumer POV:!The brand makes it easier for me to access, acquire, or accomplish what I need, exactly when I need it.!

!

Brand POV:!We enable a specific customer action or transaction architected to streamline the brand-consumer experience within a specific environment.!

!

Facilitation: What’s in it for me?!

Support and Retain Customers by Proactively Identifying Opportunities !

Service in the IoT is about identifying gaps, issues, or opportunities to either react in real time or proactively suggest, service, or resolve before customers realize they have a problem.

Whirlpool’s connected washer prompts users with troubleshooting content when it detects an issue!

Tesla: The car that can fix itself !

Tesla offers software service upgrades… on the customer’s terms.

Service-related use cases are where companies are most likely to

see impact on the bottom line:!

§  Increased efficiency in supply chain management §  Increased efficiency in labor costs §  Increased revenue and/or customer retention through timely upsells §  Identification of issues in product or service experience §  Identification of new business models

Walgreens partners with TaskRabbit to deliver relief for sick residents

!“In the future, people won’t buy devices just for their physical attributes; they’ll buy them

because of the apps and services that connectivity enables.”!

!

Kevin Meagher VP of Smart Home at Lowes

Consumer POV: "!The brand identifies ways to provide me a better (more enhanced, functional, secure, compatible, or personalized) experience, sometimes before I know I need it. !

!

Brand POV:!We use product, service, and customer data to inform support, sales, and other brand service opportunities in near real time, in real time, or through predictive technology.!

!

Service: What’s in it for me?!

Leverage Feedback for Rapid R&D, Customization, and Improvement!

Innovation enabled by sensors helps companies more

efficiently collect feedback, optimizes, and even customize product/service experiences.

NEB uses connected refrigerator data to improve how they engage with scientists

ü  Product offerings ü  Interface offerings ü  Inventory planning ü  Product specs offered ü  Popular content ü  Freezer performance

Tesla’s “Crawl” feature: crowd-sourced innovation— for individuals and across entire fleet of cars

Consumer POV "!The brand listens to and implements my requests for product or service improvement more rapidly.!

Brand POV!We use real-time or rapid feedback mechanisms to inform and enable product and service development, design, or customization.!

!

Innovation: What’s in it for me?!

Embrace Use Cases Holistically to Differentiate the Customer Experience !

The objective: To place the brand usefully, intuitively, sensitively, and centrally to how customers expect to interact with and experience your brand. !

Disney transforms the entire park-goer’s experience, spans all use cases !

Disney’s wearable experience improves and informs the entire customer journey

§  Resort check-in §  Room key §  Customized door key §  Disney’s Magical Express §  Club/concierge level access §  Concierge desk check-in §  Resort entrances §  Disney parking lot entry §  Park admission §  Fastpass+ §  Store entrances* §  Restaurant payment §  PhotoPass ID §  Interactive game pass §  Disney’s Infinity on XBOX §  Stores custom avatars,

designs

McDonald’s Beacon-Mobile Pilot Rewards, Facilitates, and Offers Feedback Loop!

ü  Greetings ü  Coupons ü  Alerts ü  Surveys ü  Q&A ü  Payment ü  Employment opptys

Awareness Greetings, promotions,

employment opptys

Consideration Notifications, surveys,

Q&As, contests

Purchase Mobile payment and conversions such as employment inquiries

Support Service, rapid response

to inquiries

Loyalty Innovation and product,

service, and in-store improvement

These sensor-driven interactions are also driving intelligence & sales!

In the first 4 weeks of the pilot, McDonalds garnered: ü  more than 18,000 coupon redemptions ü  McChicken sales increased 8% ü  McNuggets sales increased 7% ü  Insights around facilities, offers, menu

items, recruitment techniques, etc.

Q uestions?!

Upcoming Webinar: Join us on April 29!

Thank You!!

Disclaimer: Although the information and data used in this report have been produced and processed from sources believed to be reliable, no warranty expressed or implied is made regarding the completeness, accuracy, adequacy or use of the information. The authors and contributors of the information and data shall have no liability for errors or omissions contained herein or for interpretations thereof. Reference herein to any specific product or vendor by trade name, trademark or otherwise does not constitute or imply its endorsement, recommendation or favoring by the authors or contributors and shall not be used for advertising or product endorsement purposes. The opinions expressed herein are subject to change without notice.!!

Altimeter Group provides research and advisory for companies challenged by business disruptions, enabling them to pursue new opportunities and business models. !

Jessica Groopman!Senior Researcher!@JessGroopman!Jessgroopman.com!

Charlene Li "!Founder & CEO!@CharleneLi!