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[Webinar] Four Steps Brands Can Take to
Design Internet of Things Experiences!
!
Jessica Groopman, Industry Analyst
@Jessgroopman!
Charlene Li, Principal Analyst & Founder!
@Charleneli!
Event hashtag: #IoTCX!
Welcome!!
•  Why now?!
•  4 Steps for Crafting your IoT Strategy!
•  Altimeter Resources!
•  Q&A!
Mobile overtook fixed internet access in 2014!
Smart devices
are
transforming
how we use
and think of the
Internet!
IoT will soon outpace PC, tablet, and
smartphone markets… combined!
Today, brands face a
dual imperative.
How Brands Can Begin Crafting
Consumer-facing IoT Strategies !
Four Steps for Architecting Consumer-
facing IoT Experiences !
Step One!
Define Future State
CX Vision!
Clearly articulate the reasons why
customers would embrace new
devices or behaviors.!
!
Conduct journey-mapping research
to understand those pain points
along customer journeys where
connected devices, products,
infrastructure, and the like can best
serve CX.!
!
Consider elements beyond sensors
when crafting future state CX (e.g.,
product, environment, data sets,
content, loyalty, sales).!
!
Conduct journey-mapping to align both
internal and external components of CX !
Begin with
Empathy!
Embrace the mindset of key
personas, run focus groups.!
!
Design for low friction, a low
learning curve, and intuitive
adoption, with a clear benefit
solving an actual pain.!
!
Give prospects and customers
a voice, asking for feedback
and requests for improvement.!
Why bother?!
q  Is what we’re doing actually going to be
valuable? To whom?!
q  What are you empowering customers to do that
they couldn’t do before?!
q  What are you enabling customers to
accomplish? !
q  How will different types of customers respond
to different offers/changes/initiatives?!
q  Will this create a WOW? How?!
“The nature of the proposition and
the concept of the experience
provided must take into account who
customers are, where they are, and
what the relationship is.”
-Niall Murphy, CEO of EVRYTHNG
But just because
we can add
sensors to
anything doesn’t
always mean we
should…
Replace Behaviors,
Don’t Reinvent
Them!
Replace behaviors by
tweaking one or two features
or steps, and provide instant
gratification!
!
Ask: would my grandmother
understand how to do this?!
!
Leverage existing templates
for interaction to drive
adoption and circumvent
learning curves.!
!
Hilton replaces room keys with guests’
smartphones
NEB uses connected refrigerator data to improve
how they engage with scientists
Consider the
Platform!
Determine what types of
sensors are required!
!
Determine which sensors are
proprietary and which are
leveraged!
!
Consider how time, location,
psychographics, and
behavioral preferences inform
the prioritization of one
platform over another. !
segments.
The Role of Mobile in IoT !
Start Small, but
Prioritize with an Eye
for Multiple Use Cases!
Prioritize which use cases serve
business objectives and how.!
!
Conduct gap analysis around
how new and existing
technologies support use cases;
ascertain level of new investment.!
!
Identify all business functions
involved and where teams will
interact with each other; align
workflows with use case
prioritization.!
!
Step Two!
Make the
Business Case!
Articulate and prioritize how IoT
CX use cases will support larger
organizational objectives.!
!
Build out foundational programs
to encourage deeper
engagement to drive new
initiatives.!
!
Develop tightly scoped pilots that
support departmental and larger
organizational objectives with
clear metrics and KPIs.!
!
Diageo piloted connects bottle to smartphone
campaign 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
Educate Stakeholders on
IoT’s potential & New
Business Model Creation!
Educate all stakeholders on the role
of IoT, and what competitors are
doing!
!
Educate stakeholders (especially
leadership) on business model
creation or enhancement!
!
Leverage pilots to drive results that
support specific departments;
Focus on departmental and
business objectives, not bright,
shiny technologies!
!
Develop a timeline for deployment,
iteration, and expansion!
!
Step Three!
Collaborate & Integrate
across Teams &
Workflows!
Infuse a culture of collaboration
into IoT activations (and
experimentation)!
!
Embed reporting and feedback
mechanisms into technology
workflows!
!
Train analysts responsible for
listening, measurement, and
testing to surface and share
data analysis that is actionable
for specific functions!
!
It has to be a hand-in-hand
partnership, a good balance
between operational needs
and innovation. !
“!
The Marketing & Sales teams define the
direction, and we in IT provide the back end
infrastructure, address their issues, and try to
offer innovative solutions. !
-- Ruben Melo, Business Systems Manager, New England Biolabs!
!
Focus on Data
Integrity First!
Invest in data clean-up!
!
Monitor all internal and
external requirements for
data integrity!
!
Prioritize data integrity
across all data sets !
Trash in, trash out.
Data integrity
pervades all
elements of IoT
implementations
Integrate Technology,
Standards, & Data for
Interoperability!
Prioritize systems integration
based on use case
implementation!
!
Prioritize (and build for)
standardization, even across
the smallest pilots!
!
Prioritize data integration to
account for multiple use case
deployment over time, as
safely, securely, and ethically
as possible!
!
!
Infuse Content
Strategy into Use
Case Prioritization! ·  sd!
Content deployments in IoT are
subject to any connected interface
and should be consistent across
touchpoints

Integrate key content systems
across all sensor-enabled product
systems

Consider how connected
experiences (and insights from these
experiences) impact paid, owned,
and earned media convergence
NEB’s connected refrigerators aren’t just
content channels, but vehicles for
improvement and innovation!
CONTENT
ü  Track loop of marketing messaging
ü  Support content (+ direct line)
ü  Free samples (+ inventory tracking)
ü  Specific campaigns for specific
locations/needs
ü  A/B testing
IMPROVEMENT
ü  Product offerings
ü  Interface offerings
ü  Inventory planning
ü  Product specs offered
ü  Popular content
ü  Freezer performance
Step Four!
If brands are asking customers to
adapt to digital engagement
techniques in the physical world, they
too must adapt how they convey the
purpose, security, and value of such
techniques.!
!
Prioritize
Transparency in
Consumer
Communications!
Use transparency to build trust
and differentiate the
experience!
!
Connect the dots of value
exchange: what value will
customer data offer
customers?!
!
Monitor emerging regulatory
requirements, including
international variations!
!
!
!
Brands Have an
Ethical Obligation to
Default to Privacy!
·  sd!
Articulate how the company is
accountable for customer privacy

Provide customers simple ways to
access support and content
addressing their privacy

Prioritize privacy sensitivities,
especially when deploying multiple
use cases at once
Don’t risk your brand’s integrity !
Source: TRUSTe Internet of Things Privacy Index 2014
Or your IoT investment!!
Craft Experiences to
Reflect (and Respect)
Existing Relationship!
Tailor messaging and call-to-
action (CTA) to depth of
existing relationship !
!
Develop clear triage for how
experience differs based on
depth of existing relationship!
!
Incentivize deeper
engagement through
incremental outreach,
reflecting depth of relationship !
!
Anticipate
Messaging
Evolution! ·  sd!
With each new IoT activation,
consider how to reflect new
capabilities (and potential
partnerships) when messaging to
consumers

Articulate how new data streams
impact (improve) value proposition
when messaging to consumers

Use transparency and accountability
as tools for fostering trust
Move Strategically–
Which May Mean
Conservatively!
Start small, with highly scoped
(single use-case) initiatives for
proof of concept!
!
Define attainable and actionable
key performance indicators
(KPIs) before deploying!
!
Aim not to re-invent existing
customer behaviors, but to
replace them with subtle tweaks
that deliver immediate value!
!
!
The success of releasing new initiatives
relies on the existing foundation of
engagement in place today.!
Don’t avoid failure, !
move with it and learn from it!
Altimeter IoT Resources!
•  Upcoming research!
•  Six Considerations for Prioritizing Use Cases !
•  Privacy in the Internet of Things!
•  Consumer perceptions !
•  Surveys!
Altimeter IoT Resources !
·  Workshops!
·  Assessment!
·  Thought leadership !
·  Advisory!
·  http://bit.ly/IoTCXChecklist!
Q uestions?!
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!
Industry Analyst!
@JessGroopman!
Jessgroopman.com!
Charlene Li !
Principal Analyst & Founder
@CharleneLi!

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[Slides] Four Steps Brands Can Take to Design Internet of Things Experiences

  • 1. [Webinar] Four Steps Brands Can Take to Design Internet of Things Experiences! ! Jessica Groopman, Industry Analyst @Jessgroopman! Charlene Li, Principal Analyst & Founder! @Charleneli! Event hashtag: #IoTCX!
  • 2. Welcome!! •  Why now?! •  4 Steps for Crafting your IoT Strategy! •  Altimeter Resources! •  Q&A!
  • 3. Mobile overtook fixed internet access in 2014!
  • 4. Smart devices are transforming how we use and think of the Internet!
  • 5. IoT will soon outpace PC, tablet, and smartphone markets… combined!
  • 6.
  • 7. Today, brands face a dual imperative.
  • 8. How Brands Can Begin Crafting Consumer-facing IoT Strategies !
  • 9. Four Steps for Architecting Consumer- facing IoT Experiences !
  • 11.
  • 12. Define Future State CX Vision! Clearly articulate the reasons why customers would embrace new devices or behaviors.! ! Conduct journey-mapping research to understand those pain points along customer journeys where connected devices, products, infrastructure, and the like can best serve CX.! ! Consider elements beyond sensors when crafting future state CX (e.g., product, environment, data sets, content, loyalty, sales).! !
  • 13. Conduct journey-mapping to align both internal and external components of CX !
  • 14. Begin with Empathy! Embrace the mindset of key personas, run focus groups.! ! Design for low friction, a low learning curve, and intuitive adoption, with a clear benefit solving an actual pain.! ! Give prospects and customers a voice, asking for feedback and requests for improvement.!
  • 15. Why bother?! q  Is what we’re doing actually going to be valuable? To whom?! q  What are you empowering customers to do that they couldn’t do before?! q  What are you enabling customers to accomplish? ! q  How will different types of customers respond to different offers/changes/initiatives?! q  Will this create a WOW? How?!
  • 16. “The nature of the proposition and the concept of the experience provided must take into account who customers are, where they are, and what the relationship is.” -Niall Murphy, CEO of EVRYTHNG
  • 17. But just because we can add sensors to anything doesn’t always mean we should…
  • 18. Replace Behaviors, Don’t Reinvent Them! Replace behaviors by tweaking one or two features or steps, and provide instant gratification! ! Ask: would my grandmother understand how to do this?! ! Leverage existing templates for interaction to drive adoption and circumvent learning curves.! !
  • 19. Hilton replaces room keys with guests’ smartphones
  • 20. NEB uses connected refrigerator data to improve how they engage with scientists
  • 21. Consider the Platform! Determine what types of sensors are required! ! Determine which sensors are proprietary and which are leveraged! ! Consider how time, location, psychographics, and behavioral preferences inform the prioritization of one platform over another. ! segments.
  • 22. The Role of Mobile in IoT !
  • 23. Start Small, but Prioritize with an Eye for Multiple Use Cases! Prioritize which use cases serve business objectives and how.! ! Conduct gap analysis around how new and existing technologies support use cases; ascertain level of new investment.! ! Identify all business functions involved and where teams will interact with each other; align workflows with use case prioritization.! !
  • 25. Make the Business Case! Articulate and prioritize how IoT CX use cases will support larger organizational objectives.! ! Build out foundational programs to encourage deeper engagement to drive new initiatives.! ! Develop tightly scoped pilots that support departmental and larger organizational objectives with clear metrics and KPIs.! !
  • 26. Diageo piloted connects bottle to smartphone campaign 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
  • 27. Educate Stakeholders on IoT’s potential & New Business Model Creation! Educate all stakeholders on the role of IoT, and what competitors are doing! ! Educate stakeholders (especially leadership) on business model creation or enhancement! ! Leverage pilots to drive results that support specific departments; Focus on departmental and business objectives, not bright, shiny technologies! ! Develop a timeline for deployment, iteration, and expansion! !
  • 29. Collaborate & Integrate across Teams & Workflows! Infuse a culture of collaboration into IoT activations (and experimentation)! ! Embed reporting and feedback mechanisms into technology workflows! ! Train analysts responsible for listening, measurement, and testing to surface and share data analysis that is actionable for specific functions! !
  • 30. It has to be a hand-in-hand partnership, a good balance between operational needs and innovation. ! “! The Marketing & Sales teams define the direction, and we in IT provide the back end infrastructure, address their issues, and try to offer innovative solutions. ! -- Ruben Melo, Business Systems Manager, New England Biolabs! !
  • 31. Focus on Data Integrity First! Invest in data clean-up! ! Monitor all internal and external requirements for data integrity! ! Prioritize data integrity across all data sets !
  • 32. Trash in, trash out. Data integrity pervades all elements of IoT implementations
  • 33. Integrate Technology, Standards, & Data for Interoperability! Prioritize systems integration based on use case implementation! ! Prioritize (and build for) standardization, even across the smallest pilots! ! Prioritize data integration to account for multiple use case deployment over time, as safely, securely, and ethically as possible! ! !
  • 34. Infuse Content Strategy into Use Case Prioritization! ·  sd! Content deployments in IoT are subject to any connected interface and should be consistent across touchpoints Integrate key content systems across all sensor-enabled product systems Consider how connected experiences (and insights from these experiences) impact paid, owned, and earned media convergence
  • 35. NEB’s connected refrigerators aren’t just content channels, but vehicles for improvement and innovation! CONTENT ü  Track loop of marketing messaging ü  Support content (+ direct line) ü  Free samples (+ inventory tracking) ü  Specific campaigns for specific locations/needs ü  A/B testing IMPROVEMENT ü  Product offerings ü  Interface offerings ü  Inventory planning ü  Product specs offered ü  Popular content ü  Freezer performance
  • 37. If brands are asking customers to adapt to digital engagement techniques in the physical world, they too must adapt how they convey the purpose, security, and value of such techniques.! !
  • 38. Prioritize Transparency in Consumer Communications! Use transparency to build trust and differentiate the experience! ! Connect the dots of value exchange: what value will customer data offer customers?! ! Monitor emerging regulatory requirements, including international variations! ! ! !
  • 39. Brands Have an Ethical Obligation to Default to Privacy! ·  sd! Articulate how the company is accountable for customer privacy Provide customers simple ways to access support and content addressing their privacy Prioritize privacy sensitivities, especially when deploying multiple use cases at once
  • 40. Don’t risk your brand’s integrity ! Source: TRUSTe Internet of Things Privacy Index 2014 Or your IoT investment!!
  • 41. Craft Experiences to Reflect (and Respect) Existing Relationship! Tailor messaging and call-to- action (CTA) to depth of existing relationship ! ! Develop clear triage for how experience differs based on depth of existing relationship! ! Incentivize deeper engagement through incremental outreach, reflecting depth of relationship ! !
  • 42. Anticipate Messaging Evolution! ·  sd! With each new IoT activation, consider how to reflect new capabilities (and potential partnerships) when messaging to consumers Articulate how new data streams impact (improve) value proposition when messaging to consumers Use transparency and accountability as tools for fostering trust
  • 43. Move Strategically– Which May Mean Conservatively! Start small, with highly scoped (single use-case) initiatives for proof of concept! ! Define attainable and actionable key performance indicators (KPIs) before deploying! ! Aim not to re-invent existing customer behaviors, but to replace them with subtle tweaks that deliver immediate value! ! !
  • 44. The success of releasing new initiatives relies on the existing foundation of engagement in place today.!
  • 45. Don’t avoid failure, ! move with it and learn from it!
  • 46. Altimeter IoT Resources! •  Upcoming research! •  Six Considerations for Prioritizing Use Cases ! •  Privacy in the Internet of Things! •  Consumer perceptions ! •  Surveys!
  • 47. Altimeter IoT Resources ! ·  Workshops! ·  Assessment! ·  Thought leadership ! ·  Advisory! ·  http://bit.ly/IoTCXChecklist!
  • 49. 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! Industry Analyst! @JessGroopman! Jessgroopman.com! Charlene Li ! Principal Analyst & Founder @CharleneLi!