Harnessing digital connections to foster deeper human connections is the highest opportunity of bridging the digital & physical worlds. How marketing is evolving to create connected customer experiences, the risks and rewards to marketers of doing so, and how to start the journey.
30. Risks
• Attribution Impact
• Losing customers along their journeys
• Regarding mobile as a secondary channel
• Advertising-only mentality
• Annoying or creeping out customers > opt-out
• Higher possibility of friction in ‘offline’ contexts
• Under-use of content and brand assets
• Negative impact on brand sentiment/experience
• Ineffective (or unethical) use of data
• Wasted investments
From websites to wearables to wherever, digital is expanding into the physical world.
AG Definition of IoT
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.
relevance, context, improved business results, happy customers, etc.
slide- data
relevance, context, improved business results, happy customers, etc.
slide- data
The so-called Internet of Things—in which sensors are embedded in objects and gather data for analysis and action—is the glue that binds those two worlds ever closer together.
http://www.szamitasifelho.com/home/ugorjunk-a-felhobe-moving-to-the-cloud/a-szamitasifelhon-tul-beyond-the-cloud-computing
Our connectivity, and the ability to access and take action via the Internet is exploding outwards– becoming more mobile.
This trend began with the transition from desktops to laptops
Now smartphones, tablets, and game consoles.
Next (ANIMATION), we’re already seeing adoption of IoT devices, such as smart TVs, smart watches, wristbands, and beyond.
http://destinyseo.com/blog/
TV is now a multitasking activity thanks to mobile. People don’t just watch TV, they also
Surf the web
Shop
Check sports scores
Look up info on actors, plotlines, athletes
Buy products/services being advertised
Read discussions about TV shows on social media sites
Vote or send comments to a live program
Watched certain program bc of something said on social media
Email or texted a friend about the program
http://www.nielsen.com/us/en/insights/news/2014/whats-empowering-the-new-digital-consumer.html
Consumers care less about ownership or platform, and more about access and convenience.
http://www.soundandvision.com/content/zeroing-cord-cutters
Brands can leverage data to better serve individuals’ unique contexts using combinations of the following:
Proprietary data
3rd party data
Historical data
Real-time data
Sensor data
Social data
Aggregated data
Home Depot is currently piloting intelligent integrations between customers’ online shopping carts and wish lists and the retailer’s in-store mobile app experience for loyalty members. Upon entering the store, customers that are part of Home Depot’s Pro Rewards program will receive a notification showing them the most efficient route through the store based on the items customers shopped for online. Aware of the vast landscape that is a home supplies warehouse, the retailer also helps shoppers check the inventory by location.
Utility and integration with loyalty/rewards helps HD drive sales
gives Diageo a direct, one-to-one channel for communicating with consumers: their products.
3. It enables users to personalize products, by definition, in unique ways.
4. It converts existing, even generic, products into functionally intelligent ones, which (with the addition of smart phones) can deliver dynamic ad messaging linked to specific physical objects.
5. It creates a rationale for the consumer to have an on-going relationship with the brand — by linking continuing online interactions to real world product-based experiences.
– The campaign changed customer perception of the whisky category, re-positioning the participating Diageo brands as innovative and modern
– CRM opt-ins meant that Diageo gathered permission-based intelligence it could then reapply for future customer interactions
– Resulted in a 72% sales uplift in the two weeks leading up to Father’s Day, plus an earned media value five times higher than investment
– Due to the success in Brazil, the Father’s Day digital gifting campaign will rollout in 2013 across multiple markets, and Diageo’s first mobile loyalty scheme running on EVRYTHNG’s Engine launches in May this year
Results
72% increase in sales in the 2 weeks before Father’s Day
Earned media impact 5x investment
Several celebrities created videos tweeted to 1M followers
100k increase in Facebook fans
Global PR and industry coverage
Permission-based opt-ins to CRM program, loyalty program expanded
100,000 unique QR downloads
Program expanded to 6 countries
Increased loyalty, loyalty rewards
Enabled mobile targeting linked to specific QR code
Increased supply-chain efficiencies
https://evrythng.com/customers/diageo-case-study/
http://www.marketingmagazine.co.uk/article/1311292/five-brands-successfully-embracing-internet-things
“Monetizing your Wifi Network”
MGM sends notifications for nearby restaurants, shopping, show deals, etc., for hotel guests staying in Bellagio Las Vegas via their smartphones, based on geo-location, loyalty member status, and preferences. and the MGM app.
Delighted Customers: MGM Corporation. http://internetofeverything.cisco.com/see/delighted-customers
http://internetofeverything.cisco.com/see/delighted-customers
Text Messages, Directions, Phone Calls, service notifications – the Google Glass for your car
Note this product is still in development
In fact, the company has received more than 600 email inquiries from car dealerships, OEMs, and other parties interested in integrating or selling Navdy’s display.
“Car manufacturers, cell carriers and data providers, and the phone handset makers themselves all think of the car as a new consumer frontier, as well as all the companies that provide apps and services that are of high use in a vehicle, such as audio music and radio, navigation, directory listings, and more,” he said. But even more interesting is that Navdy has been approached by and is talking to “companies that have a lot of cars,” such as ride-sharing services like Uber and Lyft, car rental companies, delivery services, and so on, though Simpson declined to go into much detail. Ride-sharing services that require drivers to interact frequently with their phones may find that a head-up option improves safety.
http://venturebeat.com/2014/10/02/navdy-gets-6-5m-for-its-in-car-display-for-your-phone-might-show-up-in-rental-cars-soon/
The majority of connected products require or leverage a mobile device in order to extract value (insights, content, service, etc.) This will likely continue until we see better, perhaps more hands-free interfaces emerge…(fashion may have a role here too)
Augmented reality
Virtual reality
Infrastructure-based touchscreens
Adoption of smart glasses
‘Personal assistant’ devices like Amazon echo- syncs through the cloud with all Amazon apps through Voice control/recognition
Left:
Augmented reality through glasses projected onto hand via Augmenta
Augmented reality through smart glasses
Right:
Augmented reality (source remains unclear) predicted in Google’s acquisition of MagicLeap
Amazon Echo’s personal assistant- connects with all Amazon media and services, screen involved (e.g. music, shopping, audio, etc.)
relevance, context, improved business results, happy customers, etc.
slide- data
relevance, context, improved business results, happy customers, etc.
slide- data
NPS – net promoter score
(losing customer on their journeys; regarding mobile as secondary; stuck in advertising-only mentality; under-use of content and brand assets, etc)
slide- impact to brands + attribution
(losing customer on their journeys; regarding mobile as secondary; stuck in advertising-only mentality; under-use of content and brand assets, etc)
slide- impact to brands + attribution
Interface is everything!
Benefits of Digital Transformation
Most Important Digital Transformation Initiatives
Top Digital Transformation Challenges
Foster a culture of content
A culture of content is critical for coordination across departments, channels, and devices
Orchestrate!
Plan for digital transformation
Plan for media convergence
Content Stacks are Emerging- Plan for tool and technology integration
By 2016, there will be “content stack” offerings in the marketplace — end-to-end solutions akin to ad stacks.
Currently, no single vendor has an end-to-end solution.
Eventually, a few will partner, merge, acquire, and/or collaborate to create a total solution.