[Slides] Customer Experience in the Internet of Things by Altimeter Group

[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) IndustrialInternet
Ubiquitous Connectivity
Ubiquitous Computing
Connected Environments
Spimes
SituatedComputing
Physical Computing
Wireless Sensor Networks
Physical Internet
FutureInternet
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.).!
!
!
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.

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!

[Slides] Customer Experience in the Internet of Things by Altimeter Group

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[Slides] Customer Experience in the Internet of Things by Altimeter Group