Download Trend analysis What does it mean to marketers? Case studies and

Internet
of Things
for marketers
Trend analysis
What does it mean to marketers?
Case studies and examples of implementation
CONTENTS :
3
TREND ANALYSIS
4
Internet changes things
5
Smart objects
6
Trend dynamics. Further development
7
Businesses changed forever
8
Threats and criticism
9
WHAT DOES IT MEAN TO MARKETERS?
10
Traditional marketing vs. possibilities offered by IoT
11
New consumer
13
Data analysis and functionalization will become marketer’s key ability
14
IoT needs Marketing Automation – it’s all about interpretation of data
15
CASE STUDIES. EXAMPLES OF IMPLEMENTATION
16
Most interesting IoT solutions
17
Examples of IoT implementation in marketing
18
FURTHER READING
Internet of Things for marketers.
2
Trend analysis
Internet changes things
Smart objects
Trend dynamics. Further development
Businesses changed forever
Threats and criticism
Internet of Things dla marketerów.
3
Trend analysis
Internet changes things
„On the internet, nobody
knows you’re a toaster”
Brad uses social media to compare himself to others.
Whenever he feels inferior, he falls into depression.
Brad is a toaster: not the first creature suffering
from Internet-driven anxiety, neither first kitchen supply
to show its new potential thanks to new technologies.
But there is something unique about it. That design project by
Simone Rebaudengo presents how our relationship with objects
changes due to internet, social media and big data.
„Anthropologists have for a long time
pointed out that not only people,
but also things have causative
power. And no matter how strange
it might sound, I think that in
foreseeable future our relationship
with objects will start to evolve,
because things will have new
means of communication
and will be able
to act beyond our control, they will
When Brad is used less frequently than other connected
toasters, he gets blue, tweets about it and finally orders himself
a courier and moves out of the house where his needs
are not met.
achieve some kind of autonomy”.
Mirosław Filiciak, PhD
Internet of Things for marketers.
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Trend analysis
Smart objects
Objects use internet
Access to internet is not only a privilege of
man, as it is used also by
15 billions of devices and that number
will rise to 200 billions in 2020. For
comparison: there is 2,93 millions of human
internet users.
We tend to imagine internet as a place of
communication between people: humans
post, comment, share, poke themselves.
But in 1999 Kevin Ashton indicated new
trend: Internet of Things (IoT).
What object can be smart?
Fridge which notifies you when you are
about to run out of some product or
orders it from the store automatically,
Thermostat, adjusting temperature in the
house automatically to our preferences
and habits, time of the day and weather
Diaper with wetness indicator, sending
parent notifications when it should be
changed,
Micro Pot or kitchen, Wi-Fi enabled,
It’s about machine to machine
communication, without human mediation.
It means an age of smart objects, which
collect, transfer and analyze data.
Camera, which will turn on
automatically when important things in
your life happen and make a photo or a
short movie,
Sport watch, monitoring your route,
speed, heart rate, noting progress,
making workout plan and sharing your
results in social media.
Car – in January 2015 Audi A7 drove on
itself, without human control, over 550
miles, from San Francisco to Las Vegas.
Ultimately all devices will be connected to the web.
Today experts argue whether to include wearables (like bracelets monitoring your activity or Drum
Pants – pants, on which you can play like on drums), smartphones, tablets, smart TV to Internet
of Things. We do – in this ebook we apply broad definition of the term.
Internet of Things for marketers.
5
Trend analysis
Dynamics of trend and further development
Advantages of implementing IoT technology:
Better customer service (collecting more data, possibility of
processing them faster, personalization, quick delivery)
Investments in Internet of Things
Samsung announced that till 2017 all its TV sets will be smart, and within 5
years all its computers will be able to operate within IoT (company invested
100 million dollars in development of that area; besides they participate in
creating common platform for all IoT devices).
Improving company’s efficiency, improved workflow
More possibilities of cooperation between brands for
better customer’s experience (e.g. Phillips created a system
of controlling lighting in the house via mobile app. Netflix
used their API to automatically adjust lighting and light effects
to particular scenes in movies).
Their strategy is not unusual:
Plenty of room for innovation
96%
96% of 800 world best business
leaders claim that they will
implement IoT solutions soon.
68%
while 68% of them uses that
technology already.
99%
But still 99% of devices are not
connected, so there is plenty of
room for new solutions.
New options for marketing
„Connecting products
to the web will be the 21st.
century electrification”
Matt Webb, CEO BERG Cloud
Internet of Things for marketers.
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Trend analysis
Businesses changed forever
Although all devices will be smart in the future,
the trend influences mostly the following
branches right now:
Smart parenting
thanks to new monitoring options
(of breath, heart rate, temperature,
wetness of the diaper) parent’s control
over little children dramatically grows.
Ecology
new options for pollution monitoring
are available, eco-friendly solutions
will be easier to implement on a large scale.
Fitness
according to Quantified Self trend,
consumers more and more willingly buy
devices monitoring their health and fitness
activity. These are most often purchased
smart objects (excluding smartphones
and tablets).
Food
quality-concerned consumers can track
their food from the moment of harvest to
final store, and therefore monitor freshness,
indications of food being processed, etc.
TV
thanks to smart TV sets we abandon
traditional TV for watching on demand.
Television will be perfectly adjusted
to our preferencees, lifestyle
and time-schedule.
Urbanism
the age of smart cities awaits! Thanks
to beacons it can be easier to find a
parking spot, and city space will become
more friendly. More facilities for disabled
will be available.
Household
appliances
plenty of housework is automated (like
grocery shopping, we will also no longer
have to fear whether kitchen or iron is
plugged out – we can turn them off with
mobile app),
Transportation
smart cars, motorcycles and bikes,
smart helmets and systems of traffic
monitoring significantly improve
experience of transportation
Internet of Things for marketers.
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Trend analysis
Branże,
Threats które
and criticism
już nigdy nie będą takie same
Internet of things awakens also fear
and objection, concerning both possibility
of implementing IoT solutions considerably
and broadly, and consequences of living
among many interconnected devices
for humans, psychologically and
sociologically speaking.
1
Basket of remotes problem:
how will various smart devices
communicate with each other? Will
our meal planning app correspond with
our fridge? Will the whole house be
interconnected to provide real comfort
or will we get stuck with dozen of apps,
each for every activity, and hundreds
of devices? Communication between them
is still an unsolved problem: many market
players try to create such a platform
of exchange (among them famous Stephen
Wolfram, creator of Mathematica, or group
of entrepreneurs led by Samsung
and Intel), but existence of one such
platform would give its beholder enormous
advantage and control, so there’s nothing
strange that competition is still running.
2
Fear of strings attached: Consumers
are afraid of being outsmarted by
producers. What if my fridge is connected
only with one shop? What if I will have
to be loyal to one company? Won’t closed
ecosystem of one device become a
restriction of freedom to me?
3
Smart terrorism: high dependency
on technology can make its users more
vulnerable to new types of violence:
hackers who will break into our systems.
The picture of washing machines’ attack
seems unreal, but stimulates imagination.
4
Artificial Intelligence = death of human:
what if objects become so smart that they will
turn into real artificial intelligence, about which
scientists dream of for years? Stephen
Hawking - like many other thinkers– claims
that discovering A.I. might end human race.
5
Atomized society:
the more we rely on objects, the less
we need others. A lot of our everyday random
encounters will turn out to be unnecessary.
Our world will grow limited to the vision we
created ourselves. We will live like in water
glasses, without knowing a lot about reality
outside, about people other than our friends,
family, colleagues.
Internet of Things for marketers.
8
What does it mean
to marketers?
Traditional marketing vs. possibilities offered by IoT
New consumer
Data analysis and functionalization will become marketer’s key ability
IoT needs Marketing Automation – it’s all about interpretation of data
Internet of Things dla marketerów.
9
What does it mean to marketers?
Traditional marketing vs. possibilities offered by IoT
Internet of things can mean a real revolution in marketing, because it opens new possibilities. We will be close to customer as never before.
More knowledge on his interests and behavior, understanding reasons for his actions, addressing an offer when it is needed and welcomed
– these and more changes are to come.
Differences between contemporary marketing and marketing of tomorrow, based on IoT
Contemporary marketing
Gathers little data from offline, massive gaps
in knowledge on customers
Fewer media available, users used to ads in these channels
Marketing of tomorrow, based on IoT
Monitoring both online and offline behavior, combining data from
both areas: fuller knowledge on customer.
Greater amount of devices which can become marketing
communication medium. Marketers will be close to customer i
n everyday situations.
Lacks good ideas for use of customer’s
localization (e.g.. check-in)
Adjusted to user’s physical localization (e.g. thanks to beacons
we know that customer is getting close to the physical store
and thanks to previously collected data we can issue a
personalized offer in real time).
Banners, display
Smart objects mostly won’t be suitable for traditional banners –
we will need new forms of ads and communication
(audio, short text, device feature, code). Means of marketing
communication will be redefined.
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Internet of Things for marketers.
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What does it mean to marketers?
New consumer
Data as currency
New customer is:
Internet of things changes customers’ mindset.
They become more aware of their rights
and protection of data. It doesn’t mean
that they wouldn’t like to share them with
companies: consumers love the comfort
of personalized offer or swap data for discounts
or other benefits.
They will just treat their data as currency to be
exchanged.
More aware about data: : customers fear for safety
of their data, but on the other hand will exchange
them easily for, solid benefit. According to Accenture
Report from 2014, 32% of customers would have
no problem with sharing their data with provider if
they were sure that the data won’t be used by third
parties. Another 38% would rather share their data.
Ensure that your data acquisition and processing
policy is transparent and fair, and that your customer
service is prepared to discuss that topic.
Competition
Fussy and eager for benefits:
along with omnipresence of marketing – ads
soon will literally jump out of our fridges – customers
will be tempted with amazing amount of offers and
aware of wide array of options available. Mass emails
will end: with IoT and amount of data it allows
us to gather, highest level of personalization will
become a standard. We will address offers not only
according to behavioral, demographic and
transactional data, but also to particular moment
(Real-Time Marketing).
Progressive personalization of marketing
and using big data will make marketing competition
more aggressive. Perfectly tailored offers will
soon become standard. It’s going to be harder
and harder to stand out – marketing campaigns
will be omnipresent and close to everyday life,
so creating something extraordinary will be quite
a challenge. Also consumers will grow
in awareness.
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Internet of Things for marketers.
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What does it mean to marketers?
New consumer
Competent and connected:
wearables and smart objects will
allow consumers learn more and more
about themselves. Data which were once
difficult to obtain, now are at hand.
We can know how many miles and how
fast have we run, how many calories have
we consumed, how long have we been
under shower (and are we running
out of shampoo), how productive were we,
what is our heart rate and blood pressure,
and when do they go up (actually
we can determine who and what stresses
us), how well do we sleep. We will
all be prosumers.
Willing to control even bigger
part of shopping process:
The more knowledge consumer has,
the more he expects partnership and
dialogue. He will ask for technical details
and want to know why did you choose
particular solution. Customer’s
engagement can exceed even shopping
process and concern the stage of design
or production. Such modes of customer
– brand relationship operate also today,
in crowdfunding, where customers
become partners and investors.
Unconventional forms of payment:
Customers will know that they pay you
with their data, privacy, engagement,
loyalty, likes, good review in social media.
As prosumers they will demand active
impact on price-shaping. Just like
content marketing got people used
to free good quality content (payment
with email address, one’s time and
exposure to ads), Big Data will accustom
users to paying with data. Chris
Anderson predicted end of paid content
in his controversial „Free: The Future
of a Radical Price”. Therefore inevitably
price-shaping mechanisms will change.
Crowdfunding, Pay What You Want,
subscriptions, price affected by actual
physical localization of customer –
certainly, we are going to search new
options.
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Internet of Things for marketers.
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What does it mean to marketers?
Data analysis and functionalization
will become marketer’s key ability
Customer and marketer close to
each other: question of trust
Marketer – consumer relationship will
become intimate. We will accompany
each other during teeth brushing, laundry,
driving. It’s a challenge to adapt to new
rules, with customer as equal participant
in the dialogue, and to understand his
boundaries – moment to which he feels
ok with marketing communication, and
when it becomes too intrusive, too
frequent, or when benefits are too small
when compared to amount of data offered.
Personalization
The benefit are of course discounts,
special offers and premium materials,
but also – and most of allpersonalization. Customers will deliver
more data than ever, allowing for getting
to know them really well and moving
personalization to next level.
Simple and user-friendly solution
Such amount of information and
channels might impede marketing
communication if not handled skillfully.
Therefore marketers will have to be
able to translate huge amounts of data
into simple, readable and friendly
messages, delivered in real time. Offer
must reach customer right when he
passes by store, wants to watch a
movie or notices that he’s about to run
out of milk.
Internet of Things for marketers.
13
What does it mean to marketers?
IoT needs Marketing Automation
– it’s all about interpretation of data
Marketing Automation is necessary
Smart objects themselves or standing alone set of data
are useless: you need a tool for functional storage and
fast, automated and precise method of using them.
Smart objects: what to use them for then?
Building customers’ profiles (behavior,
interests, schedule and time management,
the way they use our product
Identifying situations when marketing
communication would be welcomed
(when product runs out, when user is making
a purchase and something might be suggested
as complementary product, when
user approaches or passes by the store)
Offer personalization
Faster reacting to customer’s needs
Synergy: combining data
from various channels thanks
to automation systems
We need to remember that data
from smart devices or beacons
cannot be treated in an abstract
way, without connection to user’s
purchase history and behavior.
Only when we combine IoT data
with information from website,
mobile app, physical stores
and social media, they can
actually be used.
It means vitality of Marketing
Automation systems for IoT:
complex analysis and
communication channels
integrations are crucial. Otherwise
we risk lack of cohesion, chaotic
messages and making impression
that we give no real value in
exchange for data,
or are incapable of handling them
whatsoever.
A large portion of marketing
dollars are wasted when the wrong
offers are made to the wrong people
at the wrong place and time… The
IoT will generate an enormous, truly
unprecedented amount of precise
information about buyers and
their needs. It’s a marketer’s dream
come true.
Jon Gettinger, Aria Systems
Internet of Things for marketers.
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Case studies
Examples of implementation
Most interesting IoT solutions
Examples of IoT implementation in marketing
Internet of Things for marketers.
15
Case studies
Most interesting IoT solutions
HAPIfork: connected fork, which helps
develop healthy eating habits and monitor
them. E.g. it alerts you, when you eat too
fast
Heart-monitoring band, connected to
smartphone
Jibo family robot: it recognizes family
members, reminds of events marked in
calendar, orders food, reads fairy tales to
children
Adhere Tech: smart containers
for medicines, ensuring that patients
actually take their medicine and reminding
about taking a pill with notification
Chul: world’s smartest doorbell, which
recognizes faces and opens the door basing
on that; it also registers all the people coming
in and out
Nest: smart thermostat which learns
user’s preferences and behavior and
turns himself on and off automatically;
company was bought by Google
Kolibree: first connected toothbrush,
which collects information on our
brushing habits
Kapture, Autograph: smart mini
recorders, which will turn on and off
automatically document important
moments
Smart roads: they inform about traffic
jams, accidents and other possible
difficulties on the road
Tools improving sleep quality:
sheets, T-Shirts, bands. They monitor sleep
and secure maximum comfort
Smart pen: so we can transfer our paper
notes to Evernote (and never lose them again)
Automatic lawn mower controlled
by smartphone
Vive bracelet: it informs you with vibrations
that you have probably drunk too much and
should be careful in order not to get hurt.
Cute Circuit shirt: thanks to LED it displays
any text, including tweets and Facebook
statuses
Air pollution measuring systems
Bag2Go: system of sensors installed in the
luggage, allowing to locate it in real time.
Motorcycle helmet with GPS
Internet of Things for marketers.
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Case studies
Examples of IoT implementation in marketing
From marketers’ point of view the biggest advantage of Internet of Things
is gathering huge amounts of data, which allow for personalized communication.
But one can also use the trend otherwise, thanks to new modes of communication
that IoT offers.
Beacons in physical stores:
allow to localize individual customer
inside or nearby physical stores.
They collect data on the products
viewed, so by combining beacons
with SALESmanago system
marketers can personalize
communication, based on data both
from online and offline.
Profiled ads in TV on demand:
consumers are delighted with smart
TV, so they will embrace offers tailored
to their needs via that channel.
Moreover, for big screen of smart TV
one can design beautiful visual
creation.
Investment in drones: goods delivery
fast as never before.
Connecting refrigerator with grocery
store: what will enable automated
shopping when particular products run
out.
Promoting sportswear, fitness clubs
or healthy food via wearables
for tracking sport activity.
Personalized smart packages.
Remember:
if you don’t plan investment in smart objects,
keep an eye on it. Maybe you will be able
to use that technology in cooperation with
some partner? Trend grows really dynamically ,
new projects spring up all the time.
If you won’t grab the opportunity quickly,
it might turn out that soon the market will be
saturated and users won’t be eager to install
new applications or buy new gear. Testing
such solutions in early phase gives you
an advantage over competition.
Automatic alerts when products get
spoiled, require replacement or control.
Internet of Things for marketers.
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Further reading
Books :
daCosta Francis, Rethinking the Internet of Things:
A Scalable Approach to Connecting Everything, Apress 2013.
Articles online, slide shares, infographics :
Digital Consumer Tech Survey: Accenture report for 2014,
http://www.accenture.com/SiteCollectionDocuments/PDF/Accenture-Digital-Consumer-Tech-Survey-2014.pdf
Kyle Vanhemert, Needy robotic toaster sells itself if neglected:
Madisetti Vijay, Internet of Things (A Hands-on-Approach),
VPT 2014.
http://www.wired.co.uk/news/archive/2014-03/18/addicted-toaster
Internet of Things, Intel’s report:
McEwen Adrian, Designing the Internet of Things, Willey 2013.
http://www.intel.com/content/www/us/en/internet-of-things/infographics/guide-to-iot.html
Pfister Cuno, Getting Started with the Internet of Things:
Connecting Sensors and Microcontrollers to the Cloud
(Make: Projects), Maker Media 2011.
A Brief History of Internet of Things:
http://www.psfk.com/2014/03/internet-of-things-infographic.html
Internet rzeczy zmieni nasze życie [Internet of Things Will Change Our Lives]:
Rose David, Enchanted Objects: Design, Human Desire,
and the Internet of Things, Scribner 2014.
http://www.naukawpolsce.pap.pl/aktualnosci/news,394761,ekspert-internet-rzeczy-zmieni-nasze-zycie.html
Internet of Everything, Business Insider’s report
Wenkart Michael, The Internet Of Things: This revolution could
unlock $14.4 TRILLION in business value, Amazon 2014.
http://www.businessinsider.com/the-internet-of-everything-2014-slide-deck-sai-2014-2?op=1
Internet of Things. Interesting Statistics You don’t know
Wenkart Michael, The Internet Of Things: This revolution could
unlock $14.4 TRILLION in business value, Amazon 2014.
http://www.fool.com/investing/general/2015/02/06/17-internet-of-things-statistics-you-dont-know.aspx
Internet of Things for marketers.
18
Internet
of Things
for marketers
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