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

1. Event hashtag: #IoTCX? [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?

2. Source: The Connectivist, 2014

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

5. Demystifying the Internet of Things?

6. 87% are unfamiliar with the term “Internet of Things”? 65% Plan to adopt connected technologies in the future.?

7. Situated Computing Wireless Sensor Networks Physical Computing Future Internet Ubiquitous Connectivity Spimes Ambient Intelligence Sentient World Connected Environments Internet of Everything (IoE) Industrial Internet Ubiquitous Computing Physical Internet Web of Things Smarter Planet Pervasive Internet Phygital World Connected World Machine2Machine (M2M) Everyware Interaction on Demand

8. 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. ? ? ?

9. IoT is not about the technology.

11. IoT is a platform for connecting people, objects, and environments to inform and enable visibility, engagement, and innovation. ?

13. IoT’s Potential for Win-Win ?

14. What’s in it for consumers?? Empowerment Visibility Autonomy Efficiency

15. What’s in it for brands?? Context, Context, Context Insight into Customer Journey The World’s Largest Focus Group Consumer-driven Optimization

16. 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

17. P Is your company actively planning an IoT initiative for the next 12 months?? oll?

18. Consumer-facing Use Cases in the Internet of Things?

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

21. Reward consumers for their time, money, effort, and engagement? Reward enabled by sensors incentivizes engagement and purchase by drawing from contextual elements

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

23. Pact Health offers businesses and their employees sensor-based cost savings on health insurance?

24. 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

25. Reward: What’s in it for me?? Consumer POV? Brand POV? The brand rewards me for my interaction (time, loyalty, purchase, location, product/service use, behavior, etc.).? We use an incentive (monetary, promotion, points, content, etc.) derived from online and/or offline data to drive customer interaction.? ? ? ?

26. Information and Decision Making Information and Decision Making? Empower Consumers with the Ability to Empower Consumers with the Ability to Access and Act on Intelligence Access and Act on Intelligence ? Hyper-relevant information increases intelligence and assists in more informed and rapid decision-making.

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

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

29. Jawbone fitness tracker adds meaningful data to post-quake coverage?

30. Decision-Making: What’s in it for me?? Consumer POV: ?? Brand POV:? The brand helps me make informed decisions by providing me the most relevant information precisely when I need it.? 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.? ?

31. Foster Easier, More Accessible, and Foster Easier, More Accessible, and Convenient Brand Experiences Convenient Brand Experiences? Facilitation is about rendering the way consumers engage with products and services easier, faster, and more efficient

32. 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

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

34. 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

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

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

37. Facilitation: What’s in it for me?? Consumer POV:? Brand POV:? The brand makes it easier for me to access, acquire, or accomplish what I need, exactly when I need it.? We enable a specific customer action or transaction architected to streamline the brand- consumer experience within a specific environment.? ? ?

38. Support and Retain Customers by Support and Retain Customers by Proactively Identifying Opportunities 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.

39. Whirlpool’s connected washer prompts users with troubleshooting content when it detects an issue?

40. Tesla: The car that can fix itself ?

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

42. 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

43. Walgreens partners with TaskRabbit to deliver relief for sick residents

44. ? “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

45. Service: What’s in it for me?? Consumer POV: ?? Brand 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. ? 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.? ? ?

46. Leverage Feedback for Rapid R&D, Leverage Feedback for Rapid R&D, Customization, and Improvement Customization, and Improvement? Innovation enabled by sensors helps companies more efficiently collect feedback, optimizes, and even customize product/service experiences.

47. 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

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

49. Innovation: What’s in it for me?? Consumer POV ?? Brand POV? The brand listens to and implements my requests for product or service improvement more rapidly.? We use real-time or rapid feedback mechanisms to inform and enable product and service development, design, or customization.? ?

50. Embrace Use Cases Holistically to Differentiate the Customer Experience ?