Post on 23-Jan-2017
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Selling the Internet of Things: Why are Retail Solutions a Challenge?
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What Exactly is the Internet of Things?
British entrepreneur Kevin Ashton first coined the term in 1999
The Internet of Things (IoT) is the network of physical objects or “things” embedded with electronics, software, sensors, and network connectivity, which enables these objects to collect and exchange data. Source: Wikipedia (2015)
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In 6 months there were 1.4M mentions of IoT.
1,039,064 mentions on Twitter 27,988 mentions on blogs 421,689 mentions in the news
Overall Sentiment is 95% favorable
51% positive 44% neutral 5% negative
Blogs Age groups 21-35 represent 67% of blog mentions
Social Media Mentions - IoT (6m)
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Social Media Mentions - IoT (6m)
Top Words Associated w/ IoT*:
• Technology (34%)• Data (31%)• Devices (29%)• Business (28%)
*According to our social media tool; Sysomos
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IoT is an Ecosystem
Things - ConsumerHome
SecuritySmart Locks
Home Appliances
SmartBed
Smart Lights
Gardening Watering Trackers Smart
PetFitness Health
Smart Watches
Smart Fashion
Home Automation
Connected Car
• HomeBoy• Canary• Dropcam• Piper
• August• Lockitron• Ring • Kwikset• Goji
• Nest• Tado• Whirlpool• Smart• ThinQ• Aros• Samsung• cinder
• LUNA• Beddit• Select• Comfort• SLEEPIQ
• LIFX• Belkin• GE link• Cree• hue
• EDYN• NIWA• Droplet• Lono• grove
• Tile• TrackR• BeLuvv• Bikn• hereO
• Whstle• CleverPet• FISHBIT• Petnet• CATFi• FitBark
• Withings• Fitbit• Athos• Garman• Misfit
• Apple• Moto 360• Android• Wear• Pebble• LG Watch• Alcatel• Smart-• watch 3
• Ringly• CUFF• Ring• Mota• Swarovski• Tory Burch• for Fitbit
• SmartThings• Alarm.com• Control 4• Vera• Vivint• iControl
• Navdy• Metromile• Dash• Jasper• Android auto• Apple CarPlay• Tesla• Honda Link• Vinli• BMW• Ford
Things - EnterpriseSmart
LogisticsSmart
FactorySmart
AgricultureSmartCities
Smart Grid
Smart Retail
IoT Security
Smart Healthcare
• WEFT• Keep Truckin• Scania• Maruti3PL• Cisco• DHL• Maersk Line• Sala
• Intel• GE• Rockwell• SAP• Siemens• Cisco
• John Deere• PrecisionHawk• Farmobile• AgSmart• Granular• OnFarm• Observant• Medria• Semios
• Enevo• Grid Waste• ParkHelp• WM• IM• Bigbelly• Kiunsys
• OPOWER• TenDril• Itron• Actility• Schneider• Electric• Silver• Spring
• Percolata• Euclid• Scanalytics• Egburt• Kontakt.io
• Bastille• Sansa• Offspark• ARM• CoroNet
• Proteus• OrthoSensor• Soundhawk• AdhereTech• CareTRX• MedMinder• Vitalconnect• Vitality• AliveCor
Things - InfrastructureHardware Platforms
Board/ Chipsets
Software Platforms
Analytics, Data Storage
• Particle• Tessel• Electric imp• ARM mbed• Pinoccio• Helium
• Beaglebone• ODROID• ARM• AMTEL• QualComm• Intel Edison• Broadcom• Marvell
• Resin.io• Xively• TempoIQ• Temboo• PubNub• ThingWorx• Waygum• Jasper• Ayla
• Senseiot• Sas• Tellient• SensorCloud• Platfora• ParStream• Microsoft• splunk
This map is not 100% comprehensive, there may be companies missing.
• There are currently more devices connected to the internet than humans and the trend is that in 2020, 26 billion “things” will be connected.
• The IoT is still in its early stages. On the consumer side it is mainly for hobbyists, and on the enterprise side it’s still for early adopters.
• The full IoT ecosystem is huge and very complex; you could have an ecosystem map for every submarket listed above.
Source: Medium.com, “A Map of the Internet of Things” written by Chris McCann, July 28, 2015.
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What Are Consumer’s Excited About?
#bettersales@MarketSourceIncIoT: The Smart Home
Home Automation
Home Monitoring
Home Security
Home Control
Connected Devices
Home Entertainment
Examples:• Closing Blinds• Adjusting Lights• Make Coffee
Mechanical Tasks
Examples:• Tablet• PC / Printer• Mobile Phones• Storage Devices• Medical Monitor
Share Everything
Examples:• Theater• TV• Distributed audio
Listen and Watch
Examples:• Thermostat• Irrigation• Lighting
Automate Activity
Examples:• Door locks• Cameras• Alarms/Alerts
Secure Your Home
Examples:• Deliveries• Latch Key Kids• Pets
While I’m Away
Many of These Devices Cross Categories to Create Lifestyle Scenes
Connected Home
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Learning from the Past: Evolving Ecosystems
4GLTE
9.6Kbps 144Kbps 384Kbps up to 42Mbps 150Mbps 1Gbps
20162010200620031993Mobility
Data Rates
Low
Medium
High
2G
Digital
1G
Analogue
3G
3G+
4G
LTE+
Wireless Communications
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The Challenges were Very
Similar
Learning from the Past: Evolving Ecosystems
Transformation Relied on:• Content Developers• Broadcasters / Providers• Telecom Infrastructure
and Technology
• Manufacturers• Retail Transformation• Consumer Understanding
and Adoption
• Analog to Digital• Tube to Flat Panel to
OLED/Micro-Dot to …• Over Air to Streaming
• Low Resolution to High Resolution to Ultra Res…
• Single Device to Multi-device content sharing
Television Ecosystem:
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Complex Environment
• Unaware of Technology• Unaware of benefits• Unfamiliar w/ brands in this category• Confused about where to buy• Waiting for alignment
• Trying to establish
themselves in IoT category
• Products cross categories
• Categorization of products vary from
retailer to retailer• More complex sale
• Requires training across categories
Consumer
• Establishing a new category• Crossing into unfamiliar
categories/retailers• Unsure of Consumer’s
buying pattern• Difficult to maximize
marketing spend
Slow Category Growth
Brand Awareness Brand Loyalty
Consumer LoyaltyBrand Identity
Category Leadership
Market ShareDiversification
How Do You Connect To
Your Customer?
How Do You Connect To
Your Customer?
Manufacturer
Retailer
How Do I Get the Retailer to Bring my Brand and Products to Life on the Floor?
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Added Challenge: Consumer Purchase Patterns
Omni channel• “Showrooming”• “Webrooming”• Social Purchasing
Infographic byhttp://www.magnetic.com/
Consumers are now in control of where and how they purchase.
Varies by Segmentation• Baby Boomers = Retail / Showrooming• X Generation = Showrooming/Webrooming• Y Generation = Webrooming• Millennials = Webrooming / Social Purchasing• Connected Generation = ?
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Added Challenge: Consumer Purchase Patterns
Examining the shopping journey of those above the age of 45
Would like more assistance with the setup of their Smart Home device
compared to their younger counterpart
Say they are likely to spend less than $500 to upgrade their home to
Smart Home
Prefer to shop for Smart Home products at a Security Company or a
Cable/Telecommunication company
Examining the shopping journey of those ages 45 and younger
More likely to prefer DIY compared to their older
counterpartSay they are likely to spend between $2,000 -
$3,000 to upgrade their home to a Smart Home
Prefer to shop for Smart Home products at a Security Company, Technology Company or a Home
Repair Store
SMART HOME - Intent to Purchase
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1,964
971Total number of establishments (in thousands)
Revenue per establishment (in thousands)
$1,489
$2,148
800
55
$342
$710
Non-web stores Web stores% change
+102%
-52% -31%
+1,354%
Source: US Census; National Retail Federation, Forrester Research estimates
% change
20142002
Added Challenge: Consumer Purchase Patterns
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The
Cha
lleng
e:
Finding Information
Difficulty finding a solution to meet their lifestyle challenge
Scarce Resources in
Store
Consumers are often more informed than associates in the store
Hesitant to Commit
Consumers are waiting for a unified operating language and fear early obsolescence
Consumer
Train and Educate
Train anyone that engages the IoT customer so they can give consumers details they need to make a purchase decision.
Ecosystem Focused
Make sure reps understand the entire ecosystem of products and services and how the ecosystem is evolving
Lifestyle Based
Focus product info/display on problems solved and benefits to consumer based on lifestyle scenes
The Solution:The Challenge for the Consumer
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85% of consumers prefer to shop at physical stores, and 90% are more likely to buy when helped by a knowledgeable associate.
- State of Retail 2015, TimeTrade
If you could book an appointment with a sales associate before going to the store, would you use it for your next visit?
59%Say “yes”
41% say “no”
Retailer The Challenge for the Retailer
Other
I don't like waiting for items to ship
I like to get advice on what product to buy
I like to 'touch and feel' products before I decide what to buy
7%38%
26%92%
Why do you prefer shopping in the store? (Respondents Ages 35 – 44)
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Retailer The Challenge for the Retailer
The Challenge:
Bringing the whole consumer solution to
life in the buyers ecosystem
(online, in-store, mobile)
The Solution:
Make it clearly evident in your store that
you are experts in the IoT spaceUnderstanding how to engage today’s
customer where and when they want to
be engaged
Have dedicated personnel in your stores
that are trained across products,
categories, and system providersStaying in front of the consumer post
sale
Capturing the customer for life
Provide a consistent experience at all
touchpoints along the consumer‘s journey
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The
Cha
lleng
e:
Needs Identification
Difficult to identify the needs and wants of a diverse customer base
Focusing Marketing
Spend
Consumer buying patterns are erratic and diluted in this category
Speed to
Market
Barriers to entry are low and new brands and products are entering the category confusing the consumer, slowing growth
Get Focused on Your
Consumer
Identify your current customer (early adopters), but plan for your emerging customer and how to meet them where they buy. (GIS)
Partner for Success
Create “lifestyle scenes” with benefits to the consumer by partnering with other companies in your ecosystem
Gather Information
Capture and respond to the voice of your customer (retailer and consumer) at the point of sale, and post-sale
The Solution:The Challenge for the ManufacturerManufacturer
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Solution Nexus
Information shared with me is relevant to my personal taste, style, age group or location
My retail experience is consistent across digital devices no matter where I am - on my desktop, tablet or smartphone
Information shared with me is relevant to what I am currently interested in or looking to buy
My retail experience is consistent across digital and in-store
My online experience is easy: I can find what I am looking for, see product reviews and recommendations, and buy when and how I want
WHAT DO YOU FIND MOST CRITICAL DURING YOUR RETAIL EXERIENCES?
(RESULTS REFLECT CONSUMER RESPONDENTS WHO RANKED THE FOLLOWING “IMPORTANT” AND “CRITICAL”)
TWEET THIS“One of the fastest ways to occupy the part of the consumer’s brain that retailers want to occupy most…
— where brand and emotion become associative and inseparable —
…is to establish human connection.”
- Brian Kilcourse and Steve Rowen, - Commerce Convergence: Closing the Gap Between
Online and In-Store, Retail Systems Research
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Solution Nexus
Consumer
How Do You Connect To
Your Customer?
How Do You Connect To
Your Customer?
Manufacturer Retailer
How Do I Get the Retailer to Bring my Brand and Products to Life on the Floor?
Manufacturers Should Consider a Direct to
Consumer (D2C)Strategy, both in
person and on-line
Retail Should Consider Specialized Staff and Aligning to Consumer Shopping
Demands
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Key Take-a-Ways :How to drive Category Leadership in IoT
At this stage, most IoT Products are sold, not bought
Enliven the “lifestyle scene” for the consumer throughout the buyers journey
Providing an elevated consumer experience requires elevated capabilities and elevated training
Provide a consistent experience for the consumer at all touch points
Purchase patterns vary by segmentation. Lock on to your highest opportunity demographics and align your marketing strategy accordingly.
Drive your sales by aligning to the retailer’s scorecard and incentives
Choose a field sales & marketing partner that has experience in the IoT category, and works across multiple consumer touchpoints, to maximize your marketing investments
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