Download - Internet of Things for Marketers

Internet of Things for marketersTrend analysisWhat does it mean to marketers?Case studies and examples of implementation

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CONTENTS :

TREND ANALYSIS

Internet changes things

Smart objects

Trend dynamics. Further development

Businesses changed forever

Threats and criticism

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

CASE STUDIES. EXAMPLES OF IMPLEMENTATION

Most interesting IoT solutions

Examples of IoT implementation in marketing

FURTHER READING

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Internet of Things for marketers. 2

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Internet of Things dla marketerów.

Trend analysisInternet changes things

Smart objects

Trend dynamics. Further development



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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 supplyto 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.

Internet changes things

„On the internet, nobody knows you’re a toaster”

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 needsare not met.

Trend analysis

Internet of Things for marketers.

Mirosław Filiciak, PhD

„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

achieve some kind of autonomy”.

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Trend analysis

Access to internet is not only a privilege of man, as it is used also by15 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).

It’s about machine to machine communication, without human mediation.It means an age of smart objects, which collect, transfer and analyze data.

Smart objects

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,

Ultimately all devices will be connected to the web.Today experts argue whether to include wearables (like bracelets monitoring your activity or DrumPants – pants, on which you can play like on drums), smartphones, tablets, smart TV to Internetof Things. We do – in this ebook we apply broad definition of the term.


Objects use internet What object can be smart?

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.

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Trend analysis

Dynamics of trend and further development

„Connecting products to the web will be the 21st.

century electrification”

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).

Better customer service (collecting more data, possibility of processing them faster, personalization, quick delivery)

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. Netflixused their API to automatically adjust lighting and light effects to particular scenes in movies).

Plenty of room for innovation

New options for marketing


96%

Matt Webb, CEO BERG Cloud

Advantages of implementing IoT technology:

Investments in Internet of Things

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.

Their strategy is not unusual:

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Trend analysis

Although all devices will be smart in the future, the trend influences mostly the following branches right now:


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.

smart cars, motorcycles and bikes, smart helmets and systems of traffic monitoring significantly improve experience of transportation


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).

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.

Food

Fitness

thanks to new monitoring options (of breath, heart rate, temperature, wetness of the diaper) parent’s control over little children dramatically grows.

Smart parenting

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.

TV

Urbanism

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),

Household appliances

new options for pollution monitoring are available, eco-friendly solutions will be easier to implement on a large scale.

Ecology

Transportation

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Branże, które już nigdy nie będą takie same

Trend analysis


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 dla marketerów.

What does it meanto marketers?


New consumer



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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.

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What does it mean to marketers?


Differences between contemporary marketing and marketing of tomorrow, based on IoT

Marketing of tomorrow, based on IoT

Gathers little data from offline, massive gaps in knowledge on customers

Fewer media available, users used to ads in these channels

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 in 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.


Contemporary marketing

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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.

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New consumer

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.

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.

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).


Data as currency

Competition

New customer is:

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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.

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New consumer


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.

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.

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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.

The benefit are of course discounts, special offers and premium materials, but also – and most of all- personalization. Customers will deliver more data than ever, allowing for getting to know them really well and moving personalization to next level.

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.




Customer and marketer close to each other: question of trust Personalization

Simple and user-friendly solution

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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.



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

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.


Smart objects: what to use them for then?

Marketing Automation is necessary Synergy: combining data from various channels thanks to automation systems

Jon Gettinger, Aria Systems

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.

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Case studies Examples of implementation



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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

Motorcycle helmet with GPS


Case studies

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

Air pollution measuring systems

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

Bag2Go: system of sensors installed in the luggage, allowing to locate it in real time.







From marketers’ point of view the biggest advantage of Internet of Thingsis 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.


Case studies

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 wearablesfor tracking sport activity.

Personalized smart packages.

Automatic alerts when products get spoiled, require replacement or control.

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.

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.


Remember:

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Further reading

Books :

daCosta Francis, Rethinking the Internet of Things:

A Scalable Approach to Connecting Everything, Apress 2013.

Madisetti Vijay, Internet of Things (A Hands-on-Approach),

VPT 2014.

McEwen Adrian, Designing the Internet of Things, Willey 2013.

Pfister Cuno, Getting Started with the Internet of Things:

Connecting Sensors and Microcontrollers to the Cloud

(Make: Projects), Maker Media 2011.

Rose David, Enchanted Objects: Design, Human Desire,

and the Internet of Things, Scribner 2014.

Wenkart Michael, The Internet Of Things: This revolution could

unlock $14.4 TRILLION in business value, Amazon 2014.

Wenkart Michael, The Internet Of Things: This revolution could

unlock $14.4 TRILLION in business value, Amazon 2014.

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:

http://www.wired.co.uk/news/archive/2014-03/18/addicted-toaster

Internet of Things, Intel’s report:

http://www.intel.com/content/www/us/en/internet-of-things/infographics/guide-to-iot.html

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]:

http://www.naukawpolsce.pap.pl/aktualnosci/news,394761,ekspert-internet-rzeczy-zmieni-nasze-zycie.html

Internet of Everything, Business Insider’s report

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

http://www.fool.com/investing/general/2015/02/06/17-internet-of-things-statistics-you-dont-know.aspx







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