Changes: Agenda, Home depot change

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1 Changes: Agenda, Home depot change

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Connected Experiences: From Websites to Wearables to Wherever Adobe Summit Rebecca Lieb Industry Analyst, Altimeter Group March 10, 2015

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Digital is everywhere. And will soon be everything.

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Harnessing digital connections to foster deeper human connections is the highest opportunity of bridging the digital & physical worlds

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AGENDA Trends driving connected experiences What binds connected experiences? Risks and rewards Takeaways –fundamentals of connected experiences A peek over the horizon

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From mainframes to ubiquitous computing…

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What the Internet of Things enables is a far deeper ‘conversation’ between all elements of brand experience – now including objects

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Mobile ignites this trend, but it transcends mobile into other physical objects 8 Smart thermostat Connected security system Smart refrigerator Wearable fitness device Smart watch Smart vacuum cleaner Wearable headgear display Smart clothing Source: Acquity Group 2014

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Smart devices are transforming how we access and use the Internet

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Differentiation between channels is eroding for consumers.

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Second screen activities have transformed how people watch TV

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Rise of streaming video spurs millions to ‘cut the cord’ (and its costs)

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Channel preferences vary widely, based on a myriad of factors 13 Preferences vary based on consumer’s unique… Needs/pain points Place Time Behavior History Culture Exposure to technology Influences, etc.

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14 But what ties so many disparate touchpoints together?

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The glue that binds Consistency Context Content

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What ties so many disparate touchpoints together? 16 Content is the unifying element of how brands manifest across all touchpoints. Content is the atomic particle of all brand interactions, on all channels, platforms, and devices, online or offline. CONTENT

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17 What ties so many disparate touchpoints together? Context is the antidote to endless, noisy media proliferation. Data helps companies better understand customer context down to the individual level, including (but not limited to) personal, location, historical, behavioral, cultural, social, technological, and beyond. CONTEXT

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18 What ties so many disparate touchpoints together? Consistency in brand tone, outreach, response, presence, and culture. Expanding touchpoints allows brands to pervade consumers’ lives by providing timely content, services, and utility CONSISTENCY

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Home Depot ties dot.com shopping cart to in-store experience 19

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The bottle becomes the medium By adding unique QR codes to bottles of Johnny Walker, Diageo bridged in-store and social experience via mobile. Individuals opt into the campaign’s Facebook app, and Diageo creates a unique personalize-able video to commemorate Father’s Day. Diageo connects bottle to smartphone to social for a personalized Father’s Day experience

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Results 72% sales increase in 2 weeks before Father’s Day Earned media impact 5X investment 100k increase in Facebook fans Global PR and industry coverage Permission-based opt-ins to CRM program, loyalty program expanded 100,000 unique QR downloads Program expanded to 6 countries Increased loyalty, loyalty rewards Enabled mobile targeting linked to specific QR code Increased supply-chain efficiencies Cross-channel campaign drives earned media, sales & supply chain efficiency

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MGM Resorts serves up recommendations based on guests’ location, interests MGM Resorts sends notifications for nearby restaurants, shopping, show deals, coupons, etc., via guests’ smartphones, based on geo-location, loyalty member status, and preferences.

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Navdy is a heads up display system for drivers– relevant content only! 23

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The rise of mobile-free connected products will depend on new form factors for content 24

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Risks & Rewards

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Harnessing digital connections to foster deeper human connections is the highest opportunity of bridging the digital & physical worlds

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Rewards For brand and consumer alike… Increased relevance and context Greater visibility Greater utility (‘brands as service partners’) Happier, more engaged customers Data informs optimization opportunities (across customer and product lifecycles) Increased loyalty Improved conversion, business results Market differentiation

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The ‘Phygital’ world generates scores of new opportunities… but it is not without risks

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Risks Attribution Impact Losing customers along their journeys Regarding mobile as a secondary channel Advertising-only mentality Annoying or creeping out customers > opt-out Higher possibility of friction in ‘offline’ contexts Under-use of content and brand assets Negative impact on brand sentiment/experience Ineffective (or unethical) use of data Wasted investments

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The risk we often overlook…

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Key Takeaways Key Takeaways

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34 Key Takeaways Five steps companies must take to prepare: Foster a culture of content Orchestrate across teams, internal and external Plan and prioritize for digital transformation Plan for media convergence Plan for technology integration

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1. Foster a culture of content

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2. Orchestrate across teams– internal and external

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3. Plan and prioritize for digital transformation

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4. Plan for media convergence

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5. Plan for tool and technology integration, eventually convergence

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Looking ahead

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Use cases in IoT represent ways brands can use sensors to create mutual value between brand and consumer

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42 Rebecca Lieb Industry Analyst with Altimeter Group rebecca@rebeccalieb.com @lieblink

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44 Q&A Rebecca Lieb Twitter: @lieblink rebecca@altimetergroup.com