Financial Consequences For Obese Employees In Singapore: Another New Business Model Enabled By Mobile

I showed up at a business meeting in Singapore today and each member of the company within the meeting was wearing a Jawbone. I thought, "Wow, that's unusual ... and statistically very unlikely." Turns out, the company gave the devices to the employees. And ... added some teeth to the program. Approximately one week's compensation each month is linked to the employee's BMI. The formula is a bit more complicated than that, but that is the general idea. 

This offers one powerful example of the new business models that mobile enables. (See my research report from this winter that outlines the possiblities.) 

Despite the links between wellness and productivity at work, there are many reasons why this model wouldn't fly in the US - at least at a public company. Studies show that healthy employees are more productive, have higher energy levels, etc. However, there are always nuances, pre-existing conditions and laws in the US that protect employees from employers increasing or decreasing compensation based on their perceived health. Genetics come into play. Healthy - fresh, organic, slow cooked, local -  foods can be expensive and beyond the research of the average family in the US. 

Insurance companies in the US are piloting programs to reward members for good behavior (e.g., exercise, eating healthy foods, sleeping well). Rewarding members with discounts on premiums or vouchers for goods is very different though that linking compensation to an employee's BMI. 

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Amazon Fire: Winning In Its Customers' Mobile Sales Moments

I had the opportunity and privilege to get an early look at the new Amazon Fire phone. It delights in many ways, but I’ll focus on the shopping experience enabled through Firefly.

For those who may not remember, Amazon put a dedicated physical button on the left hand side of the phone that launches directly into image recognition. If the image is recognized, then a web-based mCommerce experience launches. The user can then buy the product or it on a wish list, among other things. From there, the experience is more ‘traditional Amazon.’ The ‘new’ is the image, email, URL, etc. recognition.

Why is selling mobile phones important for Amazon? mCommerce in the US alone will add up to nearly $100M by the end of 2014. The new battleground for retailers is in the mobile moment – the point in time and space when a consumer pulls out her phone to get something she needs immediately and in context. Amazon’s FireFly service facilitates two core types of mobile sales moments:

  • Impulse Sales Moments – these are often flash sales (e.g., WTSO.com, SteepAndCheap, etc.) or spontaneous purchases (e.g., Groupon). The opportunity for Amazon here is in minimizing the friction between consumers seeing something they want, and enabling them to buy it before they forget about it, or find it later in a store nearby.
  • Replenishment Sales Moments – the phone (or something like an Amazon Dash) is with me when I realize a shampoo bottle or milk is empty or I need more toothpaste.
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Yahoo! Acquires Flurry: Inexpensive Audience Acquisition For Yahoo!

Today Yahoo! announced its acquisition of mobile analytics and ad platform, Flurry. TechCrunch and Kara Swisher on re/code both reported the deal, with a $300M minimum price and $1 billion on the upper end. According to the press release, Flurry sees app activity from 1.4 billion devices monthly and 5.5 billion app sessions per day.

A little math: 1.4 billion devices does not equal one billion active users. However, a user could have one or many apps on his phone with the Flurry software embedded. Apps do not tend to have exclusive arrangements with one mobile analytics provider – let alone the free ones. They tend to have one or more. The code is small and there aren’t many compelling reasons to limit the number of buyers for your inventory unless there is unique value. It becomes hard to compare to the price tags of Viber ($900M) or WhatsApp ($17B to $19B). This is as much a play for audience as it is analytics. Flurry’s scale makes it interesting as an acquisition more so than what they do.

What does the acquisition mean?

No doubt, it’s a huge financial payoff for Flurry and its investors. When we interviewed Flurry a year or so ago for our research, they had 150 employees. 2014 will be known as a year of phenomenal mobile exit events – especially for those companies buying audience. It’s a good time to sell. A few thoughts:

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Mobile App Innovation Has Paused

Why? eBusiness pros are pursuing too many one-off initiatives without tight collaboration with their Technology counterparts. And, they are doing too little to build infrastructure to support future mobile services - and mobile moments. Check out our full report "Developers Are The St. Bernard For Mobile Projects." 

I've Stopped Opening My Favorite Mobile Apps

Mobile has transformed my expectations putting me on the bleeding edge of the mobile mind shift. I've had a smartphone in my hand since August 30th 2005 when a broken wrist forced me to be a one-handed typist - better done on a smartphone than a laptop. My Lark wearable wakes me each morning. My Nike Fuelband tracks my steps. I tweet and check Facebook on my phone. I deposit checks. Honestly, there are a handful of websites that I can no longer navigate because the complexity of the experience overwhelms me. It's simply easier to do stuff on my mobile phone. 

Today, I rolled into Starbucks a little after 7am to pick up an iced tea. I had to reload my stored value card within the app. (I don't use auto reload in case my phone is stolen. My bus card was autoload ... the last time it was stolen, the person must have handed off to six other people to travel before I could shut it down.) What was my reaction when I realized I would have to reload the card? "Sigh" ... well, really a "heavy sigh." The thought bubble over my head was: "Ugh, I now have to open this app, type in my password, etc." Usually I just open Passbook and do a quick scan. Please keep in mind that I think the Starbucks app rocks and reloading my card takes about 30 seconds. That said, I was annoyed that I had to go into the app. 

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