It's me. I was in Macy's last Saturday morning checking out the augmented reality (AR) app, "Believe Magic." I got a lot of stares. At one point, I had a small audience as I danced about and took photos with Macy holiday characters ("Yes, Virginia" characters) that only I could see on my phone. What I liked about this app is that Macy's and Metaio didn't push the technology too far - they created an experience well within the bounds of the technology. It worked without long delays or instructions.
There were TWO red mailboxes in the Macy's in downtown SF. When I asked for help ("Where's the red mailbox with the AR app?") from the nice Macy's executive in a black suit, her jaw dropped a bit with the realization she had no idea what I had just said or wanted. Another sales associate helped me out and took me over to a full-blown display that allows people to interact with the characters even if they don't have a phone. The app allows you to take pictures with the characters, share them with friends (usual FB and Twitter plus email), make cards, etc. It's fun. The small crowd of people pointing and staring . . . also fun. :)
This app is more about marketing, but it will give you a sense of the potential of AR for commerce purposes. We've just finished up research due out this week that speaks to the uses of AR in the purchase funnel or commerce track. AR will allow consumers to experience products pre-purchase. AR will simplify the discovery and consumption of content (e.g., pricing). AR will improve the owners' experience with "how to" guides.
I've written a lot about the notion that the "Future Of Mobile Is Context" this year at Forrester. Since publishing this research this spring, I've been searching for examples and case studies of innovative uses of context. (See how marketers and eBusiness pros can leverage context.)
Coca-Cola is allowing consumers in Hong Kong to enter a sweepstakes by virtually collecting bottle caps from a 3rd screen (TV, movie theather). The audio signal from the commercial triggers the application/ syncs the user's motion with the video. The acclerometer is used to assess the quality of the motion of the user's mobile phone — the device that is used to catch the bottle tops virtually. See video.
Why is their use of context sophisticated?
In the research, I describe the four phases of evolution.
Phase 1: the basics — leveraging location, time of day, etc.
Phase 2: layering intelligence — so, not just time of day, but time of day relative to an event
Phase 3: using new technology in phones (e.g., sensors, two cameras, etc.)
Phase 4: more sophisticated use of the sensors and technology to control the device
Coke's campaign is what I would call a v 2.0 use of mobile (they are enhancing another touchpoint - see research) with some Phase 3/4 context. They enhance the video/commercial experience by getting the consumer to be active. The act of collecting the bottle tops gets the consumer off the couch and to interact with the ad directly. I think it's very cool.
2D bar codes are on buses, in newspapers and magazines, storefronts, product packaging, store shelves, bus stops, mailings from political candidates, and subways. Retail stores like Best Buy, Home Depot and Lowe’s have corporate programs for 2D codes. Honestly, it is hard to name a place that I haven’t seen a 2D bar code. Hard to say if there are more codes — or more consumers scanning the codes. I think it is the former. As with many things mobile, this is more of a supply-side-driven phenomenon than demand-side.
Why are there so many codes? They are one of many mobile technologies that facilitate the connection of consumers to relevant content when they need it. Scanning bar codes simplifies the experience of discovering content or initiating an action on a cell phone like sending a message or adding a contact to a phone. Brands are doing all they can to educate consumers about what codes are and how to use them. Budweiser, for example, has designed an entire TV commercial around tags from Spyderlink on its Bud Light cartons. See the video.
Plastering codes everywhere, however, is working — adoption among US adults has increased from only 1% last year to 5% this year. Adoption among smartphone owners is three times that. While adoption is relatively low today, the strong growth in usage of the codes by brands and consumers alike indicates a bright future for brands looking to deepen their engagement with consumers. Bar codes don’t facilitate just marketing — they will be used 360 degrees around a customer’s journey — from branding or consideration through to purchase and replenishment.
A year ago, Forrester fielded our Q3 2010 Global Mobile Online Survey. We interviewed more than 200 executives in charge of their companies’ mobile strategies around the globe (40% in the US, 40% in Europe, and 20% in the rest of the world). You can see the results from last year’s survey here.
To help eBusiness executives benchmark and mature their mobile consumer strategies, we’re updating this survey.
Planning and organizing for the use of mobile technologies is a complex task. Some players are laggards and think they still need to get the basics of their online presence right, while others are clearly ahead of the curve. Yet two questions we consistently hear are: “Where is my organization compared with others in the use of mobile?” and “How can we mature our mobile consumer approach?”
Here’s how you can help:
If you’re in charge of your company's mobile consumer initiative or if you’re familiar with it, then please take this survey.
Delivering highly contextual mobile services is an expectation. Mobile phones are personal devices. Consumers expect personal and relevant experiences.
What is context?
Forrester defines “context” as
“the sum total of what your customer has told you and is experiencing at his moment of engagement.”
Situation: the current location, altitude, and speed the customer is experiencing.
Preferences: the history or personal decisions the customer has shared with you.
Attitudes: the feelings or emotions implied by the customer’s actions or logistics.
eBusiness professionals make limited or very basic use of context today. Mostly, they use an individual’s location to tell her where the nearest store or hotel is. The use of location is a minimum requirement today to meet consumer expectations of “decent” mobile services. The bar is rising quickly though. eBusiness professionals need to layer intelligence on top of contextual information and plan how they will use new contextual information such as temperature or altitude.
Here are a few scenarios that simply leverage intelligence with location:
Banks. Should a user require the same depth of authentication at home, at work, or in a foreign country?
Hotels. How much should you quote a prospective customer for a room tonight if she is 5 miles or 500 miles away?
Airlines. What home page services should you show a passenger whose flight leaves in 2 hours? In 10 minutes?
Apple's announcement today on the "Notification Center" triggered my comments. Other than the fact that I no longer need to tether all of my devices to a computer (finally!), I think this was my favorite announcement. My top "negative" re notifications to date has been the inability to save or file them. Do I want to save a FB update? No, not really. But I do want to save and file coupons, promotions, news alerts, etc. Will be interesting to watch the effectiveness of notifications now that they DON'T interrupt . . . in some ways, that's the point. Less intrusiveness may attract more uses of those afraid of annoying their customers. Re 100B notifications to date . . . wow.
"Do we need SMS?" I think the answer is "absolutely, yes." I've had more than one of my colleagues suggest to me that SMS no longer holds any relevance for commercial businesses hoping to reach their customer base. I disagree. Here's why:
For the forseeable future, a very small percentage of any company's customers will have downloaded its application. A few companies like eBay or Amazon.com may be the exception. Relying only on push-based notifications does not offer enough reach. Apple's announcement today, however, makes push-based notifications a lot more interesting.
Push-based notifications on smartphones are more of a US-centric phenom. If you are targeting customers in Asia, Africa, India, Latin America, etc., you need SMS -- SMS is the primary application/transport medium on most phones in many countries.
Tracking calls-to-action. When does a message drive an action? Clicking through to a URL? Using a coupon? Visiting a store? Calls-to-action can be digital, physical, or calls.
Why do you use the remote to change the channel on your TV? An airplane to fly across the country? A microwave to heat up food? Why -- because it is convenient. Consumers will adopt and use convenient services and products. In mobile, this means services that offer immediacy and simplicity through a highly contextual experience. If my gate changes for my flight leaving in 40 minutes, I want to know now -- there is value in knowing now or immediately. If I want to donate money to the flood victims in Louisiana, it is simpler to send a quick text message rather than write a check and mail it. If I want to eat Thai food near my home, I want to find a restaurant in San Francisco -- near my location (context). Using my phone that leverages my location through GPS is simpler than typing in a neighborhood or address.
Mobile phones are convenient tools to do many things today -- refill a prescription, deposit a check, navigate, check Facebook, or get email. The list of convenient services on mobile phones is going to continue to grow. Why? Because contextual information is going to get a lot, lot richer. Today, context is primarily the location of an individual, their stated preferences, or past behavior (e.g., purchases). This information is gathered as consumers use their mobile phones for navigation, news, and shopping. The information collected will become much richer for two reasons. First, consumers will use their phones to do more things (e.g., change channels on the TV, monitor glucose levels, and open their car doors). Second, devices will have sensors such as barometers or microbolometers that collect more information passively about the consumer’s environment. The available information is becoming richer -- companies that want to deliver contextual experiences must evolve their expertise.
I saw a story this morning on Mobile Commerce Daily: "Fontainbleau targets upscale, on-the-go consumers via mobile presence." I've been a guest at the hotel for the past day so I can't resist joining this conversation. I also happened to download this application while waiting in line for a smoothie at a restaurant yesterday -- between meetings, of course. Here's a quote from the article:
“Fontainebleau chose to launch this app to enhance the overall customer experience while giving them insight on the resort as well as the surrounding Miami Beach area,” said Philip Goldfarb, president and chief operating officer of Fontainebleau Miami Beach, Miami. “It is an extension of the brand’s commitment to providing its guests with the latest advances in the mobile marketplace.”
First, I'll offer -- I'm just a guest or customer here -- I haven't studied the business, but there are a few disconnects.
Here's what is working well:
Fontainbleau does seem to have a tech-savvy customer base. As I walked through the pool area yesterday, I noticed quite a few iPads, Kindles, and smartphones -- guests definitely have their technology at the pool. And Wi-Fi works at the pool -- well done.
The application is promoted well. I noticed advertisements several places throughout the property. It uses a sweepstakes to promote the application with the prizes clearly listed.
Beautiful photographs -- this resort is amazing and is well represented by the media in the application.
There is a solid balance of content -- eat, shop, play, etc.
There was a lot of content re "what to do" nearby.
Apple has been storing our location. (See article) Sounds bad, but really, is it? My colleague Joe Stanhope forwarded the article to me with the line, “kinda scary.” Is it? Our credit cards track where we are and what we spend. The carriers know where we are all the time — they aren’t storing the information as far as we know, but they could be. Our cars can be tracked. We buy plane tickets and make flight reservations online. What’s a bit different is that many different entities have our information, but not necessarily one.
Your phone will know everything about you going forward. My phone already knows where I go (ok, and Apple is recording), who I call, what sports teams I follow, what games I play, where I bank, how often I visit Starbucks, where I shop, what books I’m reading (Kindle), what music I listen to . . . and the list goes on. What else is my phone going to know about me? It’s going to know:
What I eat because I want help tracking calories
How often I run because I track my workouts
What I watch on TV because my phone is my remote control
Who I fly . . . because I use mobile boarding passes
How healthy I am b/c it will track my cholesterol
Who my friends are from phone, texting, and Facebook
Where I’m eating b/c it tracks my Yelp searches and OpenTable bookings
Whether I’m traveling on foot or by car b/c it tracks my speed