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New Highlights on Customer Engagement with Smartwatch Notifications

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The market for smartwatches and wearable technology is growing fast, and industry experts are convinced that smartwatches will soon be a fundamental part of our digital eco-system.

Especially after the release of the Apple Watch, brands and marketers are competing in creating marketing messages and ads for the booming wearable technology industry.

Smartwatches bring numerous advantages and challenges with them. New capabilities, different dimensions, a distinct user behavior: these factors require brands, retailers and marketers to adjust their mobile engagement strategies.

We put together a whitepaper for you in which you will find our answers to the following questions:

- What are core features and characteristics of smartwatch notifications
- How do smartwatches help to improve and simplify customer engagement?
- Which advantages and challenges do smartwatches imply for mobile marketing compared to smartphones?
- How can marketers adapt notifications for smartwatches, especially concerning content and format?

Published in: Data & Analytics
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New Highlights on Customer Engagement with Smartwatch Notifications

  1. 1. Newhighlightsoncustomer engagementwithsmartwatch notifications www.pushtech.com
  2. 2. With the arrival of Apple Watch, everyone in the industry is talking about smartwatches and wearable technology as the next “big thing”. But what exactly makes these devices attractive to customers, and also to businesses? What is a smartwatch capable of in comparison to other devices? We’ve put together a whitepaper, that shall not only further explore the main characteristics on smartwatches notifications, but also show examples of how they improve and simplify engagement of brands with their customers. We will also examine market opportunities and the question of new challenges that smartwatches pose to marketers and brands PUSHTech™ © 2015 NewHighlights Customer engagement with smartwatch notifications
  3. 3. PUSHTech™ © 2015 Smartwatches add new significant value to your messaging efforts Smartwatches were never built to work as an independent device. More than that, they are meant to be a complementary device on the user’s digital environment. They fulfill two main functions: either as an autonomous interaction device for the user, or – more important than that – as a first gateway to deeper content experience that cannot be shown on the watch only. As an article from The Guardian article puts it: “For email you can immediately archive with a swipe, evaluate what needs attention and only break out the smartphone if necessary”. 1 Email
  4. 4. PUSHTech™ © 2015 Smartwatches do not only reduce the need to take one’s phone out of the pocket, they also lead to a faster awareness of new notifications. Furthermore, a much shorter attention span on smartwatches compared to smartphones gives brands significantly less time to engage with recipients of their messages. On smartwatches, the user is now – just with a quick glance – aware of new activities involving all his devices and is able to react and send a quick response, saving time and efforts – in what the industry calls a “glanceable moment”. 2
  5. 5. PUSHTech™ © 2015 Smartwatches are capable of capturing all the data that smartphones have access to, such as GPS location, data usage history from applications and browsers, user behavior, the user’s social relations and messaging preferences – plus data that has never been accessible to brands before: biometric information. 3
  6. 6. Notifications that a user receives on his watch can be of two kinds: either, they are independent, interactive and can immediately be responded to by a single tap, or they are just a preview of deeper content to be viewed on other devices. Smartwatches can make the user experience more efficient on their device environment by delivering short messages that can be quickly dismissed. There is no need to take out the phone or tablet, unless the smartwatch notification generates the appetite for more information. What marketers should keep in mind: This short preview can either be ignored, or be followed, so notifications can reach a larger audience if they are adapted to this channel. Some users will never read them on their phone! PUSHTech™ © 2015 Smartwatches are a gateway to deeper user engagement! Reply Preview
  7. 7. This can be of huge importance, as a smartwatch can thus function as an initial gateway on the path to deeper user engagement. Just like a lead in a newspaper article is intended to make the reader want to know more about the story, a smartwatch notification can make your customer keen to find out more about your product or your latest news. Examples: Fashion Brand: “Summer is coming. Are you prepared? Show me more!” News: “This man is going to be FC Barcelona’s new coach! Read on?” Brand: “Looking for Christmas presents? Check out our unique ideas!” PUSHTech™ © 2015
  8. 8. An average user’s attention span on a smartwatch is significantly shorter than the attention span on a smartphone. On the one hand, this puts pressure on marketers to engage with customers faster, but on the other hand it simply gives marketers the opportunity to engage even faster than ever before. To attain the best possible result, it is essential for brands to keep smartwatch notifications as simple as possible, with a clear message that drives customers to action. Within a short glanceable moment smartwatches can help businesses deliver important notifications to their customers. Such information can include boarding information for an upcoming flight, reminders for appointments, or new offers. Examples: Airline: “Your flight XXX is now ready for boarding at gate XX.” Movie Theater:“Movies come with popcorn just for today, check out!” PUSHTech™ © 2015 Make the most out of “glanceable moments”! VIRGIN DL23455 21Sep Dismiss departs MAD 13:30 pm Now Gate 48B Terminal 2
  9. 9. Making notification awareness even faster, smartwatch notifications speed up real time interactions. Data such as the user’s data usage history, location, personal preferences, etc. make your notifications and messages more relevant to the customer, and thus more effective for your business. PUSHTech™ © 2015 Notificationsand messages more contextual and relevant than ever before!
  10. 10. Use geo-location to direct the customer’s attention to your shop around the corner and give them a voucher, or simply thank your loyal customers after they have left your shop. Benefit from iBeacons to guide customers through your store to show them the right items. PUSHTech™ © 2015 Supermarket “Aisle 3 has the new cereals that you are looking for” Examples: Traffic info “the route you’re taking involves traffic jam: Show alternative routes?” Store “Thank you for visiting our shop today. We hope to see you soon!” Brand/Retailer “Check out our store around the corner and receive a 5% discount on selected products!”
  11. 11. Most smartwatches and other wearable devices like fitness trackers (e.g. Jawbone, etc.) are equipped with additional sensors. The Apple Watch, for instance, uses 10 sensors to log a litany of biometric information. Various other fitness trackers can do even more: These measurements include step detection, pulse, heart rate variability, body temperature, blood oxygenation and blood sugar as well as respiration. Small accelerometers even detect if the consumer is sleeping by measuring small movements during the night paired with heart rate monitoring. In a short time, these features of fitness trackers will all be included in smartwatches as well. PUSHTech™ © 2015 Data that has never been accessible before!
  12. 12. It is obvious, that for marketers, brands and retailers this data can be of significant importance. Don’t just send your customers simple messages or advertisements. Make them more relevant and contextual than ever! You may not just send them a voucher for your store, you may also tell them why and recommend your product at the time when your customer needs it the most. PUSHTech™ © 2015 Know your customers’ concerns even better with health-related information! Sports brands: “You missed your set step goal again. How about some new running shoes in our store?” “Congratulations on your efforts! Reward yourself with 5$ off in our store around the corner!” Pharmaceutical: It seems you are getting sick. Any medicine you need from our delivery service?”
  13. 13. In a recent Bloomberg Interview, Greg Ratner, head of technology at brand agency Deep Focus in New York, said: “Is this person awake? Is that a good time to interact with that user at all, or should we wait for a different time to engage with them? All that is just additional context to help us connect the brands with the users at the right moment.” Using biometric information, smartwatches can detect the user’s current status: Is the customer sleeping? If yes, then let him sleep. Brand messages that the customer considers as intrusive spam are what your brand wants the least. This brings us to our whitepaper’s next question: What new challenges do smartwatches involve and how can they be solved? PUSHTech™ © 2015 Detect the customer’s current status and avoid being intrusive!
  14. 14. The new smartwatch devices involve a number of challenges that smartwatch ad developers have to cope with. Smartwaches are a new device with new dimensions, a new user interface and user behavior. PUSHTech™ © 2015 A different user behavior poses new challenges to both developers and marketers Smartwatches have a very limited screen space in comparison to mobile phones. Furthermore, user behavior on smartwatches differs significantly from user behavior on smartphones. Naturally, the attention span for devices attached to the user’s wrist is much shorter than for mobile phones (approx. 30 seconds for smartphones, 3 seconds for smartwatches). This implies another major challenge to marketers: Marketers need to implement new advertising formats that are adapted to the new device. At the same time, they have to deliver messages and notifications that are highly relevant and that can immediately be responded to. Brands need to develop new messaging formats Store: “Don’t forget your appointment with us at 10:30 this morning. Change time?”
  15. 15. In addition to that comes another very important factor: mobile users are already extremely sensitive concerning spam messages and thus don’t want their phone to be a gateway for continuous brand advertising. As smartwatches are directly attached to the consumer’s wrist, they immediately notify the user of incoming messages and notifications through vibration. Taking into account the fact that smartwatches are an even more direct messaging channel, notifications bear the risk of being too intrusive to the consumer. PUSHTech™ © 2015 Customers do not want another gateway for spam! Implying these challenges, we asked ourselves if smartwatches could really become a crucial part of our digital environment. To answer this question, we looked at recent market stats and industry forecast. Are smartwatches really that successful?
  16. 16. Smartwatches are becoming extremely popular among technophile customers. According to a Smartwatch Group Report, 6.8 million smartwatches were sold in 2014, meaning a global market size of approximately $1.3 billion, up 82% from 2013. Until 2020, the research group expects the market to grow to $117 billion. Of course, this has to do with increasing customer affinity and acceptance of wearable technology, but another key growth driver are big multinational companies, pushing into and taking over the market from smaller startups. PUSHTech™ © 2015 What do market figures tell us about the future of wearable technology?
  17. 17. Especially the release of the Apple Watch in April 2015 has marked a milestone in the rise of wearable technology. Experts predict Apple to be significantly successful, taking market shares from previously leading smartwatch operating system Android Wear. Similar as in the mobile phone industry, app development is the central driver for many smartwatch use cases. With the introduction of Android Wear and Apple’s Watch OS, app developers have attractive platforms suitable for their work on new smartwatch use cases. New possible use cases of course include new smartwatch apps, developed by over 20,000 smartwatch app developers. Even if this only amounts to a few percent compared to mobile app developers, “the number is growing exponentially based on available smartwatches with suitable open-source interfaces”, according to the Smartwatch Group. PUSHTech™ © 2015 Smartwatches become omnipresent, as the big players push into the market
  18. 18. Similar to mobile phones, this increasing variety of smartwatch apps provides numerous opportunities for brands, retailers and marketers for advertising, especially since Android and Apple give developers the possibility to build applications that run natively on the device. A report by Juniper Research has forecast that $68.6 million will be spent on smartwatch ads by 2019, up from an estimated $1.5 million this year, which makes a Compound Annual Growth Rate (CAGR) of 115%. PUSHTech™ © 2015 What does this mean for brands, retailers and marketers? This enormous growth poses high pressure on brands to invest in mobile marketing in order not to be left behind. As the rise of wearable tech is inevitable, brands are forced to innovate and find solutions to deal with the upcoming challenges.
  19. 19. PUSHTech™ team is aware on the latest notification tendencies and certainly prepared to integrate them with “out of the box” ideas. Through our Mobile Marketing Cloud, we are excited to provide multichannel notification solutions, helping customers to improve engagement strategies. Some of our mobile and smartwatch-related services are: PUSHTech™ © 2015 How PUSHTech™ can power-up marketing campaigns through smartwatch. Intelligent MultiChannel Optimization: Smartwatch requires realtime strategies, and with our easy-to-use optimization engine you can trigger precise and relevant communications on the right channel at the right time using realtime customer behavior. 1 PUSHTech Intelligent Multichannel Optimization.
  20. 20. PUSHTech™ © 2015 Segmentation & Smart Targeting Engines: Smartwatch are the most personal and contextual device. Build an informed view of your customers - making it easier than ever to turn raw data into marketing intelligence to create personalized customer conversations in the right channel and the right time. 2 Manage Content: Remember, smartwatch notifications must be read on a glance! Manage and track content across all your customer channels from a single location—to make searching, categorizing, and filtering your content easier than ever. You can assign tags, campaign associations, and owners to your content. 3
  21. 21. PUSHTech™ © 2015 Pinpoint Targeted Marketing (iBeacons): More accurate than GPS and Wifi, iBeacons can create experiences customers have never had before. When customers enter or leave your store, event venue, cinema or hotel, you can trigger messages that inspire action or request feedback. And you can save, learn and re-use this data to build new sales opportunities. 4 Audience Builder: Choose any data source you have and easily incorporate it into PUSHTech’s Data Manager. Using our drag-and-drop interface you can quickly configure multiple databases any way you wish and then filter and segment your audiences based on any criteria to precisley target your message as you need. 5
  22. 22. PUSHTech™ © 2015 Mobile Messaging: Engage with customers at their fingertips, increase app engagement, and drive mobile commerce with easy-to-use mobile messaging channels - Instant Messaging, SMS, In-App Push, Chat App. 6 Email Marketing: You can easily import and use your favourite email templates as our platform covers all types of transactional and email marketing. 7
  23. 23. Tel. +1 339 224 5311 hello@pushtech.com PUSHTech™ © 2015 Want to learn more? Request a demo +34 93 39 38 162

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