Part I - Wearable Technology and Marketing: What is happening now
Updated: Apr 25, 2021
By definition, wearable gadgets are also known as advanced computing pieces of technology that are worn by users (Ching et. al, 2016), in the shape of smartwatches, smart glasses, smart jewelry, smart clothing, and so on, using sensors to track and analyze consumer's data (Tarabasz et. al, 2019).
The incorporation of wearable technology into the daily lives of users is prevalent. Sousveillance is the action of tracking activity with the help of these devices, and product developers are aiming to perfect the functionality of these wearable tools which record movement, steps, heart rate, etc. Wearable technologies customize experiences to users’ needs and desires. These technologies are a subset of IoT (Internet of Things), which comprises networked “smart devices” equipped with microchips, sensors, and wireless communications capabilities (McLellan, 2013). They are among the fastest-growing segment of IoT and promise to have widespread societal influences in the coming years (Thierer, 2015).
When it comes to wearable gadgets, I came to the conclusion that they represent a combination of multiple trends, such as "a channel of communication in motion", Internet of Things, Augmented Reality, and, last but not least, Big Data. It became clear that these trends have so much potential which is impossible to neglect.
It is now widely known that data means knowledge, and marketers are in the best position to affirm that statement. This is the point where wearables come in handy: they are currently generating massive amounts of data about each and every consumer. But having data is simply not enough, and marketers are doing efforts to transform it into insights, then into marketing strategies by personalizing their message and approach to customers.
Recent studies show interesting points of view on big data, such as the applications of big data analytics in enterprises. The focus is centered on the necessity of organizations to make decisions based on strategies, after transforming big data into knowledge, in order to add value to their commerce and increase their businesses’ full potential. According to Khanra et. al (2020), superior firm strategies can be developed with regards to marketing, the authors mentioning several studies that were in favor of this outcome. Such studies included that of Erevelles et. al (2016), according to which “the deployment of firm resources in consumer data analytics develops efficient marketing strategies”, as well as the research of Xu et. al (2016), according to which big data help “new products succeed”.
But what is being done with all of this information, and in which way can it be utilized to drive the customer experience? Let's take a quick dive into this. They are not simply a product that performs one function, they are designed as a lifestyle aid, with apps for wellness, maps, local information, and much more.
Well-being - By far, the most popular kind of wearables are fitness smart-watches, being on a continuous ascendant trend due to their functionality. Marketers can use the data generated on their leverage, for example by having access to a person's sport schedule, workout preferences, and eating habits, they can suggest promotions about new health programs when the person would be doing a workout;
Intertwining data from multiple devices - This opportunity of sending personalized ads can be taken to the next level. For instance, if the previous example proved successful (the person working out who receives a sport-related ad), imagine sending a promotional coupon to someone who enters a shop and is genuinely interested in an item. Chances are, that person will most likely buy that item in a blink of an eye;
Geo-targeted advertisements - Besides knowing the exercise routine, a wearable gadget can have data on the whole daily schedule of a consumer. Let's imagine that it senses the moment the consumer is walking past a shop on a daily basis. This data generates geographic tags and checkpoints of the consumer journey mapping, which can be easily shared with retailers from that area. This way, they can enable discounts or vouchers to that shops the consumer walks by every day.
Consumers of wearables
Concerning wearables’ consumers, I have come across a research from Ericsson ConsumerLab analysis completed in 2015, which perfectly describes consumers’ point of view. In my opinion, their findings are still up to date and provide an honest sentiment.
First of all, it is worth mentioning that wearables have become "the most personal devices", after two in five users of wearables say they feel naked when not wearing their device. A quarter of them is even sleeping with their devices on (Ericsson, 2015). The majority of users take their gadgets in bed, using them both in the morning and at night, fact which leads to serious health issues. Blue light from electronics is linked to problems like blurry vision, eyestrain, dry eye, macular degeneration, cataracts, and sleep issues (WebMD, 2020).
Regarding their expectations, the study is showing that consumers are demanding more and more from their wearables, whereas their expectations are not fully met. A common reason for disappointment is the fact that wearables' users felt they are tethered to their smartphones. The majority of wearables do not support standalone connectivity, needing an extra device to rely on. Another minus point is the price of keeping these wearables online, which depends on the service providers' charges.
Personal safety is massively sought after, research concluded that devices related to security are highly rated on the market (panic buttons, wearable location trackers). The survey also revealed that particularly women feel vulnerable when spending time at night on the streets, and while 17% of surveyed users confirmed they already installed security apps, there is a strong desire for discreet ways to send alerts for help (Ericsson, 2015).
Another interesting piece of data showed 40% of the surveyed persons said they would be interested in smart garments with inbuilt sensors and artificial intelligence, capable of taking precise measurements of their bodies and suggest which clothing to buy (Ericsson, 2015).
References
Adam D. Thierer, The Internet of Things and Wearable Technology: Addressing Privacy and Security Concerns without Derailing Innovation, 21 Rich. J.L. & Tech 6 (2015).
Charles McLellan, M2M and the Internet of Things: A Guide, ZDNET (2013).
Ching, K.W.; Singh, M.M. Wearable Technology Devices Security and Privacy Vulnerability Analysis. Int. J. Netw. Secur. Its Appl. 2016, 8, 19–30.
Erevelles, S.; Fukawa, N.; Swayne, L. Big Data Consumer Analytics and the Transformation of Marketing. J. Bus. Res. 2016, 69, 897–904.
Ericsson. (2015). ConsumerLab report on Wearable Technology and IoT – Ericsson. Ericsson.Com. https://www.ericsson.com/en/reports-and-papers/consumerlab/reports/wearable-technology-and-the-internet-of-things
Fortune. (2020, August 22). 5 companies that want to track your emotions. https://fortune.com/2020/08/22/emotion-sensing-tracking-technology-apps/
Khanra, S.; Dhir, A.; Mäntymäki, M. Big data analytics and enterprises: A bibliometric synthesis of the literature. Enterp. Inform. Syst. 2020, 14, 737–768.
Medeiros, J. (2020, May 28). The future of the Apple Watch is sensor-packed healthcare.
WIRED UK. https://www.wired.co.uk/article/apple-watch-health
Perez, M. V., Mahaffey, K. W. et. al. (2019). Large-Scale Assessment of a Smartwatch to Identify Atrial Fibrillation. New England Journal of Medicine, 381(20), 1909–1917. https://doi.org/10.1056/nejmoa1901183
Tarabasz, A.; Poddar, G. Factors influencing adoption of wearable devices in Dubai. J. Econ. Manag. 2019, 36, 123–143.
WebMD. (2020, October 7). How Blue Light Can Affect Your Health. https://www.webmd.com/eye-health/blue-light-health#:~:text=Almost%20all%20blue%20light%20passes,related%20macular%20degeneration%2C%20or%20AMD.
Xu, Z.; Frankwick, G.L.; Ramirez, E. Effects of Big Data Analytics and Traditional Marketing Analytics on New Product Success: A Knowledge Fusion Perspective. J. Bus. Res. 2016, 69, 1562–1566.
Zhou, L. (2015, March 19). Could a Bra Actually Detect Breast Cancer? Smithsonian Magazine. https://www.smithsonianmag.com/innovation/could-a-bra-actually-detect-breast-cancer-180954612/
Comments