If you've been following my blog, you've probably noticed that I consider smartwatches to be the next mobile revolution. There are many factors driving this phenomenon, but the biggest is the new digital native consumer: millennials.
This new, connected consumer is looking for experiences rather then functionality, and expects to interact directly with brands rather than simply purchasing as a passive consumer. Millennials in 2015 surpassed the baby boomers as the largest living generation in the US and - not surprisingly - they also represent the segment with the highest smartwatch penetration rate, about 15% (source: GlobalWebIndex and Pew Research Center ).
This means that for brands the challenge goes beyond apps and services; their success depends on how well they fit in with the narratives of their customers’ life.
Smartwatch apps can help you achieve this goal in three key ways:
1. Your brand is always accessible
With a smartwatch app, your brand is fully immersed in the life of the user. Whether they're at work or having fun with friends, your app is available with a quick glance. The wrist experience supports the user's lifestyle and keeps your brand literally at their fingertips, rather than hidden in a pocket or a bag.
2. Increased personal engagement
This level of accessibility brings with it an intimate connection that has never existed before: your customer will spend more time with your app and you will have more opportunities to achieve your business objectives. It’s not just quantitative, t’s the quality of each interaction that becomes more meaningful. This develops deeper emotional connection with your brand and drives faster purchase cycles and retention.
3. Strive for a coaching model
This new dimension of digital interaction requires your brand to become more like a coach, or a friend who is always there to understand, motivate, and reward as the customer uses your app to achieve his objectives. Finally the individuality of the user is truly at the center of your value proposition.
These three pillars define the new digital landscape and require a new approach to value creation and business modeling. Just scaling down an existing smartphone app would only bring frustration to users and costs to your company. Smartwatch apps are not an afterthought: to satisfy millennials, you need to define the right offering and business model.
The time to act is now: the market is still in its infancy but make no mistake, smartwatches are now becoming a mainstream product with worldwide shipments expected to have a 31% CAGR for the next 5 years (source: IDC, March 2016). Millennials are not planning to wait: they will just turn to those companies that are quicker to provide what they are looking for.
To help you solve the complexities involved and save you time and money, Emozionella created a specific consulting service: Emozionella Concept
