How “Mobile” is Changing Our Industry Landscape - Central Illinois CPCU Society … · 2014-07-23 · New Behaviors Driven by Technology and Innovation . We use the term mobile
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So I’d like to use the next few minutes to step back from the tactical of our every-day and take a look at how smartphones, tablets and this idea of total connectivity is shaping our industry. But I’d like to start by sharing how it’s shaping our culture and each of our individual behaviors. Of course the title of my talk is How “Mobile” is Changing Our Industry Landscape, but clearly this trend is not just impacting us, it’s pervasive across industries. In essence, we could be having a similar discussion in Retail, Transportation & Logistics, Health Care or Real Estate to name a few.
• Mobile v. Mobility: New Behaviors Driven by Innovation
• “Mobile First”
• Why You Should Care
• The Next Big Thing(s)
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So recognizing that I’m quickly followed by lunch, I have just 4 main points to share this morning: Mobile v. Mobility and what’s the difference?? This notion of “mobile first” and what it means to business Why You Should Care (or why should you care?) And lastly, The Next Big Things or what trends should you be on the lookout for. And I’ll cover all of this in just 94 slides….
New Behaviors Driven by Technology and Innovation
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We use the term mobile when we refer to things like our mobile phone, but it’s actually a misnomer. Our phones aren’t mobile, we’re the ones who are mobile. It’s really about the ability for people to move around and still be connected. People are inherently mobile – it’s how we’re wired. And at no other time in history have we been so connected. Our smart phones and tablet devices allow us to behave differently as we react to our surroundings. Mobile devices have shaped new behavior as well as changed existing behavior. Crowdsourcing is one of the best examples of behavior change. A quick search on Google Play or the App Store returns dozens of apps powered by crowdsourcing. So whether you’re using Waze and “outsmarting traffic together,” SmileDrive – “the first social app to maximize fun behind the wheel,” or WeatherSignal – a new way of collecting and uploading weather data, you’re part of a community of users pushing information to the cloud for others to consume. None of these would be possible without mobility. I’d like to show a short clip related to Waze. The company professes to be the world's fastest-growing community-based traffic and navigation app. Whether it’s an app, mobile website or an in-store experience, personal devices have fundamentally shifted how we discover the world around us.
$159 billion US Sales influenced by smartphones in 2012
Waze users through June 2013
175 million tweets sent every day
CROWD - SOURCING RETAIL
2nd SCREEN COMMUNICATION
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I’ve included four distinct examples of how Mobile is shaping our lives: CROWD-SOURCING 50 million Waze users thru June 2012. By the way, this company was purchased in June of this year by Google. RETAIL Mobile has a massive impact on every day sales: The practice of “show-rooming,” or viewing an item in a retail store and then buying it online, has brought the e-commerce threat directly to traditional retailers. Deloitte Digital reports that smartphones influenced $159 billion in U.S. store sales over the course of 2012 or 5% of the total, and will influence $689 billion of store sales in 2016. Mobile raises the threat of “show-rooming” to a new level since price comparisons are available to shoppers almost immediately. As you might expect, Amazon has the highest rated show-rooming app on the market. �It’s predicted that 59 million U.S. shoppers will use their smartphones to “showroom” by the end of 2013. Read more: http://www.businessinsider.com/mobile-showrooming-is-changing-retail-2013-5#ixzz2haw6n7ql SECOND SCREEN EXPERIENCES According to a recent survey (Of.com): The most popular activity was using their mobile phone, with seven in ten (70%) saying they did this while watching TV. More than half (54%) said they used the internet at the same time. And this idea of Second Screen isn’t limited to just watching TV. I imagine we’ve got a little “second screen” action happening right now! COMMUNICATION If there’s one area that has experienced the most impact by mobility, it’s communication. There were 175 million tweets sent from Twitter every day throughout 2012. (source: Infographics Labs) More than half of Twitter users are using the social network via mobile. These shifts don’t happen without the enabling technologies of mobility.
Mobile First
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So let’s quickly move into this notion of “mobile first,” talk about what it means and how businesses are applying the concepts.
“A design and business philosophy that uses
mobile devices to focus experiences and open up
new opportunities for innovation.”
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Mobile First is a term first coined by Luke Roblewski. Mr. Roblewski is a former Yahoo! design architect and co-creator of Bagcheck, and the guy probably knows more about mobile experience than most people on the planet. So let’s look at the definition: “A design and business philosophy that uses mobile devices to focus experiences and open up new opportunities for innovation.” In his book by the same name, the author explains, “It not only prepares you for the explosive growth and new opportunities of the mobile Internet, it forces you to focus, and enables you to innovate in ways you previously couldn’t.” Customers are increasingly using multiple devices when engaging with brand sites. Mobile will continue to be adopted as the preferred means of researching a brand and its offerings. It is no longer reasonable to only focus on traditional .com sites (or what I call “desktop-centric experiences.”) Typically mobile sites have been an afterthought, delivering reduced content and functionality. The need for a more mobile-centric approach will only increase.
Mobile First impacts Everything not just the user experience
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A mobile first approach goes beyond the UI or presentation layer. To truly deliver mobile first services and experiences much more needs to be considered. To be truly mobile first – existing products, services, business models and processes must be completely reexamined. Are your services designed for mobile users? Are you processes simplified enough to demonstrate a clear value proposition to mobile customers? This requires a completely new way to think about your offerings and it requires support at the highest levels of your organization.
1. Spans mobile apps, web & tablet
2. A new way to think about services, processes and requirements
3. Begins with the capabilities and constraints of mobile devices
4. Simplifies experiences by forcing focus on core content & functionality
5. Requires backend architectures and services to prioritize mobile
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So, a quick recap. Mobile First…. Spans mobile apps, web & tablet A new way to think about services, processes and requirements Begins with the capabilities and constraints of mobile devices Simplifies experiences by forcing focus on core content & functionality Requires backend architectures and services to prioritize mobile
So, Why You Should Care! OR Why Should You Care? It’s a great question… Lots of reasons – I’ve tried to sum it up in 3 key points: Firms must Adapt to Consumer Expectations; They must understand what Pervasive Access could mean for them; and lastly Companies need to be aware of how increased potential utility can be leveraged to their benefit
Adapt to Consumer Expectations
The How: • Enable customers from an acquisition and retention perspective • Provide agents and field employees with tools appropriate to their
environments
The What: • Give customers self-service and purchase abilities through mobile • Mobilize agent and field employees’ tools and activities, making their
interactions more portable.
The Why:
Brands that fail to be proactive to evolving consumer expectations find themselves scrambling to frantically react later, and at great cost. (e.g. Kodak). Mobile device usage and adoption is trending upward, and even overtaking desktop in some instances.
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In 2011 mobile sales surpassed PC sales for the first time and the gap has only continued to widen. Per eMarketer – Mobile Payments are forecasted to reach 20B by 2016, with many forecasting 100’s of billions in 2017. Per Nielsen – U.S adult ownership of smartphones is up to 64.7% of the US population as of Q3. Per UN study – More people have access to cell phones (6 B) than access to working toilets (4.5 B) globally. Companies that failed to adapt to the consumer market quickly enough: Kodak, Blockbuster, Blackberry, Nokia. “Too little, too late”. Some still seeing the repercussions of, but there are definitely some overall downward trends.
Pervasive Access
The How: • Address the infrequent, in-the-moment nature of insurance interactions • Treat mobile as an always open and moving communication channel (i.e., an
extension of who we are)
The What: • Enable customers to file a claim or quote/purchase anytime, anywhere • Enable agents and field employees to receive the same
The Why:
Consumers are no longer constrained to fixed locations for consuming and interacting with connected experiences. They have continual access to the Internet and a vast range of tools or apps. This can be taken advantage of by providing 24/7 access to your company in their pocket.
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Per Pew – 44% of mobile users have slept with their mobile device by their bed to avoid missing notifications. 67% impulsively check their phone without the phone ringing or vibrating. 29% describe the mobile device as “something they can’t live without”. Per Nielsen – 40% of internet usage time is through mobile.
Increased Potential Utility
The How: • Use location awareness • Allow for camera input • Measure driving behavior
The What: • Make location fields easier with automatic Zip Code/Address Entry • Capture claim information through pictures • Driver Feedback™ lets customers know how they can improve their driving
The Why: Mobile devices are very good at providing you important contexts or allowing different inputs with different sensors available.
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The most technologically enabled platform for quick and easy input, and it continually improves and evolves. Tim Cook (Apple’s CEO) recently stated that mobile devices are quickly becoming "more portable, more personal and dramatically easier to use than any PC has ever been." UBI Makes things more simple and uses the device as inputs Driver Feedback: Acceleration, Braking & Cornering
The Next Big Thing(s)
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The behavior shifts and trends we looked at earlier are only a subset of what’s currently happening and what’s to come. Agile companies will continue to watch for emerging trends and technologies, with an eye toward adoption rates and impact on individual behaviors. Trends are fluid and changing faster than ever before. These same organizations will recognize and adapt to new technologies and how customer’s expectations are shaping what their company offers by way of products and services.
Sharing Economy
Connected Everything Distributed
Personal Finance Sharing Economy
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I want to share just a few of the trends currently on the radar: Distributed technologies Like Google Glass and Samsung’s Galaxy Gear smart watch a just a couple of examples of this technology. Thus far, 10,000 Google Glass devices have been distributed in the U.S. Connected Homes and this idea of the “Internet of Things” including sensors on just about anything you can imagine. Nest: I love their slogan: Nest reinvents unloved but important home products, like the thermostat and the smoke alarm. The Lono sprinkler controller – an effort backed by Kickstarter – let’s you connect and control your irrigation system thru your iPhone! Sharing Economy or some refer to it as “collaborative consumption” Zipcar and Airbnb are a couple of examples. Airbnb is an online service that provides a platform for individuals – referred to as “hosts” – to rent out unoccupied living space and other short-term lodging. As of September 2013, the company had over 500,000 listings in 33,000 cities and 192 countries.[1] including private rooms, entire apartments, castles, boats, tree houses, Tee-Pee’s, igloos and even private islands if you have the means. And then lastly, advancements in Personal Financial Management is another trend to keep an eye on. With Apple’s Passbook and Google’s electronic wallet, it’s not too far-fetched to think that some day you won’t carry physical cards or even cash.
So I’d like to leave you with one more image to think about as I close. This picture was taken in Vatican Square when Pope Benedict took office in 2005.
And this picture was taken in March of this year when Pope Francis took office. Hey, thank you very much for your attention. I’ve enjoyed my time with you this morning.
