Nest – technology marketing that is hot and cold

If ever there was a market for for one of the hottest/coolest (excuse the pun) technology propositions the Nest thermostat it is the UK. One minute it’s sunny and warm but the next (and actually most of the time) it’s cloudy and cold. So surely us Brits are target market for better managing the temperature of their home.

 

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How much cooler does this Nest thermostat look than the drab old white or grey plastic thermostat that you have hidden somewhere in your house?

And that’s the great thing about this. By offering a thermostat that is attractive to look at and with a very simple user experience it actually means that you will interact with the technology to help you better control the temperature in your home and hence reduce your energy costs. 

The problem that they are hitting on is that if you’re like me your current thermostat is so fiddly to use and hidden that you simply don’t bother meaning that your energy consumption is very inefficient.

Even better the Nest thermostat uses smart technology to learn how you like your home temperatures and can regulate accordingly and also allows you to manage remotely via the web. This really promises to change the behaviour of how you manage your home energy. 

This then is a great example of breakthrough innovation technology marketing.

  1. Find a real customer need – improve home energy control and costs
  2. Develop a breakthrough proposition – a learning thermostat that you want to use
  3. Focus on customer experience – design an elegant and easy to use product
  4. Get people excited to talk about it – judging by the reviews in the US clearly the media and early customers are very happy to recommend the Nest

You won’t be surprised that the designer of this great looking product (Tom Fadell) was also responsible for designing the iPod.

It’s another great example to all of us that aspire to developing winning technology propositions to focus on how we want the customer to engage with our product.

While I wait for this great product to come to the UK I’ll just have to hope it gets sunnier again soon.

 

 

 

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Why customer experience is king in marketing

Many of us have experienced the excitement of launching what we believe to be the best and most innovative new digital and mobile propositions to the market.

Typically this would have included the creative challenge of turning a technical solution into a consumer friendly marketing proposition and communication – including the obligatory social media content to whip up the excitement levels with potential customers.

It would normally also include a rush to get it out of the door before your competition. Some of us would have also experienced this focus on speed rather than customer experience can have sub-optimal effects on our marketing success.

That was the case with the Jawbone Up when they first launched it in 2011 but whose success was quickly brought to a halt by soaring product returns and customer complaints due to the technology in the wristband breaking.

Jawbone quickly and bravely withdrew the product from the market – providing full refunds for all customers that had bought it – and went back to the drawing board to create a much improved customer experience.

Not only have they completely redesigned the technology of the product on the inside but they have also been busy making sure that the app and digital content it provides are really slick and a delight to use.

Well I believe that Jawbone are about to prove that an absolute focus on providing a fantastic consumer experience will ultimately win the day in market success. It may have proven to take longer and cost more than originally planned but in the medium term I think it will be the best thing they could have done to continue to build their brand reputation and ongoing commercial success.

Not only that but their dedication to creating such a great experience provides the quality of stories and digital content that marketers love to have to drive social engagement.

We all want to emulate some of Apple’s success and I believe it is their own focus on delivering the ultimate customer experience (think original iPod click wheel rather than iOS6 maps) that has been pivotal. It’s using and sharing our experiences of their products that has had a more profound impact than their advertising or social media activity.

Jawbone look set to provide the most elegant and fun way to track your sleeping, diet and exercise – and it will be the great experience that will really get it’s customers talking.

E.ON – the wrong time to stop innovating!

I don’t think there is ever a good time to stop innovating – in fact I believe it is a core value to drive innovation on a daily basis for all successful businesses.

So I was amazed to see that E.ON – one of the UK’s leading energy suppliers – is to close its innovation arm.

Energy brands are often viewed as a commodity service and consumers are encouraged to switch suppliers based on the latest price deals – especially true when their prices are regularly increased as they are at the moment.

This is exactly when innovation needs to play it’s part by adding new value to customers.

Surely there are lots of opportunities for E.ON to help us change our consumer behaviour and usage of energy. Not just in providing innovations such as renewable energies and services that make our energy usage more efficient but also in amazing general customer service and marketing initiatives that create more valued & loyal customer relationships.

I’m sure that E.ON will say something like ‘innovation is core in our business and doesn’t need a separate business unit’ but from my experience a company as large and important as E.ON this is not enough to deliver the big changes that are possible.

At at time when there are a number of small businesses developing interesting new energy propositions such as the Nest learning thermostat in the US the big energy suppliers – like the big telcos before them – run the risk of becoming even more like a ‘price led commodity’ than ever before.

Still, all the time energy suppliers are able to set and follow their competitor prices in a ‘near-cartel’ fashion maybe they are content not to take the risk and effort to invest in innovation and simply suck-up the almost guaranteed profits that the sector provides.

I hope this is not about the lack of value of innovation to energy companies but perhaps more to do with their ability to harness and execute it properly in the business.

The power of innovation – recycling cycling

Sometimes you read something and you go ‘wow’. This week I was reading about how a designer called Izhar Gafni has designed a rather cool looking bicycle made largely from recycled cardboard and aimed to be produced for under $10!

As someone that has recently got into the cycling boom in the UK and having spent well over £1000 on a lovely carbon fibre bike I’m intrigued about the potential of a bike that weighs about the same and yet could cost much, much less.

Clearly the bike isn’t designed to win the Tour de France but it has the potential to be truly great because it addresses a number of key innovation success criteria:

  • An inspiring and exciting story that will be rapidly shared – ‘surely you can’t cycle on a cardboard bike’. Clearly both the intrigue and fantastic design create a really exciting story that has the potential to generate huge amounts of media coverage and of course offers the sort of ‘talkability’ that many brands aspire.
  • Unique position in a large growing market – I’m assuming that there are not too many folk as creative and determined enough as Izhar to have been spending the last two years in their sheds creating the perfect cardboard bicycle. I trust he has also been smart enough to protect the IP then he could enjoy a unique position in a large market for some considerable time.
  • Keeping the offer simple – Not only is the bike design beautifully simple but the idea itself especially the low-maintenance aspects of the bike are fantastically simple. It’s easy to know what this offers and of course how a sales person can sell it.
  • Opens up big new customer market opportunities – not only could this address the obviously large market potential in developed and developing markets for ‘low-cost’ bicycles but the additional angle of ‘easy maintenance’ hits another massive consumer need for convenience. Not only that but the more environmentally conscious audience opens up yet a third key customer target group.

Not only am I hugely impressed by the innovation in the product itself and the massive potential market opportunity but mainly I’m struck by the sheer focus and determination of this great innovator to prove that the impossible can be possible.

Whether this cardboard bike would really survive the often wet and pot-holed roads of the UK or even ever be produced at such aggressively low costs still remains to be seen but this is the kind of simple but challenging innovation that gets me really excited.

Good luck to them.

Have Nokia found the winning touch?

Nokia’s problems have been very well documented with many writers believing their cause to be terminal. Certainly their strategy to put all their eggs in the Windows basket is somewhat brave to say the least. However, there are signs this past week that suggests there could maybe be life in them yet.

Operating systems aside – and it is a big bet that Windows Phone 8 can be successful without a larger list of quality apps and games – it does seem that Nokia have been really thinking about creating a simple and enjoyable consumer experience that can differentiate them from the masses of Android manufacturers.

I believe this focus on consumer experience can provide real competitive advantage in a sea of similar smartphones – and I think Nokia might just have found the right touch.

Firstly, it looks like they will be among the first with a good consumer use of NFC technology – with a simple touch their new Lumia smartphone can automatically pair and start playing music on their new wireless speakers made in partnership with JBL. Sony have also announced a similar solution with their new NFC enabled speakers but it looks like Nokia will be quicker to market and could maybe give this greater focus in their marketing.

With Apple seemingly going to change the accessory speaker market for good with their new connector this gives great opportunity for players like Nokia to accelerate the growth in wireless speakers by making their usage so simple.

Secondly, and maybe more significantly, It appears that Nokia are going to use the simplicity of touch to charge their latest smartphones. Of course this isn’t the first time this proposition has been offered with Palm Pre back in 2009 but that was a paid-for accessory whereas it appears Nokia will offer free.

Not only this but it seems that Nokia have applied a touch of colour and fun to their designs which really stand out.

I believe there is a big chunk of the market looking for the next big cool factor. Maybe the simple combination of ‘touch to play’ and ‘touch to charge’ could be enough to encourage a sizeable base of people away from another Android phone – and who knows how excited the Apple fan base will be with a slightly longer slimmer iPhone.

With a focus on bringing new technology to life in a simple, fun and colourful way I believe there really is life left in Nokia yet. How much we will have to find out.

Can your brand bet on your customers?

The internet and increasingly the mobile internet are continuing to drive massive changes in our lives. As consumers we are spending more and more time happily tapping away at our smartphones and tablets engrossed in a myriad of exciting content.

At the same time as marketers we are constantly looking for new ways to use digital to add greater value to our own consumers, finding ways to differentiate our offering from competitors and of course hoping to find the holy grail of also increasing revenue/arpu for the business.

One really interesting area that is changing fast and opening up new commercial opportunities is online gaming and potential linkage with betting.

In UK at least, and despite the ongoing economic hardships with 17m people now considered to have wealth below the acceptable living standard we continue to see a significant rise in the propensity for people to gamble. In May Paddy Power reported a 28% increase in revenues driven largely by an increase in online betting and a UK survey by UK Gambling Commission saw a 15% increase in Gambling from 2007 to 2010.

Gambling/betting is increasingly socially acceptable to the point where I was almost surprised last week when we couldn’t place bets for the rowing races at Henley.

Where does this trend and opportunity leave us?

Many brands are looking to create exciting content including online games to drive greater engagement with their customers. At the same time online games are increasingly being integrated with ‘virtual goods’ to buy (it is estimated that over $4bn will be spent on virtual goods on Facebook by 2013) offering exciting new and highly profitable revenue models for those brands who can get this model to work.

Now this shift in brand and consumer behaviour may take a step further with a new betting service to be integrated into online games and mobile apps.

So the question is – can your brand tap into this increasing trend of providing online content to not just engage consumers but to give them exciting ways to spend their money online through either virtual goods or even providing a competitive gaming experience that supports elements of gambling/betting. Can this be a new and fun way to increase your interaction with your customers as well as increasing your profits?

This is of course is a difficult area for many brands to consider and won’t be right for many. But don’t be scared to at least look at how you could get this ‘new world’ opportunity to work for you.

At a time when consumers’ use of digital games are changing rapidly, their attitudes to gambling/betting are becoming more acceptable and you’re under increasing pressure to innovate and bring new profits into your business there really could be opportunities for you to take a considered risk too.

Just think this is another exciting new opportunity in the marketing proposition toolkit for us to consider as part of our innovation growth agenda.

Getting physical – the best way to engage

As highlighted in some of my earlier posts I am really excited about the opportunities new technologies allow smart companies to provide a greater experience of interaction with their customers – in essence creating the hallowed ‘greater engagement’ through gestures and physical interaction.

This new app from Bump allows you to simply share your photos between users simply by tapping your smartphones together. Not only that, you can store them on your computer by simply tapping your phone on the spacebar.

No more digging out the cables. No more hooking up the WiFi. No more uploading & downloading. Simply tap the two together and your photos will be easily sent across.

This is not about replacing Instagram and Facebook that have their own great photo sharing benefits for those far and wide. It’s about providing another simple way to address the need for an instant and physical share of the photo.

The new breed of smartphones with ever improving accelerometers and NFC will allow us to take this physical interaction with your brand to new levels as Barclaycard’s current PayTag campaign reminds us.

There are many benefits to this more physical gesture approach. Not only is it normally more simple that finding your way through a string of menus but we know that physical interaction is normally a fun and enjoyable experience.

As a marketer it allows us to focus on creating a more emotional connection with your brand and service. We know that if well executed this is a strong driver of brand satisfaction and desire.

There are many ways that we can look to use this and create more physical engagement with our customers.

Recently I have been asked by a couple of marketing agencies to think about the new opportunities for brands to connect with consumers and store staff using the emerging mobile and digital technologies. Needless to say that many include a simple and fun physical interaction that delivers a much richer benefit.

Of course these are still early days but a great time for you to plough a little investment of budget and time to think about ways that you could put more smiles on your customers’ faces by creating a valued physical interaction with your brand.

In the meantime, if you want another opportunity maybe it’s a good time to invest in companies that produce mobile phone screens. 🙂