It has been an exciting week for Apple with the biggest launch since 2010 announcing of the launch date and styles in a new product category, the Apple Watch. Many people have been waiting with bated breath for this new wearable and the time has finally come. Once again, as they did with the iPad, Apple is looking to own and dominate this category, not just enter it. So what does this mean for Apple, the retail world and ultimately the customer experience?
On Monday, Apple gave the ever waiting world details on the latest models for the new Apple Watch and the potential the device will have on consumer’s daily functions in life. From personal financial management to email to payments to health to shopping, the Apple Watch has the potential to change a lot of experiences for shoppers.
Omni-channel
These wearable technologies bring omni-channel to entirely new level. Due to the proximity of wearables to the daily and fundamental actions and behaviors of the consumer, the shopping experience becomes much more connected to the wearer’s overall experience more than ever before. And speaking of wearers, store associates can also be outfitted with this devices which would increase responsiveness and consistency of dialogue between them and the consumer in-store. In the end, brands and retailers need to create the right messaging at the right time, regardless of the devices, to provide a seamless customer experience.
Payments
The Apple Watch appears to have the same functionalities of Apple Pay as the iPhone 6 devices. When a consumer wants to go pay for a product or service, they will double tap the side button and they will be able to choose the preferred payment card on the screen. A consumer can then hold the watch up to the NRC reader for payment and the transaction is complete. This really is not very different than what the iPhone does but Apple is saying that it will reduce the overall time (by 5 or 6 seconds) it takes to complete the purchase compared to your actual credit card or iPhone.
Apps
Organizations such as Target, Fandango, OpenTable, Uber, American Airlines and Starwood Hotels have developed apps that properly leverage advanced Apple Watch features that are symbiotic with other devices. Target is currently the only major retailer that has an app for the Apple Watch containing functions that will allow them to track consumers in-store as well as alert a wearer if they are in close proximity to something on their shopping list. If one thinks about it, beacons could really flourish with a wearable technology such as the Apple Watch. It is much easier to look at down at your wrist when a consumer receives a push message versus the process of taking out your phone, unlocking it and clicking on the alert. Fandango’s app will plan to deliver a scannable bar coded ticket for purchased movie tickets to the Apple Watch. It will be interesting to see how ticket sales will increase via the Apple Watch since Fandango recently reached a point where more than 50% of their sales are from a mobile device. American Airlines new “wearable” app will enable travelers to check-in to their flights and receive notifications regarding departure and arrival times. They will also be able to store a QR code on the actual screen of the watch that will contain their boarding information. Starwood Hotels new “wearable” app will allow consumers to actually unlock their hotel room doors with the contactless proximity of their Apple Watch.
Banking
During the announcement, Cook stated that over 2,500 financial institutions have adopted Apple Pay. Financial institutions like Citi have developed specific apps for personal finances management for the Apple Watch. It will enable a user to quickly look at the details of their accounts: checking, savings, transactions, etc. Mint has developed an app that allows consumers to set monthly spending goals and receive notifications about personal budgets they have set.
Competition – Is it far behind?
So this is all fine and dandy if I am an Apple user but what if I am a Droid user? Google has recently become more vocal about Android Wear and their growing ecosystems of Apps. The rumor mill is stating that Google is very close to turning on Wi-Fi support which will allow features like Google Now and notifications when a wireless connection is available. It will be a matter of activating the already built-in feature to most Android Wear watches already in production. Other features such as gesture control (think Xbox Kinect) and User Interface will also see improvements and updates. Due to the fact that only Droid users can use Android Wear and Apple users, the Apple Watch, both companies will need to make sure they feature parity in the wearable devices to avoid users wanting to switch from one to the other because they want to use a different smartwatch. It may seem small now, but as both of these markets grow, it could cause for a very large concern.
It will be interesting to watch the implications for brands and retailers in terms of marketing and integrating messaging into the wearable device. Retailers have only scratched the surface with beacons, geo-targeting, and watermarking on mobile devices such as smartphones and tablets and now a wearable has been introduced. None of this will actually happen overnight just as it did not with mobile devices.
The smartwatch era is only just beginning!
Apple Watch and the Customer Experience
by Heather Bowman on March 12th, 2015 | ~ minute read
