- Cory Checketts
- On June 11, 2015
- 0 Comments
1. The Internet of Things Means a Consumer Information Tsunami: Get Ready to Ride the Wave
James McQuivey is the vice president and principal analyst for Forrester Research. His primary area of focus is on the impact of digital disruption on traditional businesses. James stated that the Internet of Things is the symptom of two larger trends: First, that consumers are hyperadopting and second, that companies are engaging in digital disruption.
What is hyperadoption? What I can guess from attending the session and doing a little online research, is that hyperadoption is a word invented by James. He defined it as: “A rabid and simultaneous uptake of behaviors.” That being said, what does it mean for you? James gave the crowd an example of hyperadoption. He said when the Apple Watch was announced, 26 percent of people surveyed said they were planning on pre-ordering it. He continued on by saying how quickly people are purchasing products they’ve actually never used or touched. More importantly than the product itself, people are hyperadopting the experiences associated with devices. In order to get a service that solves a problem, you need devices with connections and sensors. As consumers desire satisfactory experiences, they will adopt to devices that delight them.
James talked about how most products used to be produced and how the digital world has disrupted the old model. The old way of doing things meant a few people could make products and it required lots of money. The digital way of doing things means many people can make products and it requires less money and has more innovation. We now are getting ten times the innovation at a tenth of the cost.
How to Use the Data
With consumers using devices like the Apple Watch or home automation services, there is more data available than ever before. James said, “By 2020, the amount of data that customers will give off from their homes and bodies will be 100 times the cumulative data stored in data warehouses today.” So how can companies utilize this data? He gave an example of how a sensor in a washing machine will notify the consumer when it needs service. In turn, this data could be purchased by a retailer that could send a consumer advertisements about a new washer when their’s needs to be replaced. And moreover, a better washed to meet the consumer’s needs based on information collected about the types of cycles used and frequency. And detergent companies could use this data to advertise to consumers which soap best fits their needs.
All of this data is meant to satisfy customers on a micro level and determine what the next thing a company can do to satisfy them further. James ended by saying consumers will release this wave of data and they will be as comfortable with it as they are with the phones in their pockets.
Make sure to follow James’s blog for truly awesome content
2. How to Mine Negative Reviews for Positive Results
This presentation was from Matt Moog and Henry Coleman. Matt is the CEO of PowerReviews and Henry is the director of marketing at Hammacher Schlemmer. In this session Matt and Henry focused on how an online merchant can get the most out of negative reviews. I thought this session was fascinating because it looked at reviews from a fresh and positive angle.
Negative Reviews Can Work for You
Negative reviews are feared; merchants go to great lengths to mitigate them. But how can your business benefit from negative reviews? Let me breakdown the top points from Matt and Henry’s presentation. But first, let’s remember why reviews of any kind are so important.
- Reviews drive sales, traffic and create actionable insights for consumers.
- The majority of online shoppers won’t purchase from you if you don’t have current or quality reviews, and if you don’t have diverse reviewers.
- Reviews give you more traffic from organic searches.
- Reviews create customer expectation and trust.
- Reviews are the best form of market feedback–even better than surveys and focus groups.
- The only thing that impacts conversions more than reviews are prices.
- Not everyone trusts a product with nothing but positive reviews. Eighty-two percent of consumers think negative reviews earn trust and authenticity.Many people will read negative reviews first to see if it is acceptable to them; younger shoppers tend to jump to negative reviews first.A negative review is not always about the product but rather the expectation from the customer.
- Consumers think too many positive reviews means it’s being gamed. Some negative reviews help drive sales.
- Reviews show which products are meeting expectations and which ones aren’t.
I found this presentation to be acutely helpful. It gave me an alternative perspective on how I view negative reviews. I don’t think you should set your sights on negative reviews, but I do think earnest reviews–negative and positive–are the best way, next to conversions, to gauge a products success.
The presentations from James, Matt and Henry were the most forward-thinking sessions I attended at the conference. James’s gave me insights into the future of e-commerce, and how merchants can prepare and embrace new technologies in order to thrive in an ever-changing marketplace. Matt and Henry’s presentation educated me on the importance of negative reviews and how online merchants can convert them into advantageous business opportunities.
I hope you enjoyed my recaps of IRCE and got as much value out of them as I did.