Technology giant Apple is continuing its pro-privacy crusade, but its latest features may alienate many developers and advertisers.
With Apple’s forthcoming iOS 13, announced during its Worldwide Developers Conference on June 3, it will be easier than ever for consumers to protect their personal information and prevent third parties from exploiting user data. This places Apple in direct opposition to technology companies Google and Facebook, who have drawn user and government scrutiny over their use of consumer data.
“The fact that Apple continues to position itself toward privacy is not surprising,” said Dan Goldstein, president and owner of Page 1 Solutions, Lakewood, CO. “The company has been trending this way since Facebook got caught in its privacy scandals, and the features outlined at WWDC are another step in that path.
“Most consumers treat online ads as a nuisance, and sometimes they are,” he said. “However, targeted display advertising is a powerful tool for connecting consumers with the goods and services they care about.
“To the extent that Apple’s new data privacy features negatively impact user experience in apps offered by Google and Facebook, that may hurt advertisers and consumers alike.”
Protecting personal data
One of the most important announcements at WWDC was the debut of “Sign in with Apple,” a new way for users to log in to mobile applications and Web sites.
According to Apple, users will be able to sign in using their existing Apple ID after confirming through Face ID or Touch ID.
Apps are still able to request names and email addresses, but Apple will offer an option to create a unique, random email address that forwards messages to users’ real inboxes.
Apple’s iOS 13 will be available this fall with new privacy updates. Image credit: Apple
Ultimately, this ensures that users’ activity cannot be tracked within the app and tied to their profiles.
Sign-in options with Facebook and Google are already ubiquitous and valuable revenue streams. While these one-click options are convenient, since users do not have to create new passwords for each new application, it comes at the cost of privacy since developers are able to track individual users.
Apple will also be requiring that all third-party apps will need to include Apple sign in options to be listed on the App Store. However, developers will no longer have the ability to mine the personal data of consumers using this option for future marketing purposes.
Many luxury brands and retailers, including Dior, Gucci and Farfetch, have apps available to download through the App Store.
According to a survey from Kelton Research and SheerID, two to one consumers want brands to request consent before using their personal data. Only 8 percent are comfortable with marketers looking into social channels for individualized information such as likes and activity for promotional purposes, including discounts (see story).
Net-A-Porter recently updated its mobile offerings. Image credit: Net-A-Porter
There will be other privacy-focused updates included in the new iOS launch this fall.
HomeKit Secure Video will soon allow video feeds from third-party cameras to be encrypted and sent to iCloud. Users will also have the ability to allow apps to access their location “only once,” instead of existing options such as “always” and “when using the app.”
“I think it’s also important to recognize that users won’t have full autonomy over their data and privacy with these features,” Mr. Goldstein said. “With Sign in with Apple, for instance, Apple is still effectively managing your data.
“You may be further removed from third-party access to your information, but it’s not a ‘purely private’ experience,” he said.
Corporate criticisms
These latest features are one way that Apple is positioning itself as an outlier in the technology sector. Other big tech mainstays, including Google, Facebook and Amazon, have been criticized for lax privacy policies.
In a February 2019 report, lawmakers in the United Kingdom accused social network Facebook of violating data privacy laws.
Parliament’s Digital, Culture, Media and Sport select committee found that the platform “intentionally and knowingly” violated both data privacy and competition laws. The committee also publicly requested that social media companies be held liable for harmful content on their platforms and that political advertising laws be updated (see story).
Decreasing permanence and increasing private communication, Facebook CEO Mark Zuckerberg has detailed steps the company would like to take in the future to do what it believes will better serve its audience in a recent blog post (see story).
Amazon’s Alexa voice assistant and Echo devices have also been the subject of privacy concerns. Consumers can be weary about adding devices with microphones or a camera to their homes.
As users are increasingly calling for control over their data, Amazon is letting Echo owners delete everything that they said in a day from recordings. This command will eventually evolve to let users clear what they have just said to Alexa.
As part of this privacy move, Amazon has created a new hub for its Echo devices that enable owners to understand what information is being collected through the devices (see story).
However, advertisers have come to rely on this data to learn more about consumers. Together, connected devices, services and data are expected to drive $19 trillion in economic growth around the world over the next decade, according to projections from Cisco (see story).
“Luxury brands rely on targeting discerning customers,” Mr. Goldstein said. “Although location and demographic information can be relevant to identifying the target consumers, interest-based targeting tends to be more effective for delivering relevant ads.
“Customers who visit specific Web sites or perform certain searches related to luxury goods and services exhibit a tendency to buy them, so ads targeted to these consumers tend to convert well – all without the need to access private data,” he said.
Alexa’s Echo Show 5 is designed to be put in more rooms. Image credit: Amazon
Ecommerce giant Amazon is making its Echo Show technology more accessible with its latest launch, potentially putting more screen-enabled voice assistants in consumers’ homes.
Smart speakers have opened up new consumer engagement opportunities for brands, but some aspects including shopping have been more limited due to the lack of visual content. Amazon’s move to price the Echo Show 5 more affordably than its earlier launches could give brands a wider audience accessible on visual speakers, potentially opening the door for advertising and ecommerce opportunities.
“The proliferation of a smart speaker with a display means that every company with a smartphone app should develop an Alexa skill for the new Echo Show 5 because consumers will expect to be able to interact with brands via their smart displays in the same way they do on mobile and Web,” said Katherine Prescott, founder and editor of VoiceBrew. “And from the brand perspective, having an Alexa skill provides an important new way to have conversations with customers and get to know what products they’re looking for from brands, the real-time questions they have about a product they’re looking at, etc.
“Right now, the only other place brands can have this kind of insight into their customers’ purchasing behavior is in a brick-and-mortar store, because the way customers interact with voice assistants is more akin to how they interact with sales associates,” she said.
Sight and sound
A 2018 report from Voicebot.ai and Voysis found that only 5.9 percent of consumers with smart speakers had devices with screens, showing that adoption of screen-enabled speakers was far lower than for audio-only devices.
The Echo Show 5 aims to encourage more consumers to get on board with screen speakers and prompt them to place the devices in more rooms.
“Since we launched the first Echo Show device, customers have told us they love asking Alexa to show them things—whether it’s a recipe for banana bread, their shopping list, or music lyrics,” said Tom Taylor, senior vice president of Amazon Alexa, in a statement. “With Echo Show 5, we’ve made it even easier and affordable for customers to add a smart display to every room of their house.
“The compact form factor is perfect for a bedside table or desk, plus it has a camera shutter for added peace of mind, and new Alexa privacy features for even more control,” he said.
Priced at about $90, the Echo Show 5 costs less than competitive smart speakers from brands such as Google, as well as the original Echo Show that currently sells for more than $200. The device features a 5.5-inch display and a camera, enabling consumers to watch content or video chat with their contacts.
Amazon’s Echo Show 5. Image credit: Amazon
As more consumers digitally integrate their homes, the latest edition of the Echo Show is also debuting a new smart home dashboard. This enables owners to adjust lighting via dimming controls or check in on cameras and monitors.
Luxury brands have embraced smart speakers with voice skills, such as JennAir’s Alexa and Google Home skills that enable consumers to interact with their appliances and the BMW Alexa skill and Mercedes Google Home integration that allow users to check the status of their cars remotely (see story).
Some have also leveraged the Echo Show for visual skills. For instance, Coty’s Let’s Get Ready skill uses the camera on the device to personalize suggestions based on the user’s skin tone or hair color (see story).
Coty’s Alexa skill. Image credit: Coty
“Smart speakers with screens are the first devices to offer a voice-first experience with both audio and visual output,” Ms. Prescott said. “For skills built for smart speakers with screens, the visual output should supplement the audio output and enrich the overall experience, but the audio should still be able to stand on its own.
“A good example of this is watching and listening to someone presenting a slide with data on it — if you just listen, you’ll still get the gist, but if you also look up at the slide being presented you’ll learn even more,” she said.
In addition to consumer engagement, more visual devices could have an impact on voice commerce.
A report from Episerver found that around 40 percent of consumers own voice-activated artificial intelligence assistants. But about 60 percent of them do not currently use them to search for products and fewer actually purchase anything (see story).
Screens enable consumers to actually browse, more closely mimicking the ecommerce experience.
As consumers increasingly use virtual voice assistants such as the Amazon Echo or Google Home for shopping, a report indicates brand visibility and loyalty are at risk.
A survey from Digitas found that 85 percent of consumers have purchased the first product result offered by one of these devices, which in many cases is not from the brand they originally searched for. Millennials, who will make up half of the luxury market in a matter of years, show an even greater tendency towards settling for a device’s pick (see story).
Visual results enable brands to gain back some visibility.
“The new Echo Show 5 solves the biggest holdback for voice commerce because it’s the first affordable smart display — and a smart display lets consumers browse products they want to buy just by asking Alexa — an infinitely better experience than listening to Alexa read out product details,” Ms. Prescott said. “Every ecommerce site will need to develop an Alexa skill for the new Echo Show or they’ll miss the voice commerce wave.
“According to Evercore ISI Research, voice commerce is where mobile commerce was in 2011 in terms of the percent of U.S. consumers who purchase through the channel, so there is a huge opportunity right now for brands to be first movers,” she said.
Privacy protections
As part of the Echo Show 5 launch, Amazon is rolling out new privacy features for both that device and all of its speakers.
Owners often have concerns about adding a device with a camera to their homes.
As with earlier Echo Show devices, this latest launch has a button to turn off the camera and the microphone. The more compact release has added a built-in camera shutter so that the visual feed can be off while still enabling users to talk to Alexa.
Consumers are increasingly calling for control over their data, causing legislation and technology companies to adapt.
For instance, the European Union’s GDPR laws center on citizens’ rights to be forgotten, while Facebook is offering the option to clear their history (see story).
Following in this vein, Amazon is letting Echo owners delete everything that they said in a day from recordings. This command will eventually evolve to let users clear what they have just said to Alexa.
Amazon’s employees listen to Alexa conversations in an effort to improve the artificial intelligence.
As part of this privacy move, Amazon has created a new hub for its Echo devices that enable owners to understand what information is being collected through the devices.
Google is revamping its Shopping offerings. Image credit: Google
Google is the latest technology giant to invest in new features as it works to build a seamless ecommerce shopping experience across its platforms.
Hoping to capitalize on the hundreds of millions who already rely on Search, Images and YouTube throughout their shopping journeys, Google is redesigning its Shopping experience. In recent months, a number of social platforms have been introducing new ways for consumers to shop online and through mobile, similarly looking to bridge discovery and conversion.
Google Shopping
Search and YouTube have long been part of many online shoppers’ experiences, but Google has not always taken advantage of this reality.
Forty percent of consumers in a recent Criteo survey named YouTube as a go-to discovery channel (see story). Additionally, research from ecommerce platform Nosto found that 79 percent of all mobile shopping sessions come from unpaid sources, such as searches (see story).
The new Google Shopping homepage
Now, Google plans to incorporate the best features of its checkout and delivery service Express into the revamped Shopping platform.
Users will be able to purchase products online, in-store or directly through Google. A personalized Shopping homepage also allows consumers to search products, filter based on brands and features and read or view customer reviews.
Leveraging the power of its brand, Google will be offering customer support for select purchases – denoted with a blue Google shopping tag – in an attempt to gain consumer confidence.
Retailers and brands will benefit by having a centralized location for advertisements and transactions.
To increase discovery, Google will expand Showcase Shopping ads to appear on Images and eventually YouTube, reminiscent of shoppable ads from Instagram and Pinterest. According to Google, about 80 percent of traffic from Showcase Shopping ads to retailer sites are from new visitors who have just discovered the brands.
Google first piloted a tool that enabled consumers to purchase an item by clicking directly on an ad in 2015 (see story).
Smart Shopping campaigns will use artificial intelligence to help advertisers where ads will appear to better optimize conversions. Retailers can integrate Shopify or Magento for these initiatives.
Collaborative Shopping campaigns with retailers and brands will also be available.
In one trial application of this type of campaign, beauty group Estée Lauder Companies hoped to increase sales of their branded designer fragrances at one of its top retailer partners in the U.S. During the test, click share on Shopping ads for the brand’s fragrances at the partner retailer increased by 72 percent.
Estée Lauder is one luxury brand that has experimented with Google Shopping campaigns. Image credit: Estée Lauder
Google Shopping also plans to emphasize click-and-collect services. A recent study from the company showed that 45 percent of global shoppers actively buy online and pick up in-store.
The tech company is currently recruiting retailers into its click-and-collect beta program, which will indicate to shoppers which items are available for local pickup or speedy shipping to stores.
Ecommerce competition
Although Google was not originally established as an ecommerce platform, it has made moves into this space over the years.
This spring, Chinese commerce site JD.com launched a store on U.S.-based shopping site Google Express. Joybuy, the JD.com Google Express store, is one of the retailer’s ongoing missions in an attempt to compete with Alibaba and helps Google compete with Amazon (see story).
Google’s virtual assistant is also furthering its competition with Amazon’s Alexa though a fashion style feature. Google Assistant has launched its own virtual stylist tapping artificial intelligence to determine appropriate fashion advice (see story).
In addition to tangling with Amazon, Google is also facing increased competition from Instagram and Pinterest.
Instagram has been working to streamline the shopping journey for users, allowing them to purchase items from brands directly without leaving its application.
Several luxury brands are among the first to roll out Instagram Checkout, including Dior and Prada. After making itself nearly invaluable for brands with the help of an expansive audience and a suite of advertising tools, the Facebook-owned platform is looking to facilitate an end-to-end purchase journey from discovery to conversion (see story).
Pinterest is continuing to make itself useful to luxury marketers and retailers with more commerce offerings. New features such as full catalogs, personalized shopping recommendations and shopping search aim to bring Pinterest closer to becoming an interactive retail platform (see story).
Artificial intelligence and machine learning are increasingly important aids in marketing and retailing decision-making. Image credit: Pattern89
By R. J. Talyor
When you think of the word “luxury,” what immediately comes to mind? Fine jewelry? Upscale hotel rooms? Haute couture?
Up until now, luxury has been defined by a “more is more” mantra. But what exactly we want more of has changed. Now, the ultimate luxury is time.
Busy-ness has defined the 21st century and luxury brands are certainly facing this challenge head-on.
Fast fashion, counterfeits and mass luxury draw dollars away from luxury, while endless meetings, longer to-do lists and mobile devices dull our attention.
Meanwhile well-funded competitors emerge daily to compete with legacy luxury customers. With more competition and less time, how can luxury brands learn to differentiate? That is where artificial intelligence (AI) can help.
According to Adobe, 47 percent of digitally mature brands have an AI strategy. But what about the other 53 percent? How are luxury brands using AI to build the next chapter of their legacy?
AI is a transformative part of the key tool in a luxury brand’s toolbox for three key reasons:
AI automates time-consuming repetitive tasks
The best way to save time with AI is to look for the places where teams are spending hours on manual calculation.
Whether it is in pivot tables, crunching numbers in Facebook Ads Manager or combining multiple spreadsheets into a single source of truth, AI can help. By finding the biggest time suck first, the impact can be felt faster.
Using AI lets humans stick to what they are good at
While AI tries to be creative, only humans can create the next Colin Kapernick Nike campaign or fashion week sensation.
By delegating things such as number crunching, ad budget optimization or even email subject line testing, humans can stay busy doing what they do best: creating the next big idea.
Sometimes AI really does know best
There are some things robots are just better at doing. A really big one is looking at data and making cold, unemotional decisions.
Robots can find ad sets that underperform, help you optimize your ad spend and tell you which headline will perform best out of the 10 options you came up with. But AI will not do the best job of coming up with the headline in the first place.
Notice a theme emerging here? AI has some serious strengths. Strengths that make life better for humans. So why are so many luxury brands hesitant to adopt AI?
The answer is short, but not simple: fear.
Many luxury brands are afraid of a brand defined by machines. Others are unwilling to let go of busy-ness.
These fears keep luxury brands locked in doing the same thing we were doing last week or last month because it is safe and predictable.
But, in the world of luxury retail, when was the last time you said “that safe, predictable brand is killing it?”
ARE YOU going to be the luxury marketer who masters artificial intelligence to reclaim the only true luxury: time?
R.J. Talyor is founder/CEO of Pattern89
R.J. Talyor is founder/CEO of Pattern89, Indianapolis, IN. Reach him at rj@pattern89.com.
Travelers are more interested in hotel apps than in-room tech. Image credit: Criton
Most of today’s tech-savvy travelers are inclined to use their own smart devices on trips, underscoring that hospitality brands are better off investing in mobile applications rather than in-room devices.
More than 70 percent of travelers are interested in using mobile applications from their favorite hotel brands, according to a new survey from hospitality tech firm Criton. Travelers are also interested in hotel technology that streamlines loyalty programs and the check-in process.
“Today’s traveler is time poor and wants to make the most of every trip, pre, during and post stay,” said Julie Grieve, founder and CEO at Criton, Edinburgh. “Providing guests with the technology they want with all the information they need on their own device not only fulfills their needs, but it also creates a closed marketing group where operators can secure direct and repeat bookings.”
Criton’s findings are based on an online survey of more than 3,600 travelers, including more than 1,300 business travelers.
App wish lists
Although more than half of respondents have at least one hotel app installed on their smartphones, only 36 percent use one on a regular basis.
In contrast, airline and accommodation apps, such as Airbnb, are regularly used by a respective 47 and 62 percent of travelers.
Hotel apps can offer better customer service experiences for guests. Image credit: Four Seasons
More than three-quarters of travelers would use a hotel app if it was offered by their favorite brand, presenting hospitality groups with a valuable opportunity.
By considering consumer feedback about what features should be incorporated in hotel apps, hospitality companies can also provide better customer service experiences.
For instance, nearly 70 percent of respondents believe it is acceptable to wait more than five minutes to check-in at the reception desk. However, 58 percent of travelers are at least likely to use mobile check-in and digital door keys, thereby reducing concerns about wait times.
More than half of respondents, 53 percent, also believe that loyalty programs should be prioritized through hotel technology. Hotel apps can make it easier for travelers to book future stays and accumulate rewards.
Earlier this year, Marriott International gave its recently unified loyalty programs a revamped name. As part of the Bonvoy rebrand, the SPG and Ritz-Carlton Rewards mobile applications are being discontinued in favor of a singular mobile experience (see story).
Travelers were less interested in having electronic devices in their rooms or suites.
Marriott launched a new app for its rebranded loyalty program. Image credit: Marriott
Less than 20 percent of respondents seek an in-room tablet and only 10 percent would be interested in an in-room smartphone. This disconnect may be partially attributed to travelers’ higher familiarity and comfort levels with their personal devices.
By focusing on mobile technology instead in-room smart devices, hospitality brands can also cut installation costs.
“Today’s traveler has their own smartphone, tablet and often laptop, so it is surprising that some hoteliers are still investing hundreds of thousands on in-room technology that the guest isn’t familiar with and has to adapt to,” Ms. Grieve said.
Tech opportunities
Luxury hotel groups are often at the forefront of experimenting with mobile technology to better engage with guests.
Hospitality brand Four Seasons Hotels and Resorts expanded its communication with customers with a rollout for its messaging service.
Four Seasons Chat is now available on WhatsApp, making the chat service available on nine different messaging platforms. Launched just over a year ago, Four Seasons has stated that the chat service has exchanged more than 3.5 million messages (see story).
Leveraging mobile technology is also crucial for hotel groups that want to attract Chinese tourists, especially millennials.
According to a report from Resonance Consultancy, 80 percent of millennial Chinese travelers engage with official WeChat accounts of destinations they visit on an occasional or daily basis. Mobile payment platforms, including WeChat Pay and Alipay, are also commonplace in China and are becoming more expected by tourists going abroad (see story).
“Luxury brands want to deliver the very best experience for their guests,” Criton’s Ms. Grieve said. “The most important advantage that technology delivers is guest choice and that’s at the top of every luxury brand’s wish list.”
