Category mobile payments

Six More Things That Will Influence Business in 2016

Photo credit: Vestman on Flickr.From the buzz on the Internet, it would be easy to guess that 2016 will be the year of mobile or the year of the Internet of Things.

I’d argue that it is going to be the decade of mobile or the decade of the Internet of Things. I’d even venture a guess that it might be the millennium of mobile or the millennium of the Internet of Things. But, who knows what cool stuff will be invented a few decades from now.

With this in mind, I am not going to say that this is the year of anything.

However, I do think that there are several things that are worthy of watching in 2016.

The List of Things That Will Influence Business

I’ve been updating this list for a few years.

Most of the items on my past lists are still worthy of keeping an eye on.

Here is a list of some of the things I have been watching in the last few years with the year they were added to the list:

1) Rapid Advancements in Technology [2013]

2) Mobile (User Experience and Marketing) [2013]

3) Mobile Payments [2013]

4) Mobile-Influenced Merchandising [2013]

5) Privacy Issues [2013]

6) The Evolution of Marketing and Public Relations [2013]

7) Emerging Markets [2013]

8) The Internet of Things [2014]

9) The Evolution of Retail [2014]

10) Omni-Channel Retail [2014]

11) A Global Marketplace [2014]

12) 3D Printing [2014]

13) Cyberattacks [2014]

14) Ethics [2014]

Additional Things That I Will Be Watching in 2016

As I mentioned in past years, this isn’t a comprehensive list. Rather, these are some of the things that I feel will have the largest impact on business in the upcoming years.

Here are the items that I have added to the list this year:

15) Online Video

This one should have been on my list when I first started it. In my defense, I did write about the importance of online video marketing in 2014.

Online video is only going to become more relevant as Internet speeds increase and the costs to upload and consume video content decreases globally.

Furthermore, not only are people consuming a lot of online video content because they found it on social networks, videos can also show up in search engine results pages (SERPs).

16) RFID, NFC, and Beacons

These can be classified as a subset of several of the items already on my list, including mobile (user experience and marketing), mobile payments, omni-channel retailing, and the Internet of Things.

Any business looking to increase efficiencies or leverage some of the cool new ways to interact with consumers on their mobile devices needs to be looking into these technologies.

17) Augmented Reality (AR) and Virtual Reality (VR)

I am reluctantly putting these on my list, mostly because I haven’t had any firsthand experience with them that has blown my mind. However, enough people are talking about these technologies to add them. I need to learn more about the ways that they can be used before I can write anything further. Stay tuned.

18) SEO for the Internet of Things

Not many experts are talking about it yet. But, I think that they should.

The Internet of Things is going to influence every aspect of our life, including using sensors to give us the information needed to make decisions that will simplify our life and make it more enjoyable.

As time goes on, I predict that Google and some of the other search engines will want to use this data to include it in their SERPs.

Google has already started to do something like this by showing when some businesses are the busiest in its search results. From articles that I have read, Google is obtaining this information by collecting anonymous information from the users of the Google Maps app.

I think it is inevitable that Google will start to expand and include data from other sources. However, this is going to require some sort of standardization of input data before Google could use it to provide information in its SERPs. This is what I am currently calling SEO for the Internet of Things.

19) Experiential Marketing

I have heard a lot of experts using the word “experiential” a lot.

According to Wikipedia.com, “Engagement marketing, sometimes called “experiential marketing,” “event marketing,” “on-ground marketing,” “live marketing,” or “participation marketing,” is a marketing strategy that directly engages consumers and invites and encourages consumers to participate in the evolution of a brand. Rather than looking at consumers as passive receivers of messages, engagement marketers believe that consumers should be actively involved in the production and co-creation of marketing programs, developing a relationship with the brand.”

This is an area that I plan to learn a lot more about in 2016.

As an added bonus, if documented correctly, an experiential marketing campaign can be shared on social media sites to make the investment more attractive for business leaders.

20) Wearables

By now, everyone has heard about fitness trackers helping people get healthier.

And, although Google Glass has failed so far, there is talk that they are trying to bring it back in a form that will be accepted by consumers.

If wearables do continue to take off, there are countless ways that businesses can benefit, including finding ways to use the data to better consumers’ lives. As always, it would require consumers to opt-in. But, when they do, a lot of cool things can be done.

Bonus: Implantables

I’m not ready to add this to my list, because I think that we are at least a decade from mass adoption of implantable technology for nonmedical purposes. However, like wearables, implantable technology can be used to make consumers’ lives better.

Final Thoughts

These are some of the things that I plan to continue to watch in 2016 and beyond.

And, as I have mentioned in the past, a new technology that we don’t know about could change everything.

So, you have my list. What’s on your watch list for 2016?

Photo credit: Vestman on Flickr.

Chad Thiele

Marketing analyst and strategist, content curator, applied sociologist, proud UW-Madison alumnus, and an Auburn-trained mobile marketer. My goal is to help businesses identify trends that will help them achieve their marketing objectives and business goals. I'm currently looking for my next career challenge. Please feel free to contact me anytime at: chadjthiele@gmail.com.

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Why Proximity Mobile Payments Are Good for Business (Part One)

For a few years now there have been experts recommending that businesses invest in the equipment that allows customers to use their smartphones to make point-of-sale payments for goods and services at restaurants and brick-and-mortar retail stores.

However, given the many potential roadblocks, it is not surprising that many businesses took a wait-and-see approach before making any investments in this type of technology.

That was, until last month.

When Apple announced that the new iPhone 6 would include near-field communication (NFC) and Apple Pay, in my opinion, one of the biggest obstacles to proximity mobile payment adoption was eliminated.

This doesn’t mean that it is a given that proximity mobile payments will be embraced by a majority of consumers right away. But, there are several reasons why now might be the time to make the investment, particularly if the business is located in an urban or suburban area. These reasons include:

The number of smartphones with NFC is increasing.

According to comScore, 174 million people in the U.S. owned smartphones (72 percent mobile market penetration) during the three months ending in August 2014.

What is of particular interest is that at the end of August, 42 percent of the U.S. smartphone subscribers used a device that was made by Apple. That means that at the end of August at least 42 percent of smartphone users in the U.S. couldn’t make NFC enabled proximity mobile payments, even if they wanted to.

Last month’s announcement doesn’t mean that all 42 percent of Apple smartphone users will now have access to NFC technology. It is going to take some time for customers to make the transition to the iPhone 6 or iPhone 6 Plus. However, according to Forbes.com, Apple has sold over 21 million new phones in the first two weeks, 10 million of those in the first three days alone. And, with the holiday season just around the corner, that number is bound to increase sharply by the end of the year.

When combined with the fact that many of the other smartphone manufacturers offer some NFC-enabled smartphones, the percentage of consumers who will be able to take advantage of proximity mobile payment options is much higher today than it was not too long ago, and that percentage will only continue to increase.

The number of mobile wallet options is increasing.

There are several Android mobile wallets (e.g., Softcard, Google Wallet, etc.) out there. Now that Apple has introduced Apple Pay, consumers will have more opportunities than ever to take advantage of proximity mobile payments when a restaurant or retailer makes the option available to them.

Major brands are working together to increase awareness.

As usual, Apple has done a great job introducing Apple Pay to consumers.

But, they are not the only brand trying to create awareness of proximity mobile payments.

In a recent article on eMarketer.com, Matthew de Ganon, Senior Vice President, Product and Commerce at Softcard, reports that Softcard currently has about 20,000 activations per day. This success is due in part to the fact that Softcard was created under a partnership with AT&T, Verizon Wireless and T-Mobile.

“We’ve had great success with consumer education through our partner stores, the carriers: Verizon, AT&T and T-Mobile,” states Mr. de Ganon. “They educate consumers on the mobile wallet, what it means and how they can tap to pay.”

“A majority of consumers assume at some point they’re going to have a mobile wallet that will allow them to pay for goods and services, but only a very small percentage actually knew that it was already here,” Mr. de Ganon continues.

More consumers are moving to 4G smartphones.

Having access to high speed wireless data is very important to the adoption of proximity mobile payments.

If it takes too long for a transaction to process, there is a good chance that the customer will abandon the transaction or choose an alternative payment option. If this happens with frequency, the consumer will most likely lose interest in using proximity mobile payments altogether. That is why having access to 4G is going to be crucial to the success of this emerging technology.

The good news is that according to Ovum research, 4G connections in North America are quickly rising.

Citing the Ovum research data, an article on cellular-news.com reports, “With 127 million LTE connections, of which 15 million LTE connections were added in the second quarter alone, North America leads the world’s regions in the number of connections, market share and penetration of LTE, with a 33 percent market share of all 391 million mobile connections.”

Again, with the holiday season right around the corner, this number should increase even higher by the end of the year.

Final Thoughts

As shown, there are many factors that are coming together to make proximity mobile payments a viable and smart business decision.

Just the fact that Apple has entered the market is a great signal that now is the time to look into this technology. As Lance Whitney points out in a February 2014 article on CNET.com about NFC-enabled cell phones, “…Apple typically likes all of the pieces to be in place before it dives into a burgeoning technology.”

Still not convinced? In a future post I will explore how offering proximity mobile payments can benefit your business beyond the obvious convenience of offering an additional payment option.

Photo credit: Omar Jordan Fawahl on Flickr on Flickr.

Chad Thiele

Marketing analyst and strategist, content curator, applied sociologist, proud UW-Madison alumnus, and an Auburn-trained mobile marketer. My goal is to help businesses identify trends that will help them achieve their marketing objectives and business goals. I'm currently looking for my next career challenge. Please feel free to contact me anytime at: chadjthiele@gmail.com.

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