Category : Opinion

Mobile Opinion

Driving Growth by Designing Experience-Based Subscription Models

There has been a surge in preferences for temporary ownership over permanent ones. People want the benefits of owning without having to buy. Uber, Lyft, Curb and other on-demand ride services are cited to have a drastic impact on automobile sales due to the ease of use without having to buy. There’s a drastic shift in the customer mindset that has urged companies to manage a direct, responsive, multi-channel relationship with their users, giving rise to a complex subscription-based economy.

The intent here is to break down these complex structures into user-friendly designs, which can be easily comprehensible.

Since businesses capture data of their current users, it helps to create personalized offers through target marketing and build custom communication and pricing models. This increases the LTV (lifetime value) of a user or consumer.

A subscription model provides predictable and recurring revenue for a long-term engaged user base. Click to Tweet

The business can concentrate on the retention of users overspending on acquiring new ones. Similarly, subscription strategies allow for price diversification, accommodating a broader, diversified income group of users over a fixed ‘one-price-for-all’ model.

Subscription plans are also psychologically attractive to users as they don’t have to make long-term commitments nor do they have to pay a large amount at a single go. It’s thereby no surprise that a lot of industry giants as well as mid-size companies are using subscription models as the basis for their business.

These strategies can be broadly categorized into 3 types:

1. Traditional Models

The simple relationship of regular exchange of certain goods or services at a fixed price for a certain period that creates a long-term understanding between brands and it’s users. These can be broadly divided into:

a. Unlimited use: Set price for unlimited use of product or service for a fixed amount of time.

b. Pay as you go: Pay for usage as and when needed at a fixed price per-use.

c. Premium: Additional/Upgraded services or features for an additional fee.

d. Pay per unit/user: Based on the number of people using product or service.

Examples of traditional subscription models

Examples of traditional subscription models

2. eCommerce

A newer subscription model type based on the supply of fast-moving consumer supplies that are needed regularly to reach repeat users. These can be divided into :

a. Curation subscription: Surprise the user with a curated selection of different products based on their preferences.

b. Refill subscription: Replenish the same or similar items (usually commodities).

E-Commerce

Examples of e-commerce subscription models

3. Innovative

Novel subscription models that combine one or more pricing strategies, that offer products and services catering to multiple needs. These can be broadly categorized into:

a. Buy-back subscription: Exchange the used subscribed product for virtual money or other products.

b. Hybrid subscription: Merging two different offerings symbiotically for wholesome user experience.

c. Consumer durable subscription: Use and switch multiple durables (that are usually long term purchases) for a set price and a short term period.

Examples of innovative subscription models

Examples of innovative subscription models

The adoption of these models has helped businesses’ stand apart from the rest. But the question remains, how do we create a holistic blend of pricing strategies, coupled with the best UX practices to give the users exactly what they need.

Let’s explore some of the strategies that can help you build a model conducive for your business as well as the user’s wallet

1. Feature-Add Value

Increase pricing with added features exclusively.

Eg. InVision: Instead of just showing incremental features with pricing, Invision shows the user various kinds of features they can offer and what they are missing out without these. It highlights the most popular package based on user behavior to buy/upgrade prompts the user towards a particular purchase.

Feature-Add Value

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2. Interactive Pricing

A customizable pricing model calculating real-time numbers for B2B services and products.

Eg. SketchApp: Instead of having the users contact the support team for a definite number of users or a large enterprise pricing, Sketchapp allows the user to customize the volume with a slider, keeping the pricing interactive and engaging with real-time costs.

Interactive Pricing

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3. Paywall

Limited access to content to influence subscription.

Eg. Medium: Medium lets users experience featured content, by allowing 3 free stories to read. This helps the user to gauge the quality of content available on the platform that has a greater probability of influencing long-term subscriptions.

Paywall

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4. Freemium

Unlimited access to the platform with basic features, to get the user glued to the product before adding a fee component with value-added features.

Eg. Spotify: Spotify allows the users to access unlimited music (with ads), playlists and podcasts, but only access the shuffle mode on mobile. Similarly, it allows on-demand content on its web portal and not on mobile. This way the user gets a taste of the content and adopts the platform faster, moving from being a free subscriber to a paid subscriber.

Freemium

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5. Sell a story

Elaborate the benefits to a user to add value instead of highlighting just the features. This also projects the tone of voice and persona of the brand.

Eg. MailChimp: In the below example, MailChimp has put down the features, in an incremental form, by listing down its features, not merely as bullet points, but as a story to tap into the reptilian brain of the user. This creates a personal association with the brand and builds a connection.

Sell a story

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6. Fair billing

Bill only for the number of people using the product or the number of units used. If it is prepaid, return in the form of credits or discounts in the next billing cycle. This helps in building long-standing relationships.

Eg. Slack: Slack follows a ‘fair billing’ policy, where it provides its subscription fees ‘per active user’ per month. If a user becomes inactive during this period, Slack adjusts the payments for the inactive members in the next billing cycle. This assures the users that the brand cares for them, creating a loyal base of users.

Fair billing

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The above strategies can help you build a model conducive for your business as well as the users’ wallets. Let’s understand the parameters on which these strategies have been built that will help you create a pricing strategy for your own business.

a. Strategic pricing for business objectives: A well planned strategic pricing is the base of a good subscription model. Tiered pricing models that suit all types of users helps to accomplish business goals to scale business, acquire and retain customers as well as increase the lifetime value of the users.

b. Multi-Channel user acquisition: Create a seamless experience for the users to subscribe via multiple channels, viz., mobile, desktop, tablets or via customer support. This helps in adapting diverse pricing strategies while staying flexible to user needs.

c. Monetize long-term relationships: The formula for growth in this subscription economy is monetizing long term relationships rather than just shipping products (Click to Tweet) — that can help you in creating better variations of your products. In turn, you spend less money on marketing and on-boarding.

d. Adapt pricing to user behavior and needs: Understanding the user psychology that comes into play while making a purchase will help increase the conversion rates in subscriptions.(Click to Tweet) For eg., The left digit of a price gives the perceived value, making $2.99 more desirable than $3.00.

f. Aim for consistent, positive interactions with users: Strive to create a long-lasting user relationship even after the transaction has been made. Timely communication with users and personalized recommendations encourage the users to stay subscribed to a particular offering over another.

g. Give user total control & transparency in payments: Strive to make the billing easy and accurate for different pricing models. Keep the invoice easy to understand and informative to develop transparent and honest relationships between users and the brand.

The formula for growth in this subscription economy is monetizing long term relationships and offering value above all;(Click to Tweet) by creating different versions of your products that cover a wider audience that includes different customer personas.

It is imperative for companies to create a symbiotic relationship between the brand and users, by understanding their basic needs and expectations. It is now essential to understand and tap into the user’s emotions and craft experiences, which they can connect with and value. By using a holistic blend of effective information, usability best practices, and design guidelines, a brand can ascertain the purchase decision and retain user loyalty for an extended period.

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Mobile Opinion

How technology is raising the bar of customer experiences in luxury retail (Updated)

In November 2017, Leonardo da Vinci’s last painting ‘Salvator Mundi’ was sold at an unbelievable price of $450 million, making it the most expensive painting in the world. Needless to say, not just the art community and the connoisseurs of art but the entire world was left astounded by the price of this sale.

So, why would someone pay such a huge fortune for a painting?

The answer? They are not buying the painting, they are making a statement. According to psychoanalysis done on the purchase, The individual who bought the painting is someone for whom the value of owning the world’s most expensive artwork outweighs literally everything else.

The above statement holds true for most luxury purchases made. We don’t pay for the product; we pay for the experience and the exclusivity and the aspiration associated with it. On the other hand, most days to day purchases are either need-based or impulsive, where price plays an important role.

For the same reason, the rules of customer engagement for the luxury retail sector are also different than the regular retail sector. For instance:

  1. Creating a perfect customer experience is the most critical factor while engaging with customers.
  2. Luxury brands seek exclusivity; they do not try to be everything to everyone.
  3. Brand communication across touch-points focuses on creating an aura, a mystique and appeal to the emotional or irrational brain.

Until a few years ago, for luxury brands, conventional wisdom used to be creating the best-in-class customer experiences in the store and not much importance was attributed to the e-commerce channels, online interactions or multi-branded retail websites. However, with the changing times, the way shoppers buy luxury products has also altered – digital experiences play a critical role. While the reason behind purchasing luxury items remain the same, the modes of purchase are changing. A 2019 Deloitte report showed that HENRYs (High-Earners-Not–Rich-Yet), one of the most preferred and ideal target audience for luxury brands, paid online with mobile devices or with debit/credit cards to earn reward points. Another report by luxe states that the overall global luxury market sales will increase from 313 billion USD (in 2016) to 471 USD in 2025. Of this total, the sales made via online channels will increase from 25 billion USD (in 2016) to 91 billion USD.

The trend to note here is that while the global sales value is increasing by about 65%, the online sales value is increasing by over 300%. Interestingly, the same report showed that at least 40% of all luxury purchases were influenced by consumers’ online experience.

In a few years, Millennials and Gen Z will account for almost 45% of all luxury purchases made. Further, today’s luxury buyers are more tech-savvy than ever. According to this ICSC report:

  1. Millennials and Gen Z shoppers will account for nearly 55% of the luxury retail market by 2025, becoming the primary target audience.
  2. The mindset of the Millenials and Gen Z audience is tech-oriented, which is why luxury brands are making huge digital investments or partnering with other e-commerce companies for online distribution.
  3. Today’s luxury product buyers are not just concerned with price and quality, but also look for premium and personalized experiences.

Luxury brands have taken note of this shift well in time and are using technology in their favor to interact with today’s consumers at the same wavelength. Here’s how luxury brands across the globe are playing the technology game right and things that brands across industries can learn from:

Changing with the times – creating compelling digital experiences

The baby-boomer audience is brand loyal and values traditional buying, but they have also adopted the online spending patterns of the younger generations. The millennials are anyway the digital-natives.

The common thread between both these audiences is the rise in the online time spent and the shift towards online buying. With users spending a huge amount of their digital time on smartphones more so on apps, mobile has become a critical aspect of engaging with the consumers. Luxury retail segments are leveraging this love of consumers for their smartphones and the accessibility of apps to connect with them and create experiences that matter for their customers. Here are some examples:

Using apps for customer engagement

Gucci

Most luxury brands use their apps with a focus on brand awareness and keeping in touch with their customers. Nearly all of them have features like a catalog with new collections, videos or photos from fashion shows, fashion tips and trends, etc. However, very few get creative and create experiences that are sticky, interactive and delightful; and Gucci, the renowned Italian fashion brand, did just that.

In 2017, during the holiday season, Gucci added new features to its mobile app to make the most of the spending-heavy season.

The app offered a holiday gift guide, featuring a catalog of products either selected or designed for the season. The virtual guide was embellished with designs and artwork by Spanish artist Ignasi Monreal, making up an interactive “Book of Gifts” with shoppable GIFs and a holiday countdown calendar.

Other new features in the app included a virtual reality video, which had a nine-day countdown clock, Gucci-branded stickers, and emojis that could be placed over photos taken in the app. A “Cabinet of Curiosities” feature, which was unlocked when shoppers at Gucci boutiques scan a mobile sticker in window displays. Once the users scan the stickers, a virtual world with spell bounding designs featuring the 2017 gifts selection of ready-to-wear apparel and accessories by Alessandro Michele, opened up.

Gucci

 

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Chatbots for superior service

Luxury brands do not just have to create great brand experiences. They also have to make sure that their customers feel special and get exclusive attention from the brands. In such a scenario, Chatbots helps brands to deliver superior and personalized customer service as well. An example of a brand that leveraged the Chatbot technology to connect with their customers is:

Tommy Hilfiger

Tommy Hilfiger

 

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The brand introduced its chatbot during New York Fashion Week, with the aim to drive traffic to their website and create personalized customer experience around their new collection. The bot lets the user steer the conversation in a different direction, based on what the user wants by giving them an option to get fashion styling advice, browse the full collection, or take a look behind the scenes of the latest fashion show starring Gigi Hadid.

Using the power of social media to build the aspirational value

According to Oberlo, approximately 42% (approximately 3.2 billion social media users in the world) of the world’s population is on some form of social media, and spend an average of 2 hours and 22 minutes on one or more social media platforms every day. Facebook leads the race in 2019 with approximately 2.32 billion active users every month. 90% of all millennials are active on some form of social media, and 77.5% of all Gen X users are active on some form of social media, both being the main audience for luxury brands.

These staggering statistics have shifted the focus for luxury retail brands towards social media marketing. The same Oberlo report states that 54 % of people who browse social media platforms use it to research products, and consequently, 73% of marketers who implemented social media marketing said their efforts were effective.

Jean-Paul Gaultier

The French luxury fashion brand used the power of Twitter hashtags to create enough noise about the brand, without posting a single tweet. The brand created a Glory wall on its website which featured users’ names when they tweeted about the JPG collection tagging them. If more users mentioned the brand the higher up their names would appear on the wall. The handle with the most tweets at the end of a designated period earned a bottle of their favorite perfume.

Jean-Paul Gaultier

 

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Tesla

Tesla went beyond getting popular influencers for their campaign; they asked their existing customers to share their ‘Tesla stories’ and used these stories to build a connection with their consumers. The brand’s website has a dedicated section for a customer testimonial. By doing this Tesla not just strengthened the brand loyalty of the existing customer base; it also raised the aspirational value of the brand.

Customer Stories - Telsa

 

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Using technology to augment offline experiences

One of the most critical aspects of luxury retail is the overall shopping experience that the consumer gets while buying a luxury product and it is more than just ease of transaction. It is about creating an unforgettable luxurious experience. Most luxury brands are known for providing the best-in-class ambiance inside their store for this very reason.

According to a Forbes report, the overall global market for VR and AR in specifically the retail sector will reach 1.6 billion US dollars by 2025. Luxury retail brands have a lot to benefit from implementing AR and VR into their customer experience strategy.

Here are some examples of the brands which are using technologies like Augmented Reality, Virtual Reality, mobile apps, etc. to create interesting in-store experiences.

Jaguar Land Rover

To enhance the luxury car experience, Jaguar Land Rover partnered with IBM to launch a new in-store virtual reality screen. The store enabled customers to experience the Jaguar or Land Rover model using a sensory-based technology. The consumer could control the environment around the experience through an iPad and Microsoft Kinect sensory technology and can choose the model, color, and features of a car. The experience also allowed consumers to get into the car to check out interior features with a 360-degree view, and to make real-time changes.

Dior

Christian Dior is blending technology and fashion design with the introduction of virtual reality headsets in a number of its boutiques, creating an immersive 3D experience with its collection and runway atmosphere. By rolling out ‘Dior Eyes’ in a number of its stores, Dior maintains its relevance and provides an elevated in-store experience. The headset is equipped with high-definition image resolution and integrated holophonic audio, creating a 3D immersion into the backstage world at a fashion show, including the sensation of 360° vision, letting visitors move about in the virtual universe.

Creating a sensory appeal

For the purchase of luxury brands, desire plays a key role. So luxury brands should aim to create that desire in their digital experiences too – be it offline or online. The regular display of merchandise which would be par for the course in an e-commerce app or a regular retail store will not apply here. One of the ways that luxury brands use to create desire and emotional connect is by appealing to the sensory stimulations of the shoppers, both for in-store and digital experiences.

When it comes to digital experiences, technologies like AR/VR see a lot of usages to appeal to the shoppers’ sense since they help brands to alter a consumer’s ambiance digitally. Some brands which are using sensory branding using digital technologies are:

Burberry

Burberry is one of the pioneers when it comes to using technology whether it is in-store or online. It has also done exemplary work when it comes to using these technologies to create sensory experiences in-store.

Burberry’s in its flagship store in London gave shoppers an experience of a theatre, with 500 speakers and 100 screens fitted throughout, which show original content created in-house at Burberry. In this store, customers can’t help but engage with all their senses with the brand.

The physical store aimed to replicate the user-friendly experience of the website and hence, they were not just engaged but were also effortlessly guided through the store through their intuitive navigation.

Prada x Prada the 360-degree VR experience platform launched by the brand takes consumers on a sensorial journey and an exploration of the world of Prada fragrances.

The VR-based app takes shoppers to an interactive digital journey. Through a transitional series of scenes and experiences – each one offering glimpses into the narrative and aesthetic codes of La Femme Prada and L’Homme Prada. Users are immersed in a three-dimensional space from which multiple experiences can be activated. The ensuing succession of textures, scents, sounds, and interactions evokes the multi-faceted nature of the fragrances and stimulates multiple senses of the user.

Luxury marketing has a code of its own. A key aspect of luxury brands is to create desire. It is anchored at tapping into the emotional, even irrational brand. We all have our emotional brain and rational brain playing a role in decision making. But almost always it is the emotional brain that leads our purchase decisions. Prof Baba Shiv of Stanford University said that:

‘’The rational brain is only good at rationalizing what the emotional brain has already decided.’’

We see this all the time with the purchase of fashion brands. In the case of luxury brand retailing, such irrational behavior is taken to an extreme where desire plays a key role.

Over the years Robosoft has partnered with leading luxury retailers including a leading brand of super-premium writing instruments and a German automobile manufacturer, to create state of the art digital experiences.

While working for these brands we have learned that luxury brands should aim to create the desire in their digital experiences too – be it a website, an iPad app or a mobile app. Some of the key elements of creating desire are mystique, sensory visual appeal, and the design approach. The design of such experiences should be simple wherein the content is always the main focus, celebrating each product.

Dean Gonsalves, our Vice President, Design, says:

‘’ Luxury brands should be mindful of quality vs quantity, control that urges to add everything in the guise of Product Visibility. There is indeed a stark difference between abundance and unnecessary choices.’’

Technology opens up the door of the luxury brands to create these elements for their audiences in an omni-channel environment.

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Featured Mobile Opinion

Digital Transformation in Healthcare – The Evolving Landscape (Updated)

“It is not the strongest of the species that survives, nor the most intelligent. It is the one that is the most adaptable to change.” – Charles Darwin

In today’s world, the above quote stands true for businesses as well. Digitization is changing the landscape of every industry, and industries that are ready to adapt, and adapt fast will be the ones who will thrive and flourish. Just like many other industries, the healthcare landscape is also experiencing tremendous transformations owing to technology advancements.

The healthcare industry continuously works towards making patient care more efficient and cost-effective. Digitization stands to benefit the industry not just in optimization at operational levels, but across the entire value chain. From hospital management, patient care, managing reports to virtually assisting patients, the positive implications of using technology are innumerable.

As patients become more technology-savvy, digital technologies can reinvent the entire patient lifecycle, enabling a more personalized, timely and cost-effective treatment journey.

Evolution of Technology in Healthcare

Evolution of Technology in Healthcare

Digital Transformation in Healthcare

Smart-hospitals, surgical robots, wearable-tech assisted operations, telemedicine, are just some examples of how technology is revolutionizing the healthcare landscape.

Here is a look at how the healthcare industry is using technologies like AI, mobile apps, IoT, wearables, etc. to improve patient care and reduce costs across the healthcare value chain.

Technology-Enabled care:

TEC or technology-enabled care refers to the fields of telecare, telehealth, telemedicine, mHealth, digital health, eHealth, etc. TEC brings health technology, digital media, and mobile together. It has a profound impact on providing an integrated solution for patient monitoring and care in the health, wellness, and social care sectors.

Below are some examples of how TEC can make healthcare more efficient and cost-effective.

Reducing the patient-care and monitoring costs for patients with long-term ailments:

According to a report by ageuk.org.uk (which referenced a 2017 Horsfield report), approximately 4 million adults (40% of all people above the age of 65) in the UK have some form of a long-term illness. When considering a global scale, this number increases drastically. Patients with long-term conditions make regular hospital visits, require a lot of medication and continuous care. Digitization solutions like patient tracking and path monitoring can help improve the quality of hospital visits (which for a patient with a long-term illness is often), online consultancy and remote condition monitoring can help doctors diagnose issues faster and proactively, and online pharmacies can help get medicines to patients faster and more conveniently.’

Digital and mHealth can improve enterprise processes and improve outcomes:

Mobile Health, or mHealth, is providing medicinal and healthcare services over a mobile device. The healthcare industry is actually one of the top 3 domains to promote and accelerate the growth of mobile devices. According to a report by Statista, the global mHealth market size in 2016 was 21.2 billion US dollars. The projection for the year 2025 is 332.7 billion US dollars, which is an increase of over 15 times!

Digital and mHealth can improve enterprise processes and improve outcomes

 

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The rise in apps provided by the healthcare firms and the high engagement rate of apps have contributed to the prolific growth of this market. Mobile devices have become an integral part of our lives. Both Patients and Doctors can leverage the benefits of going mobile. While it helps patients self-manage and monitors their health, doctors can explore real-time information. Remote monitoring of patients’ health status is another benefit that home telehealth can provide. According to a study by mobius.md, in 2019 there are around 318,000 mHealth apps in app stores. This number almost doubled since 2015. The report further states that over 60% of people have downloaded at least one mHealth app.

4 Dimension of Effective mHealth

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TEC is also helping healthcare providers with information and assistance they require through technologies like medical reference apps.

Athenahealth’s Epocrates is one such app

Epocrates is the point of care medical application by AthenaHealth. More than 1 million health care providers trust Epocrates in the moments of care. Epocrates was released on stage by Steve Jobs when the App store was released.

Epocrates can assist doctors and physicians in:

  1. Reviewing drug prescribing and safety information for thousands of brand, generic, and OTC drugs.
  2. Checking for potentially harmful drug-drug interactions among up to 30 drugs at a time.
  3. Identifying pills by imprint code and physical characteristics.
  4. Access timely medical news and research information.
  5. Find providers for consults and referrals in the Provider Directory.
  6. Select national and regional healthcare insurance formularies for drug coverage information.
  7. Perform dozens of calculations, such as BMI and GFR.

Technology is empowering patients

Technology is also helping patients in getting more information on ailments, symptoms, treatment procedures, etc. helping them to be informed, thus reducing anxiety and apprehension during the treatment cycles.

PatientTalk.com is one such web portal, which leverages the power of video to engage with patients. It is a health care website for patients diagnosed with life-altering medical conditions, both acute and chronic. This network-quality video site features actual patients and health care professionals sharing vital information about the practical, physical and emotional issues that patients face before, during and after initial diagnosis.

Technology is empowering patients

WebMD is another popular online portal for medical information and advice. According to ExpandedRamblings, WebMD received 75 million user visits a month in 2018. Of these, 49 million visits came in through mobile phones.

How Apple is front footing the digital revolution in healthcare

Apple’s new Health app is helping people prone to illnesses stay healthier. The Health app has the ability to incorporate data from thousands of other medical and health-related 3rd party apps, which could be for nutrition, medicine or fitness. The app syncs across devices – iPhone, Apple Watch, iPad, etc, and makes medical information immediately available. Features like heart rate monitoring, medication reminders, etc. help patients say on top of their illness.

Wearables in healthcare

 

Wearable tech is a part of the larger wave of technology called IoT, and it is growing at a fast pace. The Apple watch mentioned earlier is an example of wearable tech. According to research done by 3dinsider, over 178 million wearable devices were purchased in 2018. The projected number for 2019 is around 255 million units, which corresponds to a growth of 25.8%. The expected sales value of wearable devices at the end of 2019 is projected to be $42billion. The number of adults who used a wearable device in the US was 39.5 million in 2015 and had increased to 81.7 million in 2018.

Wearable tech has found usage in the healthcare segment beyond just monitoring and tracking the health and fitness data of the user. Wearables continue to evolve as virtual reality applications provide experience-based applications for clinicians and patients.

Wearables for Doctors

When the team at Google announced Google Glass in 2012, they said:

‘We think technology should work for you — to be there when you need it and get out of your way when you don’t.’

Five years down the line the device could not take off, but it opened doors for various industries to put it into use. In 2013, healthcare saw the first-ever application of Google Glass when Dr. Rafael Grossmann recorded a surgical process through Google Glass. In 2015, wearables took another step forward when the first surgery using Google Glass in combination with Olympus 3D imaging took place. Simultaneously, the Olympus Endosuite was fully controlled using the MYO gesture-controlled bracelet. The applications of wearables in healthcare have since gone beyond Google Glass where wearables are used in innovative ways. Here are a few instances:

AiQ Smart Clothing has developed a vital sign monitoring system built into a t-shirt that can monitor users’ heart rate, respiration rate, electrophysiological signals, etc. This t-shirt can be extremely useful during video appointments sessions with doctors, where doctors will not have to rely on the patient’s old reports and get real-time data on their vital stats instead.

Wearable tactile sensor A group of scientists from the National University Singapore has developed wearable liquid-based microfluidic tactile sensors. These sensors can be easily utilized for monitoring critical parameters in biomedical applications, particularly for those that may come in contact with the human skin or where human movement is highly versatile.

A team led by Conor Walsh, assistant professor of mechanical and biomedical engineering at Harvard and founder of the Harvard Biodesign Lab are developing wearable soft robots. The team has developed a soft exosuit that can assist with locomotion and perform small levels of assistance to a wearer and a glove that assists with grasping motions for those with hand impairment.

Next Generation Wearable Medical Robot

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Multi-segment actuators used in the robotic glove enable an assistive range of motions. Image: Harvard’s Wyss Institute.

In the coming years, wearables will not just help in treatments but also in training medical professionals as well – An initiative called ‘Virtual Medics’ team at London Medical School’ aims to use wearables and other technologies to do just that.

Wearables for Patients

Wearable-tech can simplify a patients’ life beyond tracking and monitoring their health. Automation and push notifications can help patients get greater control of self-care, where the device can prompt them to check their weight, pulse, or oxygen levels, and enters results into mobile patient portals. Further, these results can be transmitted to the doctors in real-time. These details, when entered regularly, can predict the risk of ailments like heart diseases and keep a check on them.

Not only wearables help patients self-manage and monitor their health; they help doctors save costs.

E.g. the Zephyr Anywhere’s introduced a BioPatch which is a small device that is attached to a patient’s chest monitoring their vitals minute-by-minute and collecting medical-grade data for doctors’ use. The Biopatch alerts the nurses through smartphones, reducing their effort to physically check a patient every hour. This also helps them to react promptly should a patient need to be attended immediately.

Internet of Things (IoT) in healthcare

IoT is changing the way interactions happen across technologies and devices across industries. The increase in healthcare costs requires modern solutions, and IoT is seemingly the right solution for the benefit of both healthcare facilities and patients. IoT in healthcare manifests as IoMT (Internet of Medical Things) and is the interconnection of medical devices, infrastructure, software applications, health systems, and services. According to research by SmashingBoxes, there will be 40% IoT devices in use in the healthcare industry by 2020.

Internet of Things (IoT) in healthcare

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This growth in the influx of IoMT (Internet of Medical Things) is predicted to save the healthcare industry an estimated $300 billion. The revenue to healthcare facilities from IoT processes is estimated to be over $135 billion by 2025.

Here are some examples of how IoT is changing the healthcare landscape:

OpenAPS – closed-loop insulin delivery

OpenAPS – closed-loop insulin delivery

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OpenAPS is an open and transparent effort to make safe and effective basic Artificial Pancreas System (APS) technology widely available to more quickly improve and save as many lives as possible and reduce the burden of Type 1 diabetes.

OpenAPS is a simplified Artificial Pancreas System (APS) designed to automatically adjust an insulin pump’s basal insulin delivery to keep blood glucose (BG) in a safe range overnight and between meals. It does this by communicating with an insulin pump to obtain details of all recent insulin dosing (basal and boluses), by communicating with a Continuous Glucose Monitor (CGM) to obtain current and recent BG estimates, and by issuing commands to the insulin pump to adjust temporary basal rates as needed.

Continuous Glucose Monitoring systems (CGM)

CGM is an implantable continuous glucose monitoring system, which uses a 90-day sensor underneath the patient’s skin, which measures the blood glucose level and sends it to the mobile app through a smart sensor.

Continuous Glucose Monitoring systems

Connected inhalers

One of the major advantages of IoT and its subset technology wearables is that both can help and motivate patients especially the ones on a long-term ailment to adhere to their treatments. Propeller’s Breezhaler device is one such device that connects to its digital platform via a sensor, passively recording and transmitting usage data and sends reminders and notifications to the patients, and also insights into the triggers of their asthma attacks, so that they can prevent one.

Connected inhalers

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Ingestible sensors

Proteus Digital Health has invented ‘digital pills’ with ingestible sensors, dissolves in the stomach and produces a small signal which is picked up by a sensor worn on the body, which again relays the data to a smartphone app. Again, the purpose of this technology is helping patients with adherence to treatment.

Ingestible-sensors

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Big Data & analytics in healthcare

Doctors and Physicians have long relied on their judgment while diagnosing an ailment and making treatment decisions. Big Data and Analytics have proved to be a boon for them, with the opportunity to provide evidence-based treatment to their patients. Big Data has opened up doors for doctors to systematically review clinical data and make treatment decisions.

Big data can aggregate individual data sets into algorithms and provides evidence-based on a large pool of data for the right treatment. According to Fingent, the global Big data infusion in the healthcare market is projected to reach $34.27 billion by 2022 with a CAGR of 22.07%. On a global level, big data analytics is expected to be worth over $68.03 billion by 2024.

Some health-care leaders are already leveraging big data and are using it in innovative ways to improve operational as well as diagnostic efficiencies. For e.g.

  • Kaiser Permanente has fully implemented a new computer system, HealthConnect, to ensure data exchange across all medical facilities and promote the use of electronic health records. The integrated system had improved outcomes in cardiovascular disease and achieved an estimated $1 billion in savings from reduced office visits and lab tests.
  • Blue Shield of California, in partnership with NantHealth, is improving health-care delivery and patient outcomes by developing an integrated technology system that will allow doctors, hospitals, and health plans to deliver evidence-based care that is more coordinated and personalized. This will help improve performance in a number of areas, including prevention and care coordination.

Real-time health systems

In this age of data deluge, it becomes critical for the healthcare sector to make sense of this data and drive real value through it. RTHS is helping healthcare providers to process and interpret data quickly, to make it easily consumable by the patients and also use this data for operational intelligence as well. Today’s consumers are used to accessing data in real-time via their mobile devices, and healthcare providers can leverage mobile apps, digital maps, etc. to create a positive patient experience.

Experiential wayfinding is one such way to simplify patients’ journeys and experiences inside hospital premises. Technology providers like Jibestream provide enterprises SDKs that give developers the tools to customize and integrate maps into apps.

Real-time health systems

Artificial Intelligence (AI) in healthcare

According to research by Frost & Sullivan, AI in the healthcare industry was valued at 663 million in 2014 and is projected to increase to 6.6 billion by 2021.

Artificial Intelligence (AI) in healthcare

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The healthcare industry is cognizant of the impact AI can have on improving the healthcare landscape. Technology is helping the healthcare fraternity in predicting diseases and giving a helping hand to doctors in preventing them.

Artificial intelligence already found several areas in healthcare to revolutionize starting from the design of treatment plans through assistance in repetitive jobs to medication management or drug creation. Here are some examples of how the healthcare industry has implemented AI:

AI-based health assistants

AI assistants are helping doctors in optimizing their time by covering a large part of clinical and outpatient services, freeing up doctors’ time to attend to more critical cases.

Your.MD is one such AI-powered mobile app that helps doctors with basic patient symptoms information. The chatbot asks users about their symptoms and provides easy-to-understand information about their medical conditions. The platform has a vast network of information that links symptoms to causes.

The assistant uses natural language processing and generation to provide a rich and fluid experience, and machine learning algorithms to create an intricate map of the user’s condition and provide a personalized experience.

Early and precise diagnosis

AI algorithms can quickly ingest millions of samples in short order and gather useful patterns. The medical fraternity is using this ability of AI to come-up with precise diagnosis early by picking up subtle symptoms as well.

Researchers at Stanford University have created an AI algorithm that can identify skin cancer. Similarly, DeepMind, a Google-owned AI company, is using machine learning to fight blindness in cooperation with NHS. Morpheo, another AI platform helps in the diagnosis of sleep disorders.

Improved patient care and treatment

Some diseases like cancer change the dynamics of the patient’s health at a fast pace. Keeping up with changes and adapting the treatment accordingly becomes critical in such cases. AI is helping in solving this problem.

IBM with its AI-based platform Watson is working on building effective treatment for cancer. It can ingest a massive amount of clinical trial data presenting cancer care teams with a list of effective therapies and treatment options.

AI is also helping patients in adhering to their treatment regimes. One example in this area is AiCure, a mobile app that uses AI and images analysis to control patient adherence to prescriptions.

Healthcare data is sensitive, and healthcare firms have to be very careful about the security of such data. Technologies like Blockchain are helping firms in maintaining the privacy of this huge amount of user data. Morpheo, for instance, uses blockchain to ensure transparency and privacy of patient data on its platform.

Improved patient care and treatment

How healthcare enterprises can succeed with digital transformation

More and more healthcare companies worldwide now understand the importance of investing in digital technologies and including it as a part of their core strategy. According to a report by Statista, the global medical tech industry size is almost 430 billion U.S. dollars. Medical facilities are seeing an equal monetary benefit from tech advancements. The same report states that Johnson & Johnson earned nearly 27 billion U.S. dollars in 2017 through its Medtech services. There still are areas for improvement, as seen in the below McKinsey report:

How healthcare enterprises can succeed with digital transformation

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Healthcare organizations looking forward to adapting digital transformation will have to look at it comprehensively, rather than in silos. Here are four core principles suggested by McKinsey which healthcare enterprises can follow to achieve success with their digital transformation efforts.

  1. Identify and prioritize their critical sources of value; they need to determine the products and services they provide that lead to competitive differentiation and benefit most from digitization.
  2. They must build their service-delivery capabilities—not just in physically integrating and managing new digital technologies but also in implementing new approaches to product development and distribution.
  3. Healthcare companies should look for ways to modernize their IT foundations, for example, upgrading pools of talent and expertise in the IT organization, moving to digital platforms such as cloud servers and software-as-a-service products.
  4. Strengthening their core digital transformation capabilities by developing internal experts with an expertise in digital technologies and approaches.

With technology on its side, healthcare is slowly transforming into a patient-centric industry. Digitization is benefiting both patients and caregivers alike. As technology advances, patients will be more informed and empowered to understand and deal with their ailments. For healthcare providers, digital transformation is opening global opportunities to create cost-effective and more efficient treatments.

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Mobile Opinion

The road towards a cashless world – digital payments and the future (Updated)

When was the last time you pulled out your wallet to make a cash payment? It’s probably been a while, isn’t it? While debit and credit cards continue to be the preferred mode of payment – digital transactions, bank transfers, and e-wallets are getting equally popular. Convenience and security are two important reasons why cashless transactions are preferred.

According to a 2018 survey conducted by payment processor TSYS (as seen on creditcards.com) that involved 1,222 consumers, 54% of the participants preferred paying via debit cards, 26% preferred credit cards, and only 14% expressed a preference for using cash. What’s interesting is that when compared to 2017’s report, the preference for payment by debit cards increased by 10%, indicating a continuous shift to cashless transactions.

Another survey by the Diary of Consumer Payment Choice (DCPC) suggests that the average amount of cash carried by consumers daily was $59, indicating that when consumers choose to pay in cash it is often when the amount is very small. The same report highlights that 55% of payments were made in cash but only when the net payment amount was under $10. The below image depicts the average cash holding by age group across the years:

Digital Payments and The Future

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Types of digital payments:

  1. Device-centric mobile proximity wallet

It is a wallet that stores the user’s payment credentials in the mobile device. These credentials, at the point of purchase NFC (Near Field Communications) or MST (Magnetic Secure Transmission), are leveraged to enable proximity payments.

  1. Device-centric mobile in-app wallet

This wallet is used for in-app purchases where a debit/credit card isn’t available. This wallet uses the EMV payment token and the issuer’s identification and verification to complete the in-app purchase.

  1. Card-not-present or card-on-file wallet

A digital wallet that uses the previously-stored payment credentials of users. The term Card-on-File is referred to the authorized storage of the user’s payment credentials by a merchant.

  1. QR code wallet

Similar to CNP wallets these wallets are device agnostic and cloud-based. QR codes are used to complete the transaction at the POS. Paytm is an example of such wallets.

  1. Digital checkout wallet

The payment networks offer digital checkout wallets or digital acceptance services to both issuers and merchants. The networks support a web browser, mobile app, and in-app channels.

Evolution of digital payments and digital wallets

The early 90s

The digital wallet space has been in existence since the ’90s. Online payment services started to operate in the early 90s.

  • Around this time PayPal was used as a software solution for eBay. However, the concept of storing payment information with an online provider to enable purchases outside of eBay initially didn’t catch up.
  • Almost at the same time, more players emerged in the digital wallet industry. Some of the popular entities of that time were Millicent (founded in 1995), Ecash and CyberCoin (founded in 1996).

The Late 90s–2000s

Most of the earlier digital wallets were stored on the desktops of personal computers. By the early 2000s, the new-age digital wallets emerged which were compatible with wireless and other mobile devices, and were more often stored on a central server owned by a digital wallet vendor or Internet service provider (ISP).

The major drawback of such wallets during this time was the compatibility. Moreover, the dearth of one multipurpose wallet required customers to download various digital wallets from multiple vendors. It was thereby a complicated option for customers.

To deal with this drawback several financial and technology enterprises like MasterCard, Visa, American Express, IBM, Microsoft, Trintech, and CyberCash came together and established a digital wallet standard. They defined Electronic Commerce Modeling Language (ECML) as a standard mechanism to explicitly define a format for online order forms that could incorporate digital wallet technology from any vendor.

Launch of Apple Pay

A significant shift in the digital wallet landscape was witnessed only in 2014 with the launch of Apple Pay; the wallet was supported by over 220,000 merchant locations in the United States. Other giants like Google and Samsung soon followed with their payment options – Android Pay and Samsung Pay respectively.

2015-2019

According to a BCG report, 2015-16 was known to be a watershed period in the payment history, and the trend continues. Within a span of just 2 years, between 2015 – 2017, the total value of the mobile wallets market doubled.

Total revenue of global mobile payment market from 2015 to 2019

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A 2018 Trends Report on Consumer Mobility released by Bank of America shows that P2P mobile payments, which is one to one payments over mobile wallets, increased from 36% in 2017 to 44% in 2018. An interesting fact here is that the number of mobile transaction users is rapidly increasing among the younger generation (51% of millennials said they used mobile wallets in 2018) while not so rapidly with people over the age group of 65, which stunted the overall increase in percentage but proved the shift to cashless transactions nonetheless.

Finally, late 2018 and 2019 saw a rapid rise in mobile wallets and digital transactions. This largely occurred due to the growth in technology that led to numerous e-payment vendors and apps. The added assurance of security through OTPs and passwords is fueling the transition from cash and card payments to mobile payments.

An eMarketer report released in December 2018 projected that almost 938 million people worldwide will make a payment over their smartphone in 2019. This number represents nearly 36% of all smartphone users and is an increase of 13.5% over 2018.

As per a survey by the Boston Consulting Group, the amount spent via digital wallets is expected to rise to $500-$550 billion by 2025.

Change leading the digital payments revolution:

There are four major shifts in the global technology landscape that have led to the digital wallet revolution:

  1. The ongoing digital revolution
  2. The entry of non-traditional players
  3. Evolution of a more demanding digitally-savvy consumer
  4. The emergence of new markets

The ongoing digital revolution

By 2020 it is expected that almost 75% of the world’s population will have access to the internet. 80% of these users will be accessing the internet through their mobile. Over the years, smartphones have gotten smarter and are equipped with high-end technologies like powerful processors, substantial memory, high-resolution cameras, barcode scanning, GPS geocoding, NFC-based technologies, social media platforms, etc. With all these armors, every smartphone user is a potential commerce enabler.

The evolution of smartphones is enabling new payment capabilities. This has revolutionized digital payments coupled with innovations in payment access and security technologies such as tokenization of card details for reducing fraud, biometric-enabled multi-factor authentication, EMV standards for user authentication, NFC-capable readers at merchant stores, hardware-based secure element approaches, etc.

The entry of non-traditional players

The digital wallet industry is not limited to Fintech and Financial enterprises. Over the years we have seen players across multiple industries entering the sector. These categories range from device manufacturers (Apple, Samsung, Google), technology and e-commerce enterprises (eBay, Alibaba, Amazon), telecom companies (Vodafone, Orange, Airtel) and start-ups like PayTM and FreeCharge in India, Google Pay, etc.

The disruption in the digital wallet space is further expected to heighten as the number of Fintech startups continues to grow. In the past five years, the number of such start-ups has doubled, with funding growing six times. The largest share of the overall Fintech funding, in fact, has gone to the payment Fintechs, spanning from wallets to integrated POS systems, P2P payments, and cross-border transfers, etc.

Some startups such as Ant Financial Services Group (China), First Data, Stripe and Mozido (USA) and One97 Communications (India), have grown to over USD 1 billion in valuation.

Evolution of a more demanding digitally-savvy consumer.

The tech-savvy consumer today has shifted to the digital platform for a lot of reasons, and hassle-free money transactions are one of them. The emergence of non-banking tech players along with retailers and e-commerce enterprises and the advent of features such as biometric authentication from ApplePay and integrated rewards from Starbucks, have to meet the customer’s expectations changing from payments solutions.

The consumer today expects a seamless digital experience from every interaction they have with brands in the virtual world. Hence, there is a growing need for an intuitive and frictionless user interface and design.

The digital wallets are expected to offer a seamless interaction on smartphones and apps to deliver on par with the evolving customer needs, both enhancing and increasing customer interactions and building relationships.

The emergence of new markets

According to a recent study, consumers in markets like India, South Korea, and China are more open to experimenting with mobile payments than the US, UK, Australia, and others. One of the reasons for this shift is the growing number of internet users in these countries.

Internet Users by Country 2016 to 2021

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A DCR Strategies report revealed that by 2020, every 1 in 2 dollars spent online will come from a purchase made by a mobile phone. The same report also revealed that the global mobile wallet spends increased by 32% in 2017 to $1.35 trillion. Here are some interesting facts from the report : more than 50% of smartphone users don’t prefer carrying any payment instrument (cash or card) with them, one in three Canadians already paid for something through their mobile phone, and two thirds of Canadians are looking to stop using cheques and other outdated modes of payment.

The growth story of digital payments in India

The Indian economy has traditionally been dominated by cash. However, the increased adoption of smartphones together with a favorable regulatory environment is pushing the economy to a less cash-dependent state and promoting the usage of digital payments.

The growth story of digital payments in India

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This report by Statista shows the rise in transactions on mobile phones in the past few years:

Transactions on mobile phones

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The parliament released a statement in July stating that the overall digital transactions in India increased by 51% to reach INR 3,133.58 Crore in 2018-2019.

According to a study by Assocham-PWC India, digital payments in India will increase from $64.8 billion to $135.2 billion in 2023, which is more than a 100% increase. The study stated that India is expected to clock ‘the fastest growth in digital payments’ between 2019 and 2023 with a CAG of over 20.2%. It also stated that on a worldwide transaction scale, India’s share in digital payments will increase from 1.56% to 2.02% between 2019 and 2023.

To further emphasize the move from cash to cashless transactions, a report by economic times India stated that debit and credit card transactions until September stood at 2.9 billion, mobile wallet transactions at 2.1 billion, and UPI at 1.5 billion.

The major contributors to this estimate will be the person to merchant (P2M) transactions driven by digital payments at the physical point of sale, followed by business to business (B2B) and peer to peer (P2P) transactions.

Digital wallets gained a major boost during the demonetization drive of 2016. Further, some key actions like – expansion of the digital payments infrastructure at merchant establishments, expansion into rural areas, relaxation in the PPI norms, incentivization of digital payments at fuel pumps, toll plazas, insurance portals, etc. and launch of the Bharat QR codes, have helped further in the adoption of technology.

The fastest-growing segment of digital payments is Prepaid Payment Instruments (PPIs), which has grown at a CAGR of 97% in the same period that now accounts for 10% of the total digital payments volume.

Mobile-wallet is the largest category within PPIs, but the segment also includes prepaid cards (including gift cards) as well as other paper vouchers.

Paytm leading the way to a cashless economy in India

Paytm is India’s largest mobile commerce platform. It started by offering mobile recharge and utility bill payments and today it offers a full marketplace to consumers on its mobile apps.

PayTM’s total annualized gross transaction value (GTV) grew four-fold to cross $20 billion in February 2018, as compared to 2017 and hit $50 billion GTV in FY19.

As of July 2019, PayTM has over 450 million registered customers with over 130 million of these as active users and over 12 million registered merchants. They are investing heavily to reach a target of 250 million monthly active users by March 2020.

Emerging markets to lead the way

Today’s consumers prefer faster and convenient solutions in all walks of life. As the world moves towards becoming cashless, initiatives taken by enterprises and governments to promote cashless societies, technological innovation, and financial inclusion will emerge as the key drivers of the significant growth rates of the non-cash transactions in the emerging markets.

While the proliferation of mobile payments and digital innovation are expected to be the levers of high growth across all the regions, differences in adoption patterns and development of new use cases are likely to shape the individual regional trends. Due to the entry of new players, the ability, new technologies, and the expansion of traditional payments infrastructures into the digital world will lead to the growth of the digital payments industry in the upcoming years.

According to Statista,

  • In India alone, the total transaction value of digital payments in 2019 amounts to US$64,787 million.
  • This total transaction value of digital payments is projected to increase with a CAGR of 20.1% between 2019-2023 resulting in a total value of US$134,588m by 2023.
  • Globally, China has the highest value of digital transactions at US$1,570,194m in 2019.

New technologies will lead to new use cases of digital wallets

When it comes to mature markets, a combination of NFC/contactless technology and mobile payments may lead to the development of new payment use cases. Countries such as Australia, Canada, and the U.K. are exhibiting this trend. Further, as new technologies like IoT and Blockchain are adopted by a greater volume of enterprises, the digital wallets industry will disrupt.

In the future, many more use cases of IoT and blockchain are expected. Firms such as mobile payment company Abraare are experimenting with blockchain technology to enable mobile P2P payments and cross-border payments. Blockchain also can be leveraged for digital cash by mobile wallet providers such as Coinprism and Xapo; the Reserve Bank of India (RBI) recently embraced blockchain as the basis of digital currency within the country. Further to incorporate IoT enabled payments banks will also create more digital touch points.

In the mobility segment, connected cars may turn into new POS for in-car services, including infotainment and real-time navigation.

OpenAPIs is another breakthrough technology disrupting the digital wallets industry. OpenAPIs provide secure and standardized interfaces across all stakeholders, enabling data to be gathered in one place by aggregators.

Regulators will create policies to enable the digital payments ecosystem

As the new technological innovation is transforming the payments landscape, regulators and central authorities across the globe are taking measures to make the digitization of payments easy. Regulators will work towards creating a level playing field for all stakeholders in addition to implementing consistent standards for cyber-security, data privacy, messaging formats, and interface standardization.

Some such key regulatory and industry initiatives are:

  • Regulators on the reduction of risk at banks have given traction to initiatives such as BaselIII’s Liquidity Coverage Ratio (LCR).
  • Cyber-security and data protection are witnessing a renewed focus, especially within the EU through the General Data Protection Regulation (GDPR) and Network and Information Security (NIS) directives.
  • The arrival of PSD2 in early 2018 is expected to meet regulators’ ambitions to create a level playing field for all stakeholders and promote competition by opening the payments market to new entrants in Europe.

The emergence of a collaborative ecosystem

Technological innovations will drive the digital payments industry to evolve and adopt a collaborative ecosystem. As Fintech players and other Third Party Payment (TPP) enterprises give way to better and faster payments interface, banks are opening up their platform to these enterprises. Some of the players like PayU have already acquired Citrus Pay to become a larger group. This consolidation was aimed to expand into more offerings around banking and other services.

Further, new entrants into the payments space, are increasing competition and forcing payments services vendors to consolidate to capitalize on economies of scale. Some examples of such collaborations would be Fiserv acquiring Monitise and PCLender to provide a broader range of customer offerings, and banking players Misys and FIS integrating operations.

In the coming years, the industry will see more such consolidations and Payment vendors with advanced digital capabilities could become acquisition targets as incumbents look to scale up operations to make the most of the expanding digital payments market.

Benefits of consolidation for payments vendors

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Stringent data privacy laws will be established:

In recent times, data breach cases and cyber-attacks like WannaCry Ransomware have created the need for more stringent data privacy and security laws.

The European Union’s General Data Protection Regulation (EU GDPR) and New York Department of Financial Services’ regulation on cyber-security are already in place, and more regulations from different central authorities are expected with steep penalties for non-compliance. Further, the U.K. announced a data-protection bill24, which gives more control to consumers on their data. China’s new cyber-security law includes liabilities such as suspension of business activities and fines up to 1 million RMB for violation.

The growth of the cyber-security industry is also a sign of increased emphasis on cyber-security. According to a Forbes report, The overall spending on cyber-security services and products increased over $114 billion in 2018, a rise of 12.4% as compared to 2017. The report further states that the cyber-security investment will continue to grow by 8,7% to $124 billion.

The digital wallets and mobile payments industry will expand in the coming years owing to the infrastructure becoming more robust, enablers like NFC, POS acceptance devices and online integrated mobile payments.

However, security, ease of transactions and enabling multiple transactions on a single platform will be of key importance in gaining more users. The digital payments ecosystem is on a growth curve, and a collaborative ecosystem with financial services, Third Party payment vendors and Fintech enterprises will emerge in the years to come.

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Mobile Opinion

A Guide to Human-Centered Design for Creating Better User Experiences

“Design is really an act of communication, which means having a deep understanding of the person with whom the designer is communicating.”Donald A. Norman, The Design of Everyday Things.

Organizations that manage to make a positive emotional connection with their customers in the digital era will experience positive results. Given the rise in the average time spent on mobile and connected devices, brands must harness emotional data and create meaningful customer connections.

So how can we identify the influencers that drive these connections?

The surge of internet users around the world is at an all-time rise. 400+ million as we talk, representing an annual growth of 10 percent. And if the trends continue, we are soon to witness some truly remarkable digital milestones as we tread into 2022.

Considering the overwhelming surge in technologies and digital platforms, the way ahead for brands is to differentiate themselves by creating deeper customer connections and garner a competitive advantage. One of the most effective ways to achieve this is by incorporating a human-centered design approach. It can help brands build trust, loyalty & customer value, which will invariably influence customer acquisition & retention. Human-centered design triggers positive customer responses, that can amplify your business performance and boost ROI.

What is Human-Centered Design?

Human-centered design is a consumer-centered problem-solving approach that prioritizes the consumers’ needs when approaching a challenge. To be able to incorporate this as part of the creative design process requires a deep perspective of the challenges users encounter and what are the solutions they are most likely to embrace.

As per research conducted by Deloitte, 58% of consumers prefer a brand for an emotional reason overriding the other rational factors. This has perhaps made it evident for brands that the customer experience can no longer inspire brand loyalty, human-centered design is ruling the digital space. When emotional data, like user behavior patterns, pain-points, purchase triggers, and motivators are integrated as part of your creative process, consumers are more confident about your brand as they are heard and understood.

Regardless of the industry, you belong to, or the designation you hold, it’s imperative to understand the human-centered design principles to ensure that this ideology can be infused into the products you develop. Click to Tweet

With the overarching objective of serving your customers better, the human-centered design approach can help to nurture and retain your current users and garner your competitive advantage.

Stages of the Human-Centered Design Process

While there are many forms of the Human-Centered Design process, it can be broadly categorized under these 5 key stages.

Stages of the Human-Centered Design Process

  • Empathize – The foundation of the human-centered design process is to truly understand the people who experience a problem before you begin to design a solution to serve them. As Design-consultants, it is crucial to directly engage with the people experiencing the problem, observe the environments they operate in, ask a lot of questions and completely grasp their challenges. This is one of the most integral parts of the design thinking process as it’s not about anticipating but participating with the consumer, to brainstorm, model and prototype.
  • Classify – After gaining all insights and learning about the problem, define the challenge you wish to address. As a human-centered designer/brand, it is important to define the ‘why’ behind addressing the problem. It is ultimately the problem statement that will guide you towards formulating the potential solutions.
  • Ideate- This phase is about arriving at as many solutions and more preferably in a team setting. The key is to generate many ideas without judging the idea, as it inhibits the creative process. This is the best way to arrive at solutions from a wider, bottom-up perspective.
  • Prototype – This phase is all about experimenting with what you’ve created, whether it is a virtual interface or system. A good practice for designers is to create multiple prototypes to experiment with the ones that meet the requirements of the consumer.
  • Test & Iterate – Put your ideas to test. This phase is about testing the prototypes you created, to identify the gaps in design and areas for further improvement. In an ideal scenario, it would be best to test your prototype with a few consumers, whom you created the prototype for.

While this may seem like the end, the human-centered design process is a dynamic and fluid process, that runs until all participants are satisfied with the solution that addresses the problem. It is often not a linear process, but you can ascertain the next steps while you’re mid-way into the design process. In the prototyping stage, for instance, one might realize that the prototype doesn’t align with the defined problem statement. This requires designers to be agile, constantly reiterate, brainstorm and go through the nuances of the problem more deeply and to most importantly keep in mind the overarching objective, which is to invoke a positive emotional response that will increase the likelihood of customer acquisition and retention.

How to create a Human-Centered Design that invokes positive emotions?

Emotion is the cornerstone of the human-centered design experience, which requires customer experience strategies to influence positive consumer emotions. Click to Tweet

With effective product testing, user-research and subsequent touch-point mapping, it is easy to gauge the impact of the product on end-users and the pain points users may address while using the product. A good design will not only focus on addressing these challenges but convert these pain-points into positive emotional experiences. A Human-Centered Design can transform functional products into memorable and enduring experiences.

To create a successful product, the design elements should cover the needs to visceral, behavioral and reflective aspects, as per Don Norman’s seminal book on ‘Emotional Design’

How to create a Human-Centered Design that invokes positive emotions?

Visceral Design

“This looks so amazing, I want it”

A visceral reaction is prompted by a preliminary sensory experience, which is an immediate, deep-level gut reaction to your product. It is the very first impression, the initial mood which sets the ground, due to which one begins to explore the product. As they say, there never is a second chance to make a positive first impression. Users are more likely to forgo faults in the future if the initial experience was overwhelming and positive. A visceral reaction can set a positive context for subsequent interactions. It impacts the perception of your product’s reliability, dependability, consistency, quality, appeal, and also the perceived ease of use.

Behavioral Design

“I can master this. It makes me feel so confident.”

A behavioral reaction is how we feel as part of being immersed in the product experience. It is the reactions and interactions with the product and the value we derive from the products we use, also referred to as the usability.

A product has to look good, feel good, and perform well. It’s ultimately about the pleasure associated with a product’s ease of use and effectiveness. A Behavioral design element focuses on how the structure or system, meets the requirements of the end-users. Invoking positive behavioral reactions allows users to feel more empowered, develop trust, reliability and invoke repeat reactions. A product will not last long if its design does not align with the user’s behavior. Here’s a fact: 77 percent of users never use an app again 72 hours after installing. Most successful apps are those which people can’t imagine life without, as a result of good behavioral design. From an emotional viewpoint, when our interaction behaviors are more familiar and anticipated, then we are in agreement and derive joy and contentment from the product’s usability. The behavioral design aspect covers functionality, performance, usability, and ease of use.

Reflective Design

“This is so much like me, I love the way it makes me feel”

A reflective reaction is about how we feel after experiencing the product. It is about whether we remember the experience and how it made us feel, which will determine if we desire to experience the product all over again. It’s about self-image, satisfaction, memories, reflecting on the experience. A positive, reflective design can invoke customer advocacy, by encouraging other users with their experiences. A good reflective emotional design captures the essence of the product, impact of thought, share-ability and the cultural impact.

For a design to have an emotional appeal, users need to feel connected to a product in a way such that life feels incomplete without it. Click to Tweet

Designers then, need to constantly strive towards creating products with a ‘personality’, something that simplifies real-life experiences; if they truly want their products/brand to be successful and meaningful.

Techniques to Augment an Emotional Impact

Techniques to Augment an Emotional Impact

  • Personalization— Give room for the users to feel in-control with personalization. This makes them feel a sense of ownership, which gives them the power to tailor experiences based on their preferences.
  • Powerful Imagery —Use of appropriate imagery that users can connect and relate with can have a significant impact on product success. Use images, colors, animations and illustrations that invoke empathy and trigger an emotional response.
  • Delight— Try to keep the element of surprise alive, let there be something fun and pleasant to look forward to. Invoke positive emotional reactions by surprising and delighting your users.
  • Relatable Voice— Relate to your users in a more empathetic Express compassion, encouragement, and emotion through a conversational user interface.
  • Storytelling — Help users understand the journey of the experience with powerful, relatable and engaging stories that stay etched in their memory.
  • Humor — Evoke a sense of joy, eliminate room for uncertainty and fear with a good sense of humor. Laughing and glee are powerful emotions that trigger a sense of joy and contentment.
  • Micro-interactions — Subtle affordances and indicators make the product interface feel more vibrant and alive, which can influence greater user-engagement and interactions.

“The customer rarely buys what the business thinks it sells him. One reason for this is, of course, that nobody pays for a ‘product.’ What is paid for is satisfaction. But nobody can make or supply satisfaction as such—at best, only the means to attaining them can be sold and delivered.” – Peter Drucker

Heuristic Principles – Why are they integral to product interfaces?

What is a heuristic approach?

A heuristic technique is any approach to problem-solving, learning, or discovery that employs a practical method not guaranteed to be optimal or perfect, but sufficient to accomplish immediate goals. Heuristic principles are most appropriate when concise guidelines do not exist. In the absence of guidelines as with UI & UX design, heuristic methods can be used as a point of evaluation for optimal design solutions. They speed up the process of finding a practical solution while easing the cognitive overload of making a decision.

Jakob Nielsen, a web usability consultant collected and released a set of evaluation principles for usability heuristics that help in identifying the problems in a user interface design to address these as part of the iterative design process. As the Human-centered design augmented the importance of the user, design processes have adapted accordingly. However though Nielsen’s principles have remained universal across all digital product interfaces.

Here are ten heuristic principles that are inspired by human-centered design and usability thought leaders. They help as guidelines for usability evaluations to identify if the UI falls short of delivering a user-friendly experience.

Heuristic Principles - Why are they integral to product interfaces?

1.Visibility of the System Structure

The UI should always allow transparency in the system structure and make the user feel in control. Make a few elements and structures visible so that the user has a complete understanding of the context. They should be able to understand where they are and where they can head to next. When the system is transparent, the user is in control of his journey and gains incredible confidence in the product interface.

2. Immediate Feedback

The user’s action should be followed by an immediate response, which confirms that the system is in receipt of the request. Instantaneous feedback reassures the user that his response is right and reveals what can be expected next. Without feedback, the user can feel frustrated and uncertain, which can lead to an interrupted journey.

RRD Motif photobook app

3. Highlight Errors

Barriers and dead-ends often lead to interrupted product journeys. Users are bound to feel frustrated when they find themselves in a situation that does not accomplish their needs. When a user is given awareness about the errors, it helps in immediate recognition, diagnosis, and recovery from the error. Striking a perfect balance with simple & linear communication is the key to avoiding cognitive overload. Remember, all the user needs is to understand how to solve and prevent the error in the future.

4. Ease of Use

An interactive product experience must be independent of external user guidance. Whether it is a first time experience or the tenth, the interface should accommodate both scenarios. While a seasoned user has access to a deeper systematic understanding and short cuts, the new user should experience flexibility in maneuvering the interface without being interrupted. When the UI is flexible, the user can be in control and choose a journey based on their needs and capabilities. The key is to find balance, both, a restrictive or an overwhelming interface can be a frustrating experience.

5. Universal Experiences

Create design elements that relate to common human experiences and expectations. It is important to cater to universal user expectations as we spend more time involved in digital interfaces. A “+” sign ideally expands to give more information, by tapping into easily comprehensible references like these, users will understand its purpose and the interface becomes more intuitive.

6. Minimalistic Aesthetics

Create minimal design features and eliminate elements that can interfere with the overall experience. Display data in a manner that is clear and aids easy navigation. Stick to a theme by using a layout, color, and typography, that guides the user without any distractions.

7. Prioritize Function over Form

The visual design of an interface must always begin with defined functions. Design decisions focus on what an element is meant to do, rather than emphasizing on its visual style. When the style, overall look and trends are prioritized, it may perhaps draw a lot more attention, but functionality is the key.

8. Availability of Information

Make information available to ensure users have information available on their fingertips rather than having to rely on memory. One of Nielsen’s heuristic principles suggests the designer should “minimize the user’s memory load by making objects, actions, and options visible. The user should not have to remember information from one part of the dialogue to another. Instructions for use of the system should be visible or easily retrievable whenever appropriate.”It’s important to keep in mind that a user experiencing an interface for the first time will not have the knowledge and familiarity with the information that the designers do. While the repetition of information may seem excessive to design experts, this is very essential for new users.

9. Maintain Consistency

As humans, we are drawn to patterns, and use them to make sense of the world. Representing information in familiar frameworks like metaphors & schemas and consistent elements helps in creating a cohesive experience that’s easily retained.

10. Reflect & Align

To ensure that the design principles and usability heuristics align with the overall purpose of the product and user needs, it is important to reflect and align periodically. It is up to the design experts to establish the best decisions for their unique use cases. All in all, if the product is human-centered and built to align with the user needs, the design and product will have a strong sense of purpose.

Conclusion:

It’s no longer enough to create products that push the boundaries of technology. What’s more important is to understand your customers’ motivations and behavior patterns, and translate this into a robust design interface to deliver customer experiences that can garner your competitive advantage, brand recognition, and growth.

Regardless of the industry you belong to, it’s mission-critical that you are aware of the process of the human-centered design process. By putting your consumer at the forefront of your creative process, you can build products that beautifully align with your consumer’s needs. When done right, it can provide optimum user experiences, maximize engagement and have a direct impact on customer acquisition and retention.

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Mobile Opinion

Assessing your Digital Maturity: Is your Enterprise Ready for Digital Transformation?

According to a recent report, digitally matured organizations are those who take the road less traveled i.e. their business processes are different than the majority. However, doing things differently is not enough, planning and implementing things differently is the key to success.

Most prudent companies realize how important it is to have a focused and customized digital strategy to excel in a connected world; thereby most digitally matured organizations have a well defined digital strategy in place.

Before embarking on this journey, assessing the organization’s digital maturity will help enterprises in analyzing where to start their digital transformation journey and how to go about creating a ‘digital roadmap’ for the future.

How can organizations start assessing their digital maturity?

Which are the areas to focus on while creating a digital transformation plan?

These are some of the critical questions that we as a digital advisory can help you answer. The right digital partner can help organizations visualize, mobilize and realize their digital transformation strategy.

What does this imply?

Digital Advisory

So, where do organizations take the first leap of visualizing their digital future?

At Robosoft, we follow a 5As framework to help find some truly comprehensive solutions that can scale an organization’s digital journey.

The 5 A’s framework – Access, Autonomy, Alliance, Agility and Algorithms

The 5 A’s framework

Digital Maturity Assessment – Using 5 A’s Framework

Digital Maturity Assessment - Using 5 A's Framework

Let’s delve deeper into each of these dimensions.

Access

Today millennials desire access over ownership. With a change in consumer behavior we are rapidly moving towards an access economy.

Access economy is the one where resources are shared – tangible or intangible both – it may mean sharing of the workforce, workspace or even knowledge sharing. With this shift businesses too are imbibing processes and technologies to adapt to an access economy.

What does this mean for enterprises?

  • Collaborative working ecosystems
  • Optimal usage of resources
  • Faster processes

The mantra is ‘value unused is waste’ and that represents a shift in cultural consciousness towards valuing experiences rather than goods. Uber the world’s largest taxi services own no vehicles, Airbnb owns no real estate, Alibaba has no inventory, the advent of sharing or access economy has truly changed the rules of the game.

Here are a few examples of organizations across industries leveraging the access economy-

  • Mahindra has recently invested in 2 start-ups Trringo and Smartshift. Trringo is an online platform that gives farmers pay-per-use access to expensive farming equipment. Smartshift is a load exchange platform that connects small commercial vehicle owners with people looking to transport their goods within the city.
  • With the dual goal of reducing vacant warehouse space and reaching customers in a new way across mainland Europe, the Middle East, and Africa, DHL Supply Chain has pioneered a platform called DHL Spaces to broker unused warehouse space.

Access economy helps is improving the efficiency of resources and optimizing their usage to increase productivity. Co-working spaces companies like WeWork are helping enterprises optimize their fixed space costs and platforms like Upwork are helping organizations in hiring resources as per the need.

Access economy

Image source

Autonomy

In a digital economy, consumers seek customization alongside flexibility and autonomy. They like making informed decisions with all the information about a product or service, available on the digital platform. It is thereby upon enterprises to leverage digital media to empower consumers in making more informed choices.

While consumers prefer autonomy, they do not want to lose human contact entirely. They reach out to consumer groups for advice and seek assistance before and after a purchase. The need for the human element is also pushing enterprises to custom-build their bots via technologies like machine learning, AI, NLP, etc.

So how can organizations empower their customers at every step of the customer journey?

  • Pre-sales

As per this excerpt, 57% of a sale is made even before the actual purchase. It’s thereby crucial for enterprises to ensure their presence on the right digital platforms at the right time, with essential information about their key offerings.

  • Sales

Consumers expect convenient & faster services. This is one of the reasons why e-commerce growth has rapidly scaled in the past few years. Even at physical touch points enterprises are offering options for self-service. For instance, McDonald’s has introduced kiosks at their outlets for consumers to order & receive their food much faster.

  • Post-sales

In a self-service economy, customers turn to other customers for feedback, reach out to groups and seek assistance with a faulty product or service. Chatbots help in addressing their grievances in real-time.

However, autonomy is not something that is only desired by customers, but it is sought by employees as well. When it comes to creating a digitally matured organization, creating autonomous processes across stakeholders – internal and external is the key.

Alliance

‘If you want to go fast, go alone. If you want to go far, go together.’

Today economy collaboration has become a critical factor for success. Here are some examples of collaborations that are thrusting the business ecosystem way ahead.

  • Home Depot, is working with manufacturers to ensure that the connected home products it sells are compatible with the Wink connected home system, thereby creating its own connected home ecosystem, with a wide range of services that are easy to install.
  • Philips’ healthcare practice is collaborating with Salesforce to build a platform that they believe will reshape and optimize the way healthcare is delivered. The platform will create an ecosystem of developers, building healthcare applications to enable collaboration and workflow between doctors and patients across the entire spectrum of care, from self-care and prevention to diagnosis and treatment through recovery and wellness.

The norms of competition to have changed drastically. Netflix is a competitor for Inox, Uber is a competitor for automotive companies, so on and so forth. Businesses will have to move beyond the traditional industry silos and build well-collaborated ecosystems, creating new opportunities for innovation. However, every business will need to team up with other players; competition or outside the industry, basis what their core objectives are. Identifying what kind of collaborations and to what extent is the key to developing a robust digital strategy.

Agility

An agile approach is not just limited to software development. It’s an integral part of every business. In the broadest sense, agility refers to an enterprise having an operational structure that gives it the tools to react quickly and efficiently to the ebb and flow of your market. To achieve this type of responsiveness, you need a huge degree of adaptability and flexibility at every level of your organization.

Fast moving, flexible and robust firm capable of rapid response to unexpected challenges, events and opportunities. Built on policies and processes that facilitate speed and change, it aims to achieve continuous competitive advantage in serving its customers. Agile enterprises use diffused authority and flat organizational structure to speed up information flows among different departments and develop close, trust-based relationships with their customers and suppliers.

An agile business model should be all-encompassing. The IT architecture needs to be adaptable and transformative to respond to market trends as they occur. Internal teams need to operate on an almost ad hoc basis if need be, without being bogged down by outdated hierarchical structures and poor digital tools that only slow down operational responsiveness.

Becoming agile is more about adopting a mindset that determines how people work across every aspect of the business.

To deploy an agile system, organizations will have to alter their operating model. For instance, software firms do not go about launching a full-blown product, rather they create an MVP, which allows them to test, experiment and improve, more often and faster. When it comes to adopting an agile system, it encompasses three aspects of the business – Decision making, Learning & Processes.

Algorithms

In a digital economy, data is the new oil. However, as pointed out in this Forbes article “data inherently is dumb”. So, data alone isn’t enough, we need to enhance it to make the most of it. And, thereby algorithms have become more important than ever. We need algorithms to analyze and bring relevant insights from data to the forefront. And, this is how business leaders will be able to identify specific areas to address.

The Airline industry has been using algorithms to set their passenger fares for ages now. There are a lot of variables that come into picture when setting airline prices like class, the position of seat in the aircraft, the rate at which the tickets are being booked, the time of the year, etc. The yield management program used by the industry constantly monitors supply and demand to get the highest revenue for a given seat inventory. E-commerce websites such as Amazon and Alibaba use the algorithmic business model, mainly for pricing, inventory and seller matching.

However, the level of advancement of an algorithm and the degree to which an organization should invest in algorithms will depend on their industry, business objectives and where they are in their digital journey.

Conclusion

When it comes to creating a digital strategy the ‘one size fits all’ approach doesn’t work. Every organization will have its trajectory while going digital. However, where your organization stands when it comes to the 5As as mentioned in this article will be a critical aspect of defining the journey ahead.

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Mobile Opinion

Here’s How Google Voice and Alexa Skills Are Transforming Voice Applications

When Apple launched Siri in 2011, no one predicted the success of voice technology. 8 years later, almost 100 million mobile phones have a voice assistant. While Industry leaders such as Google and Amazon hold a major market share, voice technology is useful across varied industry channels. From banking to the corporate sector, every industry is observing an increasing number of voice integrations to fulfill customer demands.

Let’s explore why voice is popular, its applications, the technical aspects, and best practices.

Why Voice is Popular

The increased awareness, ever-changing user-demand, and improved user-services through voice integration have triggered a digital shift. The increasing need for speed, convenience, efficiency, and accuracy has added to the increased demand for voice optimization in mobile and other devices. Voice assistants are being integrated into several IoT devices such as appliances, thermostats, and speakers which offer an ability to connect to the user.

Here are some reasons why voice technology is popular in multiple operating devices.

  • On average, we can speak 130 words per minute and write only 40 words per minute. This count can be more or less dependent on the user but the idea behind using voice is clear. The speed of speaking is 3 times more than the speed of writing. Users can save time that they have to spend typing.
  • In 2012, the speech errors were 33%, and in 2017, it was reduced to 5%. Due to evolving and improving technology, voice search has become more accurate. So, whenever a user speaks something to instruct the device, it is highly likely for the device to understand the instructions clearly without errors.
  • It is easier to access voice technology through hardware. Due to the high adoption rate and easy availability, several users have smart devices such as smartphones, smartwatches, and smart speakers. The accessibility of voice search and integration is also high, which justifies the popular demand.

Voice Assistant: Use Cases

Voice technology is not just valuable in the entertainment industry. Healthcare can benefit from voice integration as it will help patients manage their health data, improve claims management, and seamlessly deliver first-aid instructions.

Let’s explore further to find out where voice technology can be utilized.

Enterprise Support

Consider the following two scenarios, in which you will also find two separate use cases of voice for the enterprise.

  1. A sales representative is on the market run and he is making notes of the activities and important pointers as he hops from client to client. He is writing it all down but at the back of his mind, he is thinking of how he would have to populate the fields of his office software with this data at a later stage. This is tiring to even think of, right?
  2. Everybody is using office supplies and no one is making an effort to replace anything. This goes on until the inventory runs dry and there are no office supplies to use anymore. Assigning this task to a person is such a waste of manpower because his time can be better utilized.

In the first case, the sales representative can directly utilize the smartphone to populate the software field. As he speaks, everything is entered directly to the database, which can be edited later, but the major part of the job is immediately accomplished.

In the second case, Echo Dot can be utilized as a shared device to order inventory supply. You have to maintain the inventory levels and feasibility of the purchase but wouldn’t it be nice to ask Echo to order a box of pens?

Healthcare Support

Voice assistants can lead to seamless workflows in the healthcare industry. Here’s how:

  1. There are multiple healthcare devices to help you monitor your health. For example, a diabetes monitor which can be integrated into your Alexa. The solution can help you follow your medication, diet, and exercise properly – everything through voice.
  2. Similar to health management, non-adherence to medication is a reason for declining health. Voice control can be integrated into Alexa to remind elders to take medication on time.
  3. Alexa Skills are also being utilized to deliver first-aid instructions through voice. When in an emergency, you don’t have to read it, you only have to hear it and move ahead.

Banking Support

The application of voice technology in banking is obvious. You can check your account balance, make payments, pay bills, and raise a complaint. Although these are basic functionalities to help users accomplish the task in less time without any hassles.

In an advanced version, voice technology in banking is currently being explored in collaboration with NLP (Natural Language Processing) and machine learning. In the future, users can expect advanced support from the voice assistant. You can ask the assistant if you are investing in the right fund and the assistant will present statistics to help you understand the situation.

Automobile Support

Another known application of Alexa Skills and Google Voice is in the automobile industry. It is possible to utilize voice technology integration to offer roadside assistance. The voice commands will help you execute emergency automobile tasks without reading it online or even typing it in the search engine. You only have to call out your phone and ask for help.

Application Chatbots

Amazon Lex is a valuable service offered by Amazon to create voice and text conversational interfaces in an application. This service has a deep learning functionality is achieved through automatic speech recognition, which can automatically convert speech to text. Further, the Amazon Lex has natural language processing abilities which offer engaging customer interfaces for high user satisfaction. Both these features of Amazon Lex makes it easier for developers to create conversational bots in the application.

Google Voice and Alexa Skills

Alexa Skills and Google Voice are extensions that help build voice-enabled applications. These are the tools that enable us to make virtual assistants and speakers.

Alexa Skills

Alexa SkillsImage source

  1. In Alexa, headspace is a known skill. Headspace Campfire, Headspace Meditation, and Headspace Rain are all different skills.
  2. To invoke these skills, the user has to speak an invocation phrase. This can be anything but we are using Headspace as the invocation phrase as an example here. This phrase is necessary as your skills discovery is dependent on the phrase.
  3. It is compared on the web and searches with different utterances such as ask headspace, tell headspace or open headspace. Sometimes, it can trigger even when you say, “Alexa, I need to relax.”
  4. The intent of the voice command is to achieve the task a user is trying. Start meditation. The start is the intent here.
  5. If a user says start <game>, the start is the intent and <game> is the slot.
  6. It is also possible to execute a command with intent such as Alexa, launch headspace. This is similar to opening the home page on the browser.
  7. A Fulfilment is an API logic to execute the action or intent such as start <game>.
  8. Lastly, Alexa has its built-in intent which is not governed by an external function. If you say, “Alexa, stop,” that is an internal command.

Google Voice

Google Voice

Image source

Google Voice is similar to Alexa Skills with some minor differences:

  1. In Google Voice, headspace offers actions (similar to intent), conversation logic is a dialog flow, and the agent is at backends such as headspace meditation or headspace rain.
  2. Agent in Google accomplishes actions – “Ok Google, start headspace meditation.”
  3. You can also use “Ok Google, launch headspace” to start an action with no intent.
  4. Google has in-built intents like “Ok Google, help me relax” which gives Google several options and one of these is headspace.

VUX Design Research

When you are building actions or skills in Google or Alexa, it is necessary to know various research outcomes given below:

  1. Understand how different types of users are interacting with the platform or a specific category.
  2. Understand the intent of the user and know the why of using the voice assistant.
  3. Understand how actions and skills are performed with the help of different phrases or utterance.

VUX Design Research

  1. Be Specific – Every user can consume more graphical information compared to voice. No one can sit through the voice commands for a long time. So, ensure that your app is visually appealing.
  2. The introduction is the Key – When the user starts the action with no intent, “Alexa, launch headspace,” introduce yourself. Welcome them and help them adjust to your application.
  3. Prompt Again – When the user stops responding, prompt again. But, do this without overdoing it, just a short re-prompt is enough.
  4. Include Error Messages – You need to include error and help messages to pass certification. For example, ask the user to keep the mic close for the response (tip).
  5. Include Invalid Inputs – When the voice command is unclear, have invalid responses stored for better interaction.
  6. Immediate Response – Avoid delays. You can’t give a 10-second speech before playing the song user wants. If the user says, “Play XYZ,” simply say “Playing XYZ” and just play. When the user says pause, Pause.
  7. Don’t Include Unavailable Intents – Do not include any intent on the app which is not feasible for voice commands. This can lead to certification rejection.

How to Set Up Voice Skills?

Alexa Skill

1. Start by signing in or logging in to your dashboard and then click on ‘Get Started’ under Alexa Skills Kit. After that, click ‘Add new skill’.

2. As we are creating a custom skill, click on the ‘Custom interaction model’ and add name and invocation name. Name is defined for your dashboard and invocation name is defined to activate the skill on Amazon Echo. Once you have entered the skill information, move to the interaction model and ‘Launch Skill Builder’. Here, add the intent name and utterances. The intent is the intention of the user behind a skill.

For example, if the intent is ‘Hello World’, utterances can be, ‘Hi’, ‘Howdy’, etc.

Save this model and go to ‘Configuration’ to switch to AWS lambda.

3. Now, go to the lambda page and select ‘Create function’. There are several templates for ‘Alexa-SDK’, in our example, we will use ‘Alexa-skill-kit-SDK-factskill’.

Enter the name of the function and select ‘Choose an existing role’ from the drop-down. The existing role is ‘lambda_basic_execution’.

In the ‘Add triggers’, you will find ‘Alexa skill kit’ which will help you add ‘Alexa skill kit’ trigger to the created lambda function.

4. Before moving forward, create a test function and copy the ARN endpoint for the next step.

5. Lastly, complete the process by going to ‘Configuration’ and completing the Endpoint section by selecting ‘AWS Lambda ARN’ and pasting the copied ARN here. Click on the ‘Enable’ switch and you are done.

Google Voice

1. Create a Dialogflow account or log in to an existing account. Click on ‘Create Agent’ and add details such as name, Google project, etc.

2. Go to Intent and click on ‘Create intent’. Give your intent a name and add utterances or sample phrases. (Similar to what we discussed above).

3. In the ‘Response’ field, type the message that you wish for your intent to respond with.

Google Voice

1. Asynchronous Information Gathering

Voice applications are hosted on the cloud and asynchronous gathering of information can improve response time. When extracting information, there are several data points, which are on different server endpoints. If there is latency, you can reduce the experience immediately. Your user would have to watch the Light on Alexa Spin until the data is fetched. This is why it is best to use an API to bring data from various endpoints to one endpoint for real-time interaction.

2. Mapping Conversations

Your answers on Alexa should be updated. If you are confused about what to add, look at the FAQ section of your website. If there are FAQs that can’t be added without graphical representation, it is best to not add these.

3. Support Linguistics

Different users can express themselves differently. For instance, you may ask, “Alexa, book a cab to XYZ,” but your friend may say, “Please book me a ride to the airport.” The difference in linguistics is natural to most of us and we don’t want to change it just to interact with an application. If the application itself adjusts to our linguistics, that is something useful. So, add these utterances in your voice assistant to improve the experience of your users.

4. Use Short Responses

If your responses are long, your users will soon lose interest. It is hard to concentrate when the voice assistant is delivering long commands. Users get impatient and leave the conversation in between. Ensure that your voice responses are short and sweet. Also, understand that the sentence that seems shorter in writing may be irritatingly long with voice. So, take extra measures to remove these responses.

5. Use minimum Choices

If you are giving your user choices, stick to maximum 3 choices. Fewer choices are always better, so keep your options to a minimum, always. If you have more choices, it would be hard for the user to recall 1st choice when the assistant is reading out 3rd or 4th choice.

6. Reduce Pressure

Reduce the pressure on the audience by improving your response time and responses. If your voice assistant stays quiet for a very short duration after speaking, you can put the user under stress. Allow a considerable time or even if you have to keep the wait time short, the next sentence should be supporting. For example, would you like me to repeat the list?

Challenges of Voice Assistants

Voice Tech is Ambiguous

Voice tech is often ambiguous because it fails to reveal what users can achieve with it. With visual tech, it is possible to extract functionality through buttons, images, labels, etc. However, something like this is not possible with voice.

Further, hearing something and retaining it is usually harder than reading and seeing something to retain it. That is why it is hard to know what could be the best way to deliver options if the application has several options for a particular action.

Privacy Concerns

Privacy is a reason of concern for every business and more so for ones that offer voice assistants.

Why? Let’s find out:

While Siri is programmed to your voice and it activates whenever you say ‘Hey Siri’, anyone can ask a question. Siri just doesn’t know the difference between your voice and someone else’s voice.

How it can impact us? Of course, it affects permissions.

Think of a child ordering several toys from Alexa. This would happen without parent authorization. This also means that anyone can misuse your credit card if they are anywhere near your Alexa. Voice technology and assistants are convenient but security concern is a major issue.

Conclusion

The consumer-led era today demands platforms and technologies that can simplify and step up the customer service experience. Voice technology is revolutionizing customer experience and enabling personalization at a whole new level. Proactive strategies based on customer feedback, browsing, and purchase trends have become much easier to implement, enforcing companies to upgrade their customer experience models backed by technology.

Factors like speed, convenience, and personalization are key differentiators that influence customer decisions and buying behavior. And Voice Technologies like, Google Voice and Alexa Skills are facilitating this process matchlessly. With most businesses switching to technology-based solutions, Voice Technology is likely to play a crucial role for organizations driven by customer service excellence.

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Mobile Opinion

Memory Management in Android

Java has automatic memory management. It performs routine garbage collection to clean up unused objects and free up the memory. However, it is very important for us to know how the garbage collector works in order to manage the application’s memory effectively. Thus avoiding OutOfMemoryError and/or StackOverflowError exceptions.

Let’s start with the memory structure first. For effective memory management, JVM divides memory into Stack and Heap.

Stack Memory

Java Stack memory is used for the execution of the thread. They contain method-specific values which that are short-lived and references to the other objects in the heap that are getting referred from the method.

Example:

public void methodA() {     
      int a = 10;
      methodB(a);
}
public void methodB(int value) {
      int b = 10;
      //Rest of the code.
}

Stack Memory

Stack Memory

From the above picture, it is clear that local variables of the respective method will be created in the same frame. For example, variable “b” of “methodB” can be accessed by “methodB” only and not by “methodA”, as “methodA” is in separate frame. Once the “methodB” execution is completed, the control will go to the calling function. In this case, it’s “methodA”. Thus, the frame for “methodB” will be removed from the stack and all the variables in that frame will also be flushed out. Likewise, for “methodA”.

Heap Memory

Java heap space is used to allocate memory to the objects. Whenever we create Java/Kotlin objects, these will be allocated in the Heap memory.

Garbage collection process runs in the heap memory. Let’s go through the basic garbage collection process and structure of the heap memory in detail

Garbage Collection Process

Garbage Collection is a process of cleaning up the heap memory. Garbage collector identifies the unreferenced objects and removes them to free the memory space.

The objects that are being referenced are called ‘Live objects’ and those which are not referenced are called ‘Dead objects’.

This process can be triggered at any time and we don’t have any control over it. We can also request the system to initiate GC process in case we want to. But there is no guarantee that it will be initiated by the system, it is up to the system to decide.

Let’s go through the basic process involved in Garbage collection.

Step 1 : Marking

Most of us think that Garbage Collector marks dead objects and removes them. In reality, it is exactly the opposite. Garbage Collector first finds the ‘Live objects’ and marks them. This means the rest of the objects that are not marked are ‘Dead objects’.

Step 2 : Normal Deletion

Once Garbage Collector finds the ‘Dead objects’, it will remove them from the memory.

Step 3 : Deletion with Compacting

Memory allocator holds the reference of the free memory space and searches for the same whenever new memory has to be allocated. In order to improve performance, it is better if we move all the referenced objects to one place. Thus, this step helps in improving the memory allocation process.

Basic GC process

Basic GC process

This algorithm is called a mark-sweep-compact algorithm.

As the number of objects increase, the above process i.e., Marking, Deletion and Deletion with compacting is inefficient. As per the empirical analysis, most objects are short-lived. Based on this analysis, the heap structure is divided into three generations.

Heap Structure

The heap structure is divided into three divisions namely, Young Generation, Tenured or Old Generation, and Permanent Generation.

Heap Structure

Heap Structure

Young Generation – This is where all the new objects are allocated and aged. This generation is split into Eden Space and two Survivor spaces.

Eden Space – All new objects are allocated here. Once this space is full, minor Garbage Collection will be triggered. As mentioned, when the Garbage Collection is triggered, it first marks all the live objects in Eden Space and moves them to one of the Survivor spaces. Thus, Eden space is cleared so that the new objects can be allocated there again.

Survivor Space – After Minor GC, the live objects from Eden space will be moved to one of the survivor spaces S0 or S1.

The below diagram describes the Garbage Collection process in Young Generation.

GC process in Young Generation

GC process in Young Generation

Let’s see how the object is allocated and either flushed (Garbage Collection Process) or moved to an older generation in detail. Each point below explains the respective state number mentioned in the above diagram:

  1. Initially, all objects are allocated in Eden Space.
  2. Once Eden Space is full, Minor GC will be triggered. Minor GC is always “Stop the World Event”. This means that when this process is executed, the application thread will be stopped.
  3. The first step in GC Process as mentioned is Marking. Garbage Collector identifies live objects and marks them. As shown in the above picture, two of the objects are referenced while others are unreferenced objects.
  4. Once marking is done, live objects in Eden Space are copied to one of the Survivor spaces and the rest of the objects are removed. Thus, clearing Eden Space. This algorithm is called a mark-copy algorithm. In order to understand the aging of the objects, let’s consider the age of the object in S0 as 1.

This shows the state of Young Generation after Step (4)

  1. Now, if new objects are to be created then these will be allocated in Eden Space.
  2. Once again Eden Space is full, which in turn triggers Minor GC. Here, objects in the Eden Space and Survivor space S0 are scanned. Garbage collector marks all the live objects in Eden Space and S0. As shown in the diagram, at this stage Eden space and S0 have one live object.
  3. In Step (7), the marking process is completed. Thus GC will move all the objects from Eden Space and S0 to S1. This clears both Eden Space and S0. Let’s calculate the age of the object. The age of the object moved from S0 to S1 will be incremented by 1. Thus, its age will be 2. The age of the object which is moved from Eden Space to S1 will be 1.
  4. Now, if new objects are to be created, they will be allocated in Eden Space of the young generation.
  5. Once again Eden Space is full, which in turn triggers Minor GC. Here, objects in the Eden Space and Survivor space S1 are scanned. Garbage collector marks all the live objects in Eden Space and S1. As shown in the diagram, at this stage Eden space and S1 have two live objects.
  6. All the live objects from Eden space and S1 will be moved to S0. The age of the objects moving from S1 to S0 will thus be 3 and 2 respectively as shown in the diagram. This means that in this process, age will be incremented by 1. The objects moving from Eden Space to S0 will be 1.
  7. This stage shows the object moving from the young generation to the old generation. Let’s set the threshold for the age of the object to move to the old generation to 9. Consider the scenario where the age of the object is 9 in the young generation. As the age of the object has met the threshold, this object will be moved to the Old Generation.

Note: Observe that, at any given time only one survivor space has objects. Also, note that the age of the object keeps increasing when switching between the survivor spaces.

Old Generation – Here, long-surviving objects will be stored. As mentioned, a threshold will be set to the object, on meeting which it is moved from the young generation to old or tenured generation. Eventually the old generation needs to be collected. This event is called a major garbage collection.

Major garbage collection are also Stop the World events. Often a major collection is much slower because it involves all live objects. So for responsive applications, major garbage collections should be minimized. Also note, that the length of the Stop the World event for a major garbage collection is affected by the kind of garbage collector that is used for the old generation space.

Note: Responsiveness means how fast an application can respond. The applications that focus on responsiveness, should not have large pause times. This in-turn means, memory management should be done effectively.

Permanent generation – This contains metadata required by the JVM to describe the classes and methods used in the application. The permanent generation is populated by the JVM at runtime based on the classes in use by the application. In addition, Java SE library classes and methods may be stored here.

Types of Garbage Collectors

  1. Serial GC
  2. Parallel GC
  3. Concurrent Mark and Sweep (CMS) collector
  4. G1 Collector

These garbage collectors have their own advantages and disadvantages. As Android Runtime (ART) uses the concept of CMS collector, we will only discuss Concurrent Mark and Sweep (CMS) Collector here.

GC Algorithms

An important aspect to remember is that, usually two different GC algorithms are needed – one for the Young generation and the other for the Old generation.

We have seen the core concepts of GC process. Let’s move to the specific GC type which is used as default by Android Runtime.

The default GC type used by ART is CMS Collector. Let’s look into it further in detail.

Concurrent Mark & Sweep (CMS) Collector

This collector is used to avoid long pauses during the Garbage collection process. It scans heap memory using multiple threads. It uses parallel Stop the World mark-copy algorithm in the young generation and concurrent mark-sweep algorithm in the Old Generation.

As discussed, Minor GC occurs in young generation whenever Eden Space is full. And this is “Stop the World event”.

GC process in Old generation is called Major GC. This garbage collector attempts to minimize the pause duration that occurs during the GC process by doing most of the Garbage Collection work concurrently with the application threads.

We can split the Major GC into the following phases:

Phase 1 – Initial marking

This is one of the “Stop the World” events in CMS. In this phase, the objects that are either direct GC roots or are referenced from some live objects in the Young Generation are all marked. The latter is important since the Old Generation is collected separately.

Note: Every application will have a starting point from where objects get instantiated. These objects are called “roots”. Some objects are referenced with these roots directly and some indirectly. GC tracks the live objects from those GC roots.

Phase 2 – Concurrent Marking

During this phase the Garbage Collector traverses the Old Generation and marks all live objects, starting from the roots found in the previous phase of “Initial Mark”. This phase runs concurrently with the application thread. Thus, the application thread will not be stopped.

Phase 3 – Concurrent pre-clean

This is again a concurrent phase running in parallel with the application thread. While marking the live objects in the previous phase, there is a possibility that few of the references would be changed. Whenever that happens, the JVM marks the area of the heap called “Card” that contains the mutated object as “dirty”. This is known as Card Marking.

In the pre-cleaning phase, these dirty objects are accounted for, and the objects reachable from them are also marked. The cards are cleaned when this is done.

Phase 4 – Concurrent Abortable Preclean

This phase again runs in parallel with the application thread. The purpose of this phase is to mark most of the live objects, so that the next phase will not take much time to complete. This phase iterates through the old generation objects to identify the live objects. The duration of this phase depends on a few of the abortion conditions such as the number of iterations, elapsed wall clock time, amount of useful work done etc. When one of the mentioned conditions is met, this phase will be stopped.

Phase 5 – Final remark

This is the second and last stop-the-world phase during the event. The goal of this stop-the-world phase is to finalize marking all live objects in the Old Generation. Since the previous preclean phases were concurrent, they may have been unable to keep up with the application’s mutating speeds. A stop-the-world pause is required to finish the marking.

Usually CMS tries to run final remark phase when Young Generation is as empty as possible in order to eliminate the possibility of several stop-the-world phases happening back-to-back.

Phase 6 – Concurrent Sweep

The purpose of this phase is to sweep off the dead objects in the old generation. As the final marking is done, there is no dependency on the application thread now. Thus, this phase runs concurrently with the application thread.

Phase 7 – Concurrent reset

This phase which runs concurrently with the application thread, resets the inner data structures of the CMS algorithm, preparing them for the next cycle.

ART GC Overview

As described, ART uses CMS as the default GC type. CMS tries to reduce pause time by doing most of the work concurrently to the application thread. The basic GC algorithm remains the same. However, ART further optimizes the algorithm process which uses mostly sticky CMS and partial CMS. In addition to the CMS plan, ART performs heap compaction when the app is moved from background to foreground.

Sticky CMS is ART’s non-moving generational garbage collector. It scans only the portion of the heap that was modified since the last GC and can reclaim only the objects allocated since the last GC. As it frees the memory objects allocated only since the last GC, this is much faster and has less pause time.

Partial CMS means it collects all the spaces except for image spaces and zygote spaces.

ART also introduced a new bitmap-based memory allocator called RosAlloc (Runs of slots allocator). This outperforms DIMAlloc by adding thread-local buffers for small allocation sizes.

Overall, the ART improves the CMS GC plan further to optimize the performance of the system.

Restricted App Memory

The heap size limit for an application varies from device to device. To maintain a functional multi-task environment, Android sets a hard limit on the heap size of the app.If an app tries to allocate more memory when it has reached max heap capacity, then it will throw an OutOfMemoryError. However, one can call getMemoryStatus() to know about the memory status of the app’s heap. Also, if the pause time of the GC process is more, then there is a high chance of “Application Not Responding” error. Either way, it results in a bad user experience.

When a user switches between the apps, Android keeps Apps that are not in the foreground in Least-Recently-Used (LRU) Cache. This means that, when the user switches back to the previous app the state/process will be restored. Thereby, improving the user experience.

As an app process is cached, if it retains memory of the objects which are no longer used then it affects the overall performance of the system. When the system runs low on memory, it starts clearing the processes in LRU starting from the least recently used app. Also, the garbage collector estimates which app is consuming most of the resources and tends to kill the process.

Thus, less memory the app consumes, the more likely it is to remain in the LRU cache which inturn increases user experience.

In addition, we need to avoid memory leaks. A memory leak happens when you hold on to the object long after its purpose has been served. This means that if the object which is no longer needed is not unreferenced, then the garbage collector still thinks it as referenced one, due to which it will never be garbage collected.

Tools to detect memory leaks

As discussed, we need to avoid memory leaks to run applications effectively. There are tools to monitor memory usage and detect memory leaks. A few examples include, Android Profiler and Leak Canary.

Android profiler tool provides real-time data to help understand the CPU, Memory, Network and Battery usage of the app. Android profiler is compatible with Android 5.0 and above.

Leak Canary is a memory leak detection library in Android. This library runs along with the app, dumps memory when needed, looks for potential memory leaks and gives a notification with a clean and useful stack trace to find the root cause of the leak.

Conclusion

Even though garbage collection is quite fast, it still can affect app performance. One cannot control when garbage collection will be triggered. Thus, it is very important for us to know how the GC process works and what should be avoided to improve app performance.

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Mobile Opinion

The role of Usability Testing in crafting Digital Experiences

‘Walk a mile in their shoes’ is often used an expression to convey that the design thinking process is built on empathy. As Design Thinking professionals we work on diverse projects and user needs. Sometimes, we may not be able to fully understand the motives, pressures of others’ lives.

Is it really possible for an urban male executive to truly feel how it is to be a single working mom or experience the challenges of say, working in an oil rig? I can never truly feel how it is to be a doctor using a critical patient information app, that too in the pressure of a hospital scenario. I can at best, get a peek into their lives in such a situation.

Hence, in my view, we have to understand ‘empathy’ within a context and realize its limitations as we are all shaped by our own influences, limitations, experiences and biases. That’s where Usability Testing comes into play as it can provide first hand information and insights for actual users.

Design Thinking is a holistic problem-solving framework and involves these key stages:

  • Empathize: Understand the user’s needs and problems
  • Define: Analyze the observations to define the problems
  • Ideate: Think of solution to each aspect of the problem
  • Prototype: Develop solution prototype for each aspect of the problem
  • Test: Test the product using the best solutions identified

The last phase is as critical as any other as it provides directions to product owners, strategists and designers for iterations and tweaks. Also as Design Thinking can play a role in transformation of any process – business development, operations, finance, marketing or product development it can truly impact business growth. In that context direct feedback from actual users eliminates guess work. It can also save expensive re-work in correcting flaws well before they are discovered in the marketplace.

Design Thinking Workshops to Accelerate Digital Product Development

Usability Testing: the fundamentals

The key intent of a Usability Test is to test the functionality of designs with real users in order to get a flavor of ease of use, navigation and other parameters. However, instead of leaving it all to observation and gut feel, the process involves thorough documentation and follows a process. A website, mobile app or any other digital product could be tested through this method.

There are two types of methods:

(a) In-person testing in a laboratory environment and (b) remote testing using a set of software tools. The former has an observer who is silent throughout the process and only monitors the behaviour of users and then reports the outcome. In the latter case, the screen activity, facial expressions are recorded by automated software applications.

The process involves 6 broad stages:

The process involves 6 broad stages

User groups: the participant characteristics are naturally determined by the product intent. As a thumb rule, the sample size should have 9 participants per country (2 pilot, 5 regular and 2 backup).

Tasks: we need to identify key user journeys based on the objective of the app or the digital product. It could be completing a transaction for a banking product or completing a survey in a website.

An example task scenario for a restaurant table reservation app could be:

  • Finding a restaurant
    You live in Charlotte and would like to reserve a table at an upscale restaurant to mark a special occasion
  • Choosing the location
    You would like to find a restaurant which is not very far from your place of living
  • Finding types of cuisines
    Since it is a special occasion, you’d like to experiment with gourmet food, maybe an exotic cuisine which you have not tried before
  • Making a reservation
    You have identified a suitable restaurant and would like reserve a table for two
  • Receiving confirmation and viewing a reservation
    Once booked you would like to receive a confirmation alert and also view the upcoming reservation
  • Editing your reservation
    You would like to change the timing of your reservation and increase the number of guests to 4.

Metrics: we then need to create standards of measurement by which design, ease of use, efficiency and performance can be assessed. The metrics could be objective (metrics that you can measure without relying on subjective interpretation) or subjective (metrics that rely on subjective interpretation of the test participant)

Environment: this includes creating a setup to make the users feel comfortable and have all the necessary equipment at hand. These could include relevant devices, documentation for ratings and a suitable lab test location.

Usability tests: among the various methods used are Task Sheets, heat maps, observations and rating charts. A task sheet typically records the success rate (2 = Success; 1 = Needed Support; 0 = Failed) and time taken to complete a task. While Heat Maps provide a high level overview of the drop and success rate, observations add the human angle by noting facial expressions and other emotional reactions. Finally, asking the users to rate their experience while using the product gives testers and stake holders a feel of the ease of use.

Test Reports: a typical test report will include an executive summary, goal of the test, methods used, data overviews, walk-through of the results of each task and actual quotes (positive & negative) from the users.

Usability Testing is increasingly being adopted by enterprises to minimize risks and validate product features before launch. Across the globe, there are several venues, including academic institutions which host Usability Testing Labs. Moving forward, co-working spaces which offer cost savings and convenience through shared infrastructure equipment, utilities etc., could offer such services to enterprises – all it takes is a room and some basic equipment.

The benefits of Usability Testing

More than ever before, customer experience defines business success today. A poor experience on a website, mobile app or any other digital product can mean loss of a customer forever. Very rarely do customers give brands a second chance to serve them.

At Robosoft, we believe in simplifying lives through delightful digital experiences. A robust Usability Testing exercise gives enterprises a better chance of providing a great customer experience, the new battleground. It can help get validation from actual users and get a first hand feedback if it meets their expectations. It can point to barriers which need to be overcome, help point out errors and assumptions. Those working on any creation can get far too attached to it and lose a sense of objectivity – they may not see the features and navigation methods the same way as the actual user.

Usability testing is a great way to manifest empathy, which is the starting point to any Design Thinking effort. In other words, it is a small but effective investment in the larger scheme of things – well worth the effort in crafting delightful digital experiences.

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Banking Fintech Mobile Opinion

Customer Experience: The Next Battleground in Digital Lending

The banks and lenders today face a stern test of how they can reduce the customer attrition rate for their institutions. Today’s borrowers expect the onboarding and lending process to be fast and convenient – more and more customers now expect it to be done digitally without an actual visit to the lender’s premises.
It is the driving factor behind lenders going through a digital transformation for their services to provide the best customer experiences.

Digital Lending has been an exponentially growing global phenomenon over the past few years. It may have been initially dismissed as a ‘buzzword’ with no universally articulated definition, but the bold foray of Fintech startups and tech giants into the grey space has resolved all market doubts.

And the result has been spectacular.

The global market size of digital lending platforms reached a value of $8.6 Billion in 2021 and expected to reach US$ 20.3 Billion by 2027. This translates to a Compound Annual Growth Rate (CAGR) of 15.39% during 2021-2027.

Increasing consumer demands and expectations have created new markets for alternative methods of borrowing money. And businesses have been quick to understand the importance of customer experience as a differentiating factor. They are proactively leveraging the opportunity to drive efficiency, cut down on costs, and expand.

The competition in the post-pandemic digital lending market is intense, especially for the prime Millennial segment. With a plethora of such players in the market today, it is indeed becoming increasingly difficult for companies to differentiate their offerings. This is precisely where customer experience takes precedence. A great digital customer experience involves understanding user needs, creating a strategic design framework, creating design with emotion and empathy among others. With all other key variables being in a level field, customer experience in digital lending is set to be in the driving seat.

Digital lending: primary drivers of growth

Here’s a close look at the primary factors that are driving this revolution and contributing to superior customer experience in digital lending today:

Digital Lending key growth drivers

Market Impact of Millennials and Generation Z

An influx of tech-savvy Millennials and Generation Z consumers into the financial markets has brought a fundamental shift in consumer ideologies and behaviors. ‘Instant gratification’ is the key for them and digital habits such as online food delivery, cab booking, and grocery/essential shopping has only reiterated this mindset. They have a stronger emotional connection with technology and new-age brands such as Apple, Uber, Amazon, and Google. The perceived ease of use and delight of digital-only products (e.g. Dropbox) is sought to be emulated across all digital experiences.

Hence, this is both an opportunity and a threat for financial organizations. To stay relevant in the market and fend off competitors, there was a dire need for both short and long-term financial instruments that fit into the profiles of such consumers.

Data Collection and Associated Analytics

The proliferation of smartphones in consumer habits is driving more than half of the traffic on the Internet today. With access to a number of digital services, engagement is being driven like never before. The result is an accumulation of data points that can be smartly leveraged by financial companies.

The silver lining? Lenders have the ability to actively analyze the spending habits and repayment schedules of users and profile them with unprecedented accuracy. With such abundant data sets, significant value in the financial sector can now be driven.

Added capabilities in their arsenal include:

  • Generating new revenue streams via data-driven offers and recommendations.
  • Extending better services and security features to customers, such as the detecting card frauds.
  • Managing the risk of lending to customers by determining the probability of repayments.
  • Leveraging Machine Learning techniques to connect relevant card members with the right merchants.
  • Offering market insights to customers while boosting engagement and trust.

Introduction of Innovative Business Models

The inception of multiple digital lending business models to meet varying customer needs and regulatory requirements has only made the case stronger. With niche operations, companies are now able to reach customers who were not able to access financial services in the past. Innovation in space has fended off challenges related to geography, higher transaction costs, and transparency.

Primary digital lending models today include:

  • Online and Mobile Lending Platforms: Offer end-to-end digital lending products via purely mobile or web-based platforms. The entire workflow of lending ranging from customer acquisition, loan distribution, and customer engagement is digital.
  • E-commerce and Social Platforms: Lending is not the core value proposition of such platforms. They instead leverage it as an engagement strategy to boost customer retention and sales.
  • Marketplace Platforms: A typical marketplace where specific algorithms match borrowers and lenders. An initiation or subscription fee is usually charged by lenders.
  • P2P Platforms: Such platforms use profiles and data to match borrowers with institutional or individual lenders. They often include support for repayment and collection processes.
  • Supply Chain Lenders: Short-term and digital working capital loans for SMEs for various needs such as purchasing inventory from distributors or pay-as-you-go financing.
  • Tech-powered Lenders: Traditional lenders with digitized lending processes that include digital acquisition channels and repayment options.

Enablement of Regulatory Environments

With the economic benefits of digital lending now evident, governments around the world have been embracing the shift. In fact, they have been coming up with regulatory frameworks that protect the interest of all the involved stakeholders. Prominent motivators in the sector by global governments include:

  • Issuance of Bit Licenses by the US Government for businesses that deal in cryptocurrencies.
  • Drafted rules for digital lending, such as the ‘Guiding Opinions on
  • Promoting the Healthy Development of Internet Finance (GOPHD)’ by central regulators in China.
  • Implementation of India Stack, an open architecture platform for authentication and data access in India.
  • European Union’s PSD2 (Second Payment Service Directive) regulation enables customers to share sensitive financial data through secured third-party APIs.

With a legal and officially recognized framework of operations, market inhibitors have been efficiently combated. For instance, due to the legal, regulatory vacuum in China, ‘shadow banking’ participants prevailed in the market. This often led to funding mismanagement and liquidity issues for key stakeholders.

Better Speed of Operations and Lower Costs

Digital lending is backed by technologies that eliminate operational bottlenecks and significantly speed up the process of loan approvals and dispersals. An ideal tool can automate the underwriting and approval processes. As a result, lenders are now able to:

  • Execute real-time data assessment for application approvals or rejection.
  • Undertake quicker loan decisions and maximize customer engagement.
  • Constantly monitoring the creditworthiness of borrowers.

At the same time, digital lending business models are much more cost-effective than traditional banking models. Lenders do not have to maintain brick-and-mortar structures or pay for expensive legacy IT systems. Hence, with a significantly lower cost structure, customers receive more affordable loans and access to new financial tools.

How to build a great customer experience in digital lending

The first step to building a great customer experience in digital lending begins with the onboarding process. The very first contact with your website, company and services need to leave a lasting impression. You need to prove why your lending terms are good for users, how they can get money, and which services might be in their scope of interest. The whole interaction should make the potential customers familiar with your services. It inadvertently increases the chance of them wanting more and coming back often to you. Below are 5 ways you can enhance the customer experience to lower the churn rate.

4 Ways to Enhance Customer Experience in Digital Lending

#1. Allow customers to self service

Lenders can provide a good customer experience by eliminating excessive or unreasonable document requests or the submission of multiple applications for multiple products. They can include provisions for easy-to-use and quick processes such as eKYC, e-sign and digital locker with intuitive third-party integrations. Also, easy access to credit scores from the relevant credit bureaus and the subsequent verification of documents in real-time enhance the experience.

A borrower will need more than just necessary product information to make an educated choice. A website or app that can provide support related answers to all their queries across the platform is what every customer requires. Allowing such self-service capabilities improves consumer satisfaction levels, customer retention, and increases conversion rates. User-friendly design, cohesive domain, and consistent web design show customers that they can trust you.

#2. Maintain consistency across all touchpoints

Modern borrowers expect an omnichannel experience from their lenders.

People using digital lending services often switch between devices before completing the activity. Today lenders need to understand the importance of cross channel journeys and the need to extend innovative cross-channel integrations. Also, frictionless digital experiences with near-real-time accountability and continuity across digital and in-person experiences go a long way.

Successful digital lending customer experiences are the ones that deliver a truly seamless multichannel experience.

#3. Adopt financial technology

The time is now for lenders to catch up with the latest technologies to find great opportunities to improve their customer experience. Enhanced security of platforms using biometrics such as voice identification and eye scanners is a great example of how digital is improving the lending business in appeasing customers. Not only this, lenders now have provisions in place for detecting frauds and integration with payment gateways for quicker decision making and disbursal.

Old obsolete banking systems are one of the major attrition factors for lenders as customers now have multiple options to choose from. Good-architectured mobile apps, statistically, have lower churn rates after customer onboarding. This is because the majority of users download an app following the reviews in the Play Store or App Store or recommendations of friends or relatives.

However, when developing an app, consider making it easy to navigate. Solutions with everything at hand are highly appreciated by customers.

#4. Curate personalized customer experience

Personalization and segmentation of messaging and services using marketing automation tools such as CRM systems help a lender stay relevant in this highly competitive market. Successful lenders offer relationship and loyalty pricing tiers and exclusive benefits in a bid to boost retention. They also extend real-time visibility into the status of applications and deliver effective customer-centric communication.

Lending institutions need to leverage customer data to capture untapped opportunities for personalization. According to HubSpot, 59% of customers value the personalized banking experience approach over response speed when it comes to customer service.

Transforming the loan origination journey

#1. Customer Acquisition and Data Capture

Banks use a combination of online channels like emails, social media, SMS blasts, AI chatbots, etc. to attract customers and gather customer data. Banks then use this data to curate personalized digital lending offerings to the customer in an attempt to acquire them to offer their services.

Once the customer data is acquired, banks use the eKYC (electronic Know-Your-Customer) system to automate identity verification. The customers no longer need to physically visit a facility to submit documents for verification. The majority of eKYC platforms also give users access to public or private sector records, which can be useful when a bank wants to improve the quality of its customer data.

#2. Analytics & Data Consumption

Digital lending is mostly about having access to more data and using that data to generate more precise, timely, and automated underwriting decisions. Banks can quickly rate customers and make credit decisions automatically by deploying sophisticated algorithms and data.

A lending software called a Loan Origination System (LOS) uses relatively little manual intervention to automatically gather customer information from pertinent sources, score their credit, and make loan credit choices. The data is loaded into sophisticated algorithms or a ready-made solution to forecast customers’ ability and willingness to repay. The result is obvious: decisions are taken quickly, turnaround times are shortened, and customer satisfaction levels are raised.

#3 Disbursement and Repayment

In the case of digital lending, banks use digital means to both remotely disburse loans and collect repayments. Effective channels for loan disbursement and repayment from partners include things like mobile wallets and e-commerce accounts. By removing pointless paperwork, these cashless channels demonstrate that operational efficiency may be increased.

Additionally, they offer a transparent audit trail, which can help lenders stop fraud. Banks can also consider a Loan Management System if they wish to get a comprehensive perspective of each customer’s lending journey. Customizable repayment plans and durations, aid banks in the proactive identification, classification, and management of loans.

#4 Collection and Asset Management

Data and algorithms are used by banks to support their collecting efforts. Software called Loan Collection System can also assist banks in streamlining disbursement and repayment.

Digital loans, like other loans, include delinquent borrowers being blacklisted and losing access to future credit, which can be a great motivation for them to repay. To help customers comprehend the long-term financial consequences of a bad credit score and to minimize collection efforts, banks are advised to provide them with the required information.

#5 Customer Engagement

By utilizing digital channels and client data, one may create an intuitive, practical, and customized customer experience. This is a two-way communication that involves both inbound (borrower to lender) and outbound(lender-to-customer) channels.

Banks analyze a customer’s spending pattern and send them personalized messages, reminders, and product offers. Customers also can take control of their loan account and manage repayment schedule, raise complaints, ask queries via simple SMS services, contact center help, self-service portals, chatbots etc. This clear open two-way communication enhances a bank’s effort to improve customer experience at every touchpoint of the customer’s digital lending journey.

Additional tips to design a human centric borrowing platform for customers

Appeal to the rational mind

When it comes to money, the rational mind takes over the emotional mind for humans. And if someone had a bad lending experience previously, they are less likely to entrust a new lending platform. Thus, it is important to be as transparent as possible in all the digital lending steps from onboarding to payback by customer. Despite all that, some customers just won’t use your platform more than their utmost requirements and you have to accept that fact.

Give back control to customer

People like to be in control of their finances. A lending platform that allows customizing loan offers based on loan tenure, loan amount, repayment dates, repayment modes, etc. will always be preferred by customers. Designing the app for simple navigation and actions allows customers to have a great experience during the whole lending process.

Keep it simple

Customers already feel overwhelmed by their monetary needs, they don’t need a poorly designed app to add to their misery. The whole process of onboarding, loan assessment and EMI calculation, document uploading and verification, and loan disbursement should be as simple as it can be. Every step should be clearly instructed on what’s been asked from the customer and how to proceed further.

Build intelligent chatbot AI

Another factor that can surely enhance customer experience during the whole lending process is the presence of an assistant. An intelligent chatbot AI can actively help the user to not only guide to their required sections in the app, but also provide necessary information on the go to help ease the whole process.

Consumer credit market trends in the USA

The immediate effect of the COVID-19 pandemic saw a dramatic slowdown of unsecured credit products such as personal loans and credit cards when compared to previous quarters. However, after the reopening of America and the expected addition of jobs and wages helped turn around the declining trend and enable consumers to manage their debts going forward. The US consumer borrowing witnessed a month upon month surge in March-April 2022. This growth was aided by rising prices and continued purchasing power of American consumers.
As the image below shows, the total credit increased $38.1 billion from the prior month after a downwardly revised $47.3 billion gain in March.

Digital lending trends

Source: Bloomberg

Digital Lending Platforms: many players, many intents

Let’s take a quick look at the existing digital lending ecosystem and look at what global market players are offering in this space:

  • U.S Bank: Recently launched a digital lending platform that automates the process from application to funding. Applications can be submitted and reviewed on any device and borrowers can even review loan terms remotely and electronically sign documents. And with an integrated ecosystem, customers can initiate application processes on one channel and pick them up on another.
  • The Halo App: This is a peer-to-peer digital lending platform that leverages an intuitive mobile application to connect borrowers and lenders. It has been specially created to cater to the small-dollar loan requirements of users. It is borrower-centric in the sense that they can slice their payments into smaller pieces. Lenders are available round the clock and borrowers can receive instant cash.

The Halo App

  • Kabbage: Dedicated platform for entrepreneurs and small businesses that provides them access to up to US$250,000 in loans. It takes users just 10 minutes to verify their eligibility. A highlight of the platform is the elimination of origination fees and prepayment penalties. And with an integrated interlinking of business-related information, users can drive automated financial reviews.
  • Faircent: a P2P lending platform that ‘connects individuals in need for credit with individuals and institutes willing to lend their access funds’
  • TurnKey Lender: Intelligent and all-in-one lending automation platform that leverages AI and big data to streamline the elements of a lending process. This ranges from origination to underwriting and servicing to the collection.
  • Better: Better provides mortgage lending, real estate, title insurance and homeowner’s insurance while removing lender fees and commissions. Better’s lenient lending policies and large agent network resulted in acquiring more than $400M in funding and providing $7.9B in home loans to date.
  • PayPay: PayPay is a fintech giant in Japan who is revolutionizing cashless payment. It has more than 47 million customers and offers a range of financial services, including banking, securities, loans, investments, and insurance, to services available across various scenes, such as tax & bill payments, online shopping, restaurants, hotels, and more.PayPay
  • Open Lending: Open Lending serves automotive loan borrowers using big data and high finance to provide risk modeling and decision-making software. The company’s Lenders Protection solutions help lenders utilize proprietary data and advanced decision analytics to increase near and non-prime auto loan volumes, leading to higher yields with less significant risk.
  • SALT Lending: The unique feature of SALT is that it lets borrowers leverage their cryptocurrency for loans. Borrowers can agree to terms ranging from one to 36 months on loans available for Bitcoin, Ether, Litecoin and Dogecoin. It uses blockchain evidence-based, chain-of-custody smart contracts to ensure the crypto is safely transferred. After its huge success in the US, SALT is now expanding its business to countries like New Zealand, Brazil, Switzerland and the U.K.
  • OnDeck: OnDeck is a B2B digital lender which provides personalized loans and lines of credit to small and midsize businesses. Businesses can identify the type of business they operate (restaurant, retail, tech company, etc.) and even define the purpose of the loan (expanding business, hiring employees, etc.). OnDeck accordingly personalizes the payment structure that best fits the situation.

The Verdict

As we venture into a bold new era of digital lending, customer experience is set to play the lead role in the story of financial empowerment. Lenders that can smartly manage ever-changing customer expectations, emerging technological capabilities and shifting market conditions will always be a step ahead of their competitors. As sources of consumer data grow every year, lending institutions will be able to increasingly focus on consumer needs.

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