PPB July 2018

PPAI Exclusive Research | FEATURE driving force behind Moore’s Law lives on. Unlike the previous waves of technological transformation, IoPP is predicted to trigger more innovation, productivity gains and economic growth than ever before (Figure 7) . Connected products will create opportunities that broaden the value proposition beyond the product itself, and growthwill no longer be limited to physical product sales, but extend after the initial sale. The IoPPwill enable real-time communication between products and consumers, taking the guesswork out of advertising strategies, and customers are willing to pay a reasonable price as long as they can expect a high degree of value. The 2017 PPAI Buyer Study revealed 89 percent of decisionmakers at U.S. brands would spend more on promotional products if a tracking technologywas offered in conjunctionwith them. On average, themajority indicated theywould spend an additional 10 percent for that technology. Additionally, 41 percent of larger companies with $50million ormore in sales revenue reported theywould spend upwards of 20 percentmore on promotional products if trackingmethods weremade available (Figure 8) . Granata says, “Having this data would help us prove ROI to our clients. It would help us to sell more effective solutions faster without guessing which products are the most effective. It would help the industry by giving us the data to prove our worth and help our buyers make more informed decisions.” A Smarter Future Over time, the IoT space will mature and, much like the transistor chip, it too will fade into the infrastructure and interfaces of our lives. The smart product economy is commonly equated with technology; however, the IT sector falls short in measuring the complete scope, because as global management consulting firmMcKinsey and Company noted, “Digitization, like electricity, is a general purpose technology that underpins a huge share of economic activity far beyond the sector that supplies it.” Innovation is punctuated bymoments of discovery—moments when something new and important is suddenly discovered. Yet, future innovation won’t be about continuous, new iterations of products, but instead it will be about finding newways to make people value and want the products. A better understanding of what people value, how they behave and how theymake decisions could generate just as much economic value. Success with smart products will require integrating the explosion of product data into the monolithic business model that functions today. This will be an era of man to the power of machine: not man versus machine, but man and machine. Thriving in this digital era of promise and uncertainty means increasing the velocity of innovation, experimentation and collaboration. The main engine will not be new technology— it will be people. Figure 8: The Smarter Upsell Source: PPAI 2017 Buyer Study Company Size (By Sales Revenue) Percent Increase (Of Total Order Cost) UNDER $10M $10,000,001- $50M $50,000,001+ 6% - 10% 11% - 20% 21%+ How much more would your customers spend if a tracking method was available? ROBYN’s Big Red Button The Big Red Button (BRB) marks Oklahoma City-based distributor ROBYN’s entry into the smart devices scene. When the BRB is pressed by the recipient, a process is triggered that immediately connects the user to the caller’s dedicated account executive. If the AE cannot be reached, then the call is distributed round-robin style to the sales team. If unanswered, the caller hears a message that a “Swag Expert” will respond soon. “As distributors, we all try to add value to the products and campaigns that we sell,” says Eric Granata, ROBYN vice president of business development. “The connectivity found in our smart button provides the opportunity to collect data, gauge effectiveness and gives the recipient a reason to continually interact with our client’s brand.” The Big Red Button does not require a wi-fi connection and is ready to use out of the box. Individual buttons or fleets can be programmed remotely to give it new abilities. He adds, “What makes this button different than others in our industry is how versatile it is.” He cautions, however, that introducing products and services like this is not for every distributor. “Selling this solution is not as easy as slapping a logo on a product and shipping it. In addition to the development, considerations must be made for device management and end-user support. It’s a daunting project, but we think it will be worth the effort.” Moumita Das is research manager at PPAI. | JULY 2018 | 33