With the Apple Watch kickstarting the wearables trend, analysts are predicting it will be a $27 billion market by the end of 2015. Early adopters who are using FitBit, Jawbone, and the like are utilizing the data to improve lifestyle habits while some are using purely for self-awareness. Others are using watches to stay connected to their smartphone, and the wide majority, 38%, use it so they don’t have to pull out their phone to see text messages, according to a Business Insider Report.
The market is predicted to double from 30 million fitness trackers to 60 million in 2015. Eighty-percent of these trackers are being sold in the US, and a minor percentage stop using the device.
When all the math is done, about 15-20% of consumers will be wearing a smart accessory by early 2016.
In a recent survey of retail shoppers, roughly 70% expressed willingness to provide data in exchange for rewards or incentives. In other words, customers are looking for a reason to strap on their wearables and get moving. Brands can provide this incentive and motivate a customer’s healthy lifestyle.
Strap, a data collection service, has already been working with brands to collect fitness and lifestyle habits and start rewarding those who reach their goals. Walk 10,000 steps a day for a week? Brands could start rewarding you with a protein bar, deodorant, and other health and lifestyle products.
Location tracking adds another layer that could help brands target and reward you – hit your mileage for the day? Stop by a nearby opt-in restaurant for a healthy snack.
Rewarding and incentivizing not only allows brands to get their products in front of their target market, but it also helps users maintain motivation to reach healthier habits. If a user is 1,000 steps away from receiving a reward or prize, he or she might get up and move, take a walk, and reach his or her fitness goal. Even if it’s walking in place in front of the TV, it keeps users moving and healthy.
Even beyond the incentive of a reward or prize there is the motivation that you could interact with a celebrity. With the Challenged app, a user can take daily challenges that are made available from friends, companies, and celebrities to participate in a certain activity. It is heavily geared toward the social network exchange but provides a way to actually be cheered on and compete against someone a person admires. That is often more enticing than even money or prizes.
How Far Will the Wearables Market Go?
As wearables continue to grow in popularity, brands will continue to find ways to tap into users lifestyle habits and place valuable products in front of them like a carrot to keep them moving and healthy. It’s a win – win. And perhaps as more brands start to incentivize users, more consumers will want to have a wearable.