Public payphones and street taxi hailing are disappearing from urban landscapes, giving way to a new era of communication and mobility. While the remaining payphones barely function and await removal by the telephone companies, the act of hailing taxis on the street is becoming increasingly uncommon.
Nowadays, communication and urban transportation are predominantly digital, thanks to smartphones and mobile applications. Even landline phones are on the verge of extinction. What was once done through gestures and physical calls is now done through digital devices, making life more convenient and efficient.
When we talk about "digital products," we're referring to a wide range of services and applications available online. However, this term can be quite broad and confusing. This raises the question: how do we precisely define a digital product and understand its true meaning? Here's an overview of...
From physical to digital
From the physical to the digital, the definition of a product is undergoing a significant transformation. Traditionally associated with tangible objects found on store shelves, the concept of a product now extends to the digital world in a comprehensive and revolutionary way.
According to a useful marketing definition, a product is any object or service offered in the market for the purpose of satisfying the needs or desires of consumers. Historically, physical products were distinguished from non-material services, but this distinction is becoming increasingly blurred in the digital landscape.
Jules Ehrhardt, founder of the "creative capital" studio FKTRY, offers a new perspective by defining a digital product as any software-enabled product or service that provides utility to humans. In this context, transportation apps such as... Uber and 99delivery services such as iFood and RappiBanking apps and smartphone shopping interfaces are prominent examples of digital products.
This change reflects the growing intersection between the physical and digital worlds.In a time when the boundaries between tangible and intangible products are becoming more fluid, consumers are gaining access to a wider variety of goods and services.
But are they digital products or digital services?
The distinction between digital products and services may seem confusing at first glance, especially when considering examples such as transportation and delivery apps. However, this convergence between products and services is an inevitable reality in an increasingly software-driven world.
For Jules Ehrhardt, the fundamental aspect in defining a digital product is the software. He emphasizes that the point of contact between users and a product or service can occur on various platforms, such as the web, mobile devices, and wearable technologies, but it is the software that serves as the link between the interface we use (front-end) and the system that executes all operations (back-end).
In simpler terms, Rob Boyett of Idean highlights the complexity of consumers' exposure to digital products. He compares this experience to a "soup" of marketing and utility messages, where it is difficult to separate one from the other. Therefore, this reflects the increasingly fluid intersection between digital products and services, where the line between them is becoming increasingly blurred.
We never "have" a digital product.
The dynamics of ownership are a crucial issue when it comes to digital products, as Boyett points out. Unlike physical products, where we generally own the object itself for a period of time or indefinitely, digital products have changed this dynamic. We don't "own" digital products in the same way; instead, we become users of the services they offerFor example, we can rent a bicycle through an app for a specific period or access all of a band's music through streaming services such as Spotify or Deezer.
Boyett offers another enlightening definition: "Digital products are many things with multiple owners, each with the ability to alter the product after the sale is made." This highlights the collaborative and evolutionary nature of digital products, where data collected throughout the consumer journey is used to continuously improve the user experience. For example, a rental bicycle might be equipped with additional accessories based on user feedback, or a streaming service might offer personalized recommendations based on each viewer's listening preferences. This capacity for adaptation and continuous improvement is one of the distinctive characteristics of digital products and reflects the dynamic and interactive nature of the digital environment.
Not everything is rosy.
Although digital products offer many advantages, several challenges have recently emerged in this field. According to Boyett, 2018 was a complicated year for digital products due to the revelation of shady growth-at-any-cost practices and the abuse of data by some companies.
Given these problems, Boyett proposes an update to Jules Ehrhardt's definition, emphasizing the importance of establishing a transparent and mutually beneficial relationship between companies and consumers. He highlights that the benefits of this relationship must be clear to both parties involved.
Thus, the updated definition of a digital product, according to Boyett, is as follows: “A digital product is a software-enabled product or service that offers some form of utility to a human being. And a digital product must provide a mutually beneficial relationship for businesses and consumers. The benefits derived from it must be transparent to both.”
Furthermore, there are other fundamental differences between digital and physical products. For example, digital products have no shelf cost, unlike physical products. Additionally, digital products begin to gain value as soon as they are launched, due to the use of data, while physical products tend to lose value after they are made available in stores.
What's coming next?
As we move into the future, it's clear that digital products will play a central role in retail. Therefore, experts like Jules Ehrhardt and Rob Boyett recognize that consumers will increasingly be at the heart of the design of these products, emphasizing authenticity in creating genuine and relevant experiences.
New technologies, such as voice search, are shaping the digital landscape. Names like Amazon's Alexa and Samsung's Bixby will become more prevalent, with high conversion rates.
"Micro-moments" impact the development of digital products. They are crucial opportunities to connect with the target audience. According to Google, we experience an average of 150 of these micro-moments per day.
Digital products are constantly evolving. While payphones and taxi orders are becoming less common, technology is simplifying our lives. Businesses and professionals need to adapt, seizing opportunities to create innovative and satisfying experiences for consumers. Keep following our blog to stay up-to-date.
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