The annual CES convention in Las Vegas is known as the launch pad for a dizzying array of hardware products ranging from concept cars and super-thin TVs to laptops and tablets.
So it might seem odd that rather than introducing a new fitness-tracking device, Fitbit (FIT) rolled into the show with a number of software updates for its existing wearables including new social features, an update to the company’s Fitstar app and compatibility with non-Fitbit devices.
The move, though, is part of a strategic turn for the device maker as it seeks to decrease its dependence on hardware sales and increase the importance of its software business.
“I think part of it is that we are trying to shift the perception of Fitbit from being just a hardware company to a connected device company where software is equally, if not more so, important,” Fitbit CEO James Park told Yahoo Finance.
“I think a lot of those announcements that we made really reinforced that fact, whether it’s our community feed, which I think is really critical for maintaining engagement and retention of our users,” he said.
User retention is of the utmost importance for a company like Fitbit, too. According to a survey by market research firm Gartner, 30% of fitness tracker owners abandon their devices because they “get bored of them or they break.”
Fitbit sees social features like its new Community Feed as a means to encourage consumers to continue using their devices long after the initial honeymoon period of buying their trackers wears off.
The feature, which launches in March, allows users to connect directly with their friends and family through the Fitbit app where they can share their workout stats, something Park says people already do via Instagram and Facebook (FB).
Full story at Yahoo News.
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