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10,000 steps might not seem like a lot of activity. But for millions of people, it's such an intimidating goal that they give up after a few days. At least, that's what Google's product folks discovered when they started doing research into how users felt about its Google Fit app, its equivalent of Apple's health software. "We noticed that some of our users were intermittent, meaning they'd open up the app at New Years' but their activity levels weren't sustained," said Margaret Hollendoner, Google Fit's head of product in an interview with CNBC. "We wanted to support the users that were struggling to stay motivated."

Rather than focus on step goals, the company is shifting focus to give more credit to users for exercising in achievable ways, hoping that they'll reach 150 minutes of moderate activity and 75 minutes of vigorous activity. It worked alongside the American Heart Association and the World Health Organization to ensure that its health goals were in line withdoctors' recommendations. Some of the changes include: "Heart Points" and "move minutes" that give credit for activities, like taking the stairs instead of the elevator

Similarly to Apple Watch, Google is also playing with the idea of "rings" that offer achievable goals beyond 10,000 steps

Integration with third-party apps and Android Wear devices to display things like heart rate and other health measurements

What's Google doing right?

A lot of wearable products have gone after the fitness-obsessed, the so-called "worried well," while ignoring those who deeply struggle with nutrition and exercise. Those folks are most at risk of developing chronic diseases like heart disease or diabetes, which represent the biggest cost to the system. Google is trying to target those users with this launch, getting them to do at least some exercise. Google's Hollendoner said the team thought a lot about "small habit changes" that are realistic for people, rather than trying to get those who have historically resisted exercise to get into a serious fitness regimen. And that's certainly better than nothing.

"Other than the cost associated with buying a wearable, there's not a lot of harm in encouraging people to exercise," said Jeffrey Wessler, a New York-based cardiologist and the founder of a heart health start-up called Heartbeat. "Overall, you're bound to do more good than harm." Google has a unique opportunity to reach a diverse population, as the Android ecosystem is much more popular than Apple's iOS globally and it offers plenty of affordable options.

Taking it a 'step' further