Is IoT analytics the key to better customer loyalty?

Is IoT analytics the key to better customer loyalty?



The number of devices connected to the Internet of Things is growing exponentially. According to the Cisco and EMC report we`ll see between 50 billion and 200 billion connected devices by 2020. The impact of so many devices, multiple sensors and the enormous volumes of subsequently created data will have a dramatic effect on the marketing industry.

Moreover, marketers can`t wait to get that “all-inclusive” customer information in their hands. Why so? The answer is quite obvious. Things can deliver more and better information to both sides, therefore IoT analytics is considered as a new and powerful marketing tool.

What marketers get is not just the information describing how customers react to the company, but how they use the company`s devices. The information is gathered real-time and round-the- clock, which provides marketers with more opportunities to create personalized campaigns, offer customized services and deliver better user experience. Analyzing how users interact with their devices – fitness trackers, for example – marketers can finally create comprehensive customer profiles. Now they know their target audience is not merely people who love sport, for example, but they also prepare for marathon, which is a really important piece of information. Having personal details gathered by wearables or any other things, companies can offer more customized services, be it a new fitness regime to help prepare for marathon or some super effective protein cocktail.

Actually, I have a real example to prove my point. Recently we`ve finished a project for a provider of self-service vending machines. Having thousands of vending machines all over the country, our client lacked the opportunity to effectively control all of them at once. Along with that the staff wasted hours for unnecessary manual work. What we created for them was kind of a network of vending machines.

With the sensors installed and the developed software, the machines provided our client with the information by themselves. The company had up-to- date information about the consumables – availability, popularity rate, the “rush hour” periods, etc. The data gathered by sensors allowed understanding the needs and preferences of consumers, and create specific offerings depending on the place. The client knew what the target audience wants, when and why. The new approach to information gathering and analysis has become the pivotal part of client`s marketing strategy. As you may see, information is what marketers want, need and love. IoT analytics makes volumes of data available. Information is the key that helps companies to know their customers, users and make their life more comfortable.

Despite the obvious advantages, IoT analytics works only for those who know how to use. It`s not the rocket science, still to implement it, marketing departments have to become more technically-savvy. Things won`t bring information just because marketers need or want it. We have to “make” them do it the way we need. Therefore, the discovery of customers` “secret desires” begins with the right technology. This is the fact that cannot be omitted. Applying the IoT driven look to the marketing, companies acquire the opportunity to rush forward and leave the competitors far behind.

So, is IoT analytics the key to better customer loyalty? The short answer is yes. When the customers trust marketers with personal information, do your best to use it the right way.