December 1, 2017
The internet of things presents endless opportunities for marketers. Devices connected to the internet measure how consumers behave, buy and interact. All of which is valuable information for marketers.
IoT devices provide a live stream of information to manufacturers about their customers. The devices themselves are conduits to end users that will allow companies to assess and update marketing strategies in real time based on real feedback. Forbes describes this phenomenon as a constant focus group.
IoT and Proactive Product Development
One of the most key pieces of information marketers can leverage from IoT is product performance. Usage patterns and customer feedback can provide insight for design enhancement on existing products or features for completely new products. This allows companies to take a more proactive approach on product development. IoT creates new ways for marketers to develop deeper relationships with customers and to make products that serve them better based on real data.
Real vs. Filtered Data
A recent Forbes article features an interview Deon Newman, Chief Marketing Officer for IBM’s Watson IoT. He describes data generated by IoT devices as real versus filtered. For years, marketers relied on focus groups and surveys to obtain consumer insight. While these methods can prove effective, they usually don’t paint a completely truthful picture. How consumers respond on surveys or in focus groups often differs from how they actually behave or buy. This information can be captured through IoT.
In addition to learning how consumers behave and how the actual product performs, IoT devices can help marketers correlate data with existing customer information to obtain a better understanding of their customer demographics.
Creating New Revenue Streams
IoT devices will bring value to both consumers and companies alike through data. They will also create additional revenue streams for manufacturers and retailers. Newman explains how a washing machine can do more than simply wash clothes. An IoT enabled washing machine can also offer to replenish and order detergent when running low. This generates revenue for the washing machine manufacturer and the retailer it orders from.
Overall the intersection between marketing, IT and product development will call for companies to collaborate internally in order to make the most out of IoT data and create the best customer experiences.