It’s no secret that technology is an essential part of our everyday lives. People simply enjoy the benefits that the online world and technology have to offer. That being said, modern businesses are aware where their customers are, and they’ll leverage any advantage they can to capture their customers‘ interests and outrun their competitors. The Internet of Things (IoT) is proof of technology’s ever-growing presence in people‘s lives with over 6 billion connected devices across the world.
Simply put, IoT is a network of devices that can connect with each other over the internet and gather, as well as broadcast data via sensors or beacons. But what does that mean for online businesses and digital marketing? Even now, businesses and digital marketers are gathering data about online consumers and their behavior, preferences, needs, and demands, to win them over. With IoT being present in consumers’ lives, access to more in-depth data about consumers is available to businesses. It’s safe to say that the data provided from IoT devices will, and already is, reshaping digital marketing. Let’s have a look.
The importance of big data
As mentioned before, online businesses and digital marketers are gathering data about their customers, by tracking various metrics and analytics across multiple channels. The purpose of that data is to gain more insight into how consumers behave online. For instance, their purchasing habits, interests, needs, and desires. By having that information, online businesses can create more effective marketing campaigns, offers, and promotions that will surely interest their target audience.
On the other hand, IoT omnipresence is evident, as people include smart devices, such as TVs, appliances, alarms, thermostats, etc. in their households every day. However, these smart devices can provide much more data about consumers than online metrics can. It’s estimated that IoT devices will produce 600 ZB of data per year by 2020. Not only that, but IoT can also provide more accurate and insightful information on consumer behavior and preferences, allowing businesses to produce more personalized offers and introduce more customization into their marketing efforts.
Difficulties in analyzing data
Gathering huge amounts of data is worthless if it can’t be interpreted properly. Online businesses need to find ways to effectively analyze the data gathered from IoT devices, to identify important information and spot opportunities that will bring value to both consumers and businesses. For example, having a digital marketing dashboard, like this one developed by one New York-based SEO company may help track data through the different stages of a customer’s journey, so that a business can communicate their message at the right time, to guide consumers toward making the purchasing decision.
However, this needs to be done precisely for it to have the best outcome. Furthermore, IoT can provide marketers with more than just raw data. Information about what type of coffee consumers like or which room temperature they prefer can be gathered from smart IoT devices located in consumers’ homes. Still, businesses need to determine how to best make use of that information to create custom offers and ensure that consumers will find them compelling enough to engage.
A focus on developing new devices
IoT devices are designed to help people out in their everyday lives and improve their overall quality of life. What’s more, consumers can communicate with their smart devices in order to create an environment that will suit them best. Large companies have therefore developed devices that will improve that communication, such as Amazon‘s Alexa or Echo.
More businesses will start to develop their own IoT devices in order not just to gather data more effectively, but also offer more value to their customers and establish effective communications with them. In fact, it’s expected that there will be 22.5 billion IoT devices by 2021. In addition, people generally prefer having personalized and customized offers coming their way. However, businesses that develop new IoT devices will have to be careful not to overstep the boundaries of privacy when gathering data and personalizing offers.
More collaboration between businesses
The value of big data provided by IoT devices can lead to great opportunities and long-lasting partnerships. Businesses that see the potential in collaborating with other companies to deliver a seamless customer experience to their consumers will undoubtedly be able to reap the benefits and share success. For instance, a smart refrigerator manufacturer can collaborate with the local market to order and supply groceries whenever the fridge detects that it’s running low on provisions.
Also, a smart coffee maker can alert a partner coffee supplier about a consumer’s preferences. That way, the coffee supplier can offer personalized offers for their coffee beans. However, businesses that decide to collaborate will have to create an environment where teams can share information and cooperate on product design and placement, in order to deliver offers that their customers won’t refuse.
The Internet of Things is a growing trend that many people see value in. As a matter of fact, IoT popularity is growing, from using smart household items to developing smart cities in the future. Needless to say, technology plays a vital role in reshaping people’s lives, and it also plays an essential role in how digital marketing evolves.
