Kentico

The term Internet of Things (IoT) was first used in 1999 but still hasn’t really made it into mainstream conversation. However, IoT, the concept of being able to connect any device to the Internet and to each other, is by its very definition infiltrating every part of our lives, so we should be ready for it. And Asian businesses should get well prepared for a whole new relationship with their customers.

Using IoT for business marketing

Today, IoT has a huge part to play in customer experience no matter the business or customer type. More things have been connected to the Internet over the past 10 years than there are people on the planet. And researchers predict that there could be as many as 50 billion connected things by 2020, with each human owning 20 or more connected devices.

When your marketing is linked to your customer in this rich and contextual way, you can listen, see, track, record, and make sense of their actions, connections and relationship with your brand, and you can ensure their next interaction with you is directly relevant to who they are, what they want,and why.

And with our identities and social lives now being defined more and more by our online presence, this kind of insight puts you in a strong position for true two-way dialogue on the customer wave-length.

Time for change

Despite the transformation in how Asian businesses communicate with their customers, the number one goal remains the same: relevance. To leverage the power of IoT requires a shift in mindset and thinking outside the traditional marketing environment. Businesses need to whole-heartedly adopt responding to real-time data in an omnipresent way, so that they’re not just sending the right message to the right person, but also at the right time and to the right device.

While traditional marketing tends to answer “what?” about our customers—“what do they like?”, “what do they spend?”, “what can we recommend?”—IoT answers “why?” And that’s the advantage of IoT to businesses across Asia: understanding why!

[CIOS_QUOTES_REPLACE] How IoT is being used today

When you know why your customer does the things they do and wants the things they want, you know them better than most of their social group. Some businesses are using IoT today to bridge the disconnection between customer expectation and business capacity by keeping customers updated and entertained while they wait for deliveries, to be seated or for support, helping avoid frustrations, inbound queries, and abandoned purchases.

Services and shops are sending notifications to nearby devices with special offers or coupons, some even tailoring discounts depending on the part of the store the customer is in. Smart appliances and devices inform owners when refills are running low, or will automatically order them online. They can even inform manufacturers or repair shops of breakdowns.

The use-cases for IoT is limited only by our own imaginations. But there are some warnings to be heeded.

Change brings opportunities and challenges

From a marketing perspective the benefits of IoT are obvious, but it should be noted that the opportunities presented by technological advances do come with some challenges. Considerations such as a customer’s right to privacy, ensuring personal data is protected, and not overloading consumers with messages should all be addressed for IoT marketing to be effective and responsible.

Marketing through IoT should be about creating mutual benefits for both brand and customer and should be part of a strategy that empowers each equally. It should start with empathy, transparency, and respect. Businesses need to ensure that their IoT activities are helpful, not intrusive, that they use insights wisely and respectfully, keep communication relevant and precise, and put customer service above marketing.

As for privacy, the amount of data that IoT devices can generate is staggering which creates issues around how to store, track, analyse andhow to protect it. More data means more entry points for hackers, leaving sensitive information vulnerable.

To help protect data in an IoT environment, businesses need to undertake actions like investing in real-time backups, firewalls, and powerful software protection. They should plan for a breach and hire security experts to test the system constantly, along with encrypting stored data, insisting on a two-step verification process and requesting frequent password changes.

IoT is customer experience optimisation

Businesses across the Asia Pacific region should be utilising IoT today for end-to-end experience optimisation, offering relevant services (and products) that match a customer’s real life, in a real way, in real time. In a world where ever-expanding connectivity is the reality and customers begin to expect the seemingly impossible, being a company that delivers but doesn’t impose will put you out in front.