Internet of Things

Internet of Things (IoT) in simple terms  is the interconnectivity between things using wireless communication technology (each with their own unique identifiers) to connect objects, locations, animals, or people to the internet, thus allowing for the direct transmission of and seamless sharing of data.

Communication is the key in concept of Internet of Things. In IoT, everyday devices will be able to automatically exchange information over a network. IoT will also impact on our everyday lives by changing how we monitor traffic, weather, pollution, and the environment, and how we collect relevant data. However, with an influx of connected devices, we will also see an influx of data, where every device will be programmed and tracked. The question is: how can marketers use the data to enhance the performance of their business?

The internet of things brings about an opportunity to measure, collect and analyze an ever-increasing variety of behavioral statistics. In theory, the cross-correlation of this data could revolutionize the targeted marketing of products and services.

Here are 5 ways that IoT will improve marketing ROI:

1.      Easy Exchange of Sales Data

Accurate sales data is the key to any successful business. By having access to information regarding how, where, and why the products are being purchased and used, and the companies can better tailor their marketing efforts towards specific clients.

Smart devices that can gather this data and supply it back to in real time, without the need for IT professionals to direct or monitor the interaction, will allow businesses to create informed marketing strategies and improve ROI on future sales. More importantly, customers will be able to provide useful feedback instantaneously. So, if a specific product isn’t living up to expectations, the company will instantly know the reason behind it and take corrective action accordingly.

2.      Smarter CRM: Instantaneous Customer Analysis

customer relationship management (CRM) tool will help to efficiently and accurately analyze gathered data and provide actionable results regarding consumer base.

For marketers, this can be invaluable, given that the buyer’s chain of command is often long, and decisions take more time to be made. IoT devices can streamline this process by helping understand where the prospect is in their buying journey so that issues are resolved faster and help them serve the right information that will nurture them to ultimately close a deal.

3.      Devices That Know They’re Dying

One of the more promising aspects of smart-enabled products is their potential ability to perform their own regular maintenance and diagnostics. With the power of IoT, every component is “smarter” so the ability to identify the problem, as well as the solution, will be lightning-fast.When it comes to conventional items and devices, often the first sign that anything is wrong comes when the device abruptly stops functioning altogether. When this happens, there’s not much that can be done, aside from getting it repaired or ordering a whole new device and waiting for it to arrive. IoT devices could eliminate that downtime by constantly monitoring their own functions and contacting technical support when necessary. And should a major, irreparable problem be detected, the IoT device could easily order a replacement for itself, so that when it finally does shut down, the new model will already have arrived and be ready to be put into service. The same goes for upgrades. Many users put off upgrading their devices out of fear that the new upgrade will be buggy, time-consuming to implement, or that something will go wrong. Unfortunately, failing to upgrade software often leaves the devices open to security compromises or known problematic issues. IoT devices would take feet-dragging users out of the equation by searching for, downloading, and installing new upgrades completely on their own (Forbes-Sales force voice, Aug-2014).

4.   Predictive Social Media

We all know how social media sites such as Facebook and Twitter contributed to increase in web traffic. Today, 74% of brand marketers report that they see a noticeable increase in web traffic after investing a mere 6 hours a week in social media marketing efforts. The IoT is already optimized for use with social media, allowing automated posts and shares to be regularly generated by the devices themselves, and preparing the way for new online communities to develop centered on users of particular devices. Marketers, who are able to predict the development of these social communities, and target their efforts towards these communities, will be able to reach potential customers that may not have previously been available. Likewise, IoT devices, when coupled with social media, will allow marketers to identify and take advantage of new emerging trends.

5. Imagine a 100% CTR (Click through Rate)

As increasing numbers of our once-unconnected devices and objects are being fitted with sensors and given constant network accessibility, the face of advertising will change for both the marketer and the consumer. No longer will marketers rely on banner ads or popups based off a website you visited on Tuesday; most IoT devices will be completely unable to process or even display such crude ploys. As a result, the age of the interruptive commercial will finally come to an end for consumers. In its place will be a new world in which advertising must be beneficial and completely relevant—where no prospect is served an advertisement that doesn’t align perfectly with their interests, behaviors, and past purchases.

Not only will the consumer save time by only being served relevant ads, but marketing will no longer waste thousands of dollars on irrelevant advertising. Marketers would need to have a detailed understanding of their consumers in order to take advantage of the new opportunities being made available, but those who are able to make the transition will find that the IoT allows them the opportunity to stop being marketers, and finally start being valued business resources.