Hello SOTGC community,
The Internet of Things (IoT) is something that every marketing guru is talking about. How does the marketing function leverage the connectedness of a community and the smart devices that keep people’s attention? IoT offers endless opportunities for marketing gurus to observe and respond to the needs of their listeners based on responses and behaviors. It is called client-centric marketing.
While Internet users are rapidly expanding, devices that are “smart” and enabled are growing at an even faster rate. What effect will this have on marketing? Every piece of data that is captured from your things can help you understand customers so that you know what product to push and when, as well as which customers to push it to. The IoT defines the who, what, when, where and why for markets in creating strategy, campaigns, and plans. It provides direct knowledge into what the target demographic demands.
The Internet of Things term was penned in 1999 by a British technology pioneer named Kevin Ashton. Wikipedia defines the IoT as:
The Internet of Things (IoT) is the network of physical objects or “things” embedded with electronics, software, sensors and connectivity to enable it to achieve greater value and service by exchanging data with the manufacturer, operator and/or other connected devices. Each thing is uniquely identifiable through its embedded computing system but is able to interoperate within the existing Internet infrastructure.
To give you an example of how the IoT has evolved past smart phones and tablets: There are smart refrigerators now being built that will connect to your email and phone. They will track UPC codes that have expiration dates tied to your groceries. So when your milk is reaching its expiration date, you will get a notification to your phone letting you know to pick up milk. Think about this for a marketer. If the milk manufacturer partners with the refrigerator company, they can then cooperatively work to attach a coupon for a specific type of milk at your local grocer.
The IoT is going to play a major role in the way business is conducted and information is assimilated in a more collaborative world. When Twitter and Facebook came onto the scene many years ago, most of the marketing world was not very convinced or confident that these new “social media” sites would truly be worth targeting. We all know now how successful that turned out. As of today, more than 70% of marketing gurus report that they have seen a noticeable increase after putting in a mere six hours a week in social media efforts.
The Internet of Things is already developed for use with social media, allowing programmed posts and shares to be constantly generated by the electronic devices themselves, preparing the way for new online communities created around users of particular devices. The IoT also adds an ever-developing number of channels with which to interact with clients. With this lies the challenge. As the personal nature of connectedness continues to increase, marketing will be under constant pressure to show relevance according to the client’s experience and behaviors.
Marketing will need to use client insight to produce contextually relevant interaction. It is necessary to prevent clients from feeling they are being watched and in a “big brother” state of mind to a self-consciousness and produce better customer power through valuable offers and information.
Essentially, the combination of the IoT with big data will allow the businesses of the future to accumulate fantastic insight into customers. This trend may positively change the way we create products and services, how we sell and market them, and ultimately, how we communicate with clients.
To leverage the IoT for your business, contact Blue Ocean Principles for a free marketing strategy consultation.