Tagged: marketing

Internet of Things: a Marketing Revolution

Working with Marketing teams to develop  IoT solutions or products is one of the challenges we have in Carriots. This happens because Internet of Things has changed  the vision of some aspects in marketing related with connected products, like: the product lifecycle, the customer engagement or the quality of the service.

Managing the product lifecycle – imagine that you buy a car. Traditionally a car had not a connexion with Internet. Nowadays, most of cars are connected in many different ways and that situation generate new management opportunities and challenges:

  • New business models: most of vehicules are connected products that offer new services to users. On the first year these services can be free and after that they mostly start to have a cost per year or trimestre. The weather service or the parking information can be some examples. This “add-on” is indeed a new business model for brands that obtain new benefits after the sell and now marketers need to learn how to manage this. For example marketers now need to focus on the conversion process of a free trial service into a subscription.
  • New software updates that offer new features. Software updates have become a daily routine, where our mobile apps constantly add new features and this is also becoming normal in connected products using software in the user experience like a Tesla car. Imagine the power to introduce new features to the product by downloading an actualization that transforms the product into  something different from when the customer acquired it.

 

Photo by Laura Gariglio 3
Photo by Laura Gariglio

Customer engagement.-

  • Some weeks ago we wrote a post about that ( you can read it here) . The conclusion was that now you have real data about your clients and how is their relationship with your products. If you offer them something in exchange (for example, the weather forecast for free in the cars) the customers might share with you information about how they use your product.
  • But is not only this, marketers can also track information about how the customers share their product usage in social media . This is information about how people use your product and it is a good feedback.  Marketers here can play a big role, not only analyzing that data . They can cheer up people to use their media to share experiences and create challenges for the customers. Nike, for example, has a big community of runners using their products and sharing information (#justdoit).  

Quality of service.

  • For companies: Like recently was in our post about Condition Monitoring and how Internet of Things are changing the maintenance processes. Including some sensor in products and introducing IOT Data Analytics you can improve a product. A better maintenance increases security and reduces costs. The company not only sells just a product, it is now a connected product that offers new quality guaranties that were impossible before.
  • For customers: Internet of Things can change your relationship with a product. Recently, Jaguar and Shell announced that they launched together the first in-car payment system. It works via Shell app and Shell service stations and is a part  of the new jaguar XE, XF and the F-Pace.The system provides a new step in the quality of service  for both companies: Shell offers something different from another’s gas stations, a benefit for customer: commodity. And Jaguar offers to their clients a new experience, another option. For sure, we will see more of this type of alliance in the near future.

jagshellcashlesspaymentimage15021710-resize-1024x768 (1)

 

Internet of Things is a marketing revolution in someway, because the teams need to have a deep knowledge about  this new features and services that no were available before.

Learning about Customer Engagement with IoT products

Nowadays in the Internet of People, many businesses rely on collecting big data on how users surf the web or share content in exchange of free applications such as social media, search engines or websites. Most business analysts state that people are the product and advertising is the income.

Consumers mainly pay for physical products like Cars, TVs, smoke detectors, etc… and these products are more and more connected devices to your smart phone or directly to the Internet. This connection enables the manufacturer to offer new features like real time traffic info for cars or online content for TVs.

Imagine you buy a new car that has embedded connectivity and your dealer ask you these questions: “Are you willing to share data from your car with the manufacturer? And what do you want in exchange?”

Well you can find a similar question Accenture Report, The Internet of Things: the Future of Consumer Adoption”

Survey Accenture

So many customers are willing to share their consumer habits in exchange of a free service or Feature.

If a connected product has an active connection to the Internet then the cost of collecting info on how your customers uses your product is just a few dollars (or euros) per year. Information on customer engagement with a product is something very new and very valuable. For example it helps the designer of the product to understand how the customers use the product and how to design the new version or new features.

So the Marketing potential for manufacturers of connected products is huge. The problem is not technology. The main concern should be how these companies build a relationship with their customers to be:

  • Clearly stated: If you buy a product that collects info on your habits: you should be noticed and be aware of this.
  • Accepted by the consumer: There should be mechanisms for the consumer to “opt-out” is this data exchange.
  • Secure and Private: The manufacturer should provide ways to offer privacy through making data anonymous or control third party info exchange like brands, advertisers, friends and family.
  • Fair: Most users will only accept this data collection if there is an incentive form them.

Brand Research and Analysis companies like Altimeter Group  are already doing reports on how to craft a digital strategy and the possibilities of customer experience in IoT products. On their report you can find their recommended methodology to build your strategy:

4 steps to architecting consumer IoT experiences

Customer Engagement Analysis of connected products should be a priority of any Digital Strategy. Carriots IoT platform is already evolving to support this.