Mass mailings, wild posters, countless ad placements... welcome to the watering can principle of yesterday's marketing - caused by the uniform approach to all existing contacts from the customer file. The result: high wastage and lost sales opportunities, because it is simply impossible to address the real needs of every customer in this way [1].
The increasing digitalization of customers, companies and the entire environment has also initiated a turnaround in marketing and ensures a better and, above all, more efficient use of resources. More precise target group orientation through Interest-driven campaigns. On the supplier side, for example, the Tracking at IP levelwhich is characterized by Retargeting-measures to find out what interests the user in order to stimulate them to make further purchases in the next step. Companies have made a start here in getting to know their (potential) customers better. What is still missing, however, is information about how customers actually use products or services. The Internet of Things can now change this!
The power of product usage data through IoT
A fictitious example: A company has a networked shoe developedwhich can both send and receive data. As the manufacturer of this shoe, the company can, for example, obtain information about how much the customer moves and how much or how quickly the tread wears out. If the manufacturer cooperates with a health insurance company, the customer's vital data can be added; if the company works with a geoservice, this also provides environmental and terrain data [2]. In this way, the customer, as the wearer of the shoe, creates a Comprehensive user profile in the context of the environment, the weather, possible sporting activities and the state of health.
This results in Diverse opportunities for marketers:
- Contextual communication to the customer and Customer Integration lead to Less wastage [3]: What exactly does my customer need in connection with my product? → Does my customer often run long distances and may be interested in certain sporting events?
- More intensive customer relationships through better knowledge and understanding of the individual customer [3]: How can I retain my customer after the product purchase and provide long-term support (Aftersales services)? → Will my customer soon need a new shoe or perhaps a different shoe that is better suited to their habits?
- Better product understanding through insight into product usage: How can I further optimize the product I offer? → Does the sole of the shoe wear out disproportionately quickly?
But: IoT requires new approaches and rethinking in marketing
In order to make the most of the opportunities offered by the Internet of Things, you need to be aware of the associated requirements and be prepared for some crucial changes.
- Get partners on boardThey are the basis for creating a detailed user profile and can significantly expand the database. → Using geodata, I can alert my customers to the nearest store on their daily route when it's time for a new shoe. The health insurance company can point them to suitable offers in the bonus program based on their running habits.
- Acquire comprehensive analysis skillsIt is not enough just to have the data, you also have to be able to organize it. Only when the information is properly understood can it be analyzed and linked accordingly. This requires statistical methods, e.g. powerful statistical tools [4]. → I know my customer and his individual habits very well. What will he need tomorrow and how can he make even better use of the shoe?
- Cooperate with the other specialist departmentsThis is because the transformation brought about by IoT encompasses the entire life cycle of a product and therefore affects not only marketing but also product development and management, sales and business operations and service provision. Only when data and departments are brought together can real added value be created [5]. → If, for example, the product usage data reveals a defect in the workmanship of the shoe, product development must be informed in order to rectify the defect. An improved quality of the shoe must then be communicated again.
- Stay agileProduct usage data should be understood in the form of direct customer feedback [6]. Within your campaign, you can respond directly to feedback or control current and user-based campaigns. → Did the customer buy a sports shoe even though he does not do any sport and another shoe would be more comfortable and more suitable?
IoT in the field of tension between marketing dreams and customer nightmares
Doesn't this revolution in marketing sound like every marketer's dream come true? Perhaps it does. But if you look at the other side, it quickly becomes clear that for the customer, monitoring every step they take can turn into a nightmare. For all the advantages that product usage data brings, one thing must not be forgotten: The customer has a Right to privacy! This applies equally to sensitive health data in B2C and business-relevant data in the B2B environment [2]. As the personal data of customers but the The key to successful digital marketing When data is shared, a balance must be found that is acceptable to all parties - between privacy and data usage. An essential factor for this is that Complete transparency right from the start what data is collected, when, where, how and why, and what happens to it afterwards [4]. If companies remain honest here and keep their hands off digital stalking, they win the Customer trust and can create a trusting digital relationship with them. This is also referred to as Product Relation Management [7].
Sources:
[1] http://www.it-business.de/management/point-of-sale/articles/257993/
[2] https://www.artegic.de/blog/das-internet-der-dinge-chancen-fuer-das-marketing/
[4] http://www.bit-news.de/bitnews/topthemen/default.asp?rb=topthemen&top_item=33990&i_item=33990&top_step=3&top_start=1
[5] https://www.mds.eu/blog/das-internet-der-dinge-wird-die-welt-vollstaendig-veraendern-auch-die-bekannte-marketingwelt/
[7] http://hsimmet.com/2014/02/14/datability-neuer-umgang-mit-big-data-im-marketing/
