The Internet of things is a network of physical devices like laptops, mobile devices, vehicles, etc. connected and to individuals via the internet. IoT is all around in multiple forms like Google, Apple watch, Samsung’s fitness application, etc. Marketers can leverage this information to create impactful insights, study consumer behavior and their lifestyle. Let’s have a look at how IoT will impact digital marketing strategy:
1. Personalization: IoT has the capabilities to study consumer behavior as it derives data from numerous sources be it booking a cab, scheduling appointments, and also from the fitness trackers. This data can be further processed to provide rich consumer experience; there are endless possibilities of making use of this data optimally.
2. Instant Service: Today’s millennials always pitch for instant gratification- easy access to product, service or information and delay in that can mean the loss of an opportunity. The future awaits many surprises, one of them being the availability of required items on time. The devices can be connected to the internet which will further be able to exchange information and can build a shopping cart and place the order whenever required.
3. Advertising Opportunities: When the devices are connected to the internet, they offer a plethora of advertising opportunities, and any object can act as a channel to engage customers. For example, the washing machine can advertise for a compatible detergent or any mobile brand can promote a particular sim card network.
4. Predictive analytics and Attribution: This large amount of data collected by IoT devices can be used to feed machine learning algorithms, which will supplement the capabilities of predictive analytics. This will help marketers to gather in-depth knowledge about the campaigns that customers were most responsive to and what are the conditions or trends that affect the purchasing behavior of the customer. Integrating attribution analytics with data from the client’s digital footprint, and device usage or interaction will help in understanding a customer’s reaction to different marketing engagements.
5. Smart Platforms: The extensive data collected by IoT devices must be harnessed entirely to prove its usefulness. Hence, there is a need to invest more in the developing intelligent platforms, which can utilize this information to its full potential and deliver right messages inferred from it and learn from the results.
A significant challenge for the marketers would be to design campaigns which are useful and do not hamper the privacy of the consumers. By informing customers regarding the selective use of their data, device authentication, security mechanisms, and strong encryption will need to be employed to prevent IoT devices to be compromised.