Even while businesses start to incorporate products and services that leverage the Internet of Things into their strategies, they still think it belongs to the technology department. What most people don’t yet realize is that we are on the verge of a sociological shift in perspective about the transformative power of the Internet of Things—and that shift means the IoT is vital to marketers as well.
The IoT is no longer just about smart cups or refrigerators with attached touchscreens. Sure, people are interested in the latest trends, but the real power of the IoT is in how it can respond to the needs of businesses and individuals, and transform our lives in the same way that mobile computing has. In other words, it’s a marketer’s dream: actionable information, at a most granular and human level.
IoT Gives Real-time Perspective to Marketing
From a business standpoint, this is a huge advantage, as companies can gain real-time perspective from consumers, enabling them to better tailor their offerings. Consumers then get the products and services they want, where and when they want them. The resultant customization will put an end to hit-and-miss direct marketing.
It’s not just marketers who benefit, either. From product design to logistics and sales, every part of the company takes a piece of the cake—but only when consumers are ready to buy into the concept of the Internet of Things. In fact, it is foolish to believe that any consumer product or service will not have some level of focus on the IoT.
Apple Is Not Selling a Watch
For example, the Apple Watch is not at all what you believe it is, nor what we think it should be. History marks our ignorant mockery of Apple’s seminal products, from the first-generation iPhone all the way back to 1993 and its Newton personal digital assistant. The clues are already out there. Read the patent history and the upcoming patent registrations. And read about the personal passions of the leaders at Apple. Think different.
The Apple Watch is an early-stage product, but it isn’t for the geek, nerd or techy. Neither is it about fashion or luxury.
The Apple Watch is about sensors and data collection that our Newtons, Nanos or iPhones could not accomplish. Apple needs to have direct contact with our skin to bring to light a whole new dimension of IoT data. The company’s move—this so-called “watch”—addresses an $83 billion diabetes market (though honestly, that number seems a bit conservative). For decades, finding a viable, painless technique to monitor glucose levels has been a Holy Grail in this lucrative market, as this article verifies. Apple’s new watch does not eliminate the need for diabetics to inject insulin, but it can help them better manage their insulin levels by displaying blood sugar data from continuous glucose monitoring devices—sensors implanted under the skin—right on the watch.
It Has to Be Worth It
But capable sensing devices are only half of the solution. Without data, the IoT just wouldn’t exist, because it’s based on the communication of data between things. And yet, while data is the answer, for many consumers it’s also the problem. In a 2014 Acquity Group Study, nearly one quarter of participants said they have turned off in-home IoT devices due to privacy concerns, while more than half reported that they were less likely to use wearable devices because of recent hacks and data breaches at major companies.
Concerns about privacy are understandable. That’s why firms investing in the IoT need to ensure that security is embedded in their content-management system, and that it remains a constant pillar of their strategy. Mobile devices have also had a direct impact on our perception of privacy.
Except for a small core of early adopters, most people are reluctant to risk giving their data away unless the benefits are substantial. As with any sort of transaction, people will only willingly share information if they gain something meaningful in return.
Leveraging the IoT
Organizations, therefore, need to weigh the costs and benefits for consumers when they collect and aggregate their data, and they must offer consumers tangible value in exchange for that data. Away from the world of health care, they need to offer them products that can provide significant improvements in their lives and businesses.
Over the long term, organizations will realize that the Internet of Things is not just about gadgets. Neither is it about individual products or projects, but rather about developing strategies that offer consumers seamless experiences, from the point of purchase to the end of a product’s lifecycle. The IoT will have a huge impact on the relationships that companies have with their customers, giving them new ways to add value. Businesses need to simultaneously work on increasing value while also ensuring the safe storage of data, so that consumers will no longer need to worry if it’s worth sharing their information.
Christopher Justice is the chief marketing officer of Magnolia International, which provides a digital business platform with a content-management system at its core.