The Internet of Things, or IoT, presents many opportunities for retailers and consumer goods organizations to drive business improvement. Among these is the use of data from sensors, devices and products to improve Big Data Analytics. Consider the following scenarios:
A household products company offers an internet connected button in the consumer’s home to place a replenishment order manually, which is delivered same day. Or, the product itself features smart packaging that “knows” when it’s nearly depleted and triggers the re-order autonomously. Demand is better understood among these customers and predictable such that fulfillment is streamlined and anticipated. As a consequence of all this, high frequency customers are isolated, a personal relationship is developed, and they are targeted for testing new products and acting as champions in new product rollouts.
An appliance company’s product sends usage information back to the company to identify potential quality issues and collect feature utilization to aid product development. The appliance also now acts as a conduit for developing a relationship with the customer. Thus marketers can propose new ways to use the product to improve satisfaction and referral, or recommend the purchase of complementary appliances. In a commercial context, freezers and other storage or display machines that ensure product quality or safety, require maintenance, or have the capacity to measure inventory, present similar opportunities when the customer is a business (retailer) rather than a consumer.
A retailer employs beacons in its stores which trigger personalized offers to customers on their smartphones.