It is estimated that by the year 2020, the Internet of Things (IoT) will consist of approximately 50 billion objects, each with its own embedded computing system, and able to interact with the existing Internet infrastructure. This being the case, the pace of development for the IoT is rapidly outstripping advances made in the areas of today's electronic devices, especially since it is widely considered that electronic device development is approaching maximum maturity.
This has some far-reaching implications for businesses and the marketing strategies which they should adopt in order to stay abreast of the powerful trends now underway.
IoT Marketing Strategy
Consumers respond far more favorably to products which offer appealing personalities, as evidenced by the vast numbers of products which already have been linked in commercials and advertising to adorable kittens and talking coffee machines. All this promotes loyalty and commitment to a specific brand name, and this is precisely the kind of desirable effect marketers are always trying to achieve. In the future, this trend will be emphasized and developed further to encourage even tighter linkage between consumer and seller.
More precise targeting of purchasing consumers will likely be necessary during the age of the Internet of Things. It will become necessary to provide exactly the right message to the audience most likely to make a purchase, and in the most appealing format possible. This will require an even greater investment in advertising production, as well as better research to identify the appropriate consumer groups to deliver the message to.
Value-added services and products will become even more important and more emphasized. This means that in addition to the main service or features provided by a product, something above and beyond must also be built-in. For instance, ordinary watches will give way to smartwatches, kitchen blenders will be replaced by smart kitchen blenders, and this kind of strategy will begin to permeate all product development and marketing strategies. The unique and distinctive value provided by such products will differentiate them from the competition, and make them seem far more desirable to the typical consumer.
Smart Device Impact on Marketing
According to Steve Reed, VP of Client Development at Elevation Marketing, "We are on the cusp of revolutionary technological change. The inherent value of the Internet of Things is in connecting devices to the cloud, which is no different whether you are on a farm, in a factory, or any of a billion other places. With the advancement of IoT, every industry will enjoy countless opportunities to market to potential buyers, precisely target customers and achieve instant results."
Marketing and advertising will be rendered much more specific and effective, since many smart devices will be installed throughout the country which can supply priceless data on usage. This will allow businesses to develop much more informed strategies, and improve return on investment for future sales. When smart devices do not perform to expectations, that information will also be fed back to the supplier, providing a prompt opportunity for modification and improvement.
Smart devices will be used in conjunction with sophisticated Customer Relationship Management (CRM) tools, so that more than simple gathering and organizing of client data can be achieved. It will be possible with this kind of CRM configuration to analyze customer data as well as gather it, so that a business can take intelligent actions regarding its consumer base. This is priceless for marketers, because it circumvents the need for processing information through a long chain of command, and will help identify where a prospect is in the purchasing process.
Once again, everything is about to change in the world of business and marketing.