The forgotten value of Internet of Things (IoT), which is building customer relationships can often be one of the biggest value creators in the company. Unfortunately most IoT projects starts as technical or product project and then marketing is just something to promote the ready product/feature and that is just a waste of opportunity.
Historically the customer experience has been tied together by the brand experience but the online and the product experience has had very different design, development and decision processes. With connectivity and IoT that must not be the case anymore. This is why I insist that among others, marketing are at the table early when I get involved in a strategic work or in a project.
So what do I mean, what is the potential with marketing and IoT. The customers pay for the products!
To start with I want to show you this graph which I found recently about what is valued in a merger and acquisition process. Previously a strong brand has had a large value but today the active customer relationships are valued more and are almost 20% of the company value.
So what is important when you use connectivity to boost your customer relationships?
- Each customer is one identity and the interaction with the customer build on the complete interactions with that customer. Just think the power gain Google accomplished when merging their Google ID for all their products.
- The interactions must have the same message independent of which media it is consumed (web, mobile, app, product, newsletter etc), so the online cannot have a different message than the customer receives from the connected product.
- As customers we do not expect to tell you (the brand/company) the same thing twice, it is annoying!
- By using the knowledge about the customer in a wise way we can help them rather than market to them, but it is a thin line before it becomes creepy so stay on the right side!!
This means that by using connectivity we can boost the company value by using a strategy where we build around the customer experience and using the power of the product usage to strengthen the customer relationships. Done right it is possible to create a very active customer relationship so that there is no competition when the next purchase decision is to be taken J.
If you want to discuss this more reach out to me on LinkedIn or give me a call +46730255855.
Senior Consultant @Cybercom
Business & Product strategy in the Connected World
Note: Top picture from FreeDigitalPhotos.net and by FloatingLemons.