How the Internet of Things enables a customized customer approach

Intelligent vehicles that are connected to the internet and thus prevent accidents or regulate traffic light switching times are just one of many examples of the "Internet of Things". But there is much more to this technology and its implementation is becoming more diverse every day. At the heart of this is the collection of customer data. It is used for personalized and perfectly tailored customer communication and therefore offers companies enormous potential.

Although the term "Internet of Things" (IoT) has only recently begun to have a noticeable impact on the market, it is not a new phenomenon. It was introduced and coined by Kevin Ashton back in 1999. It refers not only to simple, internet-enabled devices such as smartphones or tablets, but also to everyday objects that offer added value for the user thanks to their connection to the internet. This added value takes the form of useful functions, additional information or easier operation.

There are various reasons why the Internet of Things is only now experiencing such a boom. Although the technology for IoT has been around for some time, it was accompanied by disproportionately high costs, especially in its early days. The lack of specialist knowledge also initially hampered development. Major brands, such as Apple with its Apple Watch, have also jumped on the bandwagon and strengthened the ongoing trend. For example, in a study conducted by IDC on the "Internet of Things in Germany 2015", 45% of respondents stated that they felt very familiar with the IoT concept (Infographic). According to Gartner, up to 25 billion devices worldwide will be connected to the Internet by 2020 and become a familiar part of our everyday lives (Source).

Digital analytics as the key to customers

The big attraction of IoT technology lies in the collection of customer data. It helps companies to understand their customers even better and respond to their everyday needs. This is made possible by digital analytics. The challenge here is a huge amount of information that not only needs to be collected, but - even more importantly - subsequently converted into usable data and processed so that it can ultimately be used in a targeted manner. Digital analytics not only provide product providers with important insights into the wishes, expectations and usage behavior of their customers, but also enable intensive and targeted customer contact. The collected data can be used to break completely new ground for service models. Data on the condition of devices and machines can also be recorded, offering the opportunity to optimize existing production lines. But what does this process look like in practice?

The Internet of Things on its way into everyday life

There are now many practical examples. For example, the insurance provider AXA offers new customers of its Modulango health insurance program a smart wristwatch that records the user's sporting activities. The data collected is used to identify particularly sporty customers, who are then given the opportunity to take advantage of preventive services with alternative medicine if they wish.

But even without constantly wearing IoT devices, there are ways to use this new technology. With iBeacon, Apple has designed a way to identify signals from a transmitter via an installed app for smartphones. For this purpose, small transmitters (beacons) are placed in certain locations, which emit these signals at regular intervals. The app records in real time which product groups and products the customer goes to and how much time they spend there. The evaluation of the data via digital analytics can then be used for further communication and customer loyalty measures. For example, visitors who have left the store without buying anything can be invited to visit the website a few days later via smartphone message to look around again and make a purchase. This technology is already in use in the USA, and the gradual integration of beacons in the retail sector is expected in Europe.

The Internet of Things may still be in its infancy today, but recent developments and the opportunities this technology offers show the enormous potential that companies can exploit. With tailor-made communication models, they can personalize their customer approach, provide targeted information for each individual customer and increase their sales in the process.

Mathieu Llorens joined AT Internet in 2000 and is now Managing Director. He is a professor at the University of Bordeaux. Llorens holds a doctorate in literature and a master's degree in information sciences with a specialization in online traffic measurement. He is a sought-after speaker on the subject of web analytics in business schools and at specialist conferences (Image: AT Internet).

AT Internet, an important provider in the field of digital analytics since 1995, helps companies to manage their online performance and presence on all digital marketing channels: Web, mobile, apps and social media. The digital analytics solution provides reliable, valid and comprehensive data for decision-making. AT Internet has placed agility at the heart of its innovation process in order to offer customers a 100% modular solution.