How IoT Benefits your Customers

The Internet of Things gives the business devices and software you use daily the ability to connect to the Internet and share valuable information. For SMEs, this can be revolutionary. Not just in terms of fancy gadgets, but real, tangible benefits for your business. But how does this translate to your customers? And what should you look out for when introducing IoT technology?

What are the benefits of IoT for customers?

The Internet of Things can improve operations, track inventory and boost customer satisfaction amongst many other things. Let’s take a look at the benefits of IoT for your customers.

Personalised offers

We’ve all had marketing emails from brands that make us search for the unsubscribe button. Not ideal for a growing business. IoT devices integrated into websites or checkout systems gather useful data to build detailed customer profiles and with this data, organisations can send personalised offers based on customer preferences, purchase history and shopping style. This means they get offers they’ll actually want to use.

Loyalty programmes

Loyalty programmes are a great way to keep customers and with IoT, you can make it fun and personalised. Research shows that 60% of customers shop with a brand that has a loyalty programme. It’s always good to get your 6th coffee free, or 10% off your 10th purchase, and IoT software such as smartphone apps can track the customers’ payments, offering rewards based on their preferences, and automatically adding points or discounts without any effort on their part.

Here are a few ways IoT could enhance your customers’ experience…

Send them a discount or free product on their birthday

Let them know when they’ve hit milestones (e.g Congrats on your 10th visit!)

Send them offers on the items and services they purchase most

Automatically add their points and discounts to their account without them needing to do anything

Use any unique selling points (USP) you have and get creative!

Safety and security

Your customers want to feel safe when spending their money in-store or online with you, and including IoT in your security setup can help with that. IoT is like an improved security system that can help act as a barrier and also provide real-time monitoring for peace of mind for you and your customers. Two-step verification, smart cameras, and alarm systems can be the silent guardians that make your customers feel secure and valued while building a reputation of trust and reliability.

Efficiency and effectiveness

It’s frustrating for customers when items are out of stock. IoT technology can track inventory levels with innovations such as shelf sensors that monitor numbers and send alerts when it's time to restock. Automated checkouts are also a familiar sight in stores as they help keep queues down and keep shopping efficient for those who use them. They are often the preferred option over traditional check-outs. In fact, it's predicted that 99% of European Supermarkets will have self-checkouts by 2025.

Sustainability

More people are now considering sustainability when making their purchases. In fact, a survey from McKinsey & Co revealed that 66% of all respondents consider sustainability when they make a purchase. With IoT, you can make your business more sustainable with cloud-based storage tools or accurate waste management reports, amongst others. IoT can also optimise energy usage by automating lighting and temperature systems based on occupancy or time of day helping to save the planet and helping you reach your sustainability goals.

What are the challenges of IoT for customers?

When introducing IoT to your customers, you may experience some resistance. That’s normal - especially with customers who have been with you for a long time. The most important thing is to put your customers at the heart of your decision-making. You must consult with your target audience, consider identifying some early adopters and most importantly ensure you meet regulations and let customers know what data is collected and why.

Data protection

There is a fine line between collecting data to improve the customer experience, and your customers feeling like they’re being grilled for information each time they connect with you. In regards to personal data, organisations must abide by GDPR and any information that makes it possible for people to be identified publicly should be anonymized. For example, businesses that use IoT-enabled cameras should follow explicit standards of conduct and utilise the data they collect solely for clearly defined purposes.

Getting customers on board

Smart devices are already part of our everyday lives, and most people are happy to use IoT, but not everyone will be on board straight away. Some customers will be wary of handing over their data or simply clicking a button to agree without really knowing why - that’s understandable. Privacy is very important to us all so it’s your job as a business owner to explain and reassure wary customers that you’re doing all the right things to make IoT changes safe, positive and practical.

Inclusivity

While IoT can be great for many users, including those with disabilities, businesses have to be sensitive to the fact that these changes aren’t going to be ideal for some customers. Adaptations will need to be made so that they do not feel excluded or left behind. Businesses should consider how the IoT changes they are implementing will impact all of their customers, including those with disabilities like sight or hearing issues.

How to make IoT work for you and your customers

IoT is all about connectivity. Not just the obvious connection to the internet (although that’s key to this whole thing we’ll admit), but the connection it gives you to your customers and the connection it gives you to your business, from anywhere in the world. Businesses can thrive with IoT with access to the data they need to improve the customer experience considerably. So the key to making IoT work is to see it as a cooperative relationship. IoT, Customer, and Business all work seamlessly together.

Integrating IoT into your business isn't just about staying up to date with current technology trends, it's about giving your customers a positive experience and a reason to keep coming back. With the right IoT systems in place, your customers will thank you with their loyalty.

The Internet of Things can be seamlessly integrated into your business to keep your customers happy and your business running efficiently. Find out more and get 1-2-1 advice from our V-Hub Digital Advisors.