Introduction
The enormous and ever-growing global Internet of Things (IoT) network connects a vast number of devices worldwide. Smart IoT devices continuously produce large volumes of data. Statista estimates that the total number of IoT devices worldwide will exceed 29 billion by 2030, with most of these devices in the consumer market.
IoT influences the growth of different industries. Companies are increasingly integrating IoT into their marketing strategies to remain competitive in the market and to improve the quality of their goods and services.
This article covers how companies can apply IoT in marketing and what advantages businesses get from this application.
Creation of Targeted and Personalized Marketing Campaigns
Nowadays, many smart devices are used in households – examples include smart TVs and home appliances, speakers, various systems for monitoring and security, etc. They create huge amounts of information based on what user profiles can be built. Marketers use the obtained data to analyze user preferences, interests, and behavioral patterns.
IoT enables fast analysis of data produced by smart devices, leading to customized marketing campaigns and offering users personal recommendations and discounts. For example, after buying a product, the system can suggest similar related products or discounts for future purchases. This enables companies to enhance the efficiency of their campaign and customer engagement and boost brand loyalty.
Customers purchasing behavior analysis
IoT devices and sensors allow companies to collect data about customer purchasing behavior. The implementation of the Publish-Subscribe model ensures continuous communication and data exchange between IoT devices in real-time.
Stores use diverse technologies to observe user behavior. Let’s explore some of them:
- Smart shelves have sensors that monitor customers’ product selections, browsing duration, and return frequency. This enables marketers to analyze user interests and optimize product placement in the store.
- Beacons and cameras allow companies to track customers’ movements around the store and determine the time customers spend in different zones, popular places, and paths. Analyzing this information helps to better plan the placement of products and advertising displays in stores.
- Carts equipped with IoT sensors can collect data about the products that customers place in them. This information can be used to review purchasing patterns and even offer additional products or promotions in real-time.
- CRM systems. Information produced by IoT devices can be integrated into Customer Relationship Management (CRM) systems. These systems allow companies to create detailed user profiles, track historical purchasing patterns, and predict future behavior based on real-time and historical data.
IoT devices provide valuable real-time data and give businesses the following benefits:
- Possibility to quickly adapt to changing consumer preferences;
- Improving customer loyalty through an enhancement of the shopping experience;
- Adapting marketing strategies.
Enhanced Understanding of the Interests and Needs of The Target Audience
The ability to receive valuable information regarding customers’ interests and needs is an essential part of a successful marketing strategy. Internet of Things usage for marketing is a great way to gain insight into consumer behavior.
The amount of data IoT gadgets such as wearable devices, smartphones, and household appliances create in real-time is gigantic. They help collect data on customers’ everyday activities, needs, and use-case habits. Marketers employ this information to develop a custom profile of an individual user so that companies have the entire picture of their clients.
Reviewing customers’ profiles helps determine which products and services customers use most often, how often they purchase certain products, and identify patterns and trends. Based on this information, marketers can predict when a customer needs a particular product or service and promote products that may interest specific users. Such use of IoT in marketing allows companies to increase the effectiveness of marketing campaigns and increase sales as a result.
Internet of Things and Marketing Automation
IoT helps set up automated marketing processes, enabling IoT devices to autonomously initiate specific marketing actions based on the gathered data.
For instance, smartphone location data is used to identify customers close to a store. Special applications can send them personalized offers, bonuses, and discounts, thus encouraging clients to visit the store.
Another example is the use of dynamic supply and demand information in pricing algorithms. Marketing automation tools can dynamically change and update prices based on real-time market conditions.
Social media marketing
Social media plays a crucial role in digital marketing, working as a highly effective tool for attracting new clients and increasing traffic. The integration of IoT devices and social networks enables the effective analysis of user data and the generation of automated marketing posts and personalized advertising messages tailored to a specific target audience.
For instance, smartwatches can monitor users’ physical activity. Specialized marketing tools can then use this data to generate advertisements for sports goods or fitness clubs in social networks. This approach considers users’ individual preferences and interests, thus improving the effectiveness of marketing efforts and customer engagement and improving the connection between the brand and its audience.
Summary
The IoT device network is rapidly growing and integrating into various industries, increasing the efficiency of business processes. The marketing industry must consider modern trends and intensively implement IoT for businesses to be competitive in the market.
IoT in marketing enables identifying users’ individual needs, interests, and purchasing patterns. This allows companies to create and deliver personalized marketing content to users. IoT contributes to enhancing the efficiency of marketing campaigns, boosting sales, and maintaining competitiveness in the market.