The IoT refers to the pervasive presence of devices and sensors connected to computing systems and networks. It has received a huge amount of attention over the past few years, mainly due to the proliferation of connected devices over the years, now standing at almost 5 billion. IoT initially assisted with the digitisation of business processes related to mechanics etc. However, recently it has had a major influence on different consumer processes related to marketing. Digitised processes are able to provide continuous streams of data and allows businesses to understand how processes are performing, how to improve them and how to resolve issues faster. Because consumers are infatuated and connected with and through their devices more than ever, marketers are able to use IoT concepts to better understand their target consumer, understand where their marketing processes fail (e.g. when they lose consumer loyalty), and how to improve their customers experience.
To be able to enhance the customer experience through IoT, marketers should take advantage of event based marketing (traditionally used in manufacturing processes), which involves analysing consumer data in order to identify key events in the customer journey that provide opportunities for effective customer interaction. This enables businesses to offer targeted and personalised marketing. Event based marketing involves using data to identify significant events in customer’s journey, and then using data about the consumer to determine what action should be taken on these events in order to take advantage of the customer interaction opportunity.
Event-based marketing is great for personalising the customer experience, which will in turn improve brand loyalty and brand recognition as consumers will feel as though they connect with the brand personally. For example, Pizza Hut introduced an event-based marketing campaign during the SuperBowl that involved rewarding customers with $15 or $10 coupons every time they logged into the social media site ‘Foursquare’ and mentioned the Superbowl.
IoT not only helps identify significant events that occur monthly or yearly, but also specific times of the day and week that customers are increasingly active on their connected devices. Being able to identify these moments/events will enable businesses to schedule when to release marketing campaigns, email marketing campaigns, promotions, SMS campaigns, social media posts etc. at the time when they are most visible to consumers and when consumers are most likely to respond to them.
The whole point of event-based marketing is to use consumer behaviour to identify marketing and profit-making opportunities. Effective content before, during, and after an event can increase the reach of your brands message and increase conversation about your business.