The meteoric rise of internet-connected smart devices and objects is opening up new data streams and engagement channels for marketers poised to capitalize on the opportunity. This creates both enormous potential along with added complexity.
In this comprehensive guide, we‘ll explore:
- What is Fueling Growth of the Internet of Things (IoT)
- Tangible Examples of Innovative IoT Marketing Campaigns
- Key Capabilities IoT Unlocks for Marketers
- Considerations When Formulating an IoT Strategy
- A 6-Step Plan for Activating IoT Data Across Campaigns
Let‘s dive in and decode IoT’s implications for modern marketing.
The Explosive Growth of the Internet of Things
The Internet of Things (IoT) refers to the vast array of physical objects, devices, vehicles, wearables, sensors and environments connecting and exchanging data through embedded sensors and network connectivity.
Unlike computers or mobile phones designed specifically for human interface, IoT endpoints gather data passively from infrastructure, equipment, packaging and everyday devices to unlock new analytics-driven use cases.
Per recent research from IDC, there are currently over 10 billion IoT devices worldwide, with analysts forecasting this figure ballooning to 75 billion by 2025 as production costs decline and smart device adoption accelerates across consumer and enterprise scenarios alike.
All this exponential connectivity and data exchange unlocks revolutionary potential for companies to derive insights around customer behavior, streamline operations, enhance products and forge tighter customer relationships through smarter, proactive servicing and contextual engagement powered by analytics.
For marketers, this deluge of telemetry represents a goldmine of largely opt-in data points around how actual people interact with products, brands, content and marketing messages across both digital and physical domains. As such, IoT informs more resonant targeting and communication while humanizing personas.
While still nascent relative to mobile and computing revolutions coming before it, 90% of technology decision-makers agree IoT will revolutionize marketing in this decade. Are you keeping pace?
Standout Examples of IoT Marketing Campaigns
Let’s explore some leading examples spanning awareness, acquisition and loyalty use cases:
Manufacturer Optimizes Engineering with Sensor-Equipped Machines
An automotive manufacturer outfitted production machinery across all global plants with internet-enabled sensors tracking real-time telemetry data including operating speeds, idle times, temperatures, vibrations and output yield rates.
By aggregating this massive data lake into cloud-based analysis, engineers created a visual dashboard to monitor equipment performance, recognizing inefficiencies and patterns predictive of disruptive issues days or weeks ahead of acute failures. The upshot? A $7 million savings from:
- Preventive maintenance vs. reactive downtime
- Optimized processes accounting for sensor-informed nuances
- Extended equipment lifespan
As a result, the company could invest more aggressively in time-sensitive marketing initiatives knowing production could scale efficiently.
Insurer Motivates Customers with Usage-Based Subscription
One rapidly growing auto insurance startup developed a custom plug-in evaluative tool for policyholder vehicles reporting back actual miles driven across various conditions, routes and times-of-day. Mileage and driving patterns then inform highly personalized policy rates on a monthly subscription basis.
For the insurer, more variable pricing reduces revenue volatility while the mileage leaderboards and policy incentives motivate safer driving. Early testing saw enrolled drivers achieve a claims rate 20% below comparable demographics. This enabled profitable growth fueling ambitious CX investments like direct-to-consumer brand advertising promoting the score-powered model as a lifestyle choice.
CPG Brand Lifts Conversions with Smart Inventory Tags
To combat out-of-stock headaches to customers and lost sales alike, a national CPG outfitted pallets with connected sensor tags tracking transit routes and inventory levels in near real-time. Shoppers browsing products out-of-stock locally receive proximity notifications on their phone advertising availability at nearby retailer locations.
Just six months post-launch, this hyper convenient omnichannel approach lifted order conversions by 15% despite supply chain volatility. IoT data likewise optimized outbound logistics and store planning to maximize sales.
Luxury Brand Extends Relationship with Smart Mirror Engagement
A leading fashion house piloted interactive mirrors in changing rooms to sense which apparel customers tried on and provide matching recommendations for shoes, handbags and accessories.
Shoppers can opt-in by tapping their smart phone to the mirror to link items to their online profile and receive follow-up advertisements after leaving the store.
Early adoption exceeded 44% with nearly 15% of pilots users making additional purchases influenced by the in-store mirror. Extending beyond a transaction, digitally-native customers spent 20% more overall on cross-sells attributed to the interactive experience.
Key Capabilities IoT Unlocks for Marketers
While use cases differ across verticals, examining shared patterns across IoT initiatives reveals core marketing capabilities amplified through connected devices:
Granular Behavioral Data
IoT generates an unprecedented pulse into subtle user behavior by passively recording interactions across locations, environments and time frames. This powers sharper targeting and personalization grouped not just by cohorts but real-world actions.
Predictive Intelligence
Applied AI/ML mine IoT inputs to model likely scenarios from micro industry shifts to individual customer lifetime value – empowering marketers to simulate decisions and intervene ahead of trends.
Location-Triggered Messaging
Informed by mobile GPS and geofenced areas, proximity IoT triggers hyper relevant mobile alerts, on-site interactions and follow-ups grounded in real-world movement.
Customer Journey Optimization
IoT touchpoints grant visibility into pain points and conversion friction across an end-to-end experience – allowing marketers to pinpoint where, when and how to deploy resources.
Omnichannel Insights
Disparate IoT data pooled together paints a comprehensive view of attitudes and actions outside transactional systems alone to illuminate preferences otherwise missed.
The key is crafting initiatives whereby IoT capabilities align to KPIs around engagement, satisfaction and revenue.
So what does this integration look like moving beyond isolated use cases? Below we detail key steps to consider when activating an IoT data-centric marketing strategy.
6 Steps to Incorporate IoT Into Your Tech Stack
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Conduct an Audit
Catalog existing infrastructure, devices and sources capturing opt-in data across customer and internal systems, identifying quick integration opportunities to expand behavioral inputs for targeting and segmentation.
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Map the Buyer Journey
Visualize major touchpoints across the entire lifecycle – research, use cases, troubleshooting, repurchase factors and next-gen opportunities for IoT to fluidly plug-in always-on data for optimization.
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Start Small, Measure, and Scale
Rather than overhauling media budgets, perfect measurable test cells across channels and buying stages, focusing on the intersection of customer needs and business objectives. Align incentives to adopt an experimentation mindset upfront while working toward agile integration.
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Operationalize Data Management
Develop playbooks around IoT data storage, structuring, security and analysis early to include new signals in activating known tactics like personalization, predictive content, and site optimization further honing best practices.
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Build Adoption Across Teams
Dynamically share initial learnings and pilot results through success stories emphasizing customer impact grounded in analytics rather than theoretical potential alone, socializing incremental value while working cross-functionally to unpack applications.
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Keep the Strategy Fresh
Monitor campaign impact and performance benchmarks quarterly as new devices, partnerships and use cases continue maturing. Stay abreast of both emerging tech and shifting buyer expectations as catalysts for the next iteration of innovation.
While navigating an IoT marketing roadmap requires coordination across organization silos and vendors, the multitude of real-world examples prove integrating connected devices and their data unlocks exponential returns when aligned to customer objectives and business KPIs holistically.
What potential applications make the most sense to pilot across your channels and audiences? The time to build a foundation supporting IoT’s explosive growth is now.
