Insights “the Internet of Things” (“IoT”) – A Clive Angel Blogpost
How the retail environment as we know it is transforming:
The IoT creates switching costs and drives loyalty by providing customers with a One-on-One service offering focused on personalisation. Sales personnel enabled with digital mobile devices will have immediate access to a shopper’s prior history, shopping preferences, loyalty points and specific demographics. This will allow them to deliver customers a meaningful and engaging shopping experience, introducing new, relevant and customised products for their review. Customers instead of having to spend time searching for specific items and / or bargains will instantly be shown relevant product based on their purchase history and profile choices.
The IoT facilitates an efficient marketplace by generating real time, Instant and relevant communications. The result cost effective and real time services for all users. The IoT creates a seamless and effective communication channel for retailers to target customers with contextualised messages wherever they are and whatever they’re doing. This especially becomes relevant when a customer can be identified by location-based services within a certain distance of the retail outlet, thereby creating an incentive for them to engage. Time specific and personnel offers can be pushed to customers driving traffic in store when retailers are less busy or during specific promotions. The result increased turnover for retailers and personalised and relevant services delivered direct to the customer.
The IoT enhances relationships by providing access to and analysis of meaningful customer and sales data using artificial intelligence driven by machine learning. The richness and reliability of customer sales history and personal data combined with analytical tools and marketing automation provides accurate insights into consumer preferences and behaviour. By collecting all customer’s personal data and demographics at the outset and after each sale retailers will be better placed to analyse and understand buying habits, optimal pricing and personal preferences resulting in;
- The shift to a customer centric organisation – providing customers with instant and bespoke services which will create an improved, seamless, cost efficient and more meaningful shopping experience.
- Retailer engagement – in a significant and real-time way with their customers. Transforming the role of sales personal from an organisational cost centre into a profit centre – driving sales from the shop floor whilst providing personalised and value driven customer services.
The IoT when leveraged appropriately can play a significant role in generating increased profitability at the store level and enhanced customer relationships and customer loyalty creating switching costs.