The Internet of Things marketing challenge

By Ingrid Froelich

The Internet of Things (IoT) is the idea that we can connect everything to the internet. New IoT ‘smart’ technologies include everything from Google Glass, fitness wearables, smart thermostats and pacemakers. There are even examples of smart forks (that alert you if you’re eating too fast), cow insemination alerts (for farmers) and plant sensors (to prevent you from unwittingly forgetting to water).

One area that seems to be making biggest headway at the moment is wearable tech, which includes everything from Nike’s hugely successful sensors, apps and GPS watches — to Apple’s anticipated iWatch. But IoT extends way beyond personal gadgetry, to include awareness of specific contexts — simulations powered by real-time and historic data, process optimization, resource consumption and automated environmental controls.

The value of the IoT lies in the ability of technology to generate better decisions and responses to the world as it is or as it is projected to be. Factors including crowd-funding, cheaper hardware, faster data processing and ubiquitous connectivity are rapidly transforming what was science fiction into science non-fiction. Some IoT developments will save lives, while others are merely gadgetry.

Implications of the IoT for business and marketing

Cisco Chief Executive Officer, John Chambers, told the AllThingsDD11 conference that, "The Internet of Things, I think will be the biggest leverage point for IT in the next 10 years, $14 trillion in profits from that one concept alone."

One of the most notable outcomes of IoT, is that these smart technologies gather a tremendous about of data. For organisations involved in manufacturing, marketing or using IoT, the biggest challenge will be establishing what to do with this information. New strategies will be required to deal with data analytics. The key aim will be choosing what information to harvest and how to use it to increase operational efficiency, enhance actual product and service offerings, or improve customer targeting and experience.

However, there are other issues to consider, such as measurement integrity, privacy and selection of measured variables. Also, organizations will need to ensure that the data analysis actually produces valid results. The challenge for marketers is their ability to select data that actually matters and analyze this data with the accuracy and knowledge that has real predictive reliability. Unfortunately, it is well known that data is already vastly abused, and the trust placed in sometimes-dubious sources — because there are “figures” — is sometimes staggeringly misplaced.

As people depend more and more on decision-making that is based on analysis of information gathered by technology, the imperative grows for accurate data analysis as it has a direct bearing on the choices people make based on these ‘facts’.

For marketers, the IoT also adds an ever-increasing number of channels with which to interact with customers. With this lies the challenge, as the personal nature of connectedness continues to increase, marketing will be under increasing pressure to provide relevance, that can live up to the customer experience management mandate.

Marketing will need to use customer insight to deliver contextually relevant interaction. It needs to avoid creating customer self-consciousness (“I’m being watched”) and provide greater customer power through relevant offers and information.

Potentially the combination of the IoT with social, web and analytics “Big Data” will allow the social business of the future to gain great insights into customer. This trend may positively change the way we create services and products, how we market and sell them, and ultimately – the way we interact with customers.

In some respects, all of this still feels light years away. But this may well be the new face of customer interaction in short order.

About the author and SDL

Ingrid Froelich works at SDL Content Management Technologies Division.

SDL enables global businesses to enrich their customers’ experience through the entire customer journey. SDL’s technology and services help brands to predict what their customers want and engage with them across multiple languages, cultures, channels and devices. SDL has over 1,500 enterprise customers, 400 partners and a global infrastructure of 70 offices in 38 countries. 42 out of the top 50 brands work with SDL. For more information, visit .

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