Feature
The Gist
- Ubiquitous connectivity. Smart tech facilitates 24/7 connectivity, enhancing brand engagement.
- Evolved expectations. Consumers demand fast, personalized services due to smart tech.
- Data control. Increased awareness leads to customers demanding transparency in data usage.
Smart technology, also known as smart tech, refers to the integration of technology and services to provide an innovative and intelligent solution that responds to a person's needs. It's a broad term that describes a wide range of devices and systems, all designed to improve efficiency, comfort, safety and convenience.
Because smart tech is becoming ubiquitous, it is impacting consumer expectations and demands in a myriad of ways. This article will look at smart tech and how it has affected the way that customers expect to interact with brands, people and other technologies.
What Is Smart Tech?
Smart tech includes devices such as Amazon Echo and Google Home, smart thermostats like Nest, and smart lighting systems such as Philips Hue in the home sector. Wearable tech includes fitness trackers like Fitbit and smartwatches like Apple Watch. Healthcare uses telehealth devices and smart prosthetics while the automotive industry includes smart and connected cars. The education sector benefits from smart classrooms and smart whiteboards. Smart technology often operates through the Internet of Things (IoT), a network where devices interconnect, exchange data and facilitate user-device interactions.
Coty Perry, CMO at Anglers.com, a fishing gear review site, told CMSWire that smart technology adoption has transformed marketing strategies by enabling companies to better engage with clients, drive campaigns and present customized adverts. "Marketers may acquire significant customer data by leveraging the strength of smart devices and platforms, allowing them to develop specialized and audience-focused campaigns," said Perry.
Additionally, Perry said that the added capacity to interact with customers across a variety of channels and devices improves the brand experience further, encouraging loyalty and raising customer involvement. “Smart technology also provides location-based targeted, automated, and optimized advertising placements, increasing the relevancy and efficiency of adverts."
Related Article: How IoT, Automotive and SmartTV Are Changing the Digital Customer Experience
The Always-On Customer Demands 24/7 Brand Interaction
The use of technology has grown exponentially over the past two decades. Today, according to Pew Research, 85% of Americans own a smartphone, 75% of American adults own a desktop or laptop computer, and approximately half own a tablet device. According to a 2020 AARP report, only 2.3% of Americans rely solely on a landline phone, with many of the rest relying solely upon their smartphones for phone service. This varies according to age — the report indicated that over 80% of adults ages 25 to 34 stated that they have gone totally wireless, and only 35% of people 65 and older have done so.
A 2022 report from Hub Entertainment Research revealed that 83% of Americans have a smart TV or streaming media player, and rely upon a smart TV and their internet connection for streaming services such as Netflix and Prime. Similarly, a 2022 report from Statista indicated that 51% of Americans reported having used a voice-operated personal assistant on their smartphone, while 24% used voice assistants on their TV or TV remote, and 25% own a smart speaker such as Amazon Alexa or Google Home. Additionally, a 2020 Pew Research report showed that 21% of Americans regularly wear a smartwatch or fitness tracker.
These statistics are indicative that the average American consumer is connected to the internet through smartphones, smart TVs, smart speakers and smartwatches, which provide them with connectivity 24 hours a day, seven days a week, no matter where they are — at work, in their homes, in their cars, in a store and even in nature. A 2021 Pew Research report indicated that 31% of American adults are almost constantly online.
Karim Salama, founder and director of e-innovate, a web and digital marketing agency, told CMSWire that a fully connected smart tech customer will be exposed to brands and advertisements much more than the typical consumer because of how many synchronized devices they are using. “There can be visible adverts on the SmartTV at home, and then digital out-of-home advertisements while running errands, and then audible advertisements when using a music streaming service while waiting for an appointment, for example,” said Salama. Because so many people are online effectively all of the time, Salama said that this omnichannel experience results in much more engagement with the customer.
Kay Gowrinath, founder and managing director of Xquisite Productions, a full-service design and production company, told CMSWire that smart tech has opened the world of possibilities in ways our predecessors can only have imagined, giving us continually more options or smarter ways to connect with our audiences. "This can increase ROI and boost the positive mentions or shareability of a marketing campaign IRL," suggested Gowrinath.
Always-on connectivity creates a perception that results in the belief that because one is always connected, brands must be able to connect and interact with these consumers no matter the time of day, location or the specifics of the brand. They fully expect, or rather demand, that brands meet them wherever they are as they go about their lives. This opens up a multitude of opportunities to engage with them. Gowrinath's business, for instance, has used smart tech solutions within their own projects to:
- Display its client's branding in ever-creative ways.
- Integrate technology and connectivity across multiple systems to synchronize the stand or activation on demand and produce a more engaging build for people.
- Showcase AV setups that enhance the customers' experience and immerse them in the world of the brand.
- Capture data as part of a stand or sampling campaign to collect valuable insights and track metrics of success.
- Serve information to the customers in the format they’re most likely to enjoy and be able to tailor the relevancy based on customer profiling.
Related Article: The Newest Messaging Automation Trigger: Internet-Connected Devices
Customer Expectations Evolve With Technology
As consumers moved toward the use of smartphones and other connected technology, they naturally found it easier to research and purchase products online. This led to an increase in demand for online shopping options and services. Although this occurred long before the COVID-19 pandemic, the pandemic also increased the demand for online shopping, and especially for non-contact delivery options.
Through the use of these smart devices, brands have been able to more easily collect data about consumer behavior and preferences. This data is used by brands to provide personalized recommendations and offers, with the result of an increase in consumer demand for specific products or services, and highly targeted personalization.
“Smart technology has resulted in more holistic, comprehensive data analysis and reporting for advertisement campaigns,” said Salama. “In the past, companies had to manually retrieve information from separate campaigns and projects, collate the data, and then calculate the returns.” Salama suggested that with smart technology, all campaigns are shared seamlessly between all of the devices being used, allowing for a more efficient collection of information and a quicker return from successful advertisement campaigns.
Convenience and speed are two of the biggest drivers of both customer satisfaction and spending. Smart devices have provided customers with the ability to have immediate access to products and services, leading to increased consumer expectations and the demand for fast delivery and immediate service. The widespread use of smart tech has also impacted the way brands advertise their products and services, causing an increased demand for digital advertising on platforms that are commonly accessed via smart devices, such as social media and streaming video platforms.
Salama said that smart technology makes for a more integrated household experience, with customers now using electronics such as Amazon's Echo and Nest to make shopping lists, calendar reminders, emails and more. "Sometimes consumers take for granted the ways this data is synchronized through multiple devices, so it's not uncommon that a customer will expect any given piece of smart technology to be compatible with effectively every other electronic in the household," said Salama. "This is not always the case, so customers can get frustrated when an Amazon Echo doesn't automatically sync with an Apple iPhone, for instance." Salama explained that in order to combat this, brands have simply had to use smart technology that is compatible with as many devices as possible.
Customers Demand to Regain Control of Their Personal Data
With the huge increase in connectivity came a drastic increase in the amount of data that is generated by consumers on a daily basis. Consumer awareness of data privacy issues has also vastly increased, with the result that they now demand transparency from brands about the data that they collect, how it will be used and how long they will keep it. Many laws and regulations have now been put in place to ensure that businesses protect their customers’ data, and brands now must show customers that they practice regulatory compliance.
Brands are demonstrating their commitment to data protection and customer privacy by ensuring regulatory compliance with data privacy through a multifaceted approach. They ensure transparency in their operations by providing customers with comprehensive privacy policies that detail their data collection, usage and protection practices. They obtain consent before collecting and using customer data, and only the necessary data is collected in line with the data minimization principle.
Protecting data privacy is a continual process. Brands remain vigilant by routinely auditing for potential vulnerabilities and breaches, and enforcing stringent security measures, ensuring that customer data remains secure. If a data breach occurs, customers are promptly notified and the brand outlines the actions being undertaken to ensure it doesn’t happen again.
Final Thoughts on Customer Demands & Smart Tech
The widespread adoption of smart technology has significantly impacted customer demands. Customers now expect 24/7 brand interaction, omnichannel personalized experiences, fast, convenient service, data transparency and privacy protection.
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To meet these evolving demands, brands must embrace smart tech, responsibly use customer data and prioritize data security. This enables them to gain a competitive edge and build lasting customer relationships in a digitally connected world.
