Editorial
The Gist
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AI is IoT’s best friend. The use of AI in collecting and storing data helps CX leaders personalize customer experiences for a smooth and positive brand interaction.
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IoT can predict potential problems. Smart technology embedded in IoT can spot and resolve problems before they arise.
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Strategize, strategize, strategize. Hone IoT’s vast capabilities to ensure the data and programs you’re using is relevant to your company and consumer.
The internet of things (IoT) is everywhere. The interconnected network of technology that uses systems and processors to collect and analyze collected data can be utilized to provide personalized consumer experiences and help organizations make better decisions.
IoT Empowers CX
Jeannie Walters, CEO and chief experience investigator at Experience Investigators, believes AI and IoT can help company representatives craft personalized customer communications and recognize the customer's purchase history, contact history, and more.
“With AI and now generative AI options, there are lots of options.” Walters said. “Customers say they want to be known. They want to be recognized for who they are as well as where they are on their journey.”
To demonstrate this, Walters points to things like smart shelving, which helps adjust price points in retail stores based on demand and report back on inventory in real-time. Salesforce, for example, recently announced Einstein GPT, an AI tool for CRM which will use natural language processing to share data like what products are driving complaints.
According to Walters, a proactive approach to IoT and CX allows business leaders to predict consumer behavior more accurately. This, in turn, leads to a more seamless customer experience and eliminates potential problems.
Related Article: From Data Collection to Action: IoT Drives Customer-Centric Innovation
Avoiding Customer Problems Before the Customer Knows
Andrew Kumar, VP of customer solutions at Uniform, also says IoT is particularly helpful in providing rapid access to customer answers. In a way, it can act as a customer service representative without having to wait on hold for the phone.
IoT's anticipation and ability to help resolve customer problems before they arise not only avoids consumer frustration but reduces costs for organizations as well. Depending on how IoT is implemented, this can occur in various ways.
“For example,” Walter explains, “A municipality today might rely on citizen complaints to address issues like broken streetlights or excessive speeding on a certain road. Those complaints might take hours, days, or even weeks to gather and address. With IoT options, those street lights can ‘report’ when they're broken or need a replacement. Speed tables can track normal usage and inform when there are changes.”
Kumar also mentions that predictive IoT technology can answer customer questions without the need for an agent. With a declarative profile and information about what products and services the customer uses, you can anticipate questions and surface support articles or information that’s curated for their needs. This, Kumar notes, can be preloaded into an IoT device and be ready and waiting for the customer.
“IoT data can be used to triage challenges: think about agriculture or industrial devices that can detect weather conditions, problems with equipment, temperature, etc.” He says. “[An IoT] can provide information or specs of acceptable ranges for operations. For instance, hydraulic lift doesn’t operate in freezing conditions, and an IoT device can remind you why that tire jack is failing. Or an intelligent hotel key can tell you if someone occupies a room, so staff can determine where to go and clean without disruption.”
Related Article: Why IoT Can Be a Game-Changer for Digital Customer Experience
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Strategies for Weaving IoT Data Into CX
A customer experience program is not something that’s one-and-done. It’s a long-term investment that requires a solid plan for success. After all, dedicating a large portion of time, energy and resources into your customers increases your chances of positive interactions and loyal customer retention. IoT can be a part of that strategy.
Walters suggests asking yourself (or your CX team) what data will help your organization make better decisions about product distribution, customer support, and so on. Knowing where you need extra cushioning will pave the way for a strategy that focuses on where the data is best collected and how. According to Walters, part of that planning should include what happens when an insight is found, and who is responsible for addressing it.
“The connected world we live in can be tempting to try to do everything. But it's best to leverage these amazing tools and technologies with a strategy that involves what's actually best for customers and your organization," Walters said. "It's OK to start small and get processes figured out before trying to collect all the data from every touchpoint.”
Kumar also recommends avoiding any IoT-specific or industry-specific solutions to avoid vendor or point-solution lock-in since many tools for streaming and storing remote data track API already. In the end, each industry will have use cases for the application of IoT data, but it’s up to your organization to figure out how to use IoT’s vast capabilities to enhance your own vision of positive CX.
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