Over the years the Internet of Things(IoT) in retail has been radically changing the industry. The Internet of Things which was a futuristic buzzword is turning into a reality breaking the wall between brand, product, and customer. IoT technology is being implemented for a wide range of uses, allowing managers to establish insights on customer behavior and improve customer experience.
Learn about industries using the Internet of Things
According to a new report by Grand View Research, Inc., the global internet of things (IoT) in retail market size is expected to reach USD 94.44 billion by 2025.
Opportunities with IoT
The rapid growth of the IoT is changing the marketing landscape, allowing many brands and marketers to find new ways to initiate a relationship with a client, create an effective customer journey, build a long-term relationship with first-time shoppers, improving maintenance and production.
Insecurities regarding product quality and delivery are often what holds back customers from ordering online. Brands and marketers can implement IoT to enrich the customer experience by providing accurate and real-time information about product quality and delivery.
It is often a hassle for the customers to track the products during deliveries. Sometimes customers have to wait for the product with long delivery times and delays but with IoT technology, it allows the customers to be updated with the delivery status. So, a customer can see the location of their order in real-time.
All the data collected by IoT can allow brands to optimize the product and improve the overall value of a product based on the data about its usage. It improves performance and also strengthens the relationship with the customers.
Implementing IoT technology can enrich the communication between a customer and a brand. The sensors that the products have can track down a customer’s usage patterns and share insights with the marketing team. So that they can come up with relevant, personalized messages based on the data. Based on this data, a marketing team can also find out the interests of the customers and would be able to suggest other products and services to them which are similar or complementary. This can improve the customer experience as they’ll feel that the brand is taking care of their needs.
The Challenges of IoT Adoption
Worldwide demand for IoT technologies continues to climb, with a growing number of organizations looking to adopt or expand their use of IoT. Resulting to increase numbers of connections and mass data collection. So, beyond the hype around this confluence of technologies, there are significant challenges, from security challenges to the perils of high customer expectations. Some of the key challenges include large investment needs and uncertainty about the Return on Investment (ROI), data securities issues, and lack of qualified employees.
There are several applications of IoT in retail and it varies, whether it’s analytics for a supply chain or a more personalized shopping experience for customers. IoT applications can help brands achieve and maintain a competitive advantage in their industry. The investment in and growth of the IoT market in retail is showing no signs of slowing, suggesting that it’s here to stay which has great potential.