Gartner shared its top ten trends for CRM at a summit earlier this year, and the Internet of Things came in second (big data was first). To understand the promise that the Internet of things holds for not just marketers but also customer experience specialists, it helps to take a quick look at the evolution of this phenomenon.
In 1999, Kevin Ashton, the cofounder of the Auto-ID Center, first introduced the “Internet of Things” concept during a presentation to Procter & Gamble when highlighting the potential of radio frequency identification (RFID) technology in the supply chain. This concept grew to envision a world where everything—appliances, electronic devices, retail goods, automobiles, food—would have sensors or actuators that communicated through wireless networks. By analyzing the huge volumes of data that would be generated, companies could create new business models that connect people to this exciting new world.
Retailers and transportation and logistics companies immediately understood how RFID technology could transform their operations. Companies in other industries, however, had a more tenuous grasp of what the Internet of things could mean for them. At the time, they had bigger fish to fry, in particular avoiding the impending Y2K meltdown.
In the subsequent years, technological advances brought new possibilities for the Internet of Things, but one got the feeling that its benefits would always be just out of reach―like a “home of the future” exhibit, where robot housekeepers were pressed into service by notifications from overflowing trash cans and dirty windows. For consumers, save for when they shipped an overnight package or bought an RFID pass for the tollway, the Internet of things probably didn’t enter their consciousness immediately.
So what changed in the past 13 years to cause renewed excitement about the Internet of Things? Several developments come to mind:
- Thanks to advances in R&D and nanotechnology, sensors have become small enough to be attached to or implanted in physical objects unobtrusively.
- The widespread adoption of smartphones, tablets, and mobile applications give consumers a direct way to tap into the Internet of things.
- The growing desire for convenience and control, on the part of professionals as well as consumers, has spurred companies to develop new products to tap into this market.
At the same time, people have embraced the benefits of an interconnected world and are thirsty for new ways that the Internet of Things can simplify their lives (ironically, through benefits that increasingly complex technology can deliver). Every new trend or emerging product that empowers the consumer also has repercussions for companies struggling to keep pace with rising consumer expectations. For instance, companies will soon have the ability through Internet-connected devices to anticipate a complaint before it even happens.
Very soon customers could become displeased with companies not for providing a bad experience but for failing to prevent issues before they happen.
In subsequent posts, I’ll discuss some industries that are harnessing these new technologies as well as how the Internet of Things will shape a new model of customer contact. In the meantime, I’d be interested to know if this is an idea that’s impacting how you plan to move forward.