What The Internet Of Things Really Means For Marketers

Consider these key takeaways to make what feels like a broad, looming idea into a practical and actionable one.

For modern marketers, customer data proves to be both a blessing and a challenge.

A nearly limitless amount of data has the power to transform marketing strategies and enable organizations to reach their potential customers faster and more accurately than ever before. Yet for most companies, the level of customer insight doesn’t go beyond what is listed on a product registration card. Enter the Internet of Things (IoT).

The IoT is creating new connected products that produce data at every level, allowing marketers to have a real-time view of not only how products are performing, but when customers need to be targeted and the method by which they should be approached. With everything from connected shower systems that help reduce water usage to cat doors that ensure a pet is safe and sound, the IoT is providing endless opportunities for marketers. Those feeling overwhelmed with this new reality should consider these key takeaways to make what feels like a broad, looming idea into a practical and actionable one.

• Lead the charge in product origination and purpose: Marketers should be at the forefront of product design and rethink the purpose as we enter an age where nearly everything we touch will be connected. Imagine if a product is not just about its original intent, but rather the opportunity to collect data is now part of the process from the very start. Take, for example, a light bulb. Initial design considerations for a standard bulb are to light a room. But what happens when that product enters the IoT? You have a connected light bulb that can serve as a data collection device that happens to light a room. With this mindset, we can come up with new ways to use the products that organizations develop to best serve our marketing team and inevitably, our customers.

• Agile marketing is the new norm: The days of aim, forget, and fire are gone. Taking a cue from developers, marketers integrating an agile approach to campaign development and execution are seeing success, as it yields high productivity as well as actionable lessons for marketing teams. In the age of the IoT, campaign creation and planning will all be data-driven and will benefit from real-time feedback. Marketers who walk away with a 75% fix to 25% variable in plans will win.

• The monetization of products and packaging has been redefined: No matter what your legacy product is, in this connected era, marketers should be prepared for a new approach to products and packaging where everything looks and feels more like software or an app. With the increase in usage data and product information, pricing and packaging can be completely rethought to be centered around how you—and how customers—create value. What does preliminary pricing look like? Is there an opportunity to leverage this proprietary data? All these ideas must be taken into account when product companies transform into data companies.

• Pre-emptive marketing is now a reality: Because we can collect real-time data with connected devices, marketers have an opportunity to better understand how a product is doing and quickly and efficiently build programs around it, pre-empting the needs of the customer. This opens new avenues to extend your relationships with customers. What was once a five- or maybe 10-year buy-in could potentially extend far beyond that. Consider a company that creates connected water filters for the home. If you can collect data, pre-empt the needs of your customer, and deliver a new filter before the customer even realizes he needs a new one, you will eliminate one reason he would look for an alternative product.

• Personalization must be in everything: Gone are the days of categorizing your customers and delivering a one-size-fits-all message to a said category. The IoT makes it possible to personalize everything—in messaging, product, advertising—and marketers must take advantage of this opportunity. Much of this ties back to the Millennial generation. While “Millennials” may feel like the buzzword du jour to marketers, the reality is that they have disrupted how we create, buy, and sell products—and personalization is one of the major impacts we must be leveraging.

These changes in how we market products will have a dramatic effect on the creation and makeup of marketing teams. Those who are able to leverage the large quantity of data available to design and execute on innovative, pre-emptive, and smart marketing plans will succeed and empower their organizations to grow. It’s an exciting time for marketers. It’s just a matter of deciding if you want to capitalize on this major opportunity or not.