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Customer Experience

Preparing for the Internet of Things

Nathanael Peacock
Technology Journalist

Nathanael Peacock is a tech, digital and entertainment writer

Nathanael Peacock
Technology Journalist

Nathanael Peacock is a tech, digital and entertainment writer

Technology has changed the way that businesses interact with their customers. Find out how and new ways for the IoT revolution by Telstra Smarter Business.

The impact of the Internet of Things (IoT) is unavoidable – the more smart devices you use in your business, the more data you can collect and use. Creating and taking advantage of a solid data strategy can give you deeper insights into your customers offering a leg up on any competition that’s slow to embrace the change.

Whether you engage with customers online, through an app, through social media or in store, there is a lot of data to collect. In addition to complying with privacy laws, the key considerations are what to do with that data, how it helps your business, and perhaps most importantly, how to protect it.

A close up of a hand pressed to a screen showing a graph

IoT – from theory to application

Moving towards an IoT solution is all about the connections you want to make and the data that you want to capture. That may mean investing in a new technology mix to gather new data, or using what’s already available to improve your processes.

A relatively cheap RFID chip solution on a commercial product can give you tracking information about products in transit and your factory-to-store sales time. This means you can use that data to work out more effective means of transit over long distance, or collect sales numbers as they happen to get ahead of the next shipment.

This relatively simple solution gives a comparatively small amount of data to help you understand the products and their movements. However, understanding your customers and making the most of their data can be more complicated than working with products.

This could mean building an app or a device that fits into their daily life and gathers data for you to help understand their habits on a deeper level.

Financial industries use banking apps to track customer spending behaviours to pinpoint when they are ready for a better card or plan. Fitness industries use apps to remind customers to go to the gym and engage with special offers. Telcos use mobile data and tracking to see how customers use most of their data and highlight more cost-effective plans or new devices. 

The key to app interaction is utility; the data you’re able to collect is invaluable, but the product needs to have a tangible benefit to the customer in their everyday life. 

The security of things  

IoT means more connectivity – more connections between you and your business, but also more connections between you and your customers.

As customers connect with your business across a suite of devices, this gives you the potential to create a more complete view of your customers. It also brings with it the added need to protect their data as well as your own.

In a world where more homes and businesses are connecting to more devices, opportunities for new innovation come with risks. Internet-enabled security cameras, for instance, are ironically one of the least secure IoT devices on the market, frequently hacked by nefarious cyber criminals.

These kind of breaches show just how IoT can be a double-edged sword. The benefits of increased customer data are clear, from the marketing benefits of customer tracking and retargeting, to the business growth projections provided through broader device engagements.

With the obvious benefits of IoT for the business and customers, the clear security risk needs to be addressed as well. When you look at an IoT solution, a simple IT security system might not cut it.

So how do you prepare for the IoT?

Think about your business, what devices you use and how things could work more efficiently. Look to your customers, how they engage with your business and how that could be improved. Think about what data your business actually needs to collect and how you’re going to store it, because all the data in the world is useless if you can’t use and protect it.

Want more customer data to make better business decisions? Explore Telstra’s range of business tools, or use Otto to find out what’s best for your business.

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