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Why Internet of Behavior is the hawk eye for personalized marketing?
Why Internet of Behavior is the hawk eye for personalized marketing?

February 2, 2022

IOT

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It is incredible to see how the integration between technology and humans has evolved over the years. There was a time when people did not even believe in a future for computers and now, we can’t even think of a world without computers and the Internet. The internet is constantly evolving. Not only has it connected humans, but its ubiquitous nature has enabled devices, machines, objects and everything around us to stay connected and exchange data. This is the internet of things (IoT), and it has truly made our lives convenient, comfortable and much easier. 

The concept of IoT has been around for more than two decades now. In 2000, the world’s first refrigerator connected to the internet was launched that allowed users to shop for groceries online and make video calls. Today, it is predicted that there will be 30 billion IoT devices across the world by 2025. Imagine the amount of data that 30 billion IoT devices would generate. This data could be around users’ online activity, buying preferences, choice of music on online platforms, locational data, demographic data and so much more. 

Naturally, this amount of data aroused the curiosity of researchers, marketers, product designers and led to the concept of the internet of behaviour (IoB). IoB attempts to tap into this trail of digital footprints and gain insights on customer behaviour, interests, preferences and other aspects. 

IoB leverages emerging technological inventions and machine learning algorithms to collect, analyze, understand and respond to all types of human behaviour and psychology, and then applies this intelligence to suggest and market new products.  
 While data privacy concerns are on the rise, some users are willing to provide their data to organizations, as long as it leads to value creation for them.

This enables organizations to devise hyper-personalized marketing strategies for different types of customer personas. All they need to do is to identify customer touchpoints and collect and analyze data collected from all the different sources – commercial customer data, online activity on social media, facial recognition, locational data, etc. With this, organizations will be able to gain insights on customer buying habits and preferences, based on how they interact with different devices and platforms. This will enable quick problem resolution for customers, thereby ensuring a positive customer experience. 
We all have seen IoB in play in one form or the other.

The popping advertisements on social media platforms after we have spoken about a particular product around our phones is nothing but an example of IoB. The same goes with suggestions on over the top (OTT) platforms that come up based on our past choices and preferences.

Apart from human behaviour analysis to suggest personalized marketing strategies for a particular customer, IoB also aims to change human behaviour to encourage sales. The scope of IoB is unlimited. From retail to entertainment to health, it finds its application across industries and has the potential to truly transform the marketing industry. 

Let us take an example in the health space. We are all familiar with health and fitness apps and devices that monitor our steps and activity, sleep patterns, heart rate, diet etc., throughout the day. A vast amount of information is generated through these apps, and that data is used by multiple stakeholders. For the individual, these apps and devices help in tracking and monitoring health. Based on the customer’s health goals, the app also suggests preferred diets and exercises to the user. The same data can be used by doctors to monitor the patient’s health and suggest behavioural modifications for a more positive health outcome. Not only this, even the health insurers can make use of this data to increase or reduce the premiums based on the individual’s lifestyle and dietary choices. 

IoB is here to stay. Gartner predicts that by the year 2025, more than half of the world’s population will be subject to at least one IoB program, be it commercial or governmental. This being said, there is a need for organizations to strike a balance while using IoB to prevent personalization from turning into intrusiveness. Not only this, but they will also need to ensure that adequate safety measures are in place while dealing with sensitive customer data.

When used with caution, IoB will have the power to revolutionize the way products are marketed. As the lines continue to blur between the physical and digital world, human actions and behaviour will continue to be influenced largely by the digital ecosystem surrounding us, leading to better insights for organizations, along with better experience for customers throughout the customer life cycle. 

 

The author of this article is Sukesh Choubey, EY Global Delivery Services Technology Consulting Leader. He is a transformational leader focused on building high-performing teams and driving innovation in technology services. He is passionate about playing golf and drums.

 

This publication contains information in summary form and is therefore intended for general guidance only. It is not intended to be a substitute for detailed research or the exercise of professional judgment. Member firms of the global EY organization cannot accept responsibility for loss to any person relying on this article.


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