Srikanth
The assumption is that ‘Internet of Things‘ is going to make everyday life better and easier by connecting regular products and services with people. If the businesses can handle it intelligently enough then a company’s product can enable them to be engaged with the consumer by staying relevant. In a world which is getting more and more competitive, maintaining one’s brand loyalty is not so easy anymore, because consumers have plenty of choices. This is why businesses are looking for creative and novel ways to restore the lost relationship with their consumer and influence buying decision in a timely manner.
IoT’s effect on Strong and Weak brands
Needless to say that, consumers will remain loyal to brands that meet their requirements repeatedly, regardless of the advent of new information technologies like IoT. However, in the era of IoT, weak brands will be punished and perished faster and good ones will stand forte. But the gap will be widening between branded and brand agnostic products. Digitally native vertical brand or products like Bonobos, Warby Parker or Casper are born and on the internet and became a brand by the followers on social media. Without the internet and social media, these would not have been called ‘brands’. These products or brands will be the strongest players when the IoT influenced commerce will fully unleash.
On the other hand, products like replenishment goods could become less relevant due to increased automation in this connected world. In a world connected through internet consumption pattern will be more predictable in nature and the way customers purchase certain products or services will change forever. Internet of Things will drive a major portion of purchase decision from active to passive. This transition is more likely to affect frequently ordered products such as household supplies and replenishment goods.
Smart Products will change the way people purchase
One of the companies who are aware of this transition and quick to capitalize on this is Amazon. Amazon, the world largest online retailer has introduced Amazon Dash service which enables consumers to order consumables by the tap of a button. It is a simple Wi-Fi connected device which works as a bridge between the consumer and the supplier. This technology equips the appliance itself to place order automatically based on consumer’s usage of the machine.
The full integration of a service like this is more passive and is an example of what IoT can do for commerce when it is fully developed and integrated into consumers’ lives. A consumer or a family’s subscription for an item from a retailer will be based on the previous purchase history.
It is the Smart decision that businesses take will make the difference
The “Internet of Things” has started to echo in the growing number of connected products and ushering the new opportunities they can represent. However, this does not make it easier to understand the actual phenomenon or its implications. The internet is simply a mechanism for transmitting data or information. What is actually changing or making the whole environment smart is the change in the nature of “things”. The expanded capacities of smart connected products and the data they gather that are dawning a new era of competition. Businesses should look beyond the technologies and rather look into the competitive transformation that is taking place.
But connected products will not automatically go to rebuild the brand loyalty that is diminishing. The challenge for the businesses is to use the smart product to reconnect with consumers in the moments that matter – it is influencing customers from the moment they decide to buy a product and till they consume it if they want to attract consumer attention and increase brand value.
