Published on 03/16/2017 | Market Sizing
In an era of immediacy, organisations need to leverage customer insights to drive business strategy. The advent of the Internet of Things (IoT) has introduced new digitised possibilities that enable organisations to develop more holistic views of their customers and introduce new engagement models that rede ne how Customer Experience (CX) delivers value for customers and organisations alike.
IoT-enabled-CX allows for the convergence of a customer’s journey across digital and physical environments, enabling organisations to continually deliver personalised, predictive and productive experiences to their customers. Organisations are already embarking on such strategic initiatives; for example, Volvo’s connected car, Whirlpool’s smart kitchen, and Amazon’s Dash and Alexa, are integrating services to bring new levels of convenience to users and enhance experiences with the brand’s support services.
Despite IoT showing immense potential in transforming customer experience, there are inherent misconceptions many organisations have in embarking on the IoT-enabled CX journey. The Frost & Sullivan 2016 IoT-Enabled Customer Experience (CX) Report seeks to dispel the following commonly-held myths and misconceptions.
There is much hype surrounding IoT-enabled-CX as a futuristic undertaking. However, the reality is quite different. Many organisations in Asia-Paci c are already actively exploring or implementing IoT-enabled-CX projects. The study seeks to establish a maturity index to track the progress of organisations in deploying IoT-enabled CX initiatives.
Survey respondents in emerging economies, particularly China (29%) and India (20%), expressed a more optimistic view of the value of IoT-enabled CX compared to other countries in the study. These markets also lead in terms of adoption as they are unencumbered by legacy systems and are more open to exploring new technologies, allowing them to leapfrog over their peers.
Communication Service Providers (CSPs), Logistics, Transportation and Automotive, Retail, Travel and Hospitality sectors are at the forefront in IoT- enabled CX adoption, in comparison to other traditional early adopters such as Banking and Financial Services and Insurance sectors. Respondents in the CSP sector, in particular, showed substantial knowledge about IoT compared to other industries. This is inevitable considering that machine-to-machine technologies and connected devices have been topics of interest among CSPs over the past ve years.
Based on this report’s ndings, there is a strong correlation between IoT- enabled-CX adoption and Net Promoter Score (NPS). Survey results show that organisations deploying IoT as part of their CX strategy achieve much higher NPS compared to the rest. Several other studies show that companies providing a better CX do better nancially1.
Among respondents that have IoT-enabled-CX initiatives in place, 65% showed an increase in employee productivity while 67% experienced improvements in operational ef ciency. Around 68% of participants surveyed perceived their IoT-enabled-CX initiative as improving their brand equity and having a positive impact on the development of new disruptive business models.
You can download the full report here.