CX leaders: We love IoT (but can you tell us what it does?)by
Struggling to identify the significance of the Internet of Things (IoT) for the customer experience? You’re not alone!
According to new research from Genesys and Frost & Sullivan, only 10% of European organisations can define and promote the value proposition of IoT in driving the customer experience.
Yet despite this, CX leaders are enthusiastic about IoT and broadly speaking are convinced about the value of IoT as a concept - with many intending to invest in the technology imminently.
1,000 CX leaders were interviewed for the “Redesigning the Customer Experience Around the Internet of Things” report, with 62% of European respondents suggesting that they are prioritising the integration of IoT into their CX initiatives.
And the majority of these European organisations expect to incorporate some form of IoT within the next two years.
In other words, businesses have drunk the IoT Kool-Aid and they’re sold on the idea even though they are unable to articulate how it could translate into customer benefits.
Elsewhere, however, there are some indications of where the CX value of IoT may reside.
The report notes that the proliferation of internet-enabled devices allowing organisations to capture more aspects of the human experience, service-oriented businesses can capitalise on these new data streams to predict, optimise and enhance interactions.
It suggests: “If organisations accumulate data streams from IoT-enabled devices and exploit that data usefully, they can develop a holistic view of their customers. Organisations can introduce new engagement models that deliver additional value to improve the customer experience (CX). With data analytics, competent insights teams are already promoting CX improvements. With IoT, CX improvements will happen in real-time, targeting specific customer journeys.”
Indeed, 22% of respondents reported that they have already invested in IoT, of which over half have reported a high positive impact on customer satisfaction.
But despite the wider enthusiasm for IoT, CX leaders admit that they may not be able to forge ahead with their fever dream vision of an IoT-enabled future. 42% of European respondents report that budgetary constraints would likely inhibit implementation – and with 90% admitting they aren’t ready to define and promote a concrete value proposition, it seems that there will be significant stumbling blocks in securing investment for the majority.
Neil Davey is the managing editor of MyCustomer. An experienced business journalist and editor, Neil has worked on a variety of newspapers, magazines and websites over the past 20 years, including Internet Works, CXO magazine and Business Management. He joined MyCustomer in 2007.