Role of IoT in Experience economy
Ever since the term Experience Economy was first coined by Pine and Gilmore roughly 20 years ago, researchers have explored how consumer buying decisions are increasingly determined by experiences. In today’s economy, consumer buying decisions are greatly influenced by the quality of the experience they receive from the brand, and not just by the brand’s product or service.
Statistics says, 80% of customers have chosen to switch brands due to a poor customer experience.
Role of Internet of Thing(IoT) to Improve Brand experience
In today’s world it’s not only about productivity. We live in an experience economy – and in the end, it’s all about customer experience. IoT – enabled business processes plays a critical role in enhancing customer experience “a critical piece of business transformation in today’s economy” – can help your company to elevate customer satisfaction.
The Internet of Things (IoT) means more than simply establishing connections between devices and systems — it is opening up opportunities for creating new products and services not previously thought possible. In fact, according to a recent Forbes Insights survey, 60% of enterprises with the help of their IoT initiatives, expanding or transforming with new lines of business, while 36% are considering potential new business directions. In addition, 63% are already delivering new or updated services directly to customers with the IoT capabilities.
In addition, with the power of connectivity, pay-per-use for machines and equipment (EaaS, equipment-as-a-service) has become a successful business model. Consumers benefit from lower whole-life equipment costs, no upfront capital investments, turning CAPEX into OPEX, industry-leading equipment uptime, and a transparent pricing structure. Manufacturers of the machines and equipment also benefit from an EaaS model. If done in the right way, it is an attractive business model for a long-term sustainable revenue stream for manufacturing companies.
How do we do that?
Imagine you are a manufacturer of heating, cooling and ventilation machines – What your customers rely on, is the uptime and availability of your machines, the quality of the product the machines produce and the service you provide to your machines – simply creating the best cost of ownership.
Therefore the goal is to offer remote service – being pro-active, and avoid sending a technician to the customer place if it’s not required, give them as much information before their visit.
How manufacturer go about transforming their businesses with IoT?
Do you think it is about having connected machines and ingesting the sensor data from these machines will help?
Probably Yes, but it is much more.
One need to enrich sensor data with business data. In addition, you need to detect potential problems and quality issues before they occur. Doing so will increase the uptime of the machines and helps to improve customer satisfaction.
So how does IoT help increase the quality of service you provide?
Imagine the connected machine encounters an incident or the Machine learning running on top of the sensor and business data detects an anomaly – IoT can create a create a ticket for you automatically, which gives enough lead time to the technician to fix the machine issues before the machine stops. Remember, if the machine shuts down – that’s bad for business and severely impacts the production throughput.
Most important: With actual usage data generated by IoT-enabled equipment, manufacturers can develop new components to avoid specific failures and eliminate unused features. Suppliers can suggest more appropriate models or required additional equipment. – Significantly contributes to improve the brand experience.