We now are familiar with IoT (Internet of Things) where data, connectivity & information is in play, an extension of IoT is IoB (Internet of Behavior), this works with the same parameters as IoT but with additional parameters of patterns, impressions, and user behaviour. In the internet age, IoB is touted as the next new stage.
Customer behaviour is particularly important for businesses as it helps them to personalize offerings based on the behaviour of the individual. Let us take an example of spending patterns, every individual typically has a pattern of spending, this data captured over time can help uncover the spending behaviour of that individual. Based on the behaviour a business can target offerings to that individual at the appropriate time and secure the sale.
We live in a highly connected world and use apps for all aspects of our life. These apps collect data that helps in building our behaviour patterns. This is highly valuable data that helps in building out our patterns. This acts as an input to companies to determine the kind of recommendations that we should be fed with.
As per Gartner ” By 2023, individual activities will be tracked digitally by an “Internet of Behavior” to influence benefit and service eligibility for 40% of people worldwide. ” (Gartner)
The source for this gathering of data can be from a combination of or all the below-listed sources:
- Social Media
- Wearable devices
- Location tracking
- Customer data
- Public domain facial recognition
What are the benefits of IoB?
- Reduces / Eliminates customer surveys.
- Determines the habits of individual buyers.
- Testing of campaign effectiveness
- Timely delivery of notifications.
- Real-time announcement on discounts and outlets in the current location.
- Gain deeper insights into the customers buying journey.
Let’s look at a few spheres where the Internet of Behaviour used/is being used?
Healthcare: As per Forbes, an estimated 600+ million IoT devices are being used in clinics, hospitals and other care centres. A lot of applications are already being used to analyze the data and provide suggestions and recommendations which are intended to provide a healthy behavioural change for a better lifestyle.
Transportation: Companies like Uber already use IoB studies on passenger locations, drivers, preferences to enhance the customer ride experience. This helps companies to offer the right service to an existing customer based on their individual preferences based on their data.
Smart Home’s: Many of us do control appliances at home remotely using a smartphone or a tablet. Now all smart homes will be able to adjust automatically to the preferences we have built over time based on our usage patterns.
Marketing: As everyone here has already experienced, based on our search and buying patterns, websites already offer suggestions and articles based on our current interests. It’s no longer surprising to see marketing advertisements and offers while we browse, this is all based on our interests and search patterns of ours.
Behavioural Analytics is here to stay and enhance the user’s experience and offer recommendations. IoB offers new insights that will help organizations immensely. The data collected can be used to optimize customer relationships. Behavioural Data technology is still new and developing. But with the unprecedented growth of IoT devices, the data collected is at a stage of bifurcating what data is critical and ethical.