IoT Takes Customer Relations to New Level

That is why, for the most part, the onus is on a company’s marketing, sales and service departments to achieve customer satisfaction. According to the Industrial Consumerism study, 84 percent of companies polled are convinced that an improvement in the customer experience that sales and service provide will give them a competitive advantage. An equal number of respondents are of the opinion that, in addition to quality products and services at a competitive price, business customers expect and appreciate a better customer experience. Eighty-one percent say that their customers are increasingly knowledgeable and self-reliant and demand from them more and more specific industry or functional know-how. Companies that take customer experience seriously and aim for customer satisfaction derive multiple benefits from long-term customer retention, a higher recommendation rate and willingness to pay, and higher sales and additional orders.

The customer experience and, with it, customer satisfaction are for large and small enterprises alike the main focus of innovation and the business model. That also applies to digitization in development and production, which is where the Internet of Things (IoT) comes into its own. The IoT delivers data from sensors, machines and vehicles and enables small and midrange businesses, for example, to find out more about their products and how they are used in order to be able to provide their customers with valuable information in the course of the customer journey. When will the shipment arrive? Where was the cold chain interrupted? At which rev count does the engine run most efficiently? At which setting can energy be saved? The answers are provided by the Internet of Things.

In the context of digitization a large number of industries would not be competitive without an IoT connection. In the transportation of goods, for example, the transparency that IoT solutions like IoT trackers and sensor modules is essential. The Internet of Things provides detailed insights into supply chains and inventories. For the customer experience that means being able by means of digital solutions to deliver goods to the customer faster and to predict precisely when goods ordered will arrive and when and where the cold chain was interrupted or a pallet was stolen.

In manufacturing, sensors attached plant and machinery measure ratings such as rev count, temperature or pressure digitally and sound the alarm immediately if deviations are registered. This is where, thanks to IoT, Industry 4.0 businesses large, small and midrange can offer predictive maintenance to their customers. Predictive maintenance generates continuous income and strengthens customer ties. The user benefits from lower costs if machines are maintained digitally and serviced only when necessary, and predictive maintenance can reduce or eliminate entirely downtimes during maintenance.

The importance of the Internet of Things is on the increase in the energy sector too. The fossil fuel and nuclear power phase-out is accompanied by an increase in renewables such as solar, hydroelectric and wind power which, according to the industry association BDEW, accounted for half of Germany’s electricity consumption in the first half of 2020. Tens of thousands of wind turbines and solar panels generate electricity, the output of which depends on wind and weather. That is why the power grid of the future will require smart management in which the Internet of Things will play a crucial role.

In the mobility sector, even before autonomous driving, vehicles are already on the road with digital assistance systems supported by video, radar and sensor technology. Cars receive infotainment system updates over the air. Automobile manufacturers equip cars with SIM cards to provide driver and passengers with WiFi access. Digital business models such as connectivity in and around the vehicle are telling sales arguments that improve customer satisfaction.