CRM for the coffee machine. And washing machine. Almost any machine.
What seemed like a science fiction story 20 years ago has now become a tangible reality. The Internet of Things (IoT) has become part of our daily lives. From household appliances and cars to large industrial production lines, objects have found their voice and become active participants in customer relationships. The availability of product usage data has revolutionized CRM, leading to significant improvements and enhanced customer experiences.
Customer experience (CX) has become a decisive factor in purchase decisions. However, delivering a seamless CX is not without its challenges. It requires ensuring consistency across all touchpoints along the customer journey. This includes the growing number of “smart” devices and machines that play a crucial role, especially post-purchase. These devices are critical touchpoints now and will be even more so in the future.
Connected means in relationshipProduct lifecycle meets customer lifecycle CRM is the IoT discipline of the hour
The fundamental concept of the Internet of Things (IoT) revolves around connecting devices to exchange information and enable interactions. This concept shares similarities with CRM, where companies establish connections with customers to gain precise information about their current status and interact with them in a targeted manner.
The connectivity of machines and devices serves a purpose beyond its own existence. It is a means to achieve certain goals. Megatrends, such as the advancement of smart cities and the emergence of smart living in private settings, are driven by more than just convenience. They are shaped by broader societal trends. For instance, IoT-enabled devices play a role in optimizing energy consumption and contribute to sustainability efforts. IoT connectivity is no longer a mere gimmick; it has become an integral part of our very near future.
At the beginning of the decade, there were already close to 10 billion IoT-enabled devices. By 2030, this number is expected to triple. While smartphones play a significant role in driving this growth, industrial applications and various consumer products are also major contributors.
After a purchase decision has been made, a coffee machine becomes a central touchpoint throughout its lifecycle. It serves as a focal point and a hook for automated, personalized and digital interactions, as well as direct one-on-one human-to-human communication.
Product usage data in CRM for a perfect customer experienceWith sugar?
The example of the IoT-enabled coffee machine perfectly illustrates the potential of CRM. It highlights how both individual households and business customers can benefit from an integrated approach that combines customer experience (CX) with the Internet of Things (IoT). Ultimately, two crucial factors come into play: the functionality of the coffee machine and the taste of the coffee itself. But what defines the taste of a good cup of coffee?
Once the preferences of coffee machine users are identified, opportunities for targeted cross-selling and upselling present themselves. This applies to physical products, such as a milk jug for preparing latte macchiatos, as well as additional services, such as a barista seminar. Personalization can also be applied to newsletters, making them more relevant and engaging for the recipients.
With the improved availability of data on customers’ beverage preparation preferences, businesses can precisely customize offers such as direct shipment of coffee beans to their customers. This level of personalization can be achieved through the company’s own store, thereby increasing the share of wallet via the direct-to-consumer (D2C) channel. Moreover, by providing additional incentives, businesses can also lower the barriers to switching, fostering long-term purchasing behavior.
To prevent negative experiences with the machine, sensor-detected machine conditions can be leveraged to provide direct communication. For instance, if the machine detects a need for cleaning, it can provide appropriate content on what the cleaning process should look like. Similarly, if the machine experiences accelerated wear due to high lime content in the water, timely offers for discounted cleaning sets can be presented to address the issue.
Machine downtime can be prevented through condition monitoring. To reward long-time customers for their loyalty, personalized solutions can be quickly identified right after a service issue occurs. How? By integrating historical customer data and verifiable product usage data into the service CRM.
customer identification through product registration
360° customer profiles with actual usage data to refine profiles & segments
D2C revenues as well as increasing the share of wallet through cross-selling and upselling
a foundation for loyalty programs to strengthen customer loyalty and reflect brand values
Throughout the product lifecycle of an appliance, there are interaction opportunities for marketing, sales, and especially service departments. However, this necessitates the availability of appliance-specific and series-specific information, along with customer and transaction data, to all relevant departments within the company. That’s why information from the manufacturing process in the ERP system must be synchronized with the CRM system.
Together, we will help you find the ideal system. Not only that; with our comprehensive consulting, you’ll become a trusted partner to your customers and foster exceptional human-to-human interactions in our digitalized world.
Another game-changing aspect is the integration of powerful customer engagement tools, such as a customer data & experience platform and a marketing cloud. While CRM focuses on direct human-to-human interactions, customer engagement technologies excel in delivering personalized and automated communication across various digital channels.
Would you like to explore your options? Feel free to reach out to us! With a team of over 800 experts dedicated to shaping the future of customer experience, we approach every challenge with an open mind and innovative solutions.