Why customer experience and retail can become IoT-enabled – but with security a question
A new piece of analysis from Frost & Sullivan argues that IoT has ‘the potential to enhance an organisation’s ability to understand the customer journey’, but warns around security remaining a ‘vital’ concern.
According to the missive, companies globally lose more than $300 billion on an annual basis due to poor customer experience, which makes it a top priority for such organisations. IoT helps these organisations to understand the customer and proactively engages with them. It resolves their issues more efficiently, delivering better value and enhancing the customer satisfaction overall. A key value proposition of IoT is its ability to 'sensorise' an environment leading to digitisation of the physical world and quantifying human actions.
Even though the omnichannel strategy covers all touchpoints and channels for effective customer experience, many organisations are not able to meet customer expectations due to the siloed approach. IoT enables the convergence of customer journeys across both physical and digital environments, including mobile, web, social, self-service and even video, making it easier for organisations to continually deliver personalised, predictive, and productive experiences to their customers.
In retail, IoT helps understand the customer journey (digital awareness) during the visit to generate vital data regarding behaviour in-store and product interaction. This data helps retailers better understand their customers, and allows for data-enabled decisions to be made, like improving visual merchandising or optimising manpower.
As organisations look into the applications of IoT into their digital transformation strategies, such as customer experience or smart retail, it becomes important that cyber security becomes paramount in ensuring that these initiatives are built on a secure foundation, Frost & Sullivan adds.
It’s essential therefore that organisations recognise and address the two main issues facing cyber security today, namely, the lack of security by design for the IoT, and the lack of skilled cyber security professionals to meet market demands. “Without recognising the need to invest in security and having the right technology, processes and people in place, organisations will not have a secure foundation to thrive in their digital initiatives,” said Charles Lim, industry principal of Frost & Sullivan’s cyber security practice.
Interested in hearing industry leaders discuss subjects like this and sharing their IoT use-cases? Attend the IoT Tech Expo World Series events with upcoming shows in Silicon Valley, London and Amsterdam to learn more.
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