The Internet of Things, IOT means a lot of things to different people, but at its core are smart devices, collecting data on how their human counterparts behave and interact with them. Calling IOT “the next disruption,” today’s podcast guest on Moneyball for Marketing, sketch to scale solutions company Flex’s CMO Michael Mendenhall takes us for a walk through the changes afoot in go to market strategy, product development and customer service that are in store as a result of this disruption. “McKinsey is putting (the size of connected devices in 5 years) at 50 billion products out there with over a trillion in total addressable market, ” cites Michael to frame the paradigm shift. Providing examples from Disney, Tesla, the insurance industry and Qualcomm, Michael walks us through a history of marketing intelligence collection, including the genesis of CRM to hyper‐personalization. Highlights include:
Intelligent objects: “We are always on, always connected, mobile, and we’re getting more data points than we ever have before…. it’s changed how you even think about product development as it related to R&D.” Michael explains how ‘the intelligence of things’ is already informing and affecting not only go to market strategy, but also product development,citing exciting examples from Disney and Tesla.
Seamless Circle: IOT will change the paradigm of customer experience,predicts Michael. From a limited “end to end experience,” he explains why with the marketing intelligence collected from smart devices, “the experience starts and it doesn’t stop. It’s endless and it’s a cycle, it’s circular.” He discusses how product updates, the sharing economy and customer loyalty will all change as a result. “It’s seamless,” says Michael.
Personalization principle: Predicting a global growth of up to 66% in the middle class, Michael posits that “you’re going to see an increase in consumption and buying power, and when the buying power goes up, the consumer can start to demand customization, mass customization, personalization…. you’re going to know me so well, you’re going to know my patterns, and I am going to have great expectations relative to…the experience you create for me.” Michael gives examples of how industries like auto insurance, which will provide such “hyper‐personalization,” will transform as a result.
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Glenn Gow is an expert in marketing performance, Coach, Board Advisor, Author, Speaker, Podcast Host and Founder & Advisor of Crimson Marketing. Follow me on Twitter, LinkedIn, Google+. To get a free copy of Crimson’s One-Page Marketing Metrics Funnel, visit here.