Business Improvements From Connected Products: 95% Customer Insights, 87% Revenue

The Internet of Things is transforming the way companies make the things they sell.

In products ranging from toys to jet engines and beyond, sensors are getting involved all along the way, ultimately promising that businesses will gain additional consumer insights and improve customer satisfaction.

More than half (61%) of product manufacturers already are in early or active IoT deployment, based on a new research report on the challenges and opportunities relating to the Internet of Things.

The study comprised a survey of 600 companies conducted by Harbor Research for Xively, a Boston-Based IoT company.

Almost a third (29%) of companies are actively deploying IoT initiatives and only 5% of businesses have no plans to do so. Here’s the breakdown of stages that the businesses are in relating to the Internet of Things:

  • 32% -- Early deployment; well underway for strategy
  • 29% -- Actively deploying initiatives for more than six months, conducting analysis to optimize
  • 20% -- Early phase, plan to deploy in 12-18 months
  • 14% -- Possible long-term deployment, still learning
  • 5% -- No IoT plans, no interest to deploy

One of the most obvious expected returns from IoT adoption is to improve efficiency. But IoT connectivity can provide much more than that.

For example, installing LED lighting in a large store can create immediate cost savings in energy usage. However, that same new lighting can track foot traffic, smartphone presence and facilitate new interactive messaging capabilities for shoppers.

Some businesses see the benefits beyond improved efficiency. Here are the most anticipated benefits:

  • 34% -- Greater efficiency
  • 25% -- Customer and product insight
  • 21% -- Better support
  • 15% -- Customer satisfaction
  • 6% -- New revenue

More interestingly, those already underway with IoT initiatives are seeing significant business improvements, according to the study. Here are the improvements seen by those already deploying connected products:

  • 95% -- Customer insights, including customer behavior, needs and preferred modes of interaction
  • 93% -- Customer support
  • 92% -- Efficiencies
  • 91% -- Product performance
  • 88% -- Customer relationships
  • 87% -- Revenue

They had me at customer insights.

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