The Internet of Things (IoT) helps drive a reliable mode of interaction with customers, providing real-time insights to help streamline operations and make for greater personalization in the consumer experience. As a result, understanding the IoT is crucial for retailers, entrepreneurs, and business owners.
While the usefulness of connected devices is nothing new in and of itself (consider the practicality of tech like medical alert devices or GPS trackers for children), the IoT integrates your entire network for more fluid and efficient communication.
It’s not enough to simply hear about the IoT and business. These six statistics from Transparency Market Research and Aruba drive home its power and use for businesses.
1. Over 80 percent of companies that adopt IoT report efficiency improvements.
Efficiency improvements are a common outcome of adopting the IoT. For one, the IoT can decrease maintenance times such as how the transportation industry utilizes the IoT to anticipate maintenance needs. Harley-Davidson uses sensors and software to alert managers to potential issues.
Additionally, Rolls-Royce harnesses the IoT with their Engine Health Management system, a system of sensors and powerful analytics that identifies issues and plans maintenance before they become issues. The IoT helps anticipate and resolve problems well in advance of their occurrence.
2. Nearly half of retailers worldwide have, to some extent, adopted IoT technology.
In retail, the likes of Walmart are utilizing the IoT to aid in inventory management and loss prevention, helping to link their brick-and-mortar locations with the importance of their online store through the use of RFID tags on merchandise, which can help with tracking and scanning by employees.
They are not alone, as nearly half of retailers worldwide are embracing IoT technology on varying scales. From massive businesses to mom-and-pop shops, the IoT can help with efficiency and consumer personalization.
3. Thirty percent of retailers deploying IoT in-store networks use location-based services.
The 30 percent number seems likely to increase as retailers continue to embrace personalization with the aid of the IoT and big data.
Nonetheless, the statistic shows that IoT interest goes hand-in-hand with location-based services that help in-store shopping experiences offer more personalization than ever before.
Research shows that personalized customer experiences result in more revenue and loyalty, so retailers can experience highly positive results by using IoT to aid in personalization.
4. The value of the IoT market anticipates reaching $82.31 billion by the end of 2025.
It’s in the best interest of businesses to be ahead of the curve in embracing the IoT, especially, since data suggests that it will be extremely commonplace across retail platforms by the end of 2025.
An $82.32 billion market [[which market? IoT market?]] by 2026 prediction highlights the increasing prevalence of the IoT throughout the supply chain, helping identify issues before they occur in addition to personalizing the consumer experience.
Entrepreneurs slow to embrace the IoT will find themselves behind the curve in several years if data is any indication.
5. Seventy-seven percent of retail companies believe the IoT will transform the retail sector.
For those wondering why the IoT market anticipates skyrocketing in the next decade, you should know that there’s an enthusiasm surrounding the IoT among over three-fourths of retail companies. The IoT is quickly becoming commonplace in retail stores–a trend that doesn’t appear likely to cease anytime soon.
For example, L.L. Bean is embedding data-gathering sensors in coats and boots to collect data, helping to analyze movement, temperature-related data and how often customers wear and wash the clothing. It’s very specific data, for sure, but useful data nonetheless that can add amply to consumer personalization efforts.
6. Walmart is expanding the use of in-store inventory robots to over 50 U.S. stores.
Walmart stores are so widespread that the consumer experience they provide is often a barometer for many shoppers.
As a result, their decision to expand the use of in-store inventory robots that harness the power of the IoT is likely to increase consumer familiarization with the technology. Such familiarity will help elevate the growth and commonplace role of the IoT throughout the supply chain and consumer experience.
The IoT and business will continue their fruitful partnership in the years ahead, as data regarding IoT’s usage and benefits increases.
It’s in the best interest of businesses to invest in the IoT as a solution for supply chain management and to help drive insight into consumer personalization.