Customer Relationship Management Improvement using IoT Data

The Internet of Things (IoT) increasingly gains importance and costumers ale willing to pay for. Studies show that by 2020, more than 30 billion devices will be connected and the IoT platform market will grow to $ 7.6 billion in 2024. The purpose of this paper is to determine how IoT data could have a positive impact on customer relationship management (CRM). An empirical study has been conducted based on qualitative research methods with twelve experts in 2020 specialized in innovation marketing or CRM who have already participated in IoT projects in the retail industry. The results demonstrate that companies will be able to satisfy the customer’s needs in a more precise way and that it is possible to predict the customer’s behavior by analyzing generated data. Furthermore for most companies it is sufficient to implement a standardized CRM system because of their lack of knowledge in software development and interfacing opportunities. In this way, collected IoT data of the individual can be aggregated with already generated data from all other channels. Through this alignment, a holistic customer understanding about the purchased products, services, and wishes will be acquired and marketing activities can be targeted accordingly.

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