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IoT And Improved CX

Unhappy customers are expensive! As per the article The Value of Customer Experience, Quantified, published in Harvard Business Review, “an investment in customer experience (CX) could reduce operational costs like the cost to serve.” Today, plenty of businesses struggle to improve their customer experience, as this is something that has become a key differentiator for any brand. Customers always expect a positive experience, not just a transactional relationship with brands. The fall and rise of every small and big company depend upon the customer experience – and their failure to adapt to state-of-the-art technologies.

As per recent CX Stats 2023, 51% of customers will never do business with a company again after only one negative experience. The strategies used by companies previously were shoddy and couldn’t work as per the expectations. 

In recent years, the focus of the retail business has shifted from traditional customer service to learning how to create a memorable customer experience. Customer experience is today’s business benchmark, as per the article The Importance Of Customer Experience In The Age Of Instant Gratification published on Forbes. Customers have always been a significant catalyst for the growth of any company. With the introduction of modern technologies and devices, it is becoming a new norm for brands – to enhance their customer experience. Today, many big brands have recognised the role of advanced technology in improving the customers’ experience. The relationship between customers and technology is evolving at a rapid scale, and one such emerging technology is – Internet of Things or IoT.  


In today’s competitive world, many big brands are using IoT to enrich communication, understand customer behaviour, and generate personal data to build an emotional connection with the brand. Tesla Inc. is an example of a B2C company which has embraced advanced technology – IoT to enhance the overall experience of its customers. Tesla collects and utilises IoT data to assess how customers use their cars, which enables the company to garner valuable insights into driving patterns, preferences, and overall user experience. Tesla electric vehicles are equipped with IoT technology, which offers over-the-air updates and connectivity features to enhance the driving experience of the customers. 


Another remarkable example of an automotive company which is utilizing IoT to improve its customers’ experience is Ford. Ford’s connected vehicles (equipped with internet connectivity) use IoT to offer features like remote start, diagnostics, and navigation to enhance the driving experience. The company wants to be an integral part of tomorrow’s smart cities by offering consumer engagement solutions on the basis of actionable data derived from IoT technology. 


The world’s largest online retailer and leading cloud service provider, Amazon, also recognised the importance of IoT and using it in its products and services to innovate the customer experience. Amazon;s Alexa is the most popular example of an IoT-enabled device, which can help with everyday tasks, entertainment, and controlling their Alexa-connected devices. 

Big brands like Amazon, Tesla, and Ford have recognised the significance of IoT and integrated it into their products and services to offer enhanced customer experience. Companies can use IoT to fetch crucial real-time data to make strategic decisions. From personalised communication to ultimate digital security and improved products and services, IoT plays a crucial role in creating positive customer experience. Regardless of products, services, and applications, the consumer IoT market was valued at $44 billion in 2020 and is projected to reach nearly $154 billion in 2028. The advancement in technology seen through IoT in products and services has eased the consumer experience by offering better connectivity. 

The rapid growth of IoT is altering the market landscape tremendously, and many big brands and companies are reconsidering their strategies to improve customer experience. The Internet of Things is a blessing for every business that wants to improve customer experience significantly. Be it the automotive industry, telecom, manufacturing, or retail, IoT is here to stay.


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