5 Potential Ways IoT Can Transform Customer Service

By Martech Outlook | Monday, July 13, 2020

The newer and smarter capabilities of IoT, are making it the primary technology that will contribute to enhanced customer experience. 

FREMONT, CA: Internet of things (IoT) is known for offering smart use cases to various business processes across the industry verticals. The technology connects sensors, devices, computers, smartphones, and contributes to a network with multiple sources of information. Customer experience is one of the many verticals that can benefit from IoT advancements. Understanding the customer is the key to excel in customer service, and in this light, IoT-enabled devices offer invaluable insights into customer preferences and choices. IoT technology can assist in customer data collection and sharing, and security to enhance efficiency and productivity. Here is a detailed analysis of the above factors.   

Data Sharing

Business processes revolve around data sharing. IoT makes data sharing highly effective and less time-consuming, helping the employees easily pull out records for clients without losing time on comprehensive searches. IoT offers a crucial advantage in this regard as it allows easy information sharing with other devices. Around 82 percent of enterprises have incorporated IoT solutions to share information with employees in real-time. IoT can improve customer experience by offering internal support to the teams to better assist the customers. Further, IoT adds transparency to the communications, and the clarity will enable the customer experience teams to address customer issues better.    


IoT devices collect enormous amounts of customer data. Personalization can gain momentum with such vast repositories of personal data. Marketing messages can be shot depending upon the customer’s tastes. Personalized data via multiple IoT devices connected in a network such as digital signals and self-service kiosks can be used for real-time campaigns. Such a level of personalization can help bridge the gap between customer’s expectations and customer care team efforts. New customer-centric innovations will also be possibly triggered by increased customer understanding. Offsetting customer complaints is one of the primary goals of almost every customer service team. Personalization holds the key to reduce complaints about the service too.

Inventory Management

IoT requires certain necessary components to enable communication among devices. The objects must be augmented with an Auto-ID technology, such as an RFID tag. Each of the tags has a unique digital footprint with encoded data that can be used to gain information about a specific attribute such as weight, color, model, and type. Improved inventory management can also enhance the customer experience as the teams can offer updated information on the availability of products. For instance, customers can ensure the availability of a certain product at the nearest retailer shop. There are many other such use cases of IoT-enabled inventory management that can improve customer experience services.


Digital security is gaining importance among users. Increased identity theft and hacking have led to increased insecurity among users. Thus, it is important from the business point of view to assure customers about data safety. The increased degree of connectivity offered by IoT makes it the preferred technology among the businesses. IoT enables firms to monitor the processes in real-time. Thus, if something seems out of place, the concerned team can respond immediately. Further, IoT also allows firms to use security devices such as biometric sensors and IDs for verification. Customer will naturally assume that their data is safe when IoT in customer service is supported by layers of digital security.

Productivity and Efficiency

Overall, IoT can significantly enhance customer satisfaction levels. In some cases, IoT sensors can even predict problems before they surface. For instance, if an IoT sensor can notify an engineer about a probable device problem, the device could be fixed before the device breaks down completely. Instead, an equipment failure would require the customer to contact the customer support team and explain to them about the problem. This would follow an engineer's visit to the site. All these steps can be eliminated if an IoT sensor can automatically notify a technician in the first place.

With further advancements in IoT technology, it is likely to transform customer experience in the years to come significantly. Now is the time for companies to invest in IoT applications in order to improve customer experience capabilities.

Check out: Top Customer Experience Solution Companies

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