In the information age, data is a valuable currency. Everything from social media to search behavior contains valuable data for marketers.
We also know that the Internet of Things is a huge upcoming trend, one that stands to generate an astounding amount of data on consumer behavior.
So, who is going to monetize the data from the Internet of Things? IOT World News, a site dedicated to all things about the Internet of Things, covered this topic in a recent article. According to resident expert Debbie Krupitzer, IoT lead and Capgemini, 5 models enable companies to monetize this data:
We often hear that an ounce of prevention is worth a pound of cure. With data from the Internet of Things, devices can do just that.
By letting the manufacturer know when the product needs a fix, they can be serviced before the consumer even knows there’s an issue.
IoT technology also has the potential to make products free as the companies sell the data generated by the products to third-party vendors. This can work for perishable products, like smart lights. They can send out data when they reach the end of their usefulness so that suppliers can serve ads to the future customer.
By connecting products to the cloud, companies can gather data and communicate with customers throughout the product life cycle. For example, clothing companies could track when you stop wearing certain clothing items and offer you a quick way to re-purchase that item. Wine makers could feed storage and serving information to owners.
Subscription services for usage insights
This model allows customers to buy into insights gleaned from all the feedback from your devices. Take Volkswagen’s Car Net as an examples. This service offers maintenance suggestions and extra security features if you buy into the app.
Because these insights optimize your vehicle’s performance (and save you money in the process), the core value is strong.
In this model, the product is “free” as long as you subscribe to the service. You probably know of various food delivery companies that fit this model, such as InstaCart and Uber Eats. These companies can use data from your purchases to automate the process to a near-seamless level, saving you time and money.