Whitepaper Internet of Things and Customer Rela onship Management - Dinesh Khedkar - LTI
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Whitepaper Internet of Things and Customer Relationship Management Dinesh Khedkar
Contents
-
1. Introduction 3
2. What is ‘Internet of Things’? 3
3. Future of Internet of Things in Application Development 4
4. Internet of Things and CRM 5
5. Benefits of Inernet of Things With CRM Application 7
6. Conclusion 7Internet of Things and Customer Relationship Management
Introduction
In earlier days, the focus of Customer Relationship What is ‘Internet of Things’?
Management (CRM) was to reduce the cost
The dictionary meaning is, “A proposed
around customer acquisition, retention, and
development of the Internet in which everyday
servicing them. While the current CRM focus is
objects have network connectivity, allowing them
also around reducing the cost, it has now become
to send and receive data.” To simplify this
more about providing quality of service to
definition, consider your everyday objects like car,
customers. Companies are looking to retain their
smart phone, cloths, refrigerator, TV, etc. are
existing customers, and while they now have real-
embedded with built-in sensors, and these
time integration, also through social media, with
sensors will collect the data on a certain event. This
CRM applications, customers are looking for next
collected data will be sent to other devices to
level of services. They are expecting quick
perform certain preventive actions, or to central
response and resolution to their problems
system through internet. And, CRM applications
However, what if, we are providing predictive and will access the required data for further processing.
preventive actions by alerting our customers in
There are three important attributes you need for IoT:
advance, before they face the problem and
provide a service or solution to the issues they Sensors
might face in the near future? What if, we get to
know the buying pattern of customer in real-time, Wireless Internet Connectivity
and it will help CRM application to include them in
Computational Capability at the Device
the right marketing campaign?
i.e. Data Processing Capability
Is it possible? Below image depicts the understanding of IoT
with CRM application at a very high level.
Yes, it is possible by using 'Internet of Things' and
its tight integration with CRM Applications. This
paper discusses the importance of 'Internet of
Things' (IoT) and its use with Customer
Relationship Management (CRM).
According to Gartner, there will be more
than 25 billion connected things by 2020. It
means Internet of Things is going to be a
huge connected network between
people-to-people, people-to-things and
things-to-things.
L&T Infotech Proprietary 03 / 08Internet of Things and Customer Relationship Management
Generates Events Central Server Internet
and Send It to
Central Server Internet CRM Server Picks
Required Data From
Central Server
Sales Representative
Marketing Representative
IoT-Enabled
Items Service Representative
CRM Server
Future of Internet of Things in Application Development
According to McKinsey & Company (Source: http://www.mckinsey.com/insights/high_tech_telecoms_
internet/the_internet_of_things), Six distinct types of applications are emerging in two broad categories:
a. Information & Analysis b. Automation & Control
Information and analysis Automation and control
01 02 03 01 02 03
Tracking Enhanced Sensor-driven Process Optimized Complex
behavior situational decision optimilzation resource autonomous
awareness analytics consumption systems
Monitoring Achieving Assisting huamn Automated Control of Automated
the behaviour real-time decision making control of consumption control in open
of persons, awareness of through deep closed to optimize enviornmnets
things, or data physical analysis and (self-contained) resource use with great
through space enviornment data systems access network uncertainity
and time visulaization
Examples: Examples: Examples: Examples: Examples: Examples:
Presence-base Sniper Oil field site Maximization Smart meters Collisions
d advertising detection planning with of lime ldn and energy avoidence
and payments using 3d visualization throughput via grids that systems to
based on direction of and simulation wireless match loads sense objects
locations of sound to sensors and genration nad
consumers locate Continous capacity in automatically
shooters monitoring of Continous , order to lower apply brake
Inventory and chronic precise costs
supply chain diseases to adjustments in Clean uo of
monitoring and help doctors manufacturing Data-center hazardous
management determine best lines management materials
treatments to otimize theough the
energy storage, use of swarms
and processor of robots
utilization
L&T Infotech Proprietary 04 / 08Internet of Things and Customer Relationship Management
Internet of Things and CRM
In current Customer Relationship Management, collecting and analyzing product usage data to
there are four important drivers (Source: understand how the product is performing, how
https://www.gartner.com/newsroom/id/2665215) much is it being utilized, which features are being
used, and which features are not. Because
Mobile
products are now connected we can stay in touch
Cloud with the customer throughout the entire lifecycle
of the product. This creates tremendous potential
Social for cross-selling and up-selling.”
Big Data Consider a scenario of hearing aid industry.
Hearing Aid Industry has become more advanced
According to Gartner, ‘Internet of Things’ is going
and trying to introduce innovative features in their
to be the fifth driver after these four.
products. Examples could be longer battery life,
According to Gartner, "These drivers are spurring a Bluetooth compatibility, noise reduction or
critical need for more traditional operational CRM, controlling your hearing aid device through smart
as CRM continues to top software investment phone, etc.
priorities. This further validates businesses' focus
Let us take few scenarios from this industry and
on enhancing customer experience and consistent
understand how it will help in providing services to
investment in CRM software, especially in CSS,
customer, with the help of IoT and its integration
marketing and sales software".
with CRM.
IoT is going to provide valuable real-time data to
CRM systems. It will help product companies in Below are few examples:
many different ways to increase their sale,
• A customer’s hearing aid instruments battery is
promotions of new products, and provide next
malfunctioning, and it needs to be replaced
level of services to existing customers.
within next few days. As a customer service
Jim Heppelmann, CEO of PTC , a US- based representative, you are informing the customer
technology company named global leader in IoT proactively and updating him that your
platform by IDC Marketplace, and a leader in IoT instrument’s battery is having some issues, and it
software platform by Forrester, says, “The whole needs replacement very soon. It will help a
relationship with the customer is changing customer to replace the battery, and he/she will
because companies are now able to stay in touch not face any problem while using the product.
with the product after the initial sale. The product,
in a sense, becomes a sensor for the relationship
with the customer. Companies can gain amazingly
detailed insights into the customer relationship by
L&T Infotech Proprietary 05 / 08Internet of Things and Customer Relationship Management
• A customer’s hearing aid instrument is under confidence on our services, products, and increase
warranty period and not working properly. their satisfaction level as well.
Suddenly, one day you get a call from customer
Apart from this, IoT with CRM will help sales and
service representative that we are replacing your
marketing functions in multiple ways. Real-time
instrument, since it is not working properly and it
data generated by IoT will help understand the
is under warranty period.
usage of the product, buying pattern of the
customer, opportunities for cross-selling and up
Cisco predicts that the opportunity
selling, deciding flexible pricing, etc. Marketing
represented by the Internet of Things will
people can analyze the IoT generated data to
be worth USD 14.4 trillion for companies
decide future campaigns that need to run along
and industries worldwide in the
with right customers. It will help them reduce the
next decade.
cost in terms of market research. This data can also
help the marketing function to identify those
• The customer is not using certain new customers, which are at the edge of not using our
incorporated features of an instrument because products anymore. For such customers, we can run
of some reason. On such event, service separate campaigns, or invite them for trade
representative make a call to customer and ask shows and product launch programs, and try to
for a session or training, so that he/she will get retain them.
awareness of those new features and customer
can start using it. Normally, it’s said that the life cycle
of hearing aid product is of two
In all these scenarios, how service representatives years i.e.
will get to know about all those issues? It is
because a sensor placed in a hearing aid • A product is launched
instrument will send a notification to a central • After one year, its upgrade version is offered
application that there is some issue with battery or • Then it’s a replacement with the new product
instrument, and it needs replacement, or it will During this life cycle, IoT will play a major role to
trigger some informative information that certain provide real-time data to CRM application. This
features of the product are not being used for real-time data will help to connect with the
single time. This notification will get integrated customer throughout product life cycle, which will
with CRM application, and a service case will be help in multiple ways. It will help to improve prod-
registered automatically against the customer. This ucts features, measure the product success, or
generated case will be assigned to a service increase the product sell, etc.
representative automatically, who will make a call
to customer to update the problem, or asking for
other services. This way a customer will be happy
that the Product Company is taking a preventive
action, and providing service promptly before any
issue is faced. It will help gain the customer’s
L&T Infotech Proprietary 06 / 08Internet of Things and Customer Relationship Management
Benefits of Internet of Things
with CRM Application
• Connected with customer throughout • Increase in the profit margin because of
product life cycle decrease in service cost
• Tremendous potential in cross-selling and up • Provides personalized customer experience
selling of products or services
• Right customer for right campaign
• Real-time data will be available for analysis,
• Targeted offers to customer
which will help to support higher margin
business operations • Send Customized marketing material and
product broachers
• It will help to provide proactive measures
resulting in better customer service and their • Automatic feedback tracking for the launched
satisfaction marketing campaign
• Reduce in response time • Reduce marketing research cost
Conclusion
Expectations of customers have tremendously products only. It is possible only through IoT and its
increased from product or service companies. integration with CRM applications.
Customers are looking for prompt and predictive
IoT with CRM, will help companies grow their sale
services. They will promote your product only
and business, while reducing the overall cost. In
when they will get a prompt service, and if product
addition, it will help to retain the customer base
works well. They do not want to get multiple calls
and their satisfaction as well. CRM with IoT has a
for product campaign or unnecessary calls of
great future, it will take customer relationship to
services and products, which are not useful for
the next level in the near future.
them. Companies also want to retain their
customer base and encourage them to buy their
L&T Infotech Proprietary 07 / 08Internet of Things and Customer Relationship Management
About the Author
Dinesh Khedkar
Project Manager & Solution Architect – MS Dynamics Practice
Dinesh is a Microsoft Dynamics-Certified Consultant, with vast experience in
Microsoft Technology. He has witnessed a transformation for Microsoft Dynamics
CRM from version 4.0 to Dynamics 365, and has worked on versions 4.0 to
Dynamics 365. He has vast experience of implementing CRM global templates
across multiple industries.
LTI (NSE: LTI, BSE: 540005) is a global technology consulting and digital solutions Company helping more than 250
clients succeed in a converging world. With operations in 27 countries, we go the extra mile for our clients and
accelerate their digital transformation with LTI’s Mosaic platform enabling their mobile, social, analytics, IoT and cloud
journeys. Founded 20 years ago as a subsidiary of Larsen & Toubro Limited, our unique heritage gives us unrivaled
real-world expertise to solve the most complex challenges of enterprises across all industries. Each day, our team of
more than 20,000 LTItes enable our clients to improve the effectiveness of their business and technology operations,
and deliver value to their customers, employees and shareholders. Find more at www.Lntinfotech.com or follow us at
@LTI_Global
info@Lntinfotech.com
L&T Infotech Proprietary 08 / 08You can also read
