New form of consumption with internet of things
Consumption with the IoT
According to studies by Gartner, in 2025, there will be more than 20 billion intelligent objects around the world. Even the most trivial items will be connected, generating a stream of data never seen before. It is natural that we see, then, a new consumption behavior with IoT, either because of the increasingly immersive experiences that will be offered or due to the role that customers have in the technological spread.
After all, it is the people who adopt the solutions who are responsible for giving the necessary impetus to spread the news.
This process is also known by the term consumerization. Basically, he points out that technologies emerge in the consumer market before they become prevalent in companies. And as in the case of IoT, there will be a large flow of data, it will also change the responsibility that lies with the consumer.
As well as suppliers, consumers should seek measures to ensure the security and privacy of their data. This is what has been warning the Internet Society (ISOC). In this context, there are a number of measures that must be adopted for the purchase and use of smart devices properly. All this brings us to the margin of great changes in consumption.
We are on the Verge of a New Consumer Behavior With IoT
All the factors described in the introduction point to the birth of a new relationship between consumer and services. It should be noted that the public is already deeply adapted to the experiences of digital services. The world’s largest transportation company, Uber, has no fleet. Our songs are heard on Spotify, which does not record or produce anything at all.
The next step is to create an experiment similar to the physical products. This means that the new consumer behavior with IoT will bring objects that include services in their acquisition. And more than that: the assistants will be indispensable to generate value and a unique experience.
In addition to Artificial Intelligence increasingly present, there will be a strong integration between services and products, in terms of diversification. This is due to the fact that customers will be able to choose which service to use with their connected gadgets. The options will already be available in the products since their manufacture, which is more or less what we already do on personal computers.
Of course, integration possibilities transcend isolated objects. The smart home is one of the biggest bets of analysts in the area. Citing Gartner once again, the technology in question will feature more than 500 smart devices. By 2025, this particular market is expected to raise over $400 billion - quite a business opportunity.
The Relationship Between Internet of Things, 5G and Mobile
The popularization of mobile was one of the technological movements that completely changed modern consumption habits. Today, it’s hard to imagine something that can’t be done through mobile devices. Communication, banking, shopping and transportation are just a few examples in this regard.
It is even worth mentioning that, currently, many stores do not even have a physical address. That said, it is possible to note that a factor that promises to shape the new consumer behavior with IoT in terms of 5G mobile. The announcement of the 5G auction, held in 2021 by Anatel, also imposed on the winning operators of the bands the commitment to take 5G to all municipalities with more than 200 thousand inhabitants. And, until 2027, cities with a population above 100,000 will be contemplated. The goal is that by the end of 2029 all municipalities and other 1,700 non-headquarters locations will have 5G....
With a shorter latency period coupled with unprecedented connection capability and speed, physical and digital will be increasingly integrated. According to research by 2025, it will lead to 25 billion connected IoT devices - a scenario where smartphones will no longer be the focal point of the consumer’s Internet.
This change has the potential to bring the mobile internet to a total of 5 billion users worldwide. No less than 60% of Earth’s entire population. The consumer will have a true ecosystem of world scale, influencing the way he buys products and receives services.
In addition, each user will be served individually and in a personalized way. Transportation and entertainment will be the first areas where this new reality will create business opportunities, including in Brazil. Information technology companies should take advantage of this scenario in the development of applications and solutions for information security.
Redesigning Value Chains With IoT
With so many possibilities surrounding the Internet of Things, it is natural that we witness value chains being redesigned. After all, the way to add value to the consumer changes when we insert the IoT into the equation. Pre-sale and after-sales activities will change completely thanks to this.
Car insurance, for example, will leverage smart devices and apps to assess the premium to be charged to the insured. The more responsible the driver is, the more advantageous the value will be offered. This is a good example of new consumer behavior with IoT.
Regarding after-sales, the banking sector already tests applications capable of monitoring customer spending. The idea is to send warnings when the user spends too much and encourage them to achieve financial goals. In Brazil and the rest of the world, fintechs will not fail to explore these possibilities as well. The fact is that relationships between consumers and businesses will be entirely shaped by the Internet of Things.
Internet of Things and Machine Learning: Challenges and Ethics of Artificial Intelligence
Most of the processes we have already mentioned will be automated. In addition, the resulting data-intensive flow will be leveraged and processed through machine learning. Customization will be born precisely from this resource and it will have as one of its consequences the reduced costs for the final consumer.
Responses and ways to generate customer satisfaction will be processed, based on service histories. To this will be added the ability to natural language analysis (NLP), which will take chatbots and assistants to another level of interaction. The retention rates will also be worked with the help of this technology.
Even the individual reactions of each brand customer on social networks can be tracked automatically, a fact that will directly impact digital marketing actions. This scenario of new consumer behavior with IoT will also generate particular challenges related to machine learning, especially because the algorithms and paradigms that can be used to sell are already collated by the military sector.
The idea of autonomous weapons is one of the most delicate points to be debated in this sense. In what relates to the market, ethics will be a big issue, because the parameters of an algorithm can be exclusionary or misused.
Facial recognition already raises many debates around the world regarding its use. In addition, there is still the risk of false correlations, that is, when two unrelated things have similar behaviors. We have already found numerous paradigmatic cases where mathematical models cannot distinguish between the disjointed facts.
How will the market be by 2030?
When we talk about technology, predictive exercises are inevitable. After all, we all want to know where we will be in the future and how we will make use of the available tools. The urgent question is: where will the market be soon, thanks to the new consumer behavior with IoT?
Connected Living answered this question. The survey questioned what consumers expect from the Internet of Things by 2030. The answers make us think of the Jetsons. For example, 39% expect to see the news of the day projected on the wall of their rooms upon waking up. 43% want their computers and equipment to connect when they are coming to work.
Within the total surveyed, 45% want their purchases to be paid automatically when they leave the store with them. Automatic authentication is also expected by 47% at banks and airports. These are just a few examples where the public hopes to find innovations in terms of the Internet of Things. Therefore, thinking about offering solutions worthy of the famous animation of Hanna-Barbera is not something so absurd.
The new consumer behavior with IoT will be increasingly consumer-oriented with simplified access to businesses. For this, it will not matter where it is and by which device it requests products and services. For organizations that are attentive, there will be plenty of business opportunities. If you want to follow this path and stay updated with the latest in digital transformation, subscribe to our newsletter.
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