Internet of Behaviors
Industry analysts claim that between 10 to 20 billion things are connected to the internet today. According to research from Transforma Insights, the count is expected to grow to 24.1 billion by the year 2030. This ecosystem of connected objects lays the foundation of the “Internet of Things” (IoT).
IoT comprises a network of sensors and smart objects which are used to fetch and exchange information and data over the Internet. The collected data from these IoT devices are then used to analyze consumer behavior, interests, and preferences — hence giving birth to another new technology called the Internet of Behaviors (IoB).
Internet of Behaviors is an extension and evolution of the Internet of Things (IoT). It is the first trend in Gartner’s Top Strategic Technology Trends for 2021. Gartner listed trends under the themes of “people centricity,” “location independence” and “resilient delivery” as crucial factors to enable organizational plasticity considering the new norms. “People centricity” is of significant value especially in the aftermath of Covid-19. It is mainly because the pandemic has impacted the world in unprecedented ways requiring organizations to strategize, adapt and change in new ways.
With Covid-19’s worldwide lockdowns and social distancing, Gartner projects people centricity’s main facet to be the Internet of Behaviors (IoB). For example, when the shopping stores opened post-pandemic, many shopping stores made use of digital kiosks to ensure physical distancing between customers and avoid waiting in long queues for payment. Sensors or RFID tags tracked that the working staff washed hands regularly. Computer vision determined that mask is worn by all.
The data collected and analyzed drove individual’s behavior to ensure the fulfillment of the duty of care by the store owners in regulating employees’ health and well-being. As well as ensuring that shoppers feel comfortable and would consider visiting again.
The eCommerce hype has further accentuated the trend. The data from Statista predicts e-retail sales to hit $5.4 trillion by 2022. The e-commerce business is doing this by understanding consumer psychology, and this is where the IoB comes in. With the consumer sector estimated for 65% of connected devices, e-retail avails this opportunity to capture consumer data or “digital dust” produced by multiple sources, for instance, social media. Social media is an excellent medium to follow to design an effective marketing strategy. The networking sites allow the companies to keep a close eye on the activities of their target prospects. The marketers are then able to refine their segmentation strategy with all the useful information of the target audience. The consumer’s activity influences and determines their choices and preferences. Businesses could then integrate this data to forecast and influence individual consumer behavior.
Let’s look at the growth in revenue of eCommerce retail in the U.S and worldwide.
United States
Globally
We can observe that revenue in the e-commerce market continues to grow year by year, with the help of consumer data collected by behavioral analysis and psychology, creating huge profits for the e-retail businesses. Corporations could now determine the customer’s emotions about every touchpoint to deliver in real-time.
Shopify is an example of a popular eCommerce company. It is subscription-based software that provides a platform to anyone who wants to set up an e-store and sell their products. There are 1.75 million merchants who sell using the Shopify platform. Additionally, Shopify enables developers with its platform to build apps for the Shopify stores (merchants) to improve their business performance and provide an innovative digital shopping experience in turn to their customers. The customer experience is enhanced by understanding, analyzing, and responding to different types of human behaviors. With the Internet of Behaviors (IoB), the company can capture increasing amounts of information, analyze the consumer interest in the product, target ads, analyze customer buying habits, and take control to influence the consumer’s purchasing power.
With that being said, Psmorfia offers software solutions that let you detect patterns in the scattered data and make it significant and informative as per your business needs. Psmorfia can build you customized data analytics tools to scale your business, generate increasing revenues, and improve customer experience.
Reach us to get more information and help you make your business reach the next level.
