WIXLIB

WhitepaperInternet of Things and CustomerRelationship ManagementDinesh Khedkar

Contents-1.Introduction32.What is ‘Internet of Things’?33.Future of Internet of Things in Application Development44.Internet of Things and CRM55.Benefits of Inernet of Things With CRM Application76.Conclusion7

Internet of Things and Customer Relationship ManagementIntroductionIn earlier days, the focus of Customer RelationshipManagement (CRM) was to reduce the ng them. While the current CRM focus isalso around reducing the cost, it has now becomemore about providing quality of service tocustomers. Companies are looking to retain theirexisting customers, and while they now have realtime integration, also through social media, withCRM applications, customers are looking for nextlevel of services. They are expecting quickresponse and resolution to their problemsHowever, what if, we are providing predictive andpreventive actions by alerting our customers inadvance, before they face the problem andprovide a service or solution to the issues theymight face in the near future? What if, we get toknow the buying pattern of customer in real-time,and it will help CRM application to include them inthe right marketing campaign?What is ‘Internet of opment of the Internet in which everydayobjects have network connectivity, allowing themto send and receive data.”To simplify thisdefinition, consider your everyday objects like car,smart phone, cloths, refrigerator, TV, etc. areembedded with built-in sensors, and thesesensors will collect the data on a certain event. Thiscollected data will be sent to other devices toperform certain preventive actions, or to centralsystem through internet. And, CRM applicationswill access the required data for further processing.There are three important attributes you need for IoT:SensorsWireless Internet ConnectivityComputational Capability at the Devicei.e. Data Processing CapabilityIs it possible?Below image depicts the understanding of IoTYes, it is possible by using 'Internet of Things' andwith CRM application at a very high level.its tight integration with CRM Applications. Thispaper discusses the importance of 'Internet ofThings'(IoT)anditsusewithCustomerRelationship Management (CRM).According to Gartner, there will be morethan 25 billion connected things by 2020. Itmeans Internet of Things is going to be ahugeconnectednetworkbetweenpeople-to-people, people-to-things andthings-to-things.L&T Infotech Proprietary03 / 08

Internet of Things and Customer Relationship ManagementGenerates EventsCentral Serverand Send It toInternetCentral ServerInternetCRM Server PicksRequired Data FromCentral ServerSales RepresentativeMarketing RepresentativeIoT-EnabledItemsService RepresentativeCRM ServerFuture of Internet of Things in Application DevelopmentAccording to McKinsey & Company (Source: http://www.mckinsey.com/insights/high tech telecomsinternet/the internet of things), Six distinct types of applications are emerging in two broad categories:a. Information & Analysis b. Automation & ControlAutomation and controlInformation and utonomoussystemsMonitoringthe behaviourof persons,things, or datathrough spaceand timeAchievingreal-timeawareness ofphysicalenviornmentAssisting huamndecision makingthrough deepanalysis anddatavisulaizationAutomatedcontrol ofclosed(self-contained)systemsControl ofconsumptionto optimizeresource useaccess networkAutomatedcontrol in openenviornmnetswith greatuncertainityExamples:Presence-based advertisingand paymentsbased onlocations ofconsumersExamples:Sniperdetectionusingdirection ofsound tolocateshootersExamples:Oil field siteplanning with3d visualizationand simulationExamples:Maximizationof lime ldnthroughput viawirelesssensorsExamples:Smart metersand energygrids thatmatch loadsand genrationcapacity inorder to lowercostsExamples:Collisionsavoidencesystems tosense objectsnadautomaticallyapply brakeInventory andsupply chainmonitoring andmanagementL&T Infotech ProprietaryContinousmonitoring ofchronicdiseases tohelp doctorsdetermine besttreatmentsContinous ,preciseadjustments inmanufacturinglinesData-centermanagementto otimizeenergy storage,and processorutilizationClean uo ofhazardousmaterialstheough theuse of swarmsof robots04 / 08

Internet of Things and Customer Relationship ManagementInternet of Things and CRMIn current Customer Relationship Management,collecting and analyzing product usage data tothereunderstand how the product is performing, ner.com/newsroom/id/2665215)much is it being utilized, which features are beingused, and which features are not. BecauseMobileproducts are now connected we can stay in touchwith the customer throughout the entire lifecycleCloudof the product. This creates tremendous potentialSocialfor cross-selling and up-selling.”Big DataConsider a scenario of hearing aid industry.According to Gartner, ‘Internet of Things’ is goingto be the fifth driver after these four.Hearing Aid Industry has become more advancedand trying to introduce innovative features in theirproducts. Examples could be longer battery life,According to Gartner, "These drivers are spurring aBluetoothcritical need for more traditional operational CRM,controlling your hearing aid device through smartas CRM continues to top software investmentphone, etc.priorities. This further validates businesses' focuson enhancing customer experience and consistentinvestment in CRM software, especially in CSS,marketing and sales software".compatibility,noisereductionorLet us take few scenarios from this industry andunderstand how it will help in providing services tocustomer, with the help of IoT and its integrationwith CRM.IoT is going to provide valuable real-time data toCRM systems. It will help product companies inmany different ways to increase their sale,promotions of new products, and provide nextlevel of services to existing customers.Below are few examples: A customer’s hearing aid instruments battery ismalfunctioning, and it needs to be replacedwithin next few days. As a customer serviceJim Heppelmann, CEO of PTC , a US- basedrepresentative, you are informing the customertechnology company named global leader in IoTproactivelyplatform by IDC Marketplace, and a leader in IoTinstrument’s battery is having some issues, and itsoftware platform by Forrester, says, “The wholeneeds replacement very soon. It will help arelationship with thecustomer to replace the battery, and he/she willcustomer ischangingbecause companies are now able to stay in touchandupdatinghimthatyournot face any problem while using the product.with the product after the initial sale. The product,in a sense, becomes a sensor for the relationshipwith the customer. Companies can gain amazinglydetailed insights into the customer relationship byL&T Infotech Proprietary05 / 08

Internet of Things and Customer Relationship Management A customer’s hearing aid instrument is underwarranty period and not working properly.Suddenly, one day you get a call from customerservice representative that we are replacing yourinstrument, since it is not working properly and itis under warranty period.Ciscopredictsthattheopportunitybe worth USD 14.4 trillion for companiesindustriestheir satisfaction level as well.Apart from this, IoT with CRM will help sales andmarketing functions in multiple ways. Real-timedata generated by IoT will help understand theusage of the product, buying pattern of therepresented by the Internet of Things willandconfidence on our services, products, and increaseworldwideinthenext decade.customer, opportunities for cross-selling and upselling, deciding flexible pricing, etc. Marketingpeople can analyze the IoT generated data todecide future campaigns that need to run alongwith right customers. It will help them reduce thecost in terms of market research. This data can alsohelp the marketing function to identify thosenewcustomers, which are at the edge of not using ourincorporated features of an instrument becauseproducts anymore. For such customers, we can runof someserviceseparate campaigns, or invite them for traderepresentative make a call to customer and askshows and product launch programs, and try tofor a session or training, so that he/she will getretain them. reness of those new features and customercan start using it.In all these scenarios, how service representativeswill get to know about all those issues? It isNormally, it’s said that the life cycleof hearing aid product is of twoyears i.e.because a sensor placed in a hearing aid A product is launchedinstrument will send a notification to a central After one year, its upgrade version is offeredapplication that there is some issue with battery or Then it’s a replacement with the new productinstrument, and it needs replacement, or it willDuring this life cycle, IoT will play a major role totrigger some informative information that certainprovide real-time data to CRM application. Thisfeatures of the product are not being used forreal-time data will help to connect with thesingle time. This notification will get integratedcustomer throughout product life cycle, which willwith CRM application, and a service case will behelp in multiple ways. It will help to improve prod-registered automatically against the customer. Thisucts features, measure the product success, orgenerated case will be assigned to a serviceincrease the product sell, etc.representative automatically, who will make a callto customer to update the problem, or asking forother services. This way a customer will be happythat the Product Company is taking a preventiveaction, and providing service promptly before anyissue is faced. It will help gain the customer’sL&T Infotech Proprietary06 / 08

Internet of Things and Customer Relationship ManagementBenefits of Internet of Thingswith CRM Application Connected with customer throughout product life cycle Tremendous potential in cross-selling and upselling of products or services Real-time data will be available for analysis,which will help to support higher marginbusiness operations decrease in service cost Provides personalized customer experience Right customer for right campaign Targeted offers to customer Send Customized marketing material andproduct broachersIt will help to provide proactive measuresresulting in better customer service and their Reduce in response timeAutomatic feedback tracking for the launchedmarketing campaignsatisfaction Increase in the profit margin because of Reduce marketing research costConclusionExpectations of customers have tremendouslyproducts only. It is possible only through IoT and itsincreased from product or service companies.integration with CRM applications.Customers are looking for prompt and predictiveservices. They will promote your product onlywhen they will get a prompt service, and if productworks well. They do not want to get multiple callsfor product campaign or unnecessary calls ofservices and products, which are not useful forthem. Companies also want to retain theirIoT with CRM, will help companies grow their saleand business, while reducing the overall cost. Inaddition, it will help to retain the customer baseand their satisfaction as well. CRM with IoT has agreat future, it will take customer relationship tothe next level in the near future.customer base and encourage them to buy theirL&T Infotech Proprietary07 / 08