The Internet of Things (IoT) is quickly reshaping the type and value of user-centric data, opening up new prospects, and risks, for delivering mass personalization at scale.
In this session of the #CXforum, we sat down with Teakauu (TK) Piho of Hewlett Packard Enterprise. TK is the Global Director and Global Offering Lead of CX Transformation, Analytics, and Digital Content of the HPE brand. TK’s perspective on the role, and value, of #IoT data is in line with the HfS Research position – while data from #IoT can play a significant role in internal operations and planning, the ultimate value for consumers will center around a higher level of personalized services focusing on interaction and engagement.
A few key themes from our conversation:
The Transformation of CX: The concept of Customer Experience (CX) is one of transition and transformation both within the enterprise, to leverage new tools and data to refine products and services, and from a customer perspective, as consumers are resetting their expectations for the value they receive from brand engagements. Data and analytics are driving a fundamental change in both the capability and expectations of CX.
Understanding IoT / CX Value: The initial focus of IoT-derived data has been on generating actionable insights for future use. However, there is significant value in leveraging the real-time nature of IoT data to not just improve the customer experience but to reshape customer behavior and engagement.
The Challenge of IoT Data: IoT data can be generated (and leveraged) throughout the Customer Journey, but IoT data has a journey of its own within the enterprise. Enterprises need to fully understand how data is being captured, its time/value equation, and how to best leverage it for both planning, review, and real-time engagement.
The Different Faces of IoT Data: IoT consumer data can be grouped into several types: Status data, that informs on the product or service, Contextual data, that provides understanding about the consumer, and Engagement data, that informs on the real-time interaction and behavior of the consumer and the brand. All three are very different, and have different values within the enterprise.
IoT Risks: The value and usefulness of IoT data can change very quickly, as can the sensitivity of data – especially from a consumer privacy perspective as new/additional sources of data provide increased insight into a consumers digital halo (both a value source for brands and an emerging cyber security threat that must be addressed). As IoT data travels through the enterprise, its value and risk profile (and security requirements) can change, and requires coordination between the CMO, CIO, and CISO.
Key IoT/CX Trends for 2016: Three key areas where we expect the enterprise to grow within 2016:
- The maturation of Omnichannel to a converged channel: Enterprises will begin the shift from engaging on multiple channels to leveraging multiple channels to better understand the consumer need. IoT will play a strong role (as a variation of a new engagement channel).
- A focus on the usefulness of data: The value of IoT and consumer data will expand to include the time and context-sensitive nature of its usefulness, placing an increased requirement on cyber security, data analytics, and privacy.
- Bridging the CMO/CIO (CISO) gap: Enterprises will be forced to deal with the increasing gap(s) between marketing, infrastructure, and security, requiring brands to place the ability to support, secure, and leverage IoT data on an even level with the ability to promote products and capture consumer data.