Digital Marketing With IoT Data to Real-Time Personalization

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IoT devices collect valuable customer data, which often remains unused in isolated silos. Those who break open these silos and connect their systems can address customers with real-time personalization.

The Internet of Things (IoT) marks the next stage of digital evolution and opens up entirely new possibilities for customer engagement. It is estimated that there are already 19.8 million IoT-enabled products worldwide. Each connected device generates new data points, providing real-time insights into customers' behavior, context, and needs. However, this potential often remains untapped and overlooked.

In many companies, this valuable information still resides in isolated systems and data silos. To remain competitive, marketers need to address this and consistently expand IoT interoperability. This includes integrating operational systems and smart use of connected data sources.

But how can this data be intelligently segmented and automatically used to generate real relevance? The answer lies in developing innovative, personalized customer journeys.

Seamless Customer Journey Through Integrated IoT Data

A consistent customer journey only emerges when marketing operates in a connected manner. Breaking down silos is an essential step to fully leveraging the potential of customer data. Synergies can arise, for example, through integration with sales and customer service. For maximum success, it is essential to connect marketing not only to customer experience systems (CX systems) but also to operational systems like ERP or connected devices (IoT devices).

Only when these systems are integrated and work together does a comprehensive picture of customer needs emerge. Because only when they communicate with each other and exchange data in real time can this data be used efficiently. This creates actionable information, which in turn allows for deriving measures to optimize the personalization of communication.

What initially sounds simple in theory is, in practice, dependent on one key factor: data quality. This forms the foundation of any successful data strategy. Only a holistic, consolidated data base that incorporates context, behavior, and usage data from IoT devices enables precise engagement at the right moment. A key role is played by the method of data transmission.

From Isolated Data Sources to Connected Customer Communication

To make this personalized interaction a reality, a powerful technological foundation is required. First, IoT devices must be integrated as reliable data sources, and events must be processed in real-time via high-performance APIs and event systems. Subsequently, the data is made available through a customer data platform. At the same time, it is necessary to ensure that this data is permanently storable and segmentable in order to identify target groups with recurring consumption patterns or address preventive service offerings.

The manner of data storage is essential here, as it directly affects the availability and usability of information. Technologies like zero-copy data play a key role, as they allow access to information without the need for duplication or relocation, as is common with traditional data transfer methods.

The advantage of this method is that it saves storage space while simultaneously increasing performance. This can significantly reduce response time to events.

Another challenge lies in cross-channel orchestration of the data. Depending on the use case, an IoT device can trigger automated push notifications sent by marketing, initiate a service ticket for support, highlight a product recommendation in a shopping experience, or notify sales when a favorable upselling opportunity arises. Cross-functional orchestration requires close integration with all systems involved in the customer experience.

How this can have a concrete impact is demonstrated by various practical scenarios: If a refrigerator detects a critical deviation through a temperature sensor, a push notification can automatically be sent. Users are informed and can take appropriate actions to prevent the entire contents of the refrigerator from spoiling due to a defect.

In the automotive sector, IoT data can be used to send a reminder for the next maintenance appointment after a specific mileage of a vehicle. Similarly, if a utility provider detects an above-average increase in consumption through smart meters, it can proactively send a warning to the relevant customer and potentially offer a tariff proposal optimized to their individual needs.

These use cases go far beyond mere warnings: The use of behavioral and IoT data from connected devices not only informs but also anticipates customer needs.

Relevance Through Context And Timing

To stand out with such messages in today's communication overload, one thing matters above all: relevance. This is achieved by basing interactions not only on generic profiles or past purchases but on specific and current usage situations. Content based on IoT real-time data is precise, context-sensitive, and highly personalized. As a result, the messages are significantly more relevant and perceived as a form of service rather than advertising.

This creates a noticeable added value for customers, as they receive support before a problem even occurs or offers precisely tailored to their current situation without having to actively search for them. At the same time, this form of communication strengthens brand loyalty, as it demonstrates that the company understands and addresses the individual needs of its customers.

Entrepreneurs benefit twice:

• On the one hand, scatter losses are minimized
• and resources are utilized more efficiently,
• on the other hand, the likelihood of sustainable customer retention increases
• and positive brand experiences.

The future of customer communication lies not only in collecting data but in its intelligent use at the right moment. Only then does technology become a true competitive advantage.

Conclusion: Personalized Communication Requires Integrated Systems

The transformation from isolated data sources to a connected, context-based customer approach is not merely a technical initiative but a strategic paradigm shift. Companies that recognize the potential of IoT data and integrate it in real time with commerce, marketing, sales, and service processes lay the foundation for a new level of customer interaction. The focus is not on pure data collection but on the intelligent use of data throughout the entire customer journey.

Consistent and relevant communication requires not only the elimination of silos and the integration of operational systems but also a data infrastructure that can respond quickly, scalably, and flexibly to events. Technologies like zero-copy data, powerful APIs, and event systems form the technical backbone for this.

But technical implementation alone is not enough: the key lies in the ability to process data so that it delivers the right information at the right moment, directly relevant to the customer’s current situation and needs. Relevance arises when messages are proactive, personalized, and precisely timed. It’s an exchange of values: customers provide their data, and companies use it to create added value.

Companies benefit on several levels: They reduce scatter losses, increase the efficiency of their communication measures, and strengthen customer satisfaction and loyalty in the long term. At the same time, they gain valuable insights into user behavior and preferences, which can be incorporated into the further development of their products and services.

In short: The transition from isolated data sources to connected customer communication is not an end in itself. It is the key to genuine customer relevance, sustainable business success, and a forward-looking marketing approach that places people at the center.

David Hable is Regional Vice President Revenue Middle and Eastern Europe (MEE) at SAP Emarsys

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