It’s evident IoT is one of the most ambitious technologies today. With this technology, large enterprises can understand how customers interact with their products and services – yielding invaluable data that was once unachievable. This alone is a compelling enough reason to consider bringing an IoT initiative to life, but what if we told you it could also garner a new line of revenue? If your organization already has an IoT initiative in the works, but you’re unsure how to monetize it, you’re in the right place.
- Automating low-level tasks, allowing bandwidth for higher-value work
- Creating a revenue-generating value-add for your product or service
- Leveraging data to help you maximize ROI
Automating Routine or Recurring Tasks
In any business, a number of events or tasks occur routinely. One example is maintenance. Say you work for a car dealership and you know that after a certain number of miles, your customer will need an oil change. Where connectivity is lacking, a team must monitor, anticipate and prepare for this recurring event. But IoT brings the value of an automated response to the task, increasing employee productivity and, ultimately, revenue.
The replenishing of paper goods in office-building bathrooms offers another example of maintenance inefficiencies. In the pre-connectivity scenario, a worker has to physically check every bathroom on every floor to ascertain supplies of paper towels, toilet paper, etc. Are supplies untouched, low, completely out? Perhaps a person using the restroom finds no paper towels in the dispenser – not a good experience. It’s a system that’s an object lesson in inefficiency. IoT completely changes the game, allowing not only refill-as-needed but precise inventory control.
So how does the subscription actually work in real-time? The smart towel dispensers notify the app when they run out of paper. When the maintenance worker is notified that a particular bathroom has run out of paper towels, the information is also sent to a web dashboard monitored by building managers. When the dashboard indicates that order fulfillment is running low, a new inventory supply is ordered. So not only are you generating a recurring-subscription model of revenue from your customers, but you’re also increasing revenue because product fulfillment requests are consistent, automatic and more frequent.
Providing an Additional Service That’s Related to Your Product
Another way to monetize your IoT initiative is by providing a value-add that’s closely related to your product or service. Say you’re a medical device company that sells oxygen concentrators. With integration into a custom IoT ecosystem, doctors can collect patient data regarding the use of oxygen concentrators (or, of course, other devices) so they have accurate information going into appointments. Appointments can then be shorter, allowing doctors to see more patients; the more patients, the higher the revenue. It’s also a win for the medical device company, which can now sell the service along with its physical devices.
Beating the Competition With Data Collection
Competition in the consumer products industry is fierce, and early adopters of IoT connectivity have a huge edge – they’re amassing invaluable customer data at a granular level that will keep them ahead of the pack.
Imagine you manage the software budget for innovative consumer products powerhouse Dyson. You want to leverage a custom IoT ecosystem that connects all Dyson products. The connectivity lets you build data on how customers use your products in real-time, and how the products are used together. You can compare product use, gain a better sense of customer loyalty, and even predict the likelihood of a customer’s buying your latest product. All these metrics let you better understand the market and target the right audience, for maximum ROI.
Get Started Now
IoT technology gives companies invaluable insights into the ways customers use their products and services. And if you haven’t considered building an IoT system, that alone is a great reason to consider connectivity. If your team has an initiative that needs a consultative approach, let our team of product experts help bring it to life.