Overview
Similarly, to make the traditional ecommerce engine run seamlessly, we need to oil it. Hmm, wondering what oil is in this analogy? Well, if you guessed ‘data,’ 500 points to Gryffindor (or Slytherin, we won’t judge if you liked Draco Malfoy better)!
Yes, the Internet of Behaviors (IoB) oils the regular marketing process with data, insights and recommendations. For example, when you browse an ecommerce website, a recommendation engine needs the Internet of Behaviors to consider your previous purchases, preferences, actions, etc., to make suggestions that suit you. It essentially understands your behavior (duh!) and helps businesses personalize on an individual scale.
Read on for an in-depth explainer on the Internet of Behaviors!
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One of the fastest-growing technologies of our time is IoT or the Internet of Things. With billions of IoT devices deployed across the globe – 15.14 billion, as per Statista – you can bet we’re generating tons of data each second. It creates an inter-connected, real-time network that helps us track the operations of machinery and devices, so we can spot anomalies and breakdowns before they happen. IoT devices help us get a better understanding of relationships between people, processes and things.
Yet, the enormous amount of IoT data wasn’t being leveraged to understand human behavior – rather, we were focused on improving “things” (that is, any device/ machine connected to the Internet). It’s time for a change!
The Internet of Behaviors is based on the same concept as the Internet of Things; with the exception that it helps us understand human behavior and leverage it to create better experiences. IoB consists of entities such as the Internet, IoT sensors, data processors, marketing tactics and others, that come together to create a system that can monitor a certain environment.
Interesting, isn’t it? Let’s explore the Internet of Behaviors in further detail.
Understanding The Internet of Behaviors (IoB)
The term IoB is credited to the tech research firm Gartner and was first explained in Gartner's Top Strategic Technology Trends for 2021. Gartner, however, credits the concept of using IoT data for influencing human behavior to Göte Nymanof, a psychology professor at the University of Helsinki.
The Internet of Behavior, or IoB, combines data analytics, behavioral analytics, human psychology and marketing strategies. Through this combination, IoB systems can forecast human behavior, derive insights from consumer data and even influence human decisions based on the insights gleaned from human interactions. #InternetOfSmartThings
IoB platforms can record, aggregate and analyze data generated from a range of sources to identify trends that marketing and sales teams can utilize to influence consumer behavior. This data can be sourced from digital devices in the household, wearables, online interactions and a variety of other human activities. Once the data has been examined, marketing and customer outreach can be tailored on a granular level. Who said hyper-personalization was only a dream!
Well, actually, it did seem like a dream only a few decades ago – here’s how IoB came to be!
Evolution And Origins Of Internet of Behaviors
Don’t worry, we won’t be going as far back as the era before the Internet! #ScaryThoughts
Businesses relied on CRM (Customer Relationship Management) solutions for aggregating and analyzing customer data since the 1980s, when Robert and Kate Kestnbaum pioneered database marketing. It enabled businesses to get insights into buyers’ intent and behavior, leading to more optimized experiences.
However, most CRM systems were offline and businesses envisioned an online network of customer data sources. This started gaining traction around the same time 'Internet of Things' was coined by computer scientist Kevin Ashton in 1999 while working at Procter & Gamble.
Then, in 2021, the term Internet of Behaviors was coined by Göte Nymanof, a psychology professor at the University of Helsinki. Gartner credited Nymanof with the term and listed IoB as a top trend in the same year, given the high potential of tracking and understanding human behavior with increased precision and accuracy.
The Internet of Behaviors turned out to be more effective than traditional customer data analytics. Moreover, with advancements in 5G and other networking technologies, IoB could be deployed in real-time to immediately uncover insights and actionable data.
Now, let’s dive into and see how this magical technology works. That’s what you want, right? (Yes, we used IoB to figure out what you wanted! #JustKidding)
How Does The Internet Of Behaviors Work?
We said we wanted to simplify IoB – to do that, we will break down IoB into 3 key aspects:
Technology
This consists of IoT devices and sensors that capture data from human activities.
Data Analytics
This involves generating insights by processing and analyzing captured IoT data.
Behavior Science
This step seeks to apply the derived insights to marketing, sales and other customer-centric activities.
You know that organizations that sell products/ services want to influence the buyers, so they prefer the brand over competitors. The easiest approach is to personalize the customer interaction. That’s not news, right? However, curating content specifically targeted for an individual, based on their preferences and previous interactions, is tough work.
Enter the Internet of Behaviors: customer data is collected through IoT devices, which includes surface-level data from sensors, connected devices, online activities, etc. Yet, IoB can also collect information from transactions, geo-tagged activities, browser history and cookies, social media interactions, etc. to fully capture user behavior. Imagine if someone could record data about your daily actions, online and offline, would it not reflect on your personal behavior?
The data collected from various sources is then processed to understand the individual’s preferences, likes, pain points, etc. to create a truly personalized experience. For example, if an IoT device records that an individual visits a restaurant every Thursday evening, IoB may help the business owner create loyalty rewards or discounted prices for the recurring customer. This will lead to higher customer engagement, better consumer loyalty, increased sales and brand recognition.
Yet, this is just one example – the Internet of Behaviors can be applied in several industries!
What Are The Applications of IoB?
The Internet of Behaviors can be deployed by various businesses to supercharge their customer analytics. Here’s how:
Finance and Insurance
IoB systems can help influence financial decisions through variable credit scores and interest rates. Insurance firms, for example, can use IoB to identify and reward good driving habits with lower interest rates. #FinesseWithFinance
Ecommerce
IoB is used by Ecommerce organizations to analyze data from multiple sources to learn more about their customers' behavior. IoB assists companies in personalizing each consumer's buying journey by analyzing why individuals were interested in the goods, what drives their purchasing behavior and so on. #PersonalizedPerfection
Medical and Healthcare
IoB can help medical professionals measure a patient’s response to treatments, keep track of habits that negatively affect the health and whether they are consuming medication on time. IoB also allows for faster medical intervention, such as delivering an alert when a fitness tracker records too high or low blood pressure levels. #WhenTechnologyMeetsHealth
Local Search Marketing
Tracking users’ locations can be beneficial for sending customized notifications based on the location using GPS or near-field communication (NFC) technologies. It ensures accurate location-based offers through personalized push notifications or emails. For example, you can get a 20% discount from a bakery just by being in the vicinity! #BestThingSinceSlicedBread
Benefits Of The Internet of Behaviors (IoB)
Here are some common ways businesses leverage the Internet of Behavior to improve their customer service and interactions:
Effective Marketing
Many digital marketers are already employing analytics to gain insight into consumer behavior. However, marketers can apply IoB to identify client purchasing habits across platforms, gain access to previously inaccessible data, redefine the value chain and offer real-time notifications and customized advertisements.
Improved User Experience
Thanks to the insights provided by IoB, organizations can gain a deeper understanding of individual opinions toward specific products and services, making it easier to resolve customer problems and pain points.
Enhances Health Infrastructure
Businesses are using RFID tags and IoT sensors as part of their IoB systems to evaluate whether employees are following protocols, sitting for too long or taking too many coffee breaks! This can be applied to the public domain to track activation and engagement through healthy activities, such as doing squats instead of paying at vending machines. #NotMadeUp
Improves Public Safety
The Internet of Behaviors can be used to monitor public safety, creating exciting new prospects across a wide range of sectors. Vehicle telematics, for example, is being used to detect driver behavior and indicate erratic or unsafe behavior.
Trust us; the Internet of Behaviors will be everywhere in a few years. Every call, email and interaction with businesses will be tailored to our liking. Yet, that’s just the start – here’s where the Internet of Behaviors is headed!
What’s The Future Of Internet of Behaviors?
Personalized outreach is the way of the future. IoB will revitalize applications such as targeted advertising, custom notifications, tailored reminders and personalized healthcare. According to Gartner, due to the fast expansion of IoT devices and sensors, nearly 3 billion individuals will soon encounter IoB in some form! #AreYouReady
The future of service effectiveness, personalization, behavioral insights and marketing tactics will be influenced heavily by this technology. IoB will be used whenever a company wants to better understand a customer's intent, preferences and behavior. Although it's still in its nascent stage, we can't wait for IoB to unfold its full potential soon!
Conclusion
The Internet of Behaviors is one of the foremost applications of IoT. It enables organizations to better understand the needs and challenges of individuals to create streamlined experiences and interactions. Yet, businesses must strike a balance between personalization strategies and intrusion of personal data when using the Internet of Behaviors. We hope you can now show off your new-found knowledge of IoB to friends and family!
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