IoT Business Case: Market Research
In any business, it is vital to understand what your customer wants and needs. Many organizations use market research to attempt to achieve this. Effective market research can make the difference between the success and failure of new products. Which makes refining the process imperative.
The traditional way of conducting market research consists of hosting a number of carefully selected focus groups. This method is often costly and done by external marketing companies – which means you would need to relinquish some control over the process.
Luckily, with IoT devices, there is another way. In fact, you can conduct high value market research that reduces the risk of introducing the wrong new products to market. Below are a few examples of this business case in action
Self-serve soda machines – Similar to an inkjet printer, soda machines are loaded with base sodas and flavorings. This gives consumers the ability to create whatever flavor combination they want. The IoT device records a range of data, such as venue, time of day, location, and of course the flavors created by consumers. This data can be used by the company to determine potential new soda flavors to test in certain markets.
Ratings systems for television and radio – Historically, ratings devices could determine when someone was watching TV or listening to the radio, and what station they had on. With an IoT device, you can “listen” to what is being broadcast and compare it to a broad list of available programming.
Product tracking at retail stores– A retail store can act as a giant smart shelf for companies. Retailers can track what is selling, when, what location and what quantity. That information can be reported in real time to the supplier or producer of the product, and eliminate some guesswork regarding how much to make and where to distribute.
Market Research closely ties in with two business drivers: saving money and making money. By obtaining better marketing information, you eliminate wasted time and errors and produce the products that customers want. You make more money by better understanding consumer demand and selling products that you didn’t know were popular before using marketing research tools.
Not sure where to start with incorporating IoT to determine your customers’ needs and wants? The experts at F3 can help you collect and leverage market research that can lead to new product development, increased sales, and an improved experience for your customers.