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IoT part 1: The Internet of Things and the Implications on Marketing

IoT part 1: The Internet of Things and the Implications on Marketing

The Internet of Things (IoT) continues to be a growing topic in all types of organizations. The buzz around IoT comes as no surprise as IoT has the potential to revolutionize the way organizations and consumers interact entirely.

For the ones that are unfamiliar with the expression, IoT refers to the network of physical objects—devices, vehicles, buildings and other items—embedded with electronics, software, sensors, and network connectivity that enables these objects to collect and exchange data. Some of the products that fit this definition are wearable technologies like Fitbit or Hedoko, the Tesla or Nest- the smart thermostat that programs itself according to your preferences. It is estimated that by 2020, between 26 to 200 billion of these new connected devices will be on the market.

What are the implications for marketing?

IoT means more data for marketing and for the organization as a whole.  Indeed, these connected objects produce smarter data that allow marketers to gain insights about consumer behavior. These insights represent highly valuable inputs that can be used to respond to the needs of the customer in a highly personalized and timely manner. Moreover, by knowing how the users behave with the product, marketers will be able to recommend solutions and functionalities to improve the product. That will force the marketing department to work closely with the product development department.

In modern organizations, marketing will be at the center of the action. That will put marketing managers in a powerful position where their inputs will be highly valuable for other departments. As IoT will reinforce the importance of data in modern marketing, the skills required to be a successful marketing manager will change consequently.