With the ever-increasing popularity of the Internet of Things (IoT) going on during the last few years, the number of devices using the technology has grown at an alarming rate. Ranging from wearables like smart fitness bands that track your fitness 24/7 to remotely accessing the electrical devices in your homes, IoT has expanded its reach in people’s day-to-day activities.
While this technology has made a great shift in the market with its ever-advancing applications, industries still face difficulties to satisfy their customer’s needs according to their personalized demands. So, what if it’s possible to get every customer’s personalized preference data based on their usage of data?
This is where the term Internet of Behaviour (IoB) came into existence. Let’s explore this new term and how it will help in profiting industries with its data collection.
We can better understand the Internet of Behaviours (IoB) as an extension of the Internet of Things. So, what makes it different from IoT?
While IoT is a network of interconnected physical objects, gathering and exchanging information and data over the internet, IoB simply makes sense of this collected data of every customer and attaches it to specific human behaviors such as purchasing type or following a specific brand online, etc.
Internet of Behaviour or IoB can be defined as a process by which user-controlled data, collected during customer’s usage of apps, is analyzed through a behavioral psychology perspective. And using those results, the company can then offer a similar type of end product according to the customer’s preference.
The IoB concept aims towards understanding collected data properly and applying that understanding to create and promote new products using human psychological behaviors.
Significance of IoB
IoB’s main aim is to capture, analyze and respond to all types of human behaviors in such a way as to allow tracking and interpreting people’s behaviors using advanced technological innovations and developments in machine learning algorithms.
Thus, using this concept, customer’s behaviors are analyzed and incentives or disincentives are applied to influence them to perform towards the desired set of operational parameters. What makes IoB more valuable is that it is not only descriptive but is also proactive that is detecting which psychological variables are going to influence that will bring about a certain outcome.
IoB, not only influences consumer choice but is also redesigning the value chain. Though a majority of consumers do not feel secure at giving away their data for free, many are satisfied with doing so if it brings them an added value.
And that’s what gives companies the upper hand we don’t love engaging with, especially insurance providers and banking, the opportunity to change their image.
Utilizing IoT, they can provide data-driven value, thus getting more success rates in satisfying their customer’s needs.
Real-Life Applications of IoB
The way big companies like Google, Facebook or Amazon have started doing marketing research is becoming more and more comprehensive. These companies have designed their algorithms such that they can anticipate their customer’s desires and behaviors to get them a personalized experience. And though the B2B sector is advancing faster than B2C in IoB, it’s only a matter of time before it becomes popular.
Let’s start with an example of a software company BMC that has developed a health app for smartphones to track users’ diet, sleep patterns, heart rate and blood sugar levels. This app can send an alert in adverse situations in the user’s health and also suggest behavioral modifications towards a more positive outcome.
Taking another example into account, Uber uses IoT data on drivers, passenger locations and preferences to reinvent customer’s experience.
Also, large companies, like Ford, have partnered with start-ups, like Argo AI, to design and develop autonomous cars soon that will vary their behavior in each city based on that city’s vehicle traffic, bicycles and scooters, etc.
Taking another innovative approach in this technology, software company GBKSOFT has been working on a project to implement the IoB concept. The project is based on helping golfers to improve their playing skills with the help of a mobile app and tracking of wearable devices, that will correct existing ball-striking techniques and helps in learning new techniques.
As the player uses the handheld device connected to the mobile phone, each hit on the golf ball is recorded in the app and then analyzed so that player can see their mistakes and get visual recommendations on how to improve their swing and stroke techniques.
IoB’s Future Horizons
Though we talked at length about the wide applications of IoB, the technology is still in its developing stage and it will take time for companies to unlock the full potential of the Internet of Behaviours or IoB, and also for the users to accept it as a way to get better services and customized products. Also, the security of personalized data is still a big task for companies to handle and make their users secure.
Despite all these shortcomings, many companies have started investing in IoT technologies now and have developed strategies to win the tough competition for customers’ loyalty with the power of data and psychology.