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The technology that will help brands maintain long-term relationships with customers
With smart sensors installed on appliances, vehicles and machines, manufacturers will be able to better understand customers' usage habits, provide them with products and usage offers tailored to them and thus create a customer experience and loyalty.
Rami Gur, director of Matrix Digital, talks about how products will become experiences
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Wednesday, 21 October 2020, 00:01
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When an electrical product breaks down or ages we enter an appliance store and choose a new oven.
Depending on our preferences and needs, a preferred brand and advice given to us by the store salesperson, is chosen in one of the ovens.
The chosen stove manufacturer will know that the store has sold a product, but from here it will most likely lose the connection between the manufacturer and the consumer and the next time the customer comes for an unclear purchase his loyalty to choose the same brand again.
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Save 30% on power consumption
In the not too distant future a furnace, car or any other machine or electrical product will be much more than they are today.
As part of the Internet of Things (IoT) concept, smart sensors, which will be installed in vehicles, machinery and electrical products, will be able to transmit usage patterns to the manufacturer.
Accordingly the manufacturer will be able to know what his customer is doing if the product and enhance the experience.
It could offer something like: If the oven is turned on in another program, your lasagna will be better, or if you turn on the dishwasher in a different mode, you can save 30% on your power consumption.
Or in another case of a washing machine manufacturer, who can get to know the nature of the customer's washing (including through sensors in clothes) and offer washing programs that are not usually used for different clothes and different stains.
And how do you turn that knowledge into an outstanding service?
A smart manufacturer can already know what his customer is doing with the product.
In addition, the smart sensors will tell the manufacturer (and through you) if there are any problems and how to deal with them.
For example, if a sensor detects a bad odor rising from the oven, the manufacturer can provide a guide for better use.
If a particular component in the oven, vehicle or electric shutters shows signs of wear, the manufacturer may offer a technician to repair the fault in advance.
Everything is more dynamic.
Tesla (Photo: Keinan Cohen)
Carmaker Tesla teaches us all instructive lessons in software updates for its cars and keeping in touch with customers over time.
For example, it removed the charging restrictions of vehicle batteries during a hurricane so that customers could fully charge the battery and stay away from the danger zone.
In another case, the software update informed the driver getting into the vehicle that from now on, his car could drive autonomously.
In these and other ways the manufacturer can enhance the product and enhance our experience: provide us with recommendations and tips.
All this improves our user experience and hence of course the influence of the manufacturer on the chance of choosing his product next time as well.
Buyers pay monthly experiences, not products
The inherent wisdom of the sensors embedded in products today allows manufacturers to migrate from a model of selling products to selling services and even more than that - selling experiences.
For example, an air conditioner manufacturer no longer sells only an air conditioner.
Instead, it can brand what it offers as "clean and pleasant air 365 days a year."
As part of such a purchase plan, where the customer does not buy the air conditioner but pays a monthly fee, the manufacturer can provide him with a service that includes, for example, pay per use, alerts when the customer needs to clean the filters (or even sending a technician to do the work for the customer). Measurement of bacteria in the air and recommendations to the customer on WhatsApp.
In some cases, the solution provided by the manufacturer can save the customer the headache of deciding which product to use exactly.
For example, a large compressor company in Europe that has so far sold compressors in different sizes and intensities, has started charging customers according to the amount of use of the compressor - and it adjusts the product itself according to use.
If the customer turns out to be a heavy user, it moves a larger compressor to it, or vice versa.
The manufacturer provides a comprehensive service and the experience is completely different from what we know
The advantage of the service model is constant contact with customers - and flexible monthly payment according to change and beyond, changing the consumer experience.
He no longer buys a device he buys clean air, clean water, a car without malfunctions.
He buys an experience.
How do you start adopting the approach?
In customer journeys, working closely with customer experience experts, analyzing the personas and then an innovation process to identify the opportunities that the IoT world gives us.
Rami Gur is the director of Matrix Digital
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