Have you ever wondered why ads are so relatable and personalized to your recent search or visits to a certain website/product? The answer is Data.
Data is one of the main assets of an organization. By personalizing data according to the customer’s needs and desires, we can create a more tailored and relevant experience for them, increasing their satisfaction with a company’s products and services. Organizations are realizing that personalization is key to service excellence and satisfaction. Discovering the key to human behavior and how to influence it, will put companies and organizations ahead of competitors in every industry.
One of the technological trends that marks a new era in data organization and analysis is IoB (Internet of Behaviors). With this trend, companies will be able to adapt to a new economic paradigm, which will continue to change and grow.
The Internet of Behavior (IoB) is an extension of the Internet of Things (IoT) (Internet of Things). IoT is concerned with data, information, and the interconnection of various devices. IoB uses these same parameters, along with user behaviors, to understand the patterns and impressions that shape the user experience.
IoB interprets interactions by connecting technology and human actions. It can also generate patterns that influence people’s behavior.
According to the Precedence Research, By 2025, 40% of the world population would be subject to at least 1 IoB program (government or corporate) and digitally tracked in order to affect human behavior.
Google and Facebook, for example, use behavioral data to provide relevant advertisements to their customers. Companies can use IoB to not only communicate with their target audience but also to track their habits and improve services. Moreover, emerging innovations like Alexa, OK Google, and Siri are designed to research and analyze data as well as human behavior in order to perform better.
What is the need for IoB?
Gartner identified the IoB as a top trend in 2021 because of the potential value generated by tracking and understanding human behavior with greater precision and accuracy. CRM systems equipped with great analytics have already improved insight into buyer behavior, and IoT medical devices have improved patient care.
Employee behavior can be influenced by IoB systems, which can then be used to influence purchasing behavior. Government organizations can also use IoB to influence their constituents. The Internet of Behavior is important beyond the traditional boundaries of business and government because human behavior is a fundamental component of nearly everything humans do.
As a result, the IoB is a transformative trend that has the potential to reshape humanity’s relationship with technology.
The Dynamic pair: IoT and IoB.
It has been stated previously that IoT and IoB are linked by the evolution of how and what kinds of data can be derived from interactions with digital objects.
The IoB’s goal is to capture, analyze, comprehend, and respond to all types of human behaviors in a way that allows tracking and interpreting those behaviors of people using emerging technological innovations and advances in machine learning algorithms.
People’s behavior is monitored, and incentives or disincentives are used to persuade them to perform in accordance with a set of operational parameters. What is truly important about IoB is that it is both descriptive (analyzing behavior) and proactive (detecting which psychological variables to influence to bring about a certain outcome).
The IoB influences consumer behavior while also redesigning the value chain. While some users are hesitant to provide their data, many others are willing to do so if it adds value – data-driven value.
How can we benefit from IoB?
- Using behavioral insight – you can convert a higher percentage of prospects into sales.
- Change the way sales interact with consumers in real-time.
- Increase sales team efficiency by monitoring sales staff behavior.
- Using contact behavioral data – Assess campaign performance.
- Send real-time marketing notifications – based on behaviour data across multiple marketing platforms and points of sale.
- Optimize advertising campaigns and more effectively market to customers.
- Use IoB data from various platforms – to better understand customer purchasing habits, such as where and when they shop.
- Based on behavior feedback – Improve user experiences.
- customer satisfaction by responding appropriately to “behavioral cues”.
Industry Insights of IoB
The major segments are BFSI, Telecom and IT, Entertainment and Media, Tourism and Travel, Retail and e-Commerce, Healthcare, Manufacturing, and Others. By 2028, the BFSI category is expected to account for a sizable portion of the global Internet of Behaviors (IoB) market.
In the BFSI industry, IoB is widely used for statement generation and automatic notification applications. IoB systems can monitor financial behavior in order to quantify credit scores and interest rates. Insurance companies, such as car insurance companies that reward safe driving habits, can use IoB data to identify low-risk customers and offer lower rates.
Potential limitations of IoB
There are three major challenges:
- Regulations: After massive data breaches from platforms that rely on personal information, such as Facebook, Yahoo, and LinkedIn, data privacy has become a significant political issue in many jurisdictions. Companies will need to design IoB devices and systems that comply with multiple jurisdictional regulations. In areas where data collection is restricted, an IoB system may even have to deactivate some functionality.
- Security: IoB technology, like IoT devices, indicates another potential attack vector for criminals to exploit. Because IoB data collection may contain highly sensitive info, the severity of attacks may be accelerated. Cybercriminals can gain access to information using behavioral data, making people vulnerable to both digital and physical breaches.
- Value: In return for personal information, people want better products and services, exceptional customer experiences, and a better lifestyle. Because IoB data can contain extremely sensitive information, the value provided to customers must be worthy of the risk.
Bright future for IoB! How?
IoB will be the ecosystem that defines human behaviour in an increasingly digital world. As a result, in order to avoid negative consumer reactions, it will be critical to strike a balance between personalized offerings and invasiveness. Any business that chooses to implement an IoB approach to its strategies must ensure that it has powerful cyber security in place to safeguard all of that critical data.
IoB is still in its early stages, but Gartner (a research organization) predicts that by 2025, it will be present in half of the world’s population. The recent increase in IoT devices confirms this.
Data from IoT devices combined with IoB technology can be leveraged to sell, but it is not all targeted advertising. Organizations will be able to test the effectiveness of their advertising and non-profit campaigns, for instance. In addition, healthcare professionals can track their patients’ activation and engagement initiatives.
To sum it up, its software catalogue is already extensive, but it will continue to grow when it becomes more prominent in society.