We work with technology and IoT device companies to scale sales.

Challenges and Solutions for IoT Marketing

Products that come under the description of the Internet of things or commonly referred to as IoT or smart devices have struggled to gain a sizable market share over the past few years. Or at least a market share that is commensurate to the usefulness of such devices.

There are many reasons for this, but the main ones are:

• Consumers taking their time to adopt new products
• Lack of good in-store education
• The complexity of IoT systems
• A large variety of different products
• Marketers not taking lifestyles and tastes into consideration

Taking a Look at the Products

Smart devices are those that can perform different smart functions such as tracking, monitoring and can be controlled remotely via the Internet.

Devices and products that are capable of doing these functions are highly diverse.

Examples are health monitoring systems, TVs, HVAC units, cameras, lighting systems, and more recently, solar panels and automobiles. The problem is that all smart devices are not at the same level of maturity. Smart TV and entertainment systems, for example, have been around for a while, therefore, are some of the most mature of smart devices, technology wise.

When there is so much to choose from, consumers will get discouraged and put off getting a new smart device.

Educating the Buyer

Even though smart devices have been around for a few decades, not many people knew what they were and how it worked.

The first devices were hardwired and complex to set up and use. Nowadays, you operate smart devices through digital means such as hubs and Wi-Fi connections. Therefore, it is up to retailers to educate the customer and show them how to do it. If you were around in the 1980s and 90s think of the days when you shied away from programming the VCR or when you had to set up the answering machine for the phone.

You probably shied away from it. The fact is that fear of electronic devices is a real thing, and it needs to be addressed by tech product marketing and the retailer. Smart devices are highly complex and require foundational knowledge to use correctly.

So Many Products to Choose From

Whether you shop online or visit a brick-and-mortar store, one of the first things you will see is the sheer variety of smart products available today.

On top of all this, new ones are getting added to the list, and older ones become outdated and replaced. According to a CTA study, most people are not even aware of the different types of smart devices on the market today that are available for purchase! But it is not all doom and gloom on the sales front.

Since 2014, smart devices have grown from approximately 20 million units to nearly 36 million units sold by 2019. The trend is upward; however, there are still many potential customers out there who have not signed on. The following are lists of predictions and numbers that show just how seriously IoT needs to be taken by tech marketers.

• In two years, the IoT market for home devices is expected to grow to $53 billion
• In three years, most automobiles will have an internet connection
• In four years, the medical IoT market globally will be worth nearly $140 billion
• By 2027 there will be over 40 billion IoT devices being used by consumers
• Nearly 2 billion people will have 5G cellular service in the next few years
• Most manufacturing companies are making plans to start using IoT devices to simplify the production of goods

Taking Lifestyle into Account

Obviously, each consumer is going to be different when they start shopping for a smart device.

A younger, more tech-savvy customer is going to be much easier to sell to. However, with device marketing, it is more nuanced than that. There was a time you looked at electronic products as just another commodity. With smart devices, they are becoming more personal.

You will need to point this out to customers.

The days of just turning a device on and forgetting about it are over. Smart devices have become like pets that need attention and care. However, with proper knowledge, it will be easy to do. These products are customizable according to each person's needs. This is very important since what each person wants from similar products can be different.

Once you identify what the customer is looking for in a product, the product will sell itself.

What IoT Marketers Need to Keep in Mind

Ultimately, the main factor behind the success of smart devices can be boiled down to one thing; convenience.

A home or office that uses smart products will make life much easier for the user and quicker to get things done. Now, with a press of a button, you can order more coffee, set the temperature of your house, lock a door, keep an eye on your health or manufacture something remotely. Did you forget to turn off the stove in the kitchen when you went to work? No problem.

You can now do that using an app on your smartphone. You’ve heard the term “value proposition”. Well, in the context of IoT marketing, you will need to understand the unique value proposition offered by your product.

For B2C products, you will need to understand how your product will solve customers’ problems and make life easier, and for B2B, you will need to educate customers on where the product fits in their value chain.

A Device Marketing Example

An example of B2B customers that is changing the game using IoT devices is the solar panel industry.

Now, solar panel manufacturers can give their customers the option of real-time power production monitoring of their panels. It is possible to see what is happening with all the assets from one central unit, connected to the cloud. The benefit of this is that the user will not suffer many power outages and downtime.

In fact, with the help of smart technology, solar power farms are easily capable of managing large amounts of power production and distribution with minimum hassle.

The Tools of Tech Product Marketing

If you have a database with information regarding your customer's likes and dislikes, you can do more specific and targeted marketing campaigns.

If they have already bought a product and are having issues with it, you can help them by sending them appropriate messages to help solve technical issues or advice. In fact, real-time marketing is one of the hallmarks of the IoT business.

According to the famous business consultant Peter Drucker,

“quality in a service or product is not what you put into it; it is what the customer gets out of it”.

This quote is perfect in the context of IoT product marketing. Once you understand who your customer base is and what they want, you can market to them by highlighting what they will get out of a smart device.