Customer Lifetime Value (also known as CLV) is a valuable metric for modern businesses. It helps companies view the revenue potential of customer relationships over the lifespan of a company, and better CLV’s can lead to better profits. The Internet of Things (IoT) and Customer Lifetime Value are linked in a digital age, as IoT can translate CLV data into more rewarding customer experiences – and help business leaders develop more opportunities to cultivate more in-depth, more meaningful customer connections.
Making IoT Work for You
One of the main ways that businesses use IoT to improve their CLV is to use the data created by their devices to provide existing customers with new and innovative ways to engage with products and services. The idea behind this is that better engagement leads to increased loyalty, as well as more consistent, reliable data for improved insights. Microsoft solutions create opportunities with IoT, helping companies make the most of their connections - and their devices.
A common example of this is MyFitnessPal, the number one online health and nutrition membership community in the world. The company embraced The Internet of Things to make it easier for its then 80million members to reach their goals. This includes connecting wearable IoT devices to their app and delivering in-demand services for nutrition and immediate user insights.
Now owned by fitness brand UnderArmour, the app is not without faults. In 2018, the app was hit with a data breach that saw an unauthorised party acquired personal information relating to users. How did this affect their CLMs?
The company addressed the issue by urging customers to change their passwords and has since been working with data and security firms to secure their customer information for a digital age. They now have over 150million users worldwide and show no signs of slowing down. The security concerns associated with using IoT for CLM’s are present – and something all businesses should be aware of. The Internet of Things and Cyber Security need to go hand-in-hand if Customer Lifetime Value strategies are to remain effective. To do this, business leaders should consider:
- Regularly auditing their security infrastructure
- Enabling effective and relevant security protocols during installation
- Ensuring user roles and access are appropriate with a sound Identity strategy
- Keeping privacy policies up-to-date
- Remaining compliant with current GDPR and NDP Legislations.
Microsoft IoT solutions delver tools and solutions to enable better security for customers. With device authentication and provisioning, and end-to-end security, over 95% of the Fortune 500 trust Microsoft in a digitally driven era.
The Internet of Things is a journey that many businesses are taking to keep up with the demands of a digital age. To expand CLV experiences and increase profits in what will be a technology-driven decade, companies need to be aware of the needs of their customer – and their ongoing security. Business leaders who know how to make the most of IoT will thrive in a modern market.
If you are uncertain about your Journey to IoT, or how to make the most of data insights in your business – contact MOQdigital today.