Nils Weber: CRM for Your Coffee Machine – How to Win in The Platform Economy Using First-Party IoT-Data
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This document discusses how IoT data from devices like coffee machines can be used to improve the customer experience and business model. It proposes using IoT data to trigger automated consumables reorder notifications. This enhances convenience for customers and increases customer lifetime value. The document also outlines how IoT data can enable new service models like equipment monitoring and predictive maintenance. It argues that combining IoT, customer, and product data provides opportunities for upselling, cross-selling, and optimizing the customer journey. Finally, it discusses implementing consent management to legally and ethically use different types of customer data.
Nils Weber: CRM for Your Coffee Machine – How to Win in The Platform Economy Using First-Party IoT-Data
- 1. CRM for your Coffee Machine HOW TO WIN IN THE PLATFORM ECONOMY USING FIRST-PARTY IOT-DATA Nils Weber, Managing Director, valantic CX Heroes of CRM 2021, 29/10/21
- 3. CX meets IoT
- 6. Brand Customer (value) INSPIRATION EFFICIENCY PERFORMANCE Business Experienc e Technolo gy D2C & IoT
- 8. Market Leadership. Profitability. Customer Access. Focus on the fundamental goals of the business in line with new CX and IoT technologies. Contextually Relevant. Realtime. Moments of Magic. Enabling moments of magic for your customer, by gaining transparency and executing on real-time customer behavior and intentions. Flexible. Secure. Future-Proof. An economically scalable and future-proof system composition that provides the basis for value-added design of all digital touchpoints.
- 9. 1 One Voice to the Customer The experience economy is changing the way we compete. Experiences are the last source of sustainable differentiation and the new competitive battleground. Gartner ”
- 10. Massive upheavals in the digital space 3rd party data in focus leads to dependency 1st party data becomes a priority
- 11. FAANG makes 1st party data its core business and continues to expand its reach Instagram AWS App Store Mass Customization through AI YouTube Whats App Alexa Apple Music Reach / Partner Integration Cloud Oculus Retail Apple Pay Story Bots Android Ray Ban Stories Own Delivery Apple Watch Millarworld AI Health Apple Streaming Nest Apple Electric Cars Google Maps Fit Bit Other companies also recognize the potential
- 12. From silo thinking to an integrated front-office organization for a state-of-the-art customer experience Activities Activities Activities Data Data Data Customer Customer Customer Acquisition Marketing Retention Field Service Management Sales Customer Service Activities Activities Activities Data Data Data Customer Customer Customer
- 13. ”Consumables" as a service leverages CLV potential fully automated and enhances customer experience Sale + Delivery - Consumables - Spare parts Trade Maintenance and repair - Offer - Mediation Service Classic business model IoT based potentials Expanded business model „Equipment as a Service“ Change in purchase decision with simultaneous increase in CLV Result based value extraction Trigger for & automation of the ordering process Modernization of dealer structures and optimal provision of resources Exclusive distribution channel Condition monitoring / Preventive functions Definition of optimal service timing and quality improvement Optimization of the digital twin Intelligent machines integrated into the environment Info on operating status and upcoming maintenance for users Differentiating (digital) services Open Data & Service Platforms Platform for partners to further optimize the service Platform effects Traditional sale - functional features - price / benefit - Brand Product Competitive advantage
- 14. Experience Technology Business Classic business model IoT based potentials Extended business model Competitive advantage
- 15. Experience
- 16. Experience Awareness awakens Need grows Targeted interest arises Purchase decision The purchase A relationship is formed The user The fan
- 17. Experience Awareness awakens Need grows Interest arises Purchase decision The purchase A relationship is formed The user The fan Pre Awareness Awareness Interest Consideration Action Retention Experience Loyalty Pre-purchase phase Purchase phase Post-purchase phase Webshop Funnel Onboarding Funnel After-Sales Funnel Customer status Steps Phase Stationary trade Lookalike Audiences Shopping Cart Abandonment Device Registration Process IoT-based Consumer Goods Marketing Prioritized use cases along the customer journey Buyer Journey Customer Journey Research Dispute Selection / Purchase Activation / Awareness Learning Support Advocate Delivery / C.-Onboard. Unknown Unknown Target customer New customer Existing customer Existing customer Regular customer / Fan Target customer
- 18. Experience Device/Machine Johannes owns an IoT-enabled household appliance and regularly uses appropriate consumables.. Device/Machine Johannes has already replaced consumables for this unit but has not made a purchase with the OEM yet. IoT-based consumables promotion – We inform customers when the detergent (or any other consumable) level is low Definition We use IoT / app data to analyze the detergent level. Depending on when and to what extent the customer last purchased consumables, we send a corresponding recommendation with a link to the store. Business Value Increase in CLV and webshop sales through convenience for the customer Activation channels App Data requirements / prerequisites IoT device data ● E-commerce transactions ● Retail transactions ● Coupon redemption data ● Web store tracking data (shopping cart activities) ● App tracking data Disclaimer Consent Management Requires the necessary consents from the customer Relationship building phase E-Mail If Johannes has not yet redeemed his voucher, he will be reminded of it. Now he can place the corresponding order.
- 19. Miele. Immer Besser. Example application: Food ID / Smart Browning Control ▪ Food View as technical starting point ▪ Feature extension via WLAN update ▪ Smart Food ID: Camera recognizes the food ▪ Smart detection of browning levels, e.g. for baked potatoes
- 20. Experience Awareness awakens Need grows Interest arises Purchase decision The purchase A relationship is formed The user The fan Pre Awareness Awareness Interest Consideration Action Retention Experience Loyalty Pre-purchase phase Purchase phase Post-purchase phase Webshop Funnel Onboarding Funnel After-Sales Funnel Customer status Steps Phase Stationary trade Lookalike Audiences Shopping cart abandonment Device registration process IoT based consumer goods marketing Prioritized use cases along the customer journey Buyer Journey Customer Journey Research Dispute Selection / Purchase Activation / Awareness Learning Support Advocate Delivery / C.-Onboard. Unknown Unknown Target customer New customer Existing customer Existing customer Regular customer / Fan Target customer
- 21. Experience Technology Business Classic business model IoT based potentials Enhanced business model Competitive advantage Buyer Journey Customer Journey Research Dispute Selection / Purchase Activation / Awareness Learning Support Advocate Delivery / C.-Onboard. Unknown Unknown Target customer New customer Existing customer Existing customer Regular customer / Fan Target customer
- 22. Technology
- 23. Customer data, which is difficult to collect in B2B2C retail structures, is a strategic lever for brand value enhancement and D2C sales Specialist consultant Sales interaction Field Service Complaint Product registration Website interaction Smart Home App interaction Reactive human-to-human communication Reactive & proactive digital, automated and personalized communication Service Case Case Products Object History Interaction Owner Contact Tenant Contact Property management Contact Customer / Residential Object Account Digital Engagement Digital Engagement Digital Engagement 360° end customer profile from service processes and in all digital interaction
- 24. Upsell / Crossell potential B2C Enabled by customer information IoT device Is produced IoT device delivered to POS Device is registered by the customer Inspection / Maintenance First Repair Customer B registers device from customer A Device Object Service Case Object Device Object x Devices - Customers (B2B& B2C) Data in Sales & ServiceCloud ERP Item no. Serial no.. Charge-Nr. POS Object Address More info Device Object Serial no.. Item no. Batch no. . Customers Object E-Mail Name Address Device Object Serial no.. Item no. Batch no. . POS Object Address More info State Device Marketing Cloud based on customer data and segmentation based on device data Device level Single part / spare part level B2B Sales & Marketing Potenzial Enabled by knowledge about customers & POS Service potential Higher efficiency & quality through complete information & direct access Sales potential By knowing what & how much a POS has delivered Upsell / Crossell potential e.g. offer better equipment / accessories Customer A Object Customer B Object Upsell potential through knowledge about new device for customer B Re-Engagement potential Through knowledge about delivery of the device Traceability Genealogy Item no. Serial no.. Batch no. Product & Spare Parts Catalog Consistent data models for IoT devices and B2C / B2B data, builds basis for customer satisfaction through service & process excellence Error catalog
- 25. Benefits through "Digital Twins" • Consistent understanding of product data and variants is the basis for efficient processes and rapid product innovation • Precise production planning based on reliable forecast and pre-order processes • Transparent logistics processes for customer satisfaction and service efficiency • Unified fault root cause resolution logics can enable excellent, fast customer service and fault cost reduction • 360-degree customer profiles across all human-to-human and digital interaction channels IT systems With interface 'Human-to-human‘ IT-systems With Self Service & Digital Engagement Interface PLM Service CRM Sales CRM MES ERP & Logistics Customer Data- Platform/ Marketing automation Feedback Tool Using the data from the "Digital Twin" in Sales & Service helps to further optimize CX and thus drive retention Device in Use Sale Production
- 26. Marketing Different types of "consents" are obtained via the customer journey The user comes to the online store and agrees to tracking, analytics and marketing cookies. Enables website functionality, user behavior analysis and re-targeting. TRACKING Web Consent Essential Analytics The user subscribes to the newsletter and consents to the communication. Enables automated, personalized communication with the user. The user registers the product via the respective app and agrees to the exchange of product data. Enables data exchange between the app and the products. ENGAGEMENT Consent SMS E-Mail Push Notifications IoT Product Consent Product Engagement (Push) TRACKING App Consent Analytics
- 27. The CMP is implemented at the beginning of the Customer Journey and enables the use of CDP and CRM during the rest of the Journey Customer Data Platform Consent Management Platform Customer Relationship Management TRACKING Consent ENGAGEMENT Consent PRODUCT Consent Tracking Consent empowers CDP Match & merge of digitally known as well as unknown users CDP provides 360° customer profile known buyers & person-to-person communication Valantic's Consent Management concept consists of 3 categories The CMP enables tracking and data driven marketing & provides a preference system. The CDP creates a 360-degree customer profile and orchestrates digital customer engagement CRM serves the interpersonal interactions with known customers in sales and service Collects Tracking Consents collects (temporary) Product Data Consents collects (temporary) Product Data Consents Product Data Consent & IoT-Usage Data
- 28. Experience Technology Business Customer Engagement Tech IoT & Product Lifecycle Tech Classic business model IoT based potentials Enhanced business model Competitive advantage Buyer Journey Customer Journey Research Dispute Selection / Purchase Activation / Awareness Learning Support Advocate Delivery / C.-Onboard. Unknown Unknown Target customer New customer Existing customer Existing customer Regular customer / Fan Target customer Customer Data Platform Consent Management Platform Customer Relationship Management
- 29. Q & A No questions should remain unanswered
- 30. Let‘s make it fly! Nils Weber Managing Director +49 173 1583002 nils.weber@dmc.valantic.com
- 31. Value Levers in Data Driven Marketing 31 Customer Lifetime Value – Customer acquisition costs = value added Customer Lifetime Value (CLV) (€) Customer loyalty/ Average purchase rate per customer (Purchases per year) Average order value (€) Gross product margin (%) Average value of goods (€) Items per transaction Customer acquisition costs (CAC) (€) Average monthly expenditure on digital marketing (€) Average monthly acquisitions Traffic (#) Conversion rate (%) Driven by UI/UX and offer
- 32. Experience Success factors Journey High-performing companies succeed with a data-driven and journey-based approach to measuring and improving CX. Connecting the Dots Connecting isolated voice-of-the-customer data with cross-channel behavior to represent the overall customer experience. Data Centralized customer journey data sources. Break down data silos across the enterprise to enable the total customer experience. Technology Pursue a holistic, thoughtful technology approach that combines best-in-class market-leading software products for core CX processes.
- 33. valantic focuses on the relevant success factors and mitigates known risks in customer-centricity projects 33 Success factors Risks Skills & Organization Data Strategy Strategy & Roadmap Cultural Change The "POC Trap Pure IT focus