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IoT in customer services: Role, Advantages and Limitations

  • Pragya Soni
  • Jan 14, 2022
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Customer service is an essential part of any business. It serves as a pillar to a business that supports and strengthens it every day. When you read customer service, you might get it confused with customer care toll free numbers and all. 


Obviously, that is a part of customer service but not the term itself. To satisfy your existing customers and attract new one it is essential for the businesses to invest in their customer services. IoT eases this process and helps the companies to achieve their targets.


In this blog we will read about the role of the Internet of Things (IoT) in customer services. We will also take a look at advantages and limitations of IoT in the same.



IoT and customer service


Before beginning the actual topic, first let us some basic yet important terms related to it.


Internet of Things (IoT)


The Internet of Things (IoT) is defined as the technology of embedding the internet and its technologies to different machines and things. Or in simple words, when physical devices are embedded with software, network and technologies. 


It helps in collecting and exchanging data. From simple household tools such as calculators to sophisticated and complex industrial tools like packing machines, everything is an application of IoT. IoT platforms assist the organization to improve their process efficiency, cost optimization and asset utilization.


Customer services


Customer services is defined as the customer care network that helps the company in focusing on the customers. The services aim to keep customers happy and satisfied from the organization. Customer services prioritize customer satisfaction and returning loyalty to the trusted customers. 


(Suggested Read - Customer Journey Analytics)



Role of IoT in customer service


Customer service is important to maintain the reputation of the company and to attract more customers for the companies. It is essential for the companies to stay focused on customer services if they want to stand in the market. 


In the last few decades, the Internet of Things has marvelously evolved in building customer care service. In the current era, companies are investing a pretty large amount in customer service to maintain their quota in the marketplace.

There is no doubt that IoT has a key role in customer services. Customers are basically attracted to the products and services of a company or business, IoT helps in maintaining the quality of products and services for a company. 


The salient features of the Internet of Things (IoT) like data sharing, security, and inventory management have impacted the business in many ways. Thus, IoT as a network of interconnected devices helps in improving customer experience.



What are the advantages of IoT in customer services?

Advantages of IoT in Customer Service are Improve customer safety, Digital safety, Real-time data.Personalized communication, Improved time management, Improve services and products, Automation and Ease customer care network.

Advantages of IoT in customer service

The advantages of IoT in our daily life are countless and cannot be summed up in words. Particularly, in customer care services, the advantages of IoT are as follows:


  1. Improves safety of customers


IoT improves safety and security of customers. It provides ultimate safety to the customers. Suppose you are a customer who is interested in online shopping, what would be your priority? Obviously a safe and secure shopping experience. 


So, as a business, to ensure security to your customers you need to employ IoT in your business. You also need to ensure security of the personal information of customers. IoT helps in extending internet connectivity and monitoring the internet related things in real-time. Thus, as a business you can detect suspicious activities immediately. 


  1. Digital safety


IoT helps in ensuring digital safety of the customers. By enabling applications such as biometric sensors, IoT has made the concept of digital verification more reliable, advanced and stronger.


  1. Real-time data


One of the greatest merits of IoT of all time is Real-time data. It tracks the clicks and actions, thus fetching the real-time data. The tracked data helps in defining the most expected status plan of the customers. 


IoT assists the businesses with real-time access to the customer’s activity. Thus, helping all cycles of business, from managing unit functions to tracking the products. 


For example, sensor and tracking chips help to track the shipment and delivery of products and leave an update for customers.


  1. Provide personalized communication


IoT enriches communication and its quality. It helps in understanding customer’s behavior, thus helps in generating important data for the business purpose. IoT and its insights help in personalizing communication and predictions for the customers. 


This increases customers' satisfaction and attracts them to specific fields. When customers are shown the products and recommendations they are genuinely interested in, their passion towards your business will automatically increase. Thus, the overall customer experience improves.


  1. Improved time management


The customers nowadays are quite conscious about time. They want punctuality in the shipment and delivery of products. IoT keeps you updated about the stock’s requirements related to ordered stock, date stock and merchandise stock. 


It gives significant information related to the inventory status, movements and constant visibility of the products. IoT helps in managing the inventory of the product. Thus, helps in carrying the entire process efficiently. In short, with IoT in business you can serve your customers better and on time.


  1. Improve services and products


IoT gathers the data and insights of the process. The data accumulated helps the organizations and businesses to understand the priority of the customers. Thus, companies can optimize their existing products and design new products according to the needs of customers. 


It also lets them know the drawbacks of existing products. Then, you can guide your staff in the steps to improve the overall quality of the business to improve the overall experience of the target audience. Thus, there is always a chance to improve customer services. 


  1. Enhance shopper’s journey


IoT enhances the shopper's journey and is highly useful for eCommerce and retail stores. IoT can suggest to the customers, recommendations based on their purchase habits, and can provide accurate shipping details. 


Keeping the customers updated even to the minute details of their order, IoT will help the businesses to understand their customers in a better form.


  1. Automation


Automation is another greatest advantage of IoT, the track and control system of IoT provides a dashboard for problem solving ability. This removes the human intervention layer and protects a healthy connection with the customers. 


  1. Ease the customer care services


IoT makes the customer services smarter and stronger. IoT provides data and data can conquer the world. Using the gathered data by IoT the business owners can understand their clients better. 


IoT has eased the predictive section of customer services. The 24*7 availability of customer care helplines is also an application of IoT in customer services.


(Suggested blog - IoT in business)


Limitations of Internet of Things (IoT) in customer services


Despite several advantages, there are some limitations of IoT that makes the process difficult. The major limitations of IoT in customer services are as follows:


  1. High implementation costs

There is no double way though, IoT makes customer services an easy process. But the setup and implementation cost of it is quite high and is not easily affordable by small scale businesses and firms.


  1. Complex process

As mentioned above, IoT is a network of devices embedded with the internet. To deal with its process and working a special set of technicians is required, as the process is complex and cannot be understood by common man.


  1. Risk to data

Though IoT is the land of data, sometimes it can even risk that. The privacy and security of data in a network is always a matter of concern.


  1. Replace human force

The more the advantage of machines and internet, the more it will replace the manpower and human force from the field.


  1. Power dependence

The major drawback of IoT is its dependence on electricity. Without power and electricity, the IoT is nothing more than a body without a soul.


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Though we are concerned about the advantages and limitations of IoT in customer service, still we cannot ignore the fact that with the advent of IoT the entire system and process of customer services has reached its zenith.

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