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.
SEO Master Class - Steve Wiideman, Wiideman Consulting Group
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
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
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
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
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