Internet of Behaviour (IoB)
Imagine being able to predict what your potential customers are thinking, or what they intend to do. Understanding the behaviour of buyers has been a long-time wish for many organisations. Businesses strive to know their customers better, and how to enhance the process. In doing so, they attempt to create a personalised experience for every customer. The Internet of Behaviour is a means of achieving this.
What Is the Internet of Behaviour? A short guide
Personalised products and services are essential to service success in a business. The more efficient a business is, the more people look at it and adapt to them. The internet has a tremendous impact on your services but is also likely affecting your value chain as a whole. So now we are learning about what the Internet of Things Means in Business, however, it is important to understand the growing trend of the Web of Behaviour. Currently, Gartner estimates that about 40% of people worldwide are tracking their own behaviour on the internet.
What IoB Means And Its Value In a Modern World
The Internet of Things (IoT) brings a new concept called the Internet of Behaviour (IoB). It is an extension of IoT, and this technology helps analyse the behaviour of users. IoT data is a means of understanding actions, whereas the IoB attempts the unravel the meanings behind them.
This article will provide information relating to the importance of IoB and its advantages. It dispels the myth that it is just a bunch of machine learning algorithms, and will explore its value for a business in general, as well as identify use cases and risks.
What Is IoB?
As we noted, the Internet of Behaviour is an extension of and within the Internet of Things, and its principle is simple: value in understanding consumer behaviour and their preferences within a network, and by tracking users' online activity. 'Things' include wearables (smartwatches or fitness trackers that track heart rate and location of users), and implants that track body temperature, sugar level, leukocytes in the blood, etc. Ideally, these devices would even monitor the emotional state of humans and prevent some reckless actions.
IoB combines existing technologies oriented directly on a person (like face recognition, location tracking, and Big Data) and connects data collected with relevant behavioural actions like using devices or the purchase process. For example, computer vision, together with Artificial Intelligence, can monitor how employees wear masks and adhere to the epidemic restrictions in the office.
Why IoB Is Important
Data has been an integral part of the business world for many years, and even more so since the creation of the Internet.
The Internet of Things (IoT) is based on physical networks, through IoT devices, whose interconnecting parts collect and communicate information via the Internet. It continues to expand and evolve in terms of the complexity of the IoT, the way the devices interact with each other, the computations processed by them independently and the stored data growing ever more complex. Data collection is valuable information on consumer behaviour and preferences, which is called the Internet of Behavior (IoB / Big Data).
IoB would be one of the leading trends in the digital and physical world. The IoB offers people to collect as much data as they need and analyse it. The collection and sharing of user data is an important aspect in terms of behaviour and preferences.
It contributes to the further development of companies under severe negative pressure related to the COVID-19 pandemic and climate changes in the world economy. The primary goal of IoB is to collect, analyse, respond, and understand many human behaviours to increase customer satisfaction.
Behavioural data helps enterprises make thoughtful decisions, improve quality service, and optimise pricing through a deep understanding. As a result, the IoB has become a new and robust tool for global sales and marketing campaigns.
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Benefits of the Internet Of Behaviour
Let's identify the advantages of the IoB to get more insights into the strong sides of this concept.
Understanding consumer behaviour
As described above, the IoB makes it possible to analyse data collected and recognise and interpret human behaviours. IoB is heavily reliant on human behavioural psychology as it works to influence product and marketing strategies. For example, businesses may predict what customers will need and what they expect via a complex analysis of their behaviour. If businesses understand consumer behaviour, they can provide demanded products or services when customers need them.
Customer experience enhancement
Suppose customers had some negative experience during the visit to a specific shop. In that case, specialists may consider it and improve customer experience by creating a personalised approach and providing some free services to correct the company's mistakes. The IoB allows customer service departments to increase the loyalty of their consumers.
Valuable information
Companies gather multiple data about customers, but these data are useless until effectively and efficiently analysed. Data collected is analysed in terms of behavioural psychology to look for patterns to be used by marketing and sales teams to influence future consumer behaviour. The Internet of Behaviour converts all gathered facts into valuable information that is further used for growing their business and understanding consumer behaviour better. The IoB helps build customer journeys from start to finish — it also positively affects customer satisfaction.
Effective marketing
In fact, IoB makes psychology and marketing work together. By understanding a buyer's behaviour, companies reveal consumer psychology, and they target them with accurate and non-irritating advertising. As a result, IoB contributes to attracting potential customers and turning them into loyal ones. This aspect of marketing research complements and enhances digital marketing techniques, and is a great sales tool.
Public Safety Improvement
For example, IoB can help track drivers' behaviour and flag dangerous behaviours to prevent accidents. In addition, employers can monitor employees' behaviours to avoid burnout and make their workflow smoother.
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The Value of IoB For Businesses
The Internet of Behaviour makes it possible to reduce marketing and advertising costs without profit loss. Also, companies can customise the product or service easily because of behavioural data analysis and identifying consumers' intentions. The IoB makes use of the existing technologies of the IoT and utilises the sensitive data for analysis. Understanding the buying habits and potential customers' interests makes for interesting user-controlled data.
Finally, optimisation of staff work becomes much more accessible, and the IoB enhances the efficiency of working processes.
It is also essential that incorporating IoB lowers commercial risks related to circumstances like the COVID-19 pandemic since it substantially simplifies remote interaction and management formats.
As mentioned, the internet of behaviour adds value also to the digital marketing strategies of any business with detailed insights.
How the Internet of Behaviour Can Be Used
The IoB has vast perspectives, and it will undoubtedly revolutionise many industries. We want to cover a few examples of IoB use cases.
Healthcare
Specialists predict that they will develop smart health apps as well as pacemakers that are controlled via Wi-Fi, and smart contact lenses to correct eyesight and gather data about users if they have chronic diseases. Also, smart implants track the general state of health, including behavioural patterns. In addition, the system will enable doctors and medical staff to access sensitive data analytics, providing invaluable information.
Tourism
In the tourism sector, IoB will draw up personalised tours, choose an optimal flight time, and increase the performance of tour operators and customer satisfaction levels. The ability to book hotels online and have specific locations or even styles of rooms suggested provides an enhanced experience. Working with customers' emotions won't seem fantastic — travel agencies will process impressions of customers and extract vital information to improve the experience.
HR Management
The analysis of the working day, monitoring the condition of an employee, the assessment of employees' behaviour during the communication with customers, identifying potential areas for growth — everything listed can be implemented with the help of the Internet of Behaviour. Apart from this, the IoB allows companies to reduce costs for hiring people, minimise staff turnover, and customise the workflow for each employee. In connection with IoB data, there is the possibility of introducing a CRM (Customer Relationship Management) system. This can be used for internal as well as external circumstances.
Insurance
In the insurance sector, companies will form their pricing based on objective information and customers' behaviour and provide them with appropriate insurance models. In addition, as we noted, insurance companies will prevent insurance cases by analysing drivers' behaviours and having a comprehensive picture of the driver's emotional state. There is an interest in understanding human behaviour and dangerous behaviour.
Car Manufacturing
The IoB will help increase such a significant factor in this industry, like safety. It will collect all data about manufacturing processes and provide essential guides on safety level increases and manufacturing improvements. The introduction of other similar systems such as ERP (Enterprise Resource Planning) can enhance production and safety also. In addition to this is the SCADA system connected with manufacturing, and concerned with connecting humans and machines to improve productivity and reduce time loss. The IoB can also help drivers reduce costs for vehicle maintenance.
Besides the industries mentioned above, the Internet of Behaviour will also contribute to better UX and SEO on websites, making customer satisfaction grow. Video streaming services already use Big Data analysis to recommend users' content based on their preferences.
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Major Challenges Of IoB
There are some risks of the Internet of Behaviour we consider necessary to reveal so that you have a better understanding of all pitfalls.
Cybersecurity
The Internet of Behaviour is an extensive database of sensitive information that turns into a tidbit for cybercriminals. So it is crucial to protect confidential data from them. However, there are no unified security protocols that are used in IoT and IoB for data security. Therefore, it is required to enact a regulation that stipulates specific security protocols to be applied in the IoT. In all of this is the concern for consumer data privacy.
Privacy concerns
This is a problem for companies not for customers for ethical and legal reasons. For example, all companies that process data of EU residents must follow GDPR (General Data Protection Regulation). According to GDPR, users have the right to erase (aka the right to be forgotten). So when companies collect tons of valuable data about their customers, customers can request their data to be erased. It will be a failure of companies to lose customer data used to improve customer experience.
IoB Is The Future
In our opinion, IoB will play an extensive part in the future of this industry. At Go Wombat, we have certified Data Scientists who are involved in IoT projects where IoB is also applied.
In summary
As a major mover in the development and progress of the internet, we think companies cannot neglect the IoB. This aspect of the industry is constantly expanding and is vital if they want to grow their business. A distinct player in the future of understanding clients' likes, dislikes, and intentions, the IoB will continue to influence various industries.
Our specialists consider IoB a very promising niche in which entrepreneurs need to invest time and attention. When consumers decide to purchase something, emotions are the main trigger for this process. It doesn't matter whether users buy online or offline — emotions lead them to purchase.
By collecting data about users' online activities, businesses may identify what goods and services are interesting for users and target them with personalised advertising to satisfy their demands. The individual approach comes first, and it attracts potential customers.
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