Marketing 0

Internet of Things (IoT) and Blockchain
IoT refers to the interconnectivity of machines and devices that
communicate with one another. Mobile phones, wearables, home
appliances, cars, smart electricity meters, and surveillance cameras
are some examples of connected devices. Individuals can use IoT to
power smart homes. Companies can use it for remote monitoring
and tracking of assets such as building and fleet vehicles. But most
importantly, IoT enables a seamless customer experience delivery.
Frictionless experience is now possible since every physical
touchpoint is digitally connected via IoT.
Disney serves as a case in point. The theme park leverages IoT to
eliminate frictions and redefine its customer experience at the park.
Integrated with My Disney Experience website, its MagicBand
bracelet stores customer information and thus works as a theme park
ticket, room key, and payment method. The band continually
communicates with thousands of sensors in the rides, restaurants,

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stores, and hotels via a radio frequency technology. Disney staff can
monitor customer movement, anticipate incoming guests within 40
feet, and proactively serve them. Imagine being greeted personally by
your first name without needing to say anything. The collected data
on guest movement is valuable to design location-based offerings or
to recommend the most efficient park routes to a guest's favorite
rides.
Blockchain is another form of distributed technology. An open and
distributed ledger system, blockchain records encrypted data across
a peer-to-peer network. A block is like a page of a ledger that
contains all the past transactions. Once a block is completed, it can
never be altered and will give way for the next block in the chain. The
security of blockchain allows transactions between two parties
without the bank as the middleman. It also allows the invention of
bitcoin, a cryptocurrency, without needing a central bank.
The safe and transparent recordkeeping nature of blockchain is a
potential game-changer for marketing. IBM, in collaboration with
Unilever, embarked on a blockchain project to increase transparency
in digital advertising placement. The Association of National
Advertisers estimates that only 30 to 40 cents of every digital media
dollar reaches publishers while the rest goes to the intermediaries.
Blockchain is used to track this chain of transactions from the
advertisers to the publishers and identify inefficiencies. A similar
application of blockchain can also help customers verify whether
marketing claims such as fair trade and 100% organic are accurate
through recordkeeping of supply chain transactions.
Another area of implementation is for customer data management.
Today, customer data is dispersed across multiple companies and
brands. For example, one customer may participate in dozens of
loyalty programs and share personal information to many parties.
The fragmented nature makes it difficult for customers to aggregate
points and make them large enough to be meaningful. Blockchain
can potentially integrate multiple loyalty programs and at the same
time reduce transactional friction in them.