The Internet of Behavior (IoB) simply refers to the process of collecting all kinds of data (business intelligence [BI], big data, etc.) that shows essential information on clients’ behaviors, interests, and preferences.
The IoB allows users to understand the data from people’s online activities. It aims to interpret data and use the knowledge gained to create and promote new products and services based on human psychology.
Read More about the “Internet of Behavior”
IoB is an extension of the Internet of Things (IoT). But what does one have to do with the other?
IoT and IoB, How Are They Related?
IoB can be considered a combination of three disciplines—technology, analytical data, and psychology. IoB users examine people’s emotions, choices, augmentations, and companionship using technology.
We know that companies can get to know their customers through the data obtained from IoT devices. Now IoB can give organizations even more insight into consumers by looking at their behaviors.
Businesses can use IoT and IoB to watch what consumers do (if they have an abnormal heart rate through a health app, for example) and convince them to buy a product (a supplement) or avail of a service (a gym membership).
How Does the Internet of Behavior Work?
IoB involves three basic steps—data collection, data analysis, and data correlation.
Consumer data can come from various sites and technologies (corporate websites, social media profiles, IoT devices, etc.). Each source collects a different type of information. Information from your site, for instance, can tell you how many times users visit a specific page, cluing you in to the products or services they may be looking for.
The data collected is analyzed to help with decision making, customize marketing strategies, develop products or services, and improve user experience (UX), to name a few. Standards must, however, be applied to data analysis. When users take action, you can urge them to change their behavior. If they visit a page selling cars five times, you may send them ads offering car loans.
The more data a business works with to gain customer insights, the better. Using a combination of data sources and correlating information makes for better decisions. With the massive data, they can develop more in-depth user profiles, allowing them to take the best courses of action.
What Are the Benefits of Using the Internet of Behavior?
Organizations that use IoB stand to gain these advantages:
- They can analyze customer s’ purchasing behaviors across several platforms. Companies can look at what specific web pages the consumers visited to know what they may be looking to buy.
- They can know how people use products and services through their wearable gadgets. Businesses can gauge who needs exercise or to visit a doctor.
- They can determine where each customer is in the purchasing process. Visits to e-commerce pages, for example, tell you that users are ready to take the final step—buy a product or pay for a service.
- They can get real-time point-of-sale (PoS) notifications, allowing them to target users when possible. Organizations will know which areas get more foot traffic, which could mean more sales.
- They can keep tabs on sales and ensure consumer satisfaction by resolving concerns fast. Monitoring social media platforms can give you a sense of customer perception.
What Are Real-Life Applications of the Internet of Behavior?
IoB is beneficial for most businesses that rely on advertising, those that shifted to remote work during the pandemic, and insurance companies.
IoB for Advertising
Almost all companies rely on online advertising to reach out to clients. To do that, they identify and target specific people or groups whom they know would benefit from their products or services aided by IoB.
Google and Facebook use behavioral data to determine which ads to show specific users. That allows organizations to interact with their target consumers and measure their responses to the ads using click rates as a basis (the more clicks, the more sales). YouTube also uses behavioral analytics to enhance viewers’ experience. It only recommends videos that users are interested in.
IoB amid the Covid-19 Pandemic
Allowing employees to work from home scared most companies about hacking, and for a good reason. As such, employers have begun using sensors or radio frequency identification (RFID) tags to ensure better security.
IoB for the Insurance Industry
Car insurers like Allstate and StateFarm are already using IoB via driver tracking tools. These apps evaluate how drivers behave. As such, should they get into accidents, it’s easier to determine if the drivers were at fault or not. The tools can also help prevent drunk driving, driving under the influence of drugs, and even underage or retired persons from causing an accident.
IoB is not just useful for marketing but also influences user and employee behavior. It helps companies optimize customer relationships based on the data acquired. While it remains in development, as IoT device usage spreads, so will IoB.