“Surveillance is the business model of the internet. The way we communicate, the way we work, and the way we interact with our devices have become the currency that feeds these systems”
-Bruce Schneier (security expert)
Have you ever wondered how your social media feed and online recommendations always align with your values and latest interests? Is there any hidden link or invisible string tying your mind to the devices you use?
Well, no hidden ties or spies, but this is where the Internet of Behavior (IoB) comes into play. Every interaction you have online or on your devices is recorded and analyzed by these systems to provide you with a more personalized and tailored experience.
A study on IoB by ExpressVPN suggests that businesses are increasingly employing this strategy to understand customer behavior and meet their expectations. To understand all this better, we will walk through some of its important aspects in this article, so stick to the end and uncover how this tracking shapes your preferences.
Personalization: The New Norm
Remember how simple and generalized online shopping and streaming apps were? A few years ago, businesses had basic resources to understand customer behavior, hence receiving even an iota of customization was like a luxury for consumers.
But today, when we navigate any retailing or entertainment platform, we do not need to spend hours browsing sites to find one perfect thing that suits us. These sites automatically push recommendations based on our previous interactions, our way.
From tailored show recommendations to customized product lists on shopping websites, we expect this personalization everywhere now. It is not a privilege anymore, it has become a new normal now.
DO YOU KNOW? The global Internet of Behaviors market is expected to grow from USD 446 billion in 2024 to USD 811 billion by 2032 at a CAGR of 23%Alt Text – Global Internet of Behavior market.
IoB and Consumer Trust
While this customization strategy is appreciated by consumers on most matters, it can become a matter of concern if gone too far. IoB tracks every minor activity performed on devices, this information can be a little overwhelming and raise many questions inside a customer’s head.
As consumers, it is our right to be informed about how our shared data is being handled by companies. Building client trust is essential for the success of this strategy and for that, companies need to remain transparent about how and for what purpose they use the collected information.
It is no secret that over the years, as the IoB technology evolved, customer expectations followed right after. For instance, earlier the major reference for understanding customers was their past interactions, and based on those, apps like Amazon suggested related items to the customers.
But now, the scenario has changed, technology is one step ahead, and you start seeing things in your recommendations that you didn’t even actively search for. This change has progressed the shopper’s expectations as well.
They expect businesses to stay in front, anticipate their requirements, and offer them relevant things even before they ask for them. But at the same time, they maintain transparency and ethics about data usage.
FUN FACT If you think IoB systems have already revealed all their cards, then you are wrong. They are only getting started. With the advancements in technology, they are expected to be able to predict moods and emotional states using data from wearables and other tools such as facial recognition software or voice tone analysis.
The Impact on Industries
IoB has brought significant change in various industries. The most common sectors that might come to your mind while talking about this might include e-commerce and media streaming.
We all can agree that data-driven decisions and personalization have dramatically changed the game for these two lines of business, but they are definitely not the only ones. IoB has enhanced the operations in various other industries, including –
Healthcare – The digital watch you wear also illustrates the use of behavioral tracking. Such wearable devices and health apps maintain a continuous record of patient behavior, offering better diagnosis and personalized health care.
Finance – Understanding a customer’s spending habits, needs, and financial goals, enables banks to offer them the best-suited investment options, credit card recommendations, and customized loans.
Education – IoB helps teachers discover a student’s strengths, weaknesses, and preferred learning styles that can be used to create an adaptive and enhanced learning program for them.
Final Thoughts
After all that we discussed in this article, it is safe to say that IoB is a groundbreaking opportunity for businesses to understand their customers and cater to them with the best of services.
It surely offers extraordinary benefits to consumers, especially in terms of convenience, but at the same time raises privacy concerns as well. So, it becomes the brands’ responsibility to gain trust by ensuring transparency and ethical use of data. Once businesses learn to maintain the perfect balance between personalization and customer trust, success in this new landscape is guaranteed.
