How Manufacturers can create Smart Products to Enhance Customer Loyalty

Customer Loyalty
Knowledge Center

Forum

New Topic

Eugene James
Manager, Switzerland

How Manufacturers can create Smart Products to Enhance Customer Loyalty

Smart technology can provide manufacturers with opportunities to enhance their customers' experience by integrating solutions related to troubleshooting on the one hand and optimizing performance on the other hand. Smart technology is attractive for end-users for the interactivity and feedback it creates between product, user and service provider.

The underlying principle consists of virtual communication via sensors integrated into the product that are activated when operated. In such a way, information about the usage of products by end-users is gathered directly by manufacturers.

From a strategic point of view, this enables manufacturers to compete with retailers and the owners of technology platforms, who have dominated the battle for customer loyalty until so far.

Retailers thrive for instance with the use of loyalty cards, which facilitate gathering customer data while enabling targeted discount campaigns. Online platforms such as Amazon benefit from smart technology in building greater awareness of customers' likes & preferences, which leads them to fine tune their recommended products.
In a similar vein, manufacturers can benefit from developing proximity with their customers via smart technology. Current pioneers in the field are for instance:
- GE that relies on smart technology to troubleshoot jet engines' problems.
- Sonos enhances customer experience by fitting sensors in sound equipment that automatically adjust to the environment.
- Gooee goes a step further, in developing the capacity of its lamps to activate alarms in case of a break-in or fire.
Thereby, from a mere product, a manufacturer extends its value proposition towards a service.

Manufacturers can embrace smart technology in the following way:
1. Bring on-board IT technicians.
2. Focus on building strengths related to information systems management.
3. Build a culture around smart technology and innovation in spreading greater knowledge and know-how of real world applications.
Source: The Economist, "Smart Products, Smart Makers", 21 November 2015.

Participate and leave a comment
Exchanging your ideas stimulates your personal and professional development. And you can help other people! More info.

Start a new forum topic

 

More on Customer Loyalty
Summary
Forum
Customer Loyalty is Created via Total Value Chain
How can Employee Retention Help to Build Customer Loyalty?
How Manufacturers can create Smart Products to Enhance Customer Loyalty
🔥Keeping Existing Customers is NOT Always Better than Acquiring New Ones!
Using Multi-Item Measurement Scales in Marketing Research
Attitudinal and Behavioral Loyalty
Compulsory Customer Loyalty in a Monopoly
Loyalty Situation May Change Quickly!
What is a Typical Skill Set or Profile of Customer Retention (Call Center) Reps?
Don't Assume your Customers are Loyal
Customer Loyalty is Individual
Customer Loyalty by Providing a Complete Integrated Solution
Service Loyalty Versus Product Loyalty
The Value of Customer Retention
Customer Loyalty is Hard to Earn
Customer Loyalty is the Life Blood of Organization
Keep Customer Loyalty During a Long Period
No Idea What is Meant by Customer Loyalty
Best Practices
Paradigm Shift - Consumers
Marketing and Customer Loyality
When to Establish a Business Relationship?
Customer Loyalty in Consumer Durable Products
Customer Loyalty in Monopoly
What is Customer Loyalty?
Calculating the Benefits of Keeping Customers
Customer Satisfaction = Customer Loyalty?
Special Interest Group

Are you interested in Customer Loyalty? Sign up for free

Notify your students

Copy this into your study materials:

and add a hyperlink to:

Link to this discussion

Copy this HTML code to your web site:

Customer Loyalty
Knowledge Center



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2021 12manage - The Executive Fast Track. V15.8 - Last updated: 16-6-2021. All names of their owners.