Internet of Behaviors (IoB) is an area of research that strives to understand the role of psychology in product development and consumer purchase decisions.
Understanding IoB
Much has been said about the Internet of Things (IoT) and how the trend has made consumer lives more seamless and convenient. However, businesses can also benefit from the recent proliferation of IoT devices.
Internet of Behaviors is a way for these businesses to analyze user-controlled IoT data in the context of behavioral psychology.
These analyses yield crucial information that can be used to influence consumer behavior in customer experience management (CXM), search engine optimization (SEO), eCommerce, and healthcare, to name just a few applications.
IoB lies at the intersection of three areas:
IoT – the source of myriad consumer behavior data in areas such as location, health, interests, desires, preferences, and routines.
Behavioral science – which seeks to understand the motivations behind consumer behavior, and
Data analytics – where machine learning algorithms evaluate IoT data and psychology insights to identify behavioral patterns and make recommendations.
Below we have listed a few broad applications of IoB in different industries.
Advertising
The most obvious application of IoB in business is advertising.
Audiences are segmented according to their behavior and served hyper-targeted ads, while smartphones track user locations and serve ads for businesses located nearby.
Google, YouTube, and Facebook are also well versed in serving ads on their platforms based on user behavior.
The insurance industry has also been utilizing some form of IoB for years. Technology that monitors a user’s driving habits is used by insurance companies to adjust their premiums.
A driver who brakes and accelerates within an acceptable range, for example, may be rewarded with a discount while those prone to speeding may be charged more.
Cprime Studios also offers telematics for commercial vehicle fleet management.
In this case, data on driver behavior in addition to route and location information can be used to reduce a company’s transport-related costs.
Healthcare and fitness
Some healthcare providers are also using IoT and IoB to manage their patients remotely.
IoT devices collect data on metrics such as blood pressure, sleep patterns, temperature, and heart rate which can be later analyzed using software.
Based on this data, IoB apps can alert patients of impending health problems or remind them to take preventative medication.
Those interested in building their fitness may also receive personalized recommendations to an associated device based on their exercise behavior.
Key takeaways:
Internet of Behaviors (IoB) is an area of research that strives to understand the role of psychology in product development and consumer purchase decisions.
Internet of Behaviors lies at the intersection of IoT, data analytics, and consumer behavior and is an emerging field that is likely to grow significantly in the years to come.
Industries where IoB is relatively well established include healthcare, fitness, insurance, social media, and online advertising.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
