Edge Computing is the path to a happy customer experience

A Gartner report estimated that by 2025, 75% of data will be processed at the edge, outside of traditional, centralized data centers and the cloud, resulting in faster response time and lower latency.

Edge computing will enable applications to provide real-time interactions with customers. Let’s take a look at the benefits of the edge and the ways brands are using edge computing to improve the customer experience.

Edge Computing Explained

Edge is a computing paradigm that refers to a distributed computing framework that positions applications closer to data sources such as Internet of Things (IoT) devices, local edge servers, point-of-sale systems, bots, vehicles and sensors. This greater proximity to data enables processing at higher speeds and volumes, which facilitates better action-oriented results in real time.

Edge is about processing data closer to the devices generating the data. It uses locally generated data to enable real-time responsiveness to create unique customer experiences, control sensitive data, and reduce data transmission costs. In the past, companies sent all their monitoring data from a device or process to the cloud or a data center where it was processed, analyzed and stored.

IoT devices create huge volumes of data, so edge computing uses only useful data.

New interactive experiences for customers

Edge enables brands to enhance and enhance the way they manage and use physical assets, enabling them to develop new interactive experiences for their customers.

Brian Gilman, director of marketing at IntelePeer, a communications platform-as-a-service provider, told CMSWire that brands are using edge computing to process and respond to customer engagement at incredible speeds.

“In retail, for example, edge computing allows brands to drive marketing in real time to improve experiences. Similarly, because edge computing can respond quickly to customer input, businesses can create hyper-personalized experiences to increase loyalty and revenue,” Gilman said.

He added that because edge computing is not dependent on an internet connection, brands can continue to support the customer experience regardless of server outages or unstable connections.

Derek Swanson, chief technology officer at Silk, a cloud database virtualization platform, told CMSWire that as digital transformation evolves, brands need to identify new cutting-edge technologies leveraging data stacks. real-time applications to bring the customer experience closer to the edge.

“We are seeing this today in more advanced augmented reality applications requiring real-time video rendering and social media streaming, where influencers are creating new forms of customer interactions and delight,” said Swanson.

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Hyper-personalized and omnichannel customer experiences

With edge computing, brands can create hyper-personalized omnichannel customer experiences by providing access to services that work in conjunction with edge devices. Because the edge reduces the data latency associated with cloud computing, it also opens up new opportunities for delivering superior customer service. Customer expectations and patience have changed over the past few years. An expectation of immediacy is now the norm.

“The ongoing digital evolution has given customers more control, which means they are now used to getting what they want, when they want it,” said Mindy Weinstein, founder of Market MindShift and author of the book. forthcoming “The Power of Scarcity.

“When that doesn’t happen, it often causes anxiety and frustration,” she added. Weinstein said brands can restore that sense of control in customers by providing multiple ways to interact with customer service. “It puts the power back into the customers,” she said.

Edge computing offers many opportunities for customers to immediately engage with brands across multiple channels, empowering them to control their own narratives.

Retail goes high tech

Retail outlets such as grocery stores are now using edge computing to improve the shopping experience.

In 2021, Kroger launched a new standalone self-service checkout system on its shopping cart. Called the KroGo cart, it has a built-in camera and scanner that allows customers to scan and weigh products before placing them in the cart. A 2020 Juniper Research report predicted that the value of transactions processed by smart payment technologies would reach $387 billion in 2025.

Smart payment technologies facilitate simpler customer experiences by doing away with traditional checkouts and adopting a “just walk out” approach. Outlets will use edge computing to process the large amount of data generated during these transactions. Standard AI uses edge computing as well as artificial intelligence to create such a “just on foot” shopping experience. Camera systems track the items a customer has picked up and placed in their shopping cart and basically follow them until they walk through the door.

See everything

When the customer blocks the pickup action, the app examines the shelf to determine which item is missing. To identify the customer, the app uses the cell phone in the customer’s pocket, which has an app that includes their personal data. When the customer leaves, the application sends him a message that lists the items he has purchased, all in real time.

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Emerging Tech Plus Edge will enable a new level of CX

A separate edge network is not necessary for edge computing to work, although when a separate network is involved it becomes another element between customers and data – but 5G cellular networks can play a role important in reducing latency.

5G technology adds ultra-fast wireless connectivity to edge computing with low latency and high cellular speed. The network edge is often used when it is too complicated or too expensive to use the on-premises edge, but high responsiveness is still required. The Internet of Things refers to the exponentially growing network of connected devices (thermostats, cars, lights, refrigerators, driveway displays, kiosks, Fitbits, etc.) that collect and exchange data in real time using localized on-board sensors.

An Insider Intelligence report said that by 2025 there will be 3.74 billion mobile IoT connections worldwide, and by 2026 more than 64 billion IoT devices will be installed. Edge provides IoT applications with a localized foundation for processing, storing, and computing data. IoT devices collect data and provide it to the edge server, which analyzes the data at the edge of the local network. Swanson said the combination of 5G and new Wi-Fi 6 is key to enabling edge computing paradigms to flourish over the next five to 10 years.

“But the immediate impact will be on the IoT and will make devices (rather than people) more functional at the edge as computing power and decision making moves closer to the end user,” he said. -he declares.

Swanson added that the potential for dramatic consumer expansion, combined with substantial reduction in cost and effort, will mark a decade of transformation as edge computing enables a new level of experience for people, the purpose and profitability at speed and scale.

“Enriched edge computing is still emerging, and as backend technology stacks mature enough to deliver high real-time customer value, we can expect an increase in application development for deliver new customer experiences,” Swanson explained.

Edge CX Challenges

The challenges of using the edge with IoT and related technologies to improve the customer experience are largely tied to the challenges of edge computing itself.

Security remains a top concern for many brands using or considering edge computing. A 2019 report from Kollective indicated that 52% of IT managers surveyed said ensuring comprehensive security across all edge devices was a top concern. According to the report, this concern is based on the fact that multiple edge and IoT devices increase a network’s potential attack surface with each new device. When it comes to customer experience when edge computing is involved, the challenges are to create experiences that delight the customer without being intrusive or scary.

Customers will probably appreciate receiving in-app notifications alerting them that an item they just passed down the aisle is on sale for half price, but they probably won’t appreciate the feeling of being followed and harassed. by an overabundance of notifications.

The Takeaway: Edge Computing Will Transform CX

Edge computing – along with IoT, AI and 5G technologies – enables brands to drive real-time marketing, deliver hyper-personalization, relevant recommendations and coupons, walk-in shopping and other leading practices to improve and enhance the customer experience while reducing data transmission costs.