From Physical to Connected: Adapting to Evolving Customer Expectations

We live in a world of instant everything. Groceries delivered in an hour. Streaming at the tap of a finger. Smart devices that anticipate our needs before we do. Customers don’t just want convenience—they demand it. 

And they’re willing to pay for it: 

• 88% of consumers will shell out extra cash for same-day (or faster) delivery. (PwC) 
• Mobile shopping makes up 73% of all e-commerce sales—because if it’s not mobile, it’s not happening. (Statista) 
• 80% of consumers are more likely to buy from a brand that offers personalized experiences—because one-size-fits-all is dead. (Epsilon) 

These numbers highlight an undeniable truth: our expectations as buyers are changing—across the board. Whether we realize it or not, the way we shop as consumers is rewiring what we demand in business, too. B2B buyers are no longer satisfied with slow, complex, or rigid purchasing processes. They want the same speed, convenience, and personalization they experience in their personal lives. 

If companies don’t evolve—if they don’t make the shift from static, physical offerings to dynamic, digital experiences—they won’t just fall behind. They’ll become irrelevant. So, how can businesses keep up? How can they rethink their products and services to meet these rising expectations?  

The Evolving Customer Journey 

Customers no longer just buy a product; they expect an ongoing experience. Whether it’s an app that connects to their new device, a digital service that enhances usability, or AI-powered personalization, connected products have become a core part of product value. 

Take industrial HVAC systems as an example. In the past, a business would purchase a unit and rely on scheduled maintenance or wait until something broke. Now, with connected monitoring and predictive analytics, businesses can track real-time performance, detect inefficiencies before they become costly failures, and optimize energy usage—all from a digital dashboard. 

The same transformation is happening across industries. Medical devices, factory equipment, fleet management—physical products are no longer just standalone assets. They’re becoming intelligent, connected, and continuously improving. Businesses that embrace this shift are creating more value, reducing downtime, and staying ahead of rising customer expectations. 

For businesses, this shift means rethinking their approach. The traditional one-time transaction model is fading, replaced by ongoing digital engagement that enhances customer satisfaction and loyalty. And for B2B companies, this makes your job even harder. It’s no longer just about understanding your direct customer—you also have to anticipate their customer’s needs. 

Take an industrial equipment manufacturer, for example. Their main customers are dealers, who sell the equipment to end users like farmers and construction crews. To stay competitive, the manufacturer must go beyond just meeting the needs of their dealers—they must also create solutions that make life easier for the farmers and crews using the equipment every day. This means designing smarter, more connected products that add value at every level of the supply chain. 

This is a universal challenge. Whether you’re in manufacturing, healthcare, or automotive, your digital strategy can’t stop at your first customer. It has to go deeper, delivering value across the entire ecosystem.

How Connected Experiences Enhance Physical Products 

A successful evolution doesn’t mean abandoning physical products. Instead, it’s about creating an ecosystem where the two work together. Here are some key ways businesses are doing this: 

• Mobile Apps & Companion Platforms – Industrial managers can now track machine performance, schedule predictive maintenance, and fine-tune operations—all from the palm of their hand. These companion platforms turn complex systems into user-friendly tools, keeping production running smoothly with real-time insights and remote control. 
• IoT & Smart Connectivity – Businesses are embedding IoT into their products to deliver real-time data, automation, and remote access. Medical device manufacturers enable hospitals to continuously monitor critical equipment, while industrial machinery can now self-diagnose issues and alert technicians before failures occur—reducing downtime and cutting costs. 
• AI-Driven Personalization – AI is revolutionizing how businesses anticipate needs, streamline operations and deliver tailored solutions. Logistics companies use AI to dynamically reroute shipments for maximum efficiency, while construction equipment providers analyze usage patterns to recommend the right machines for the job—boosting productivity and reducing waste.

Why Businesses Need to Think Differently 

The evolution towards connected products isn’t just about technology—it’s about rethinking how customers engage with your brand. The customer journey is no longer linear; it’s dynamic and interactive.  

What does this mean for businesses? 

1. Customers expect value beyond the initial purchase – A product alone isn’t enough; it needs digital touchpoints that enhance the experience.
2. Convenience is a competitive advantage – Companies that make life easier for customers will win.
3. Engagement drives loyalty – The brands that invest in continuous customer interaction (via apps, digital services, or AI-driven personalization) create lasting relationships.

Expert Take: How to Get Connected Products Right 

I asked experts at Twisthink—Director of Technology, Matt Shinew, and Senior Software Engineer, Billy Neuson—how businesses should navigate this evolution: 

Q: What’s your advice for companies looking to build a connected product?

[Matt]: “Get crystal clear on the value you need to provide to your customer through connectivity and use this to guide every tradeoff you make along the development journey.” 

[Billy]: “Ensure that your physical and digital product development teams are in sync for the whole process. The effort to change a digital product is far lower than what may be required to update a physical device to enable a new feature.” 

Q: What’s the biggest mistake companies make when integrating technology into their products?

[Matt]: “Falling into the temptation to build out extra features “because you can” which prevents getting the core solution into the field quickly. Once deployed, user feedback and experiences will drive what capabilities need to be added over time.” 

[Billy]: “Underestimating the value of the data produced by a connected product. A great digital strategy involves understanding not only the ways that connectivity enhances end-user experience, but also how new data streams can guide and influence future product decisions.” 

Q: How do you balance physical and digital?

[Matt]: “Adding digital should always create new value and not compromise the core quality and performance of a product.” 

[Billy]: “One of the major benefits of adding digital components to traditionally non-connected physical devices is flexibility. While this flexibility is a superpower, it is only possible with the right investment into the physical product.” 

The Future of Customer Engagement 

The convenience revolution is here to stay, and businesses that embrace technology alongside their physical products will thrive—customers are changing. Are you? 

Because if you’re still thinking like a traditional product company, you’re not just falling behind—you’re becoming invisible. 

Ready to bridge the gap between physical and connected? Join Twisthink for a free half-day workshop where we’ll help you uncover opportunities, avoid pitfalls, and craft a strategy that makes sense for your business. 

In the workshop, you can explore: 

• How to elevate your customer’s experience through connected technology 
• Where connected products fit into your existing portfolio 
• Ways to gain deeper insights into customer needs and pain points 
• How to align on your data strategy to create value

Click here or email hello@twisthink.com to schedule your workshop today.

Written by Taryn Kutches , VP of Brand & Business Development at Twisthink.

Taryn is a Twisthink leader who is passionate about creating outstanding experiences for our clients and developing a world class brand.