The Internet of Things boasts big potential for the customer experience, the customer journey, digital commerce and companies striving to better understand their customers.

But security issues remain a big obstacle when it comes to IoT delivering on all its promises, according to analysis from Frost & Sullivan.

Right now, companies are losing more than $30 billion each year due to poor customer experience and while IoT can reduce that loss, given its capabilities to "sensorize" an environment —  to gain better customer insight — retailers also need to meld the digital and physical store experiences as well, according to a press release.

"IoT enables organizations to collect vast amount of customer data in real time, and leveraging analytics to drive valuable insights for targeted engagement, proactive services, improving loyalty and trust. This helps them to determine the intention and subconscious state of a customer's mind," Sapana Maheira, analyst for digital transformation for Asia Pacific, said in the release.

There is a lack of IoT security and a lack of experts to meet market demands to eliminate the security concerns, according to Frost & Sullivan.

"Without recognizing the need to invest in security and having the right technology, processes and people in place, organizations will not have a secure foundation to thrive in their digital initiatives," Charles Lim, industry principal of Frost & Sullivan's cyber security practice, said in the release.