Three Key Questions for Monetizing the Connected Home

3.    How Can Technical Support Help Accelerate Product Adoption and Usage?

Given how early-stage the market is in terms of adoption, the primary support needs are fairly basic: ensure the connected devices are installed properly and make sure consumers know how to use the offerings. SmartThings has recently partnered with Cross County Home Services (a provider of home warranty and related services) to develop premium support services to customers, with install services as a key gateway offering.

At Parks Associates’ Connections Conference at CES earlier this year, we came across dramatic statistics on the importance of set-up and user know-how.  According to Sutherland Global Services (a BPO provider of tech support services), if a consumer is not able to set up a connected home system or device within 30 minutes of opening the box, the likelihood of the product being returned increases by 3X. If the consumer has the device set up, but uses the system infrequently, the likelihood of return goes up by 2.5X. Given these statistics, it’s not surprising to see where the tech support market has been focusing its attention. 

At this stage of the connected home market’s evolution, simple device education can play a vital role in helping drive greater market adoption. This will likely require a multi-channel approach to communication, such as leveraging online video media and social networks to connect with the consumer above and beyond the traditional support call. This will no doubt continue to evolve as attempts are made to further drive consumer interest and adoption.

In the coming years, we’re likely to see dramatic actions taken to capture the value in the growing connected home market place. Navigating the complex web of market dynamics, creating and managing an ecosystem of partners, setting and refining a pricing strategy, and evolving the end-to-end customer experience will be key to effectively monetizing this growing opportunity.  The sooner that players build and test their strategies, the better positioned they will be to capitalize on connected home opportunities as they emerge and avoid being left behind.