Thursday, March 21, 2019

75% of smart home device owners find their devices very valuable

Research addresses opportunities to drive smart home device adoption forward

Parks Associates finds consumers’ value assessment of smart home solutions jumps considerably once they own these products, highlighting the difficulty in communicating value propositions for these solutions. 360 View: Crossing the Chasm: Smart Home Products and Services finds 75% of smart home device owners find their devices very valuable, compared to only 38% of people who don’t own these devices but nevertheless consider them very valuable.

“Smart home device owners are generally satisfied customers. They are twice as likely as non-owners to recognize the value of smart home devices and home control systems, and owner NPS scores for a wide variety of device types are on the rise,” said Brad Russell, Research Director, Connected Home, Parks Associates. “At the same time, the value of emerging technology is often hard for consumers to grasp intuitively. That’s why referrals from friends and family are one of the leading purchase influencers. In order for devices to achieve mass adoption, consumers need to experience them ‘out of the box’ and in real-life settings."

360 View: Crossing the Chasm: Smart Home Products and Services notes that smart home offerings are still primarily in the province of early adopters and innovators. Strategies to increase consumer interest include more advertising, marketing, and messaging. While recommendations by friends and family are the leading influencers driving a brand selection, it is one of several strong factors that motivate consumers to buy a particular smart home brand.

Top Reasons for Purchasing Smart Home Device Brand | Parks Associates

“Reasons for a smart home purchase vary widely, so companies need to employ a multipronged strategy in employing influencers and communicating the benefits of smart home solutions,” Russell said. “On the plus side, the positive response among smart home owners points to a strong opening for future sales. Manufacturers must develop processes for upselling and cross-selling and roll out complementary solutions in order to sell multiple products to these enthusiastic households.”

360 View: Crossing the Chasm: Smart Home Products and Services quantifies the changing price/value decision-making process among different consumer segments and opportunities to drive adoption forward.

Additional research includes:

  • Smart thermostats are in 11-13% of US broadband households, with IP cameras in about 10%.
  • Smart speakers with voice assistants have continued their growth, with adoption increasing from 3% in 2016 to 31% at the end of 2018.
  • As of Q4 2018, nearly one-third of broadband homes have a connected device that can be remotely accessed or monitored.
     

For more information about 360 View: Crossing the Chasm: Smart Home Products and Services, contact sales@parksassociates.com. To schedule an interview with an analyst or to request specific research data, please contact Elizabeth Parks at eparks@parksassociates.com, 972-996-0202.

About Parks Associates: Parks Associates is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start-ups through market reports, primary studies, consumer research, custom research, workshops, executive conferences, and annual service subscriptions.

The company's expertise includes the Internet of Things (IoT), digital media and platforms, entertainment and gaming, home networks, Internet and television services, digital health, mobile applications and services, support services, consumer apps, advanced advertising, consumer electronics, energy management, and home control systems and security.

Each year, Parks Associates hosts industry webcasts, the CONNECTIONS™ Conference Series, Smart Energy Summit: Engaging the Consumer, Connected Health Summit: Engaging Consumers, and Future of Video: OTT, Pay TV, and Digital Media.

http://www.parksassociates.com

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