Home Is Where The Tech Is
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Consumer interest in smart home technology is high, with 91% excited about its potential benefits, such as increased safety and convenience. However, many consumers express concerns about reliability, affordability, and the need for guidance in navigating the market. Despite these hesitations, the majority believe smart home technology will enhance their daily lives, with smart thermostats often seen as the ideal entry point into this emerging market.
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THE SURVEILLANCE ASPECT OF THE SMART HOME HITS AN EMOTIONAL CHORD WITH CONSUMERS.
Many of those that we spoke to have a loved one in mind when they speak to the value of being able to monitor a home from away – whether it’s an aging parent, a child, or a pet.
The ability to be constantly keyed into information such as the status of appliances and temperature of the house is invaluable to those leaving loved ones at home. They appreciate the ability to alleviate their worries and reassure themselves that nothing is amiss from the palm of their hand, regardless of how far away they might be. Furthermore, if something were to go wrong, consumers appreciate the ability to act swiftly (and alert emergency services if needed).
[Home life is] shelter from the storm--a soft place to land. [A Smart Home] could increase comfort--and ease adjustment by handling automatic things, I guess it would make everyone's lives more comfortable. -FEMALE, BABY BOOMER
7%
As a parent, there is nothing more important than your kids, so having that peace of mind would enable them to concentrate on work…I have an aging parent so being able to check on them would give me great peace of mind.
-FEMALE, GEN XER
If one is away and there is a water line burst, it would be amazing to be able to shut off water to home on a smartphone. I can just see a scenario where I get an alert of a spike in temperature in a certain room on my phone like a notification and I can alert the fire department for possible fires. This might save my home and pets if I am away.
-MALE, GEN XER
SECURITY HITS AN EMOTIONAL CHORD](https://image.slidesharecdn.com/smarthomefinal-141110152057-conversion-gate01/85/Home-Is-Where-The-Tech-Is-21-320.jpg)
Home Is Where The Tech Is
- 1. PAGE 1 HOME IS WHERE THE TECH IS: SYNCHING UP WITH CONSUMERS ON THE SMART HOUSE Marketplace Insights October 2014
- 2. PAGE 2 WE ASKED: ARE CONSUMERS READY TO WELCOME SMART TECHNOLOGY INTO THEIR HOMES? Technology has grown roots in nearly all aspects of our lives— it’s omnipresent in the classroom, at work, in the car, in stores, and even outdoors. We use it to track progress, remember tasks, connect with loved ones, and stay organized. With more and more smart home products entering the market each day, we wondered if consumers have a technology threshold. We explored: 1Would consumers be willing to invite technology into all aspects of their homes, or is there anywhere in particular that they feel it would be an unwelcomed guest? 2What do consumers view as the most beneficial aspects of a smart home, and what could they do without? 3Finally, what companies would consumers trust to produce high-quality smart home products and systems, and where would they seek these products out? PROJECT OBJECTIVE ?
- 3. PAGE 3 WE FOUND: CONSUMERS ARE 110% READY FOR SMART HOME TECHNOLOGY, WITH GUIDANCE FROM A TRUSTED SOURCE. Consumers, from Millennials to Boomers and everything in between, are not only ready for the smart home – they’re excited and already envisioning the ways that they could put the technology to use. While they’re intrigued by the ability to automate daily tasks and chores, the perks of a smart house are seen as most beneficial when consumers are absent from their homes. They’re ready to purchase smart home technology, but don’t have a “go-to” brand or store to turn to. Consumers feel that they’d benefit from a fair amount of guidance as they dive into uncharted waters. We talked to consumers about how they might use the technology in their daily lives, and in the process, uncovered their perceptions of smart homes, their likelihood to adopt the new technology, and their expectations from brands during the purchase process. PROJECT DISCOVERY PAGE 3
- 4. PAGE 4 CONSUMER UNDERSTANDING: It’s a product! It’s a system! It’s… both? ENTRY TO THE MARKET: The most enticing initial purchase might surprise you. SHOPPING BEHAVIORS: Consumers are open to all options, but partial to none. SECURITY: Safety vs. skepticism. USE IN DAILY LIFE: I’ll use it all day, every day, from anywhere. IMPLICATIONS FOR BRANDS APPENDIX TABLE OF CONTENTS 1 2 3 4 5 6 7
- 5. PAGE 5 CONSUMER UNDERSTANDING It’s a product! It’s a system! It’s… both?
- 6. PAGE 6 While consumers’ visions for the smart home range from something out of The Jetsons to a more informed and accurate portrayal, all consumers struggle to envision the details of the technology. Regardless of their level of understanding, consumers appreciate the technology’s ability to act as a behind-the-scenes task master that works to keep their home secure, comfortable, and clean when they’re away. Consumers fall into three groups: IT’S A LIVING, BREATHING, ALL-IN-ONE SYSTEM Some who are just beginning to grasp the concept envision something like The Jetsons – an all-in-one, whole home system that lives in the walls. NOT SURE WHERE TO START, IS THERE A GUIDE? The majority of consumers simply don’t know what a smart home would entail - would it be a whole house system or a series of devices? Who would offer the products and services, and where would they buy them? In the absence of information, they imagine that this new and valuable technology would be quite expensive. OR… IS IT A SERIES OF PRODUCTS? Others (mainly those familiar with products that are available now) see a smart home as a series of devices from different manufacturers that they would set up and maintain themselves. In order to make sense of the technology, consumers expect help from the manufacturers via video tutorials, phone resources, online chats and apps. What I can envision are companies who can put all (or at least part of) the pieces together and act as a service company for you. I see this being done now with companies like Comcast, AT&T, or Verizon. I'm sure other companies will enter the realm eventually, perhaps a Home Depot or something. - MALE, BABY BOOMER It would feel like The Jetsons, where simple things are now in the hands of robots and machinery. - MALE, GEN XER LIKE THE JETSONS, IT LIVES IN WALLS
- 7. PAGE 7 Consumers view the solutions as valuable, mainly due to the fact that they frequently encounter the problems at hand. Most often, they could benefit from the remote control aspects that allow them to turn on or off appliances and lights while they’re away. IT WOULD PROBLEM SOLVE FOR ME Forgetting to turn the lights off when leaving home 65% 70% Forgetting what to buy at the store 72% Worrying that an appliance was left on Needing to let someone into the house 47% Concern with high electric or heating bill 71% Concern that a dark house is inviting to thieves 58% 61% Not having the time to clean or maintain the house 53% Forgetting to start an appliance Worrying about pets, belongings or loved ones while away 65% FINANCIAL STRAIN SECURITY FEARS HELPFUL REMINDERS TIME SAVINGS CONSUMERS HAVE ENCOUNTERED THE FOLLOWING PROBLEMS:
- 8. PAGE 8 Male, Baby Boomer IS WILLING AND ABLE TO INVEST IN TECHNOLOGY IS SMART VALUES TIME AND COST SAVINGS IS ENVIRONMENTALLY CONSCIOUS IS BUSY IS TECH-SAVVY PRIORITIZES SECURITY IS A TREND-SETTER The majority of consumers identify with the benefits of smart home technology, and believe there's a place for it in their own homes. When asked what type of person would buy a smart home, consumers envision someone like themselves. Especially when it comes to being tech-savvy and up on the latest and greatest, Millennials agree that they fit this mold. Baby Boomers and Generation Xers are less sure they can navigate the technology. IS FREQUENTLY AWAY FROM HOME A SMART HOME OWNER IS TECH-SAVVY, SMART, AND JUST LIKE ME SMART HOME OWNERS = LIKE ME A SMART HOME OWNER IS SOMEONE WHO….
- 9. PAGE 9 ENTRY TO THE MARKET The most enticing initial purchase might surprise you.
- 10. PAGE 10 CONSUMERS ARE READY AND EXCITED Consumers foresee the arrival of the smart home to be more imminent than smart cars (that use sensors and cameras to alert drivers and even autonomously navigate routes with ease), or smart body wearable technology (that tracks heat, light, and movement, collecting data which can be used to improve the health and fitness of the wearer). Consumers are also more comfortable and excited for the smart home’s arrival – 91% of consumers say they are excited by the idea of the smart home. I think this is the future of how all people will use technology to improve their daily lives. -FEMALE, GEN XER I think it is a great idea and will be a common thing in the future. -MALE, MILLENNIAL 91% 89% 82% Smart Home Smart Car Smart Body Very exciting Somewhat exciting Not very exciting Not exciting at all 8% 11% 18% EXCITEMENT 84% 84% 74% Smart Home Smart Car Smart Body Very comfortable Somewhat comfortable Not very comfortable Not comfortable at all 15% 17% 25% COMFORT Percentages refer to total number of consumers, Top 2 and Bottom 2 box NET THE SMART HOME IS INEVITABLE
- 11. PAGE 11 SOME ARE CONCERNED ABOUT THE RELIABILITY OF SMART HOME PRODUCTS, AND WONDER IF THEY WILL WORK AS ADVERTISED. THEY WORRY THAT: •Adding a layer of internet and data coverage to their home’s manual systems could result in being shut out of even simple light switches if the Wi-Fi is acting up. They want reassurance that manual operation will still be available to them in the event of internet, power, or cellular outages. •Multiple devices from several providers working on the network of yet another company could create roadblocks. They want to know that all of their devices and services will play nicely together. If something were to break down, it may be difficult to sort out and go back. Technology is amazing but is also prone to glitches and subject to the desires of customers. If products are rushed or superficial, real damage can be done. -MALE, GEN XER Power outages would cause a problem. A smart home can't function without power. Without power, you can't use many functions in your home. -FEMALE, MILLENNIAL 56% 44% TWO KEY SMART HOME ELEMENTS MANUAL OPERATION + SMOOTH SYNCHING ARE ESSENTIAL •The new technology could have glitches, as many new technologies do, prompting some to say they’ll wait until the bugs are worked out before they adopt smart home technology. Imagine smart home devices from different manufacturers would be able to integrate and work together Think only smart home devices from the same manufacturer would be able to integrate and work together
- 12. PAGE 12 THE PRICE FACTOR AFFORDABILITY is the primary motivator in deciding whether or not to invest in smart home technology. The purchase price, operating costs, and PRICE of installation all play a role in determining whether or not it’s time to make the leap. However, consumers also realize that smart home tech allows them greater control over their energy usage, opening the door to REDUCE UTILITY BILLS and SAVE MONEY in the long run. THE TRUST FACTOR Consumers are strongly attracted to the smart home’s ability to offer them PEACE OF MIND. With this technology, they would no longer need to FEAR their house burning down because an appliance was left on or worry that they forgot to lock their front door. THE SIMPLICITY FACTOR CONVENIENCE and ability to remotely access smart home technology would save consumers time and make their lives easier. Along this same vein, they want the technology to be EASY to incorporate into their homes– easy to install, easy to maintain, and easy to operate. Consumers would be most motivated to buy smart home technology if it were offered at an affordable price. Smart technology allows consumers to save money and reduce their utility bills. Smart home features offer consumers peace of mind and the knowledge that their home will be safe from danger. THEMES AND THEIR RELATIVE WEIGHT The convenience of smart home technology makes consumers' lives easier. Consumers want smart home technology to be easy. KEY MOTIVATORS TO PURCHASE
- 13. PAGE 13 While close to 7 in 10 consumers don’t currently own any smart home products, most have at least heard of the smart home products that are currently available. Those who own smart home technology most often cite a thermostat as their first piece of smart home technology. The thermostat is also the item non- owners say they’d like to adopt first. I would like to begin with the smart thermostat, and gradually add more smart devices such as appliances and home security. It would be a good way to start saving money and get me introduced to the concept. - MALE, BABY BOOMER THERMOSTATS: THE GATEWAY DRUG HOW IT ALL BEGINS WITH SMART HOME TECHNOLOGY OWN OR USE SH PRODUCTS/SERVICES WOULD START USING FIRST (NON OWNERS)* STARTED USING FIRST (USERS)* Smart thermostats 18% 36% 44% Smart lighting 13% 15% 18% Smart home surveillance systems 12% 23% 17% Smart door locks 7% 12% 7% Smart air conditioners 7% 6% 4% Smart appliances 6% 3% 3% Smart refrigerators 5% 3% 6% Don’t own SH products 68% *Sum of percentages ≠ 100 due to rounding and “other” responses
- 14. PAGE 14 Turning off the AC on the weekends and turning it back on before I get home would save me a lot of money as opposed to just leaving it on all day. That is 80% of my electricity bill in the summer. -MALE, MILLENNIAL CONTROL IN THE PALM OF YOUR HAND The idea of controlling your home’s systems via an external device such as your smartphone is just cool. It appeals to those who hope to be on the cutting edge of technology, and want to try out new gadgets. While thermostats may not be the edgiest smart home product to hit the market, consumers reach for them first because they embody the core perceived benefits of smart home technology: CONSTANT COMFORT: Works diligently while you’re away; prepares for your arrival to ensure comfort ENERGY EFFICIENCY: Reduces your environmental impact – and your monthly utility bills DISASTER PREVENTION: Gives you the ability to monitor and receive alerts; might prevent a costly occurrence like a burst pipe I think it would offer energy cost savings. I think it would offer the ability to enjoy life by having my home be comfortable when I arrive home and possibly be cleaner without having to spend hours on the upkeep. -FEMALE, MILLENNIAL Better control over the things you've worked for, plus saving a ton of money. Well, the smart home should be able to sense when there's nobody home and therefore not use so much energy. Plus at anytime you can notify the "house" to let it know you're on the way and to warm or cool things off! -MALE, BABY BOOMER SMART THERMOSTATS ARE BRILLIANT
- 15. PAGE 15 SHOPPING BEHAVIORS Consumers are open to all options, but partial to none.
- 16. PAGE 16 COMPANIES THAT ARE TRUSTED TO PROVIDE TECHNOLOGY THAT WORKS WELL (TOP TWO BOX)* Electronics manufacturers (Sony, Apple, Panasonic) 93% Home appliance companies (GE, Whirlpool, Phillips) 91% Software companies (Google, Microsoft) 89% Computer companies (Dell, Toshiba) 87% Telecommunications companies (AT&T, Verizon, Sprint) 83% Cable/Internet companies (Comcast, Verizon Fios) 76% Emerging companies (Nest, Quirky) 61% ESTABLISHED NAMES LEND CREDIBILITY TO THE NEW TECHNOLOGY Consumers trust a wide array of companies to provide effective smart home technology. Although thermostats are seen as the ideal entry point into smart house technology, consumers pointed to emerging companies (such as thermostat powerhouse Nest) as companies that need to convince consumers that they can reliably provide a working product or service. Millennials are more likely to trust software companies and emerging companies when compared to Generation Xers and Baby Boomers. I would not trust a new company unless they were affiliated with a company that had an established reputation. -MALE, BABY BOOMER ESTABLISHED BRANDS = CREDIBLE *Percentages refer to total number of consumers that trust each company type (Top 2 box NET)
- 17. PAGE 17 MEDIA SOURCES FIND OUT ABOUT NEW TECHNOLOGIES SEEK OUT MORE INFORMATION From friends or family 57% 38% General news websites 46% 35% Social media sites (Facebook, Twitter, etc.) 35% 24% Technology themed news websites 31% 46% YouTube 25% 18% Manufacturer websites 22% 40% Technology themed news blogs 19% 23% General news blogs 19% 12% General television shows (news programs, etc.) 43% 20% Technology themed television shows 24% 19% Technology magazines 24% 27% Newspaper 23% 16% General magazines 22% 12% Word of mouth is most often the way that people find out about new technologies, followed by general news sites and TV shows. Regardless of where they first hear of new technology, consumers turn to technology themed news sites and manufacturer sites to learn more. Millennials are significantly more likely to use news blogs, social media, and YouTube for both learning and seeking information. ONLINE TV PRINT WORD OF MOUTH AND ONLINE WHILE WORD OF MOUTH DRIVES DISCOVERY, CONSUMERS SEEK OUT MORE INFORMATION ONLINE
- 18. PAGE 18 WHERE WOULD YOU SHOP FOR SMART HOME PRODUCTS? Electronics store (Best Buy, Radio Shack, etc.) 69% Home improvement store (Home Depot, Lowes, etc.) 69% General online retailer (Amazon, etc.) 51% Manufacturer website 40% Discount store (Walmart, Target, etc.) 34% Specialty online retailer 29% No retailer or venue stands out as consumers’ one-stop location for all of their smart home needs. Consumers are just as likely to shop at an electronics store like Radio Shack or a home improvement store such as Home Depot as they are to peruse the selection of an online retailer like Amazon. Although Millennials also shop at brick and mortar locations, they are more likely to shop at general online retailers. In-store demonstrations are paramount to get consumers on board with the new technology. In order to emerge as a go-to location, stores should allow consumers the opportunity to learn how the technology works in person, by a person. This is especially true among Baby Boomers. IT’S AN OPEN STAGE NO RETAILER VIEWED AS “THE GO-TO” FOR SMART HOME PRODUCTS Find in-person store demonstrations helpful when making a purchase decision Find store displays helpful when making a purchase decision 70% 36%
- 19. PAGE 19 SECURITY: SAFETY VS. SKEPTICISM
- 20. PAGE 20 WHEN ASKED ABOUT THE ADVANTAGES OF A SMART HOME, NEARLY EVERYONE TALKS ABOUT THE PEACE OF MIND IT WOULD OFFER. First and foremost, people want to have more control over their house when they’re away from it. Some go so far as to say it’s the only time a smart home would be beneficial. Even the very few that view smart home technology as lazy and cold admit that it would be useful while they're out. They say they’d like to: •PEEK IN on their homes via cameras, sensors, or the like to calm their worries about their loved ones, their pets, or just the nagging suspicion that they left the stove on. •REMOTELY CONTROL their home and its security – turning on and off things that they forgot (such as the alarm or stove), locking the doors from afar, switching the lights on and off to deter thieves, regulating temperature via the thermostat and blinds. •RECEIVE ALERTS about costly problems, such as a security breach or a drastic change in temperature that may lead to a burst pipe. It gives an added security blanket, knowing you can check on your home from practically anywhere. If you have kids like I do, they leave lights on all the time. You can use the cameras if you have a security system to see what is going on in your house, not just wonder about it. Allows you to relax while you’re away. -MALE, GEN XER I travel a lot but being able to actually control my lights so I can turn them on and off at random would make people think I am home in case someone was watching my house. And the door locking, well sadly in my family we are famous for "did anyone lock the doors?“… Gotta go back home and check. -FEMALE, GEN XER WHY SECURITY IS INVALUABLE THE PEACE OF MIND AFFORDED BY BETTER SECURITY IS ALWAYS WORTH IT
- 21. PAGE 21 THE SURVEILLANCE ASPECT OF THE SMART HOME HITS AN EMOTIONAL CHORD WITH CONSUMERS. Many of those that we spoke to have a loved one in mind when they speak to the value of being able to monitor a home from away – whether it’s an aging parent, a child, or a pet. The ability to be constantly keyed into information such as the status of appliances and temperature of the house is invaluable to those leaving loved ones at home. They appreciate the ability to alleviate their worries and reassure themselves that nothing is amiss from the palm of their hand, regardless of how far away they might be. Furthermore, if something were to go wrong, consumers appreciate the ability to act swiftly (and alert emergency services if needed). [Home life is] shelter from the storm--a soft place to land. [A Smart Home] could increase comfort--and ease adjustment by handling automatic things, I guess it would make everyone's lives more comfortable. -FEMALE, BABY BOOMER 7% As a parent, there is nothing more important than your kids, so having that peace of mind would enable them to concentrate on work…I have an aging parent so being able to check on them would give me great peace of mind. -FEMALE, GEN XER If one is away and there is a water line burst, it would be amazing to be able to shut off water to home on a smartphone. I can just see a scenario where I get an alert of a spike in temperature in a certain room on my phone like a notification and I can alert the fire department for possible fires. This might save my home and pets if I am away. -MALE, GEN XER SECURITY HITS AN EMOTIONAL CHORD
- 22. PAGE 22 68% 64% 58% 46% 40% 34% 33% 10% 7% Cost Data security Home security Reliability Manual operation if fails Cohesion - products working together Difficult to install Style Cold and uninviting Consumers are unsure of the technology’s capabilities to keep both their physical and online selves safe from thieves and hackers. In particular, younger people, smart home owners, and those who are more familiar with the technology are looking for privacy and security assurances to help build trust. Consumers worry about: PHYSICAL SECURITY If they can access their door locks and alarm systems, what’s to stop a thief from doing the same? DATA SECURITY Realizing that a smart home would passively collect a large amount of data – and very personal data at that – about a family and their habits makes consumers feel vulnerable to hackers and identity theft. No matter where the smart home technology lives in their home, they want to be sure their information isn’t being exploited or shared with a third party. CONCERNS SECURITY $ WILL IT WORK? AESTHETICS SECURITY IS A MAJOR CONCERN BENEFITS ASIDE, SECURITY WEIGHS HEAVILY ON CONSUMERS’ MINDS
- 23. PAGE 23 USE IN DAILY LIFE I’ll use it all day, every day, from anywhere.
- 24. PAGE 24 A DAY IN THE LIFE MORNING ROUTINE DAY TIME SECURITY NIGHT ROUTINE NO TECH NEEDED SMART HOME TECH DESIRED Alarm clock goes off and the coffee pot starts running Stovetop turns on to heat skillet for breakfast Shower turns on to reach the perfect temperature Remotely turn on the lights in daughter’s room to get her out of bed Turn off all of the lights with a click of the button and rush out the door Get ready for work and make breakfast for the family Drop daughter off at school and head to work Check that the stove was turned off via an app Remotely close the garage door that was accidentally left open Access video feed to make sure the dog’s not getting into any trouble Smart vacuum activates and starts cleaning the carpet Remotely change thermostat so that the house is the ideal temperature when arriving home Remotely set the oven to preheat Hop into bed for a night of well-deserved sleep Leave work and head home Prepare dinner for the family Spend quality time with the family Turn off all of the lights with the click of a button.
- 25. PAGE 25 TECHNOLOGY IS WELCOMED INTO THE HOME Consumers describe their homes as loving, comfortable, relaxing and stress-free “shelters from the storm” surrounded by loved ones. Although technology sometimes has the reputation of creating cold or sterile environments, this simply isn’t the case with smart home products – only 7% are concerned that too much technology will make their home feel “cold” and uninviting. Instead, they view it as something that would grant them the ability to spend more precious time with family– a resource that is in short supply in today’s hectic, always-on-the-go lifestyle. As a working and traveling father, my time at home is limited. Add in homework, baths, dinner, and cleanup and my evenings with my family are miniscule. Smart Home technology can help me by saving little bits of time throughout the day and allow me to spend more quality and relaxed time with my family. Such time increases my happiness and the happiness of those around me. –MALE, GEN XER Family. Being home with my family is the most important thing to me. Sitting around doing nothing with my family is "home life.” I feel a Smart Home would give me more time to enjoy my family and also make me feel more safe. –FEMALE, GEN XER FAMILY TIME = PRICELESS
- 26. PAGE 26 DOES IT IMPROVE QUALITY OF LIFE? THEN, IT’S WELCOME Most consumers agree that no room of the house should be off limits for smart home technology, but there are a few who share concerns about it being integrated into certain activities. IT SHOULD CREATE FAMILY TIME, NOT DISTRACT FROM IT They mainly worry about family and personal time. They don’t want to force technology into the time they enjoy interacting with others – at the dinner table, hanging out with their kids, and … intimate moments. Surprisingly, only a few mention the bathroom as being off limits. DON’T MESS WITH MEAL PREP, THAT’S PERSONAL A handful mention cooking as an activity that they’d like to remain relatively untouched by smart home technology because they want control over the foods they eat. Along those lines, consumers explain that everything would need the ability to be overridden. They want less automation and want the technology to respond to their directions. My interactions with my family. I think technology is best left out because it's easy to become distracted. I want my full attention on them when we're having family time. –MALE, MILLENNIAL As long as information is controlled with confidence and the products work as they are supposed to, I have no opposition to any area being improved by Smart Technology. –MALE, GEN XER I always prepare my meals for the family from scratch. I like the convenience and help of an appliance, but think it’s much better to make your own meal. –FEMALE, MILLENNIAL FEW ACTIVITIES ARE OFF-LIMITS
- 27. PAGE 27 IMPLICATIONS FOR BRANDS
- 28. PAGE 28 IMPLICATION SUMMARY BRAND LOYALISTS ARE UP FOR GRABS More than any other smart product, smart homes are seen as inevitable. Consumers are excited and comfortable with the idea of a smart home – and welcome the solutions that it offers to problems that are nearly universal. There’s really no place in the home that’s off limits; the technology adds to the comfort and security of their home life and isn’t seen as cold or impersonal. That said, there is little brand loyalty in this new landscape. Brands who come to the market prepared to educate and support consumers through the technology adoption process will rise to the top as trusted brands. UNDERSTAND THEIR APPRECIATION, AND FEAR, OF THE ROLE OF SECURITY IN A SMART HOME Adding smart home technology is a very attractive prospect, but while it closes (and locks) a door, it also opens a window to possible exploitation. Remote control of their home’s systems and the ability to monitor from afar will make consumers feel much more secure and relaxed. But they worry that the automation of systems and gathering of data provides an opportunity for thieves to gain access to their home and personal information. It is essential for brands to provide consumers with reassurance that their loved ones, possessions, and personal data will be safe. PLAY UP TIME, EFFORT, AND ENERGY SAVINGS – ALL OF WHICH ARE UNIVERSALLY APPRECIATED People primarily see a smart home as a benefit while they’re away, but some do talk about automating routines while they’re home. Saving time and effort when it comes to household chores means more quality time with their family and a more comfortable home. The most compelling benefit of energy savings is the potential to save money on utility bills – an idea that all consumers can get on board with. Consumers may be willing to spend more on a product up front if the perceived energy savings are substantial enough to help pay off the investment.
- 29. PAGE 29 IMPLICATION SUMMARY CONTINUED IF YOU DON’T WANT TO START MAKING THERMOSTATS, EMULATE THE VALUE THAT THEY PROVIDE The thermostat blends a lot of benefits that people say they like about a smart home – saves them money, works in the background while they’re away from the house, adds to their comfort, and avoids problems. It could prove to be the best starter product for those who want to take the smart home plunge. While not every product will be as all-encompassing, products with the most holistic benefits will be the most valued and sought after – even if they aren’t the most stylish. INVEST THE TIME TO EDUCATE CONSUMERS Because it is a relatively new concept, people are unsure what form a smart home could take. Quite a few see it as a whole-home system that lives inside the walls and needs costly installation and upkeep. Even those who understand the basic premise of the technology are unsure of the functionality of the system and its parts. This uncertainty leads to wild speculation about cost, putting adoption off the table for many. Offering up the idea that one can start small, with one device at a much lower cost, could help hesitant consumers gain the courage to explore the market. IN-STORE DEMONSTRATIONS ARE VITAL By seeing the products in action, consumers are better able to understand and envision how they could implement these technologies in their own homes. Consider creating a demonstration house that showcases the ability of different products to work together. Additionally, as those more familiar with smart home technology worry about technical issues, an established problem resolution system could be very beneficial to educate consumers early on in the process.
- 30. PAGE 30 APPENDIX
- 31. PAGE 31 METHODOLOGY PROJECT SPECIFICS: iModerate conducted a survey with 300 consumers and followed up with 61 for one-on-one conversations (average duration of 30 minutes). TARGET CONSUMER CRITERIA: Age 18-74 HHI of $25K or more Have some kind of interest in new technology Own a smartphone or tablet THOUGHTPATHTM Our qualitative research is based on a cognitive approach called ThoughtPath. Drawing on three select cognitive theories, ThoughtPath enables our skilled moderators to get into each consumer’s head and discover what’s most important to them, what’s not, and why. PAGE 31
- 32. PAGE 32 NOW YOU’RE CONSUMER SMART iModerate Research Technologies | 720 S Colorado Blvd. Suite 500 N | Denver CO, 80246 | www.imoderate.com | 303.333.7880