Closing the IoT Gap with Specialized Tech Support
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- Cuthbert Parks
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1 Closing the IoT Gap with Specialized Tech Support
2 Audio replay To replay the webcast, click here:
3 Presented By: Parks Associates Patrice Samuels Research Analyst
4 Agenda Consumer IoT expectations and desires Challenges being experienced by consumers Constraints and challenges of IoT stakeholders How support services can help to bridge the gap between consumers expectations and current experiences
5 Presented By: PlumChoice Channing Lai Director, Product Management Consumer/SMB Perspective Estelle M. Prescott Vice President, Partner Services CE Manufacturer Perspective Karen McPhillips Vice President, Marketing Retailer Perspective Wynn Grubbs SVP, Business & Partner Development IoT Ecosystem
6 Audience Poll
7 Device penetration in broadband households Computer Home network Smartphone Tablet/iPad Game console e-reader SmartTV Connected Blu-ray player Connected DVR Streaming media player Automatic lighting controls Networked security cameras Smart thermostat Electronic door locks Adoption of Connected Devices (Q1/14) Among all BB HHs, n=10,000 ± 1.96% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% % Owning Specified Device 6
8 Connected health device adoption Adoption of Connected Healthcare Devices ( ) A treadmill, exercise bike, or elliptical with built-in app support Digital pedometer/ fitness tracker with Wi-Fi or Bluetooth A blood pressure cuff that works with a smartphone A digital weight scale with Wi-Fi or Bluetooth A GPS watch to track location A sports watch with built-in health-rate monitor A sleep quality monitor A pill box with a digital screen for display medication name A glucometer that works with a smartphone Q2/2014 Q1/2013 0% 5% 10% 15% 20% % Specifying Ownership 24% 27% of broadband households reported owning and using one of the connected health devices (Q1/2013) reports owning and using a device (Q2/2014) Source: fitbit.com 7
9 Paths to market for smart home devices Systems» More than one product» Designed for Interoperability» Hub for local control» May include professional monitoring and support Products» 13% of BB HHs have at least one product» 11% of BB HHs have more than one product» Approx. 40% acquire products from retailers 8
10 Consumer Needs and Desires Value propositions» Convenience and control» Peace of mind» Home safety and security» Energy management Desired features» Sync devices to home network» Access content from all devices» Remotely manage devices» Device to device communication» Alerts for unusual events 9
11 Challenges to the IoT Promise Set-up complexities Interoperability challenges Consumer unfamiliarity Functional glitches Security and privacy concerns» 70% of smart home device owners concerned about unauthorized access» Only 30% of consumer concerns relieved with more control
12 Channing Lai Director, Product Management Consumer/SMB Perspective
13 CONSUMER PERSPECTIVE: SEEKING CONVENIENCE, CONTROL & SIMPLICITY IN THE CONNECTED HOME SEGMENT OF THE IoT ROUTER DATA PRINTER TABLET CONNECTED HOME: AUTOMATION, ENERGY EFFICIENCY, SECURITY VOICE LAPTOP WIRELESS ONNECTED DESKTOP GAMING DEVICE APPLICATIONS & THE CLOUD CONFIGURATION PROTECTION (i.e. virus, malware, identity theft) CLOUD BACKUP SET TOP BOX CONTENT/ DATA SECURITY Source: PlumChoice
14 IoT: convenience drives complexity CONNECTED HOME, CAR, HEALTH AND FITNESS CLOUD STORAGE INTERNET ISP CONNECTION Wi-Fi OTA HOME ROUTER HUB SMARTPHONE CONTROL APPS COMPUTER Source: PlumChoice 2014 WATER SENSOR IP CAMERA 13
15 IoT: convenience drives complexity CONNECTED HOME, CAR, HEALTH AND FITNESS CLOUD STORAGE Comprehensive Installation Instructions INTERNET Need technical assistance? Call ISP CONNECTION Wi-Fi OTA HOME ROUTER HUB SMARTPHONE CONTROL APPS COMPUTER Source: PlumChoice 2014 WATER SENSOR IP CAMERA 14
16 IoT: convenience drives complexity CONNECTED HOME, CAR, HEALTH AND FITNESS CLOUD STORAGE Comprehensive Installation Instructions INTERNET Need technical assistance? Call ISP CONNECTION Wi-Fi OTA HOME ROUTER HUB SMARTPHONE CONTROL APPS COMPUTER Source: PlumChoice 2014 WATER SENSOR IP CAMERA 15
17 IoT: convenience drives complexity CONNECTED HOME, CAR, HEALTH AND FITNESS CLOUD STORAGE Comprehensive Installation Instructions INTERNET Need technical assistance? Call ISP CONNECTION Wi-Fi OTA CONTROL APPS SMARTPHONE HOME ROUTER HUB COMPUTER SMART LOCK Source: PlumChoice 2014 DOOR SENSOR SMART THERMOSTAT WATER SENSOR SMART WATCH IP CAMERA SMART CROCKPOT 16
18 Audience Poll
19 Estelle M. Prescott Vice President, Partner Services CE Manufacturer Perspective
20 Trading cost for convenience: a customer dilemma My Lights Weren t Working I called my hub manufacturer because all the pieces of my home automation system weren t working in synch. They said their hub wasn t the problem. I called the store where I bought the system; they couldn t help me either. I paid $100 for a light bulb that doesn t even work! This is not what I expected. I called my hub manufacturer because all the pieces of my home automation system weren t working in synch. The hub manufacturer helped me. Now the system is up and running again. My family and I feel safer coming home in the dark I m now getting the value I expect
21 The world of IoT: Complex for the consumer, complex for the manufacturer Yesterday s CE world The world of today and tomorrow Deliver positive brand experience Innovate and incubate new products Increase revenue move product Stay competitive in evolving market Support your brand s products Enable customers to integrate your products into highly personalized, multibrand technology environments. Actively engage to drive adoption and usage from installation throughout the lifecycle
22 The world of IoT: Complex for the consumer, complex for the manufacturer Yesterday s CE world Deliver positive brand experience Innovate and incubate new products Increase revenue move product The world of today and tomorrow Exchange greater value for positive brand experience Innovate and incubate new products not confined to hardware Increase revenue move product Stay competitive in evolving market Support your brand s products Stay competitive across a broader landscape in a hyper-dynamic market Enable customers to integrate your products into highly personalized, multibrand technology environments. Actively engage to drive adoption and usage from installation throughout the lifecycle
23 Karen McPhillips Vice President, Marketing Retailer Perspective
24 Retailer objectives No Fault Found Returns Long-term Customer Relationships Repeat Purchase Size of Basket
25 SALE = Purchasing options Installation: The first critical step on the road to adoption Source: PlumChoice 2014 CUSTOMER 1 PEACE Of MIND Advanced tech support was offered along with her new internet bundle. She chose the bundle to ensure peace of mind. A month later: My tablet is not synching to my smartphone glad I have tech support CUSTOMER 2 DO IT YOURSELFER POS POP YOUR BRAND HERE SPECIALIZED TECHNICAL SERVICES Passionate about DIY, he declined the advanced tech support offer when purchasing his home security system. Hours later: Installing the app for my new security camera should be simple where is that number for tech support? POP CUSTOMER 3 DO IT YOURSELFER A DIY newbie, he thought about, but declined the advanced tech support offer when he bought his new laptop. At home, he self-installs and all is well. Weeks later: After submitting his online product registration, he receives an offering advanced tech support. Several months later: Why can t I connect my son s new tablet to the printer?
26 Simplifying complexity by way of a continuous service experience is paramount to IoT success WHO? RETAILER/eTAILER CE MANUFACTURER ISP THIRD PARTY Source: PlumChoice
27 Simplifying complexity by way of a continuous service experience is paramount to IoT success WHO? COST? RETAILER/eTAILER CE MANUFACTURER ISP THIRD PARTY MONETIZE BUNDLE IN ASSUME THE COST INVEST Source: PlumChoice
28 Simplifying complexity by way of a continuous service experience is paramount to IoT success WHO? COST? RETAILER/eTAILER CE MANUFACTURER ISP THIRD PARTY SIMPLIFY AND SUPPORT PRODUCT USAGE & INTEROPERABILITY MONETIZE BUNDLE IN ASSUME THE COST INVEST Source: PlumChoice
29 Patrice Samuels Research Analyst
30 Gaps in IoT Implementation Challenges for all stakeholders» Gaps in implementation of open standards» Many permutations of home technology environments Consumers will purchase more devices» Popular devices 12% to 16% up from 10% to 12% Consumers want integrated systems» 80% prefer integrated systems to stand alone devices Consumers value for support» 60% report that having professional tech support is highly valuable 29
31 Wynn Grubbs SVP, Business & Partner Development IoT Ecosystem
32 The Not So Smart Home, Molly Wood 31
33 The Not So Smart Home, Molly Wood Keep your receipts 32
34 Internet of Services stack Retailers Application Specific Cloud Services Services 7. Cloud/SaaS ISPs SECURITY 6. Aggregator Solutions 5. Control Devices 4. Point Control Apps DATA Hubs Gateways Apps Platforms 3. Connectivity - Cloud 2. Connectivity - Fog Smartphones/Tablets 1. Specialty Devices Thermostats Crockpots Lights Toothbrushes There will be a compounding effect of service delivery complexity. Source: PlumChoice 2014 Protocol converters Gateways Hubs 33
35 Realizing the promise of the IoT Business Drivers Services that optimize the personal technology environments of consumers and SMBs Positive brand experience Product innovation & incubation Revenue growth Repeat purchase Competitive differentiation No Fault Found Returns Long-term customer relationships Size of basket Cost containment Pre-sales consultation Installation Onsite installation DIY installation Configuration/set-up Onboarding & training Interconnectivity Home network management Data migration Diagnosis & resolution Maintenance & updates Onsite support Upsell/cross-sell
36 Realizing the promise of the IoT Business Drivers Specialized Technical Services Services that optimize the personal technology environments of consumers and SMBs Positive brand experience Product innovation & incubation Revenue growth Repeat purchase Competitive differentiation No Fault Found Returns Long-term customer relationships Size of basket Cost containment Service & program definition Pricing & packaging Implementation Launch Sales Technical support Care Market stimulation Pre-sales consultation Installation Onsite installation DIY installation Configuration/set-up Onboarding & training Interconnectivity Home network management Data migration Diagnosis & resolution Maintenance & updates Onsite support Upsell/cross-sell Delivering convenience, control & simplicity through exceptional customer experiences that yield deeper, more robust relationships
37 36 The brave new connected world
38 Q & A
39 Thank you Wynn Grubbs PlumChoice.com Karen McPhillips PlumChoice.com Channing Lai PlumChoice.com Patrice Samuels ParksAssociates.com Estelle M. Prescott PlumChoice.com
40 CONNECTIONS Summit at CES At CONNECTIONS Summit, leading executives share consumer and industry data on trends in CE, home systems, tech support, value-added services, and video. Event Topics IoT and Smart Home Devices Next-Generation Set-Top Boxes Entertainment Apps and the New Customer Experience Streaming to the Box: CE and OTT Consumer Tech Support in a Multiscreen Home Smart Home Platforms: Interoperability and Connected Devices Visit CONNECTIONSSummit.com
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