O C T O B E R 2 0 1 5
B E N C H M A R K R E P O R T
IoT Device Adoption and Technical Support
DEVICE MAKERS AND SELLERS MISSING MILLIONS (MAYBE BILLIONS)
OF OPPORTUNITIES TO ENGAGE AND DRIVE PRODUCT ADOPTION
ONSUMERS
STRUGGLE
COMMON
CONNECTED
THINGS
TO
USE
C
Contents
PAGE 3
Executive Summary
PAGE 3
4 Top Takeaways
PAGE 5
Survey Discoveries
PAGE 10
Conclusions
PAGE 11
Critical IoT Success Factors
PAGE 12
Take Action
PAGE 14
Methodology
PAGE 15
About PlumChoice
PAGE 16
Appendix
Executive Summary
THE INTERNET OF THINGS
IoT hype is progressing to reality, and the future is being measured in the billions. Organizations like Business Insider
predict that connected home device shipments – beyond smartphone and tablet devices – will grow at a compound annual rate of 67% from 2015 until 2020. That’s 1.8 billion units of smart appliances, energy equipment, and safety and security systems expected to be shipped in 2019. These projections foretell a significant opportunity for device
innovation and sales – while intimating a major challenge for cross-device service and support.
“IoT Device Adoption and Technical
Support Benchmark Report: 2015”
This report explores the adoption and use of today’s
mainstream, Internet-connected devices (i.e., smartphones, laptops and fitness bands), along with consumers’
understanding of and intent to use emerging smart home technologies (i.e., smart cars, door locks and thermostats). The research also encompasses consumer perspectives on their needs and expectations for technical services and support.
AN ISSUE OF TRUST
OR AWARENESS?
14% have returned a
product due to difficult
use or installation
– Of those, 51% would not buy from that brand again
– Of those who ask for help, 50% opt for a friend or family member over a
manufacturer or retailer
Only 42% of consumers
surveyed ask for help with
Internet-connected devices
4
Top Takeaways
INTERNET-CONNECTED DEVICES: HELP WANTED
Consumers of all ages are struggling with their “things” and they’re not asking for help. They don’t know who to turn to for help and/or don’t trust the likely
candidates. When they do ask for help they’re not getting the answers they need.
CONSUMERS WARY OF SMART HOME DEVICES
Consumers don’t see the value in smart home devices (yet). Younger generations think smart home devices are too expensive. Buyers expect brands to help with much more than just installation and troubleshooting when they purchase a smart home device.
FOCUS ON FEMALES TO STRENGTHEN BRAND
As key decision makers in the home, women are more apt to ask for help and are less forgiving when they cannot use a product as desired.
BRAND AFFINITY AT RISK
Getting the desired full-service technical support impacts consumers’ willingness to shop with brand again. DETAILS ON NEXT PAGE
Getting the desired technical help impacts brand loyalty.
More than three-quarters of respondents said a brand’s ability or inability to provide the help they need affects their willingness to shop with that brand again. In fact, 14% said they’ve returned a product in the past two years because they had difficulty installing and using it, and more than half of those individuals said they will not buy from that brand again.
BRAND AFFINITY AT RISK
Consumers don’t see the value in smart home devices (yet).
Nearly three-quarters of respondents said they have no plans to purchase a smart home device in the next two years. More surprisingly, 48% say they do not believe they need one. Younger generations think smart home devices are too expensive.
As a result, brands will need to convey the value to this demographic in new and meaningful ways.
Buyers expect much more than help with installation and troubleshooting when they purchase a smart home device.
Nearly half of respondents said they would expect help with all of the following when they make a smart home purchase: purchase decision, installation, use, connection, maintenance, troubleshooting, personalization and optimization and home
environment integration.
CONSUMERS WARY OF SMART HOME DEVICES
Consumers are struggling with their “things” and they’re not asking for help.
Nearly two-thirds of respondents say they’re unable to complete all the desired activities with their Internet-connected devices, and 46% of them do not ask for help.
Age doesn’t matter.
Sixty percent of respondents aged 18 to 24 said they’re unable to complete all of their desired activities with their connected devices; even millennials – and those who are younger – need help using devices.
Consumers don’t know who to turn to for help and/or don’t trust the likely candidates. Fifty percent of respondents said they turn to a friend or family member for help, while only 17% ask the product’s manufacturer for assistance; only 14% turn to the retailer who sold them the product.
When they do ask for help, they’re not getting the answers they need.
Only 20% of respondents said their needs are always met when they ask for technical help.
INTERNET-CONNECTED DEVICES: HELP WANTED
Catering to a female audience could help brand perception – and loyalty.
Women are more apt to ask for help, though are less forgiving when they cannot use a product as desired. They’re also often the ones making the household purchase decisions. (Source: "Buying Power," Catalyst 2013)
CONSUMERS STRUGGLE WITH CONNECTED DEVICES
Survey Discoveries
INTERNET-CONNECTED
DEVICES PER HOUSEHOLD
LEARN MORE IN THE APPENDIX
26%
20%
11%
5%
4%
1-3
4-6
7-9
10-13
> 14
None
36
%
35
%
# O F D EV IC ESWhile 61% of consumers surveyed
have Internet routers in their
homes – and basic connected
devices like smartphones, tablets
and laptops have been around
for more than a decade …
The majority of
device users still
struggle to fully
adopt and use
these “things.”
One might expect some adoption challenges for older generations and Baby
Boomers (ages 45 to 65), where the learning curve may be greater – and less
frustration from the younger, millennial generations (ages 18-34) who grew up
with these technologies – but the divide is not as significant as we might think.
60
%
OF THE YOUNGER
GENERATION,
AGED 18 TO 24
with their devices.
HAVE TROUBLE
OF RESPONDENTS
CANNOT COMPLETE
ALL OF THEIR
DESIRED ACTIVITIES
with their
INTERNET-CONNECTED DEVICES.
50% 22% 18% 17% 14% 34% 31% 36% 39% 50% 60% 18-24 25-34 35-44 45-54 55-64 65+ A G E RA NG E
Maybe consumers aren’t asking
for help with Internet-connected
devices because they don’t know
who has the answers.
When asked to share their top resources for
help, respondents answered …
% THAT HAVE REQUESTED HELP
said their needs are always met when they seek help with their connected devices.
20
%
Regardless of who they turn to:
CONSUMERS LOST WHEN SEEKING TECHNICAL HELP
Survey Discoveries
42
%
58
%
42
%
have asked for technical help with Internet-connected devices. The most concerning piece of this is that most respondents have not asked for help with their connected devices. When they do, only a fraction turn to the product manufacturer or developer for that assistance.
A friend or family member “I don’t need help – I do it myself”
“I do not have a go-to resource for help” The product’s manufacturer
The retailer who sold the product
TOP RESOURCES
AGE MATTERS
Younger age groups are least likely to ask for help with their connected devices.
They’re also among
the most forgiving
when they cannot get
their devices to work.
% BY AGE RANGE THAT WOULD NOT BUY AGAIN FROM A BRAND WHOSE DEVICE THEY RETURNED
GENDER CONSIDERATIONS: THE FEMALE FOCUS
Though consumer forgiveness of difficult-to-use brands and products varies only slightly by age group, a view of perception by gender tells a more interesting story.
ACCESSIBILITY TO TECH SUPPORT IMPACTS BRAND PERCEPTION AND LOYALTY
Survey Discoveries
61
%
of female respondents whoreturned a product due to
MAKE
of all consumer purchases (MediaPost)85
%
INFLUENCE
of household brand purchases (Sheconomy)85
%
INFLUENCE
of household electronic buying decisions (Sheconomy)61
%
More than three-quarters of consumers do not turn to retailers or manufacturers to get help with their Internet-connected devices.
This is particularly intriguing, as women …
Women are not only
driving these purchases,
but are less forgiving
when brands don’t help
them use the “things” they’ve
purchased. This is a significant lesson
in product adoption and loyalty for
brands in the IoT space.
difficulty installing or using it would not buy from that brand again.
75
%say a brand’s
ability to provide
support affects
their willingness to
buy from that
company again.
Will not buy
from that
brand again.
OF THE 14%
14
%
Have returned a connected
device/gadget due to
difficulty installing or using it.
50%
38%
57%
48%
69%
18-24 25-34 35-44 45-54 55-6451
%
As Internet-connected devices continue to evolve into complex technological ecosystems
centered around smart home solutions, technical support will become increasingly more important. In fact, not only do consumers expect to receive some level of technical support with the purchase of a smart home device, close to half of respondents expect comprehensive help across their buying and usage journeys.
Interestingly, younger generations in particular do not perceive the value of smart home devices.
PRIMARY CONCERN: EXPENSE
19%
22%
21%
16%
13%
9%
18-24 25-34 35-44 45-54 55-64 65+ A G E RA NG EA majority of respondents said they would consider a smart home device primarily to reduce resource consumption or for convenience:
44%
43%
34%
33%
30%
22%
20%
Because gadgets are fun
For greater control over my home and/or family To reduce costs For more security
To simplify life
For more convenience To reduce energy, water or other
resource consumption
78
%
of respondents say they do not own a smart home deviceAS OF TODAY
WHY THE HESITATION?
48
% Do not believe they need one29
%Say devices are too expensive
20
%Have concerns about privacy and security
12
%Don’t know what to purchase
8
%Are concerned about not knowing how to use it
INDICATE SMART DEVICES ARE TOO EXPENSIVE
SMART HOME DEVICE MARKET REMAINS NASCENT: CONSUMERS QUESTION VALUE
Survey Discoveries
Parks Associates 2015 Top Trends in IoT study indicated
37% of all broadband households report a strong likelihood of adopting one or more smart home devices in 2015.
See Appendix for details
have no plans to purchase
a smart home device in
the next two years
74
%
PEOPLE in the
United States.
are interested in purchasing
a smart home device in
the next two years
83M
ONLY
26
%
This accounts for more than
Respondents don’t trust manufacturers or retailers to help with smart home devices nearly as much as they think these brands should help. Those who say telco and cable providers should deliver support for smart home devices also do not trust these companies to provide that assistance.
While the majority of consumers agree
manufacturers should help – and trust them to do
so – only 17% turn to manufactures for that help.
The product’s
manufacturer purchased it from The retailer I family member A friend or
SMART HOME DISCONNECT: SUPPORT EXPECTATIONS & MISGUIDED TRUST
Survey Discoveries
>90
%
60
%
60%
47%
8%
56%
34%
27%
SHOULD PROVIDE HELP TRUSTED TO PROVIDE HELP
expect the following help when they of all respondents
expect to receive some form of technical support with the purchase of a smart home device.
Conversely, while more than 27% of respondents say they trust a friend or family member to help them, only 8% believe those individuals should be the ones to help. Another ~20% say they either don’t know who to turn to for help or they’ll just do it themselves.
make a smart home purchase: purchase decision, installation, use, connection, maintenance,
troubleshooting, personalization and optimization and home environment integration.
Conclusions
Internet-connected device makers and sellers in the United States are
missing tens of millions (maybe billions) of opportunities to engage with
and support consumers in their use of smartphones, tablets, connected
thermostats and many other consumer-related categories of connected
and IoT devices this year.
Two hundred and fifty million smartphone and tablet units are expected
to ship in the U.S. this year; however, the “IoT Device Adoption and
Technical Support Benchmark Report: 2015” indicates that 67% of those
device owners (potentially 167.5M consumers) will not be able to use
their “things” the way they want to. And nearly 50% of those owners
(potentially 83.7M consumers) will never even ask for help.
Critical IoT Success Factors
IoT and consumer electronics manufacturers, retailers and solution providers have a massive opportunity to differentiate their brands and close a significant technical support gap. Consumers currently do not have trusted, go-to resources for Internet-connected device support and, even after years of ownership, continue to struggle to use the products the way they want.
Brands can no longer view technical support and services – now offered primarily for
installation, broken/otherwise at-fault devices, and/or device replacement – as costly must-haves that focus on a single product or brand. Rather, there’s an early-mover market to be claimed by brands who earn consumers’ trust and demonstrate the support needed and expected throughout the purchase process and personal technology journey. It’s a tech support “wrapper” of sorts. Those brands that step forward to provide this service wrapper will experience higher adoption, lower no fault found returns, larger basket size, and better customer retention with repeat purchases and greater lifetime value.
As brands look to the nascent smart home device market – which introduces more and more complicated technologies – they must consider technical services and support as part and parcel of product design. These new, complex devices and systems are colliding with existing, highly personalized, and already complex environments. Before they become part of the connected consumer’s daily life, these solutions require technical assistance for purchase, installation and activation. Keep in mind, the device or solution needs to be interconnected and interoperable within the existing environment. And the consumer expectations don’t stop there; there are requirements for usage, maintenance,
personalization, optimization and advanced usage … and even help with subsequent device purchases.
EXCEED EXPECTATIONS: DEPLOY A NEW SUPPORT PARADIGM
KEEP UP WITH COMPLEXITY
APPLY EXPERTISE
Home and small business technology environments and their support wrappers (think of it as an “Internet of Services”), require substantial technical expertise delivered through a
purpose-built support and services program. It’s no small undertaking, but the brands that stand out by serving and supporting consumers throughout the full product lifecycle will effectively win the battle of the Internet of Things.
Take a closer look at our key findings and what your brand can do to power up IoT
and smart home technology sales, adoption, usage and brand affinity in: see the
Take Action
CHALLENGE
ACTION
Redefine your technical support paradigm. To drive adoption of current and future devices, brands must enable a proactive, comprehensive wrapper of services that help end users buy, install, use, connect, maintain, troubleshoot, personalize, optimize and integrate these devices. Conceptualize these services at the point of product incubation and effectively communicate, offer and sell them to users throughout the customer journey and product lifecycle.
Customers aren’t asking for help and brands are taking that as a sign that no help is needed. Consumers struggle with their “things,” yet they’re not asking for help.
CHALLENGE
ACTION
Acknowledge and act on the fact that all generations are challenged. Offer omni-channel support and services (automated, online, text, live chat, phone, email, on site). Provide do-it-yourself and do-it-for-me services to accommodate a broad range of technical know-how and comfort levels.
Age doesn’t matter. Even millennials and younger need help using technology.
CHALLENGE
ACTION
Do not settle for low consumer expectations and bad support experiences. Consumers know there’s a gap between who is embracing their technical support needs today and who should be helping them in the future.
Establish trusted relationships with your customers by actively pursuing brand-agnostic support opportunities, including support for the purchase, adoption, use and integration of devices within the customers’
technology environments. This wrapper of ongoing services will create long-term brand affinity. Consumers don’t know who to turn to for help and/or don’t trust the likely candidates.
CHALLENGE
ACTION
Empower agents with scalable solutions that will make products easier to buy, use, integrate and maintain. In a typical technical support program, brands train contact center agents for homogenous, high-volume, routinized inquiries that are specific to their product or brand. If a request is outside of that scope, or if the product is out of warranty, that customer is out of luck. Leverage savvy, tech-enabled experts who can flex to the needs of today’s consumers and can support an array of IoT and smart home devices that have endless uses, permutations and product integrations.
Take Action
CHALLENGE
ACTION
Erase consumer confusion in the smart home market. Seize the opportunity to educate consumers and demonstrate value. Even though 33% of respondents said they do not know what a smart home device is, 26% of those reported owning one when presented with specific product examples. They do not think of certain devices, like a WiFi thermostat or connected home security system, as smart devices. Furthermore, many respondents said they’d be interested in smart home products to help reduce resource consumption or make their lives more convenient. Help consumers understand the value they receive from these
products and avoid relying on the “cool” factor to do it for you. Quantifying cost or time savings will go a long way toward adding value, as will providing trustworthy purchasing assistance.
Consumers don’t see the value in smart home devices (yet).
CHALLENGE
ACTION
Simplify the smart home device experience for your customers. Consumers know they struggle with the products they own now. Though they are not accustomed to receiving a full-service wrapper of support, they still anticipate needing help from the point of purchase through product integration. This level and scope of customer support and technical care is a differentiator and must become common practice for brands that expect to drive adoption and maintain brand loyalty in a noisy market.
Buyers expect much more than help with installation and troubleshooting when they purchase a smart home device.
CHALLENGE
ACTION
Expand technical support capabilities not only for your own products, but also for off-brand devices. As technology environments expand, brands that hesitate to change the way they manage tech support stand to lose customers to more innovative and nimble “thing makers” or “thing sellers” who incorporate comprehensive, end-to-end technical support and solutions for their products.
Take Action
Methodology
Nearly 1,500 consumers from the United States between the ages of 18 and 65 were surveyed by a third-party agency in May of 2015. Respondents qualified for the research if they purchased an electronics device within the past year. All data presented in this report is exclusive to PlumChoice, Inc.
CHALLENGE
ACTION
Reduce churn and no fault found returns by proactively engaging consumers with a full-service wrapper of technical assistance and support. By simply ignoring the problem, brands will find their innovations wasted with more of their products sitting in warehouses than in homes and offices.
Buyers are returning devices due to difficulty installing and using them. More than half of those who returned devices would not buy from that brand again.
CHALLENGE
ACTION
Improve sales and create stickiness with messages and offers that resonate with women. As the key technology buyers and decision makers in many households, women can significantly impact brand adoption and loyalty within a home. Provide the right service and support up front and you won’t need to rely on forgiveness down the road.
PlumChoice is the leader in providing a continuum of specialized technical
services for today’s highly personalized consumer and small business
technology environments. For more than a decade, the company has
partnered with brands both large and small, including Fortune 1000
manufacturers, retailers, software vendors, and telco and cable providers
to deliver highly differentiated customer experiences to technology
end users by way of technical support solutions for the Internet of Things
and cloud enablement.
Today’s dynamic, complex, heterogeneous technology environments require
brands to solve for customer technical challenges that are complicated and
diverse. PlumChoice’s solutions span the entire buyer and customer lifecycle –
from pre-purchase through installation, configuration, integration, problem
resolution and ongoing usage. Solutions include Connected Life, Cloud, and
Premium Technical enablement from sales, support and care services to
cross-brand and mobile device integration. PlumChoice enables cross-brands to reduce
no fault found returns, increase adoption and penetration, drive revenue,
control costs and generate greater customer lifetime value.
To learn more, contact:
+1 866-811-3321
CONNECT WITH PLUMCHOICE
The Power of
PC-CR-EX-1015
PlumChoice, Inc.© 2015
© 2015 PlumChoice, Inc. All rights reserved. PlumChoice is a registered trademark of PlumChoice, Inc. in the United States and other countries. All other names and marks mentioned in this document are the property of their respective owners and are mentioned for identification purposes only.
Appendix
15%
Handheld game devices
11%
Fitness bands
6%
Internet-connected cameras
6%
Smart home security devices
5%
WiFi thermostats
4%
Health monitors
2%
Smart watches
1%
Internet-connected light switches
1%
Internet-connected door locks
78
%
of respondents say they do
not own a smart home device
AS OF
TODAY
THE OTHER 22% OWN:
WHAT INTERNET-CONNECTED DEVICES DO PEOPLE OWN?
COMPUTERS
90
%
TABLETS
66
%
ROUTERS
61
%
GAME CONSOLES
38
%
SMART TV
27
%
STREAMING TV DEVICES
24
%
0% 1% 2% 3% 4% 5% Smart/WiFi thermostat Automated/smart home security system Smart audio/visual system Smart lighting system/light bulb Smart door locks Smart light bulb Smart power strip Smart smoke detector Smart refrigerator Smart car Smart oven Smart sprinkler system Automated/smart home office security system Smart water leak detector