The Smart Home is coming of age, but how do you monetize it?

The Smart Home - driven by advances in IoT - has finally come of age. Connected products have opened up a new world of convenience for the consumer and also the possibility of new revenue streams for product manufacturers. However, the potential monetization of the highly connected consumer remains largely untapped. So, this short article explains how to reorganize and retool in order to drive revenue.

monetizing-smarthome

The biggest single challenge for appliance manufacturers is to move from a product-based strategy toward a service-first operating model.

This means organizing business operations around long-term consumer relationships.

And creating new core competencies around APIs, data analytics, cloud computing, and IoT ecosystems.

Our relationships with our consumers can then be transformed from distant, infrequent, and reactive to connected, constant, and proactive.

In this scenario 4 distinct revenue streams open up:

1๏ธโƒฃ ๐—–๐˜‚๐˜€๐˜๐—ผ๐—บ๐—ฒ๐—ฟ ๐˜€๐˜‚๐—ฝ๐—ฝ๐—ผ๐—ฟ๐˜

Proactive IoT-powered customer support enables companies to decrease the 'cost to serve' over the life of a product.

In addition, it generates direct revenue through the sale of additional services and upgrades.

2๏ธโƒฃ ๐—˜-๐—ฐ๐—ผ๐—บ๐—บ๐—ฒ๐—ฟ๐—ฐ๐—ฒ, ๐˜€๐˜‚๐—ฏ๐˜€๐—ฐ๐—ฟ๐—ถ๐—ฝ๐˜๐—ถ๐—ผ๐—ป๐˜€ ๐—ฎ๐—ป๐—ฑ ๐—ฎ๐˜‚๐˜๐—ผ-๐—ผ๐—ฟ๐—ฑ๐—ฒ๐—ฟ๐—ถ๐—ป๐—ด

The ability to sell consumables and complementary products and services is significantly enhanced when a device is connected or โ€œsmart".

Such additional services can of course be automated through subscription or direct consumption models.

3๏ธโƒฃ ๐——๐—ฎ๐˜๐—ฎ ๐—บ๐—ถ๐—ป๐—ถ๐—ป๐—ด

Usage data can help manufacturers to provide preventative maintenance and improve the design of the next generation of products.

Equally, these insights can be leveraged by partners to provide additional applications and services to consumers.

4๏ธโƒฃ ๐—”๐—ฑ๐—ฑ๐—ฒ๐—ฑ ๐˜ƒ๐—ฎ๐—น๐˜‚๐—ฒ ๐˜€๐—ฒ๐—ฟ๐˜ƒ๐—ถ๐—ฐ๐—ฒ๐˜€

Working with other product manufacturers and service providers potentially opens up new revenue opportunities in the home services economy inย areas such as cleaning, cooking, and maintenance.

For deeper insights into monetizing the smart home, please see our recent blog on how to drive CX and revenue through digital transformation.

Feel free to call Chris on 07927 638711 for an informal chat on this subject

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