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:
1️⃣ 𝗖𝘂𝘀𝘁𝗼𝗺𝗲𝗿 𝘀𝘂𝗽𝗽𝗼𝗿𝘁
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.
2️⃣ 𝗘-𝗰𝗼𝗺𝗺𝗲𝗿𝗰𝗲, 𝘀𝘂𝗯𝘀𝗰𝗿𝗶𝗽𝘁𝗶𝗼𝗻𝘀 𝗮𝗻𝗱 𝗮𝘂𝘁𝗼-𝗼𝗿𝗱𝗲𝗿𝗶𝗻𝗴
The ability to sell consumables and complementary products and services is significantly enhanced when a device is connected or “smart".
Such additional services can of course be automated through subscription or direct consumption models.
3️⃣ 𝗗𝗮𝘁𝗮 𝗺𝗶𝗻𝗶𝗻𝗴
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.
4️⃣ 𝗔𝗱𝗱𝗲𝗱 𝘃𝗮𝗹𝘂𝗲 𝘀𝗲𝗿𝘃𝗶𝗰𝗲𝘀
Working with other product manufacturers and service providers potentially opens up new revenue opportunities in the home services economy in 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