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This research report dives into consumer perceptions of smart home technology, exploring how consumers envision using it in their own homes. By engaging consumers in one-on-one conversations, we discussed their hopes, fears, and questions regarding the new technology. Insights include best practices for messaging to, engaging, and selling to these enthusiastic, yet hesitant, consumers.
Citation preview
PAGE 1
HOME IS WHERE THE TECH IS: SYNCHING UP WITH CONSUMERS ON THE SMART HOUSE
Marketplace Insights
October 2014
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:
1 Would 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?
2 What do consumers view as the most beneficial aspects of a
smart home, and what could they do without?
3 Finally, what companies would consumers trust to produce
high-quality smart home products and systems, and where
would they seek these products out?
PROJECT OBJECTIVE
?
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
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
PAGE 5
CONSUMER UNDERSTANDING
It’s a product! It’s a system! It’s… both?
PAGE 5
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
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
PAGE 7
CONSUMERS HAVE ENCOUNTERED THE FOLLOWING PROBLEMS:
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….
PAGE 9
ENTRY TO THE MARKET
The most enticing initial purchase might surprise you.
PAGE 9
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
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
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
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
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
PAGE 15
SHOPPING BEHAVIORS Consumers are open to all options, but partial to none.
PAGE 15
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)
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.
ON
LIN
E
TV
P
RIN
T
WORD OF MOUTH AND ONLINE WHILE WORD OF MOUTH DRIVES DISCOVERY, CONSUMERS SEEK OUT MORE INFORMATION ONLINE
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%
PAGE 19
SECURITY: SAFETY VS. SKEPTICISM
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
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
PAGE 22
68% 64%
58%
46% 40%
34% 33%
10% 7%
Cost Data security Homesecurity
Reliability Manualoperation if
fails
Cohesion -productsworkingtogether
Difficult toinstall
Style Cold anduninviting
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.
CO
NC
ER
NS
SECURITY $ WILL IT WORK? AESTHETICS
SECURITY IS A MAJOR CONCERN BENEFITS ASIDE, SECURITY WEIGHS HEAVILY ON CONSUMERS’ MINDS
PAGE 23
USE IN DAILY LIFE I’ll use it all day, every day, from anywhere.
PAGE 23
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.
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
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
PAGE 27
IMPLICATIONS FOR BRANDS
PAGE 27
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.
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.
PAGE 30
APPENDIX
PAGE 30
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.
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NOW YOU’RE CONSUMER SMART iModerate Research Technologies | 720 S Colorado Blvd. Suite 500 N |
Denver CO, 80246 | www.imoderate.com | 303.333.7880