Many analysts predicted that consumer IoT products would be an essential part of every household by now. However, this prediction hasn’t come true yet.
If one thing is certain, it’s that the adoption of smart devices hasn’t happened as quickly as many expected. When it comes to Consumer IoT, most products are still in the ‘early adopters’ stage. Despite that, the smart products market becomes more and more competitive.
According to Accenture and our own research, there are 3 main reasons for the slower adoption of consumer IoT devices: price, security, and ease-of-use. In this blog post, we’ll look into these reasons and the particular concerns that might be holding your customers back.
Price: Consumers question the price when the value is not clear
Over 62% of consumers point out price as a main reason for not purchasing a connected device. This trend is even more evident among end-users identified as late adopters. At the same time, price is of little concern for the early adopters, who are not short of compelling reasons to purchase smart devices.
Consumers often question the price of a product when they don’t fully understand the value it delivers, Accenture remarks. As a relatively new category, this seems to be the case with many Consumer IoT products.
Our UX team researched hundreds of smart tech sales websites. What we discovered was that behind the flashy landing pages and 60-second videos, most of these websites lacked depth. It was rare that we found brands making an effort to educate customers, not assuming that they are already savvy and “get it”. It was even rarer to see common customers’ concerns being addressed in FAQ sections and long-form content as blog posts.
Ease of use: The overall experience doesn’t meet customers’ expectations
Customers face various issues during the setup and daily use of a new smart device. However, this is only a part of the overall problem. Many brands are simply not ready to provide adequate support and meet the expectations of their customers.
When purchasing a smart device, end-users buy into the idea of a simple, effortless experience. That is why the majority of support journeys start online – end-users want to be able to setup and fix their smart devices on their own. However, due to complex and inadequate online support, customers are forced to take their issue to the live support channel.
Does your online support meet your customers’ expectations?
In our IoT experience lab, we test new products on an ongoing basis. Click below for a free end-user test of your online support experience.
Privacy and security: The lack of adequate communication makes consumers hesitant
Last but not least, the privacy and security remain a strong concern for the majority of consumers. According to Deloitte, this trend is particularly visible in the Smart Home segment. Many consumers are concerned that by purchasing a Smart Home product they are giving up their privacy. Users fear that these devices could track and record too much of their private lives.
Another concern is that IoT devices are not as safe as advertised. Some end-users consider them more vulnerable to hacker attacks than most brands want to admit. What’s more, a significant number of consumers agree that brands don’t do a good job of explaining the risks related to the new smart devices. The lack of adequate communication regarding privacy and security issues causes hesitation for potential buyers.
The time to start improving the customer experience is now
For a market still in its early stages of development, there is a greenfield opportunity to get the customer service journey right from the start. Qelp is an expert in interactive self-service support for IoT devices.