IoT is revolutionizing how the modern home functions, automating daily functions for a streamlined lifestyle. As smart home devices become more commonplace, the technology develops and becomes more complicated. Both the growing number of IoT products and the increase in consumer adoption in homes and businesses create unique opportunities for carriers increase their subscriber base with services that encompass smart home integration tools.
Popular Smart Home Solutions
McKinsey’s research study, “The Connected Home Market”, explores trends associated with smart home adoption and integration. Their consumer study found that the most commonly adopted smart home devices are for security, utilities, entertainment and wellness. The study also shows that service providers with smart home offerings lead in brand awareness over device manufacturers in both security and safety and utilities management. Key purchasing decision factors include:
Ease of use
Monthly service prices
Device reliability
Cost of the device itself
While McKinsey’s study shows that 73% of consumers are strongly concerned about the security of their data, only 6% cited privacy concerns as the top reason for not purchasing a smart home device. Among the four segments of smart home consumers, all four expressed concern about the setup, installation and usability of IoT products.
Growth Opportunities for ISPs
There is a 31% growth rate of smart homes in the US. Since Internet service providers and carriers are already established in consumer homes, they have the unique opportunity to reach both early adopters and new smart home consumers with IoT specific services. Service providers can create an end-to-end IoT experience for their customers by adapting their current service offerings to include device installation and maintenance assistance, security tools, and real-time monitoring in addition to their Internet services. Customer satisfaction is notably driven by excellent customer support, user friendly interfaces, and how easy it is to use a device. To maximize their revenue potential, service providers should consider implementing these five strategies:
1. Adopt cloud-based tools to help customers self-manage their networks and the devices connected to it. Subscriber mobile apps and other types of network management tools provide customers with a holistic view of their network, allowing them to customize their network to suit their needs.
2. Offer device management help to customers. According to McKinsey, about 40% of connected home solutions are purchased from service providers. There are hundreds of different devices made by a variety of manufacturers, so it’s impossible to know how every device works. By partnering with manufacturers and offering customers specific devices, service providers can effectively help their customers with device installation and maintenance.
3. Address IoT specific security concerns. 66% of customers expressed concern about identity theft associated with IoT devices. In addition, 71% of customers who are interested in utility management IoT devices consider “safety of my information” as a key buying factor. Service providers can leverage this by implementing advanced security tools. Tools like 24/7 monitoring give customer peace of mind and encourages smart home adoption.
4. Utilize advanced data analytics to improve customer experience. Advanced data analytics and reporting allows service providers to leverage those metrics to determine if their customers are potential candidates for alternative services. This is especially helpful to identify potential cord cutters and customers who might qualify for different service packages.
5. Implement machine learning and AI tools to proactively diagnose network issues before the arise. Home networks are more complex than ever. Machine learning can help provide insights into network components and automatically optimize the network for a better customer experience.
Optim’s All-in-One Solution for Customers and ISPs
67% of customers cite “convenience of managing through a single app” a top feature when selecting smart home devices. Optim managed Wi-Fi gives customers all the tools they need to manage their home network. Optim’s intuitive dashboard is accessible from a smart phone or computer, providing a complete view of the home network. This is especially helpful when integrating smart home devices. Optim was designed with both service providers and customers in mind, creating a convenient way for customers to reach their providers whenever they need to and offering the right tools for service providers to effectively meet their customer’s needs. Key features that ease the transition from traditional home networking to smart home networking include:
- Machine learning and AI powered diagnostics and self-healing capabilities
- Big data analytics and customized reporting tools
- Smart Steering technology for automatic band steering and network optimization
- Real-time visibility of the entire home network to customers and technicians
Adapting to the next big technology trend requires diligent digital transformation to take place. As service providers work to keep their service offerings relevant in the IoT driven home network, providers can improve their bottom line while becoming a leader in customer experience and satisfaction. Optim offers providers a one-stop-shop for their customer’s home networking needs.
Optim® is available through reputable service providers. To find out more on how Optim fits into your digital transformation strategy, check out the Actiontec website or contact us directly. broadband-sales@actiontec.com.
