Changing Dynamics of the Smart Home Create Opportunities for Service Providers

by Parks Associates | May. 7, 2019

The very connected nature of smart home products and their access to expanded cloud or edge intelligence provides the opportunity for a wide range of services to be attached that can drive recurring monthly revenue (RMR) or additional ad hoc purchases. Service providers from security and home automation to broadband, insurance, energy, and healthcare companies are uniquely positioned to capture value in the smart home era. They have large customer bases with a recurring billing relationship. Many have experience with end-to-end services for technology offerings, including sales and distribution, installation, support, and maintenance. Many can bundle products and services for personalized offerings with tiered pricing and financing options.

Yet, Parks Associates finds that about 70% of purchase Intenders for smart home products still find retailers the most appealing channel for device purchases. Security providers are found most appealing for device purchases by 18% of Intenders, and most appealing for installation and maintenance each by 23% of Intenders. Broadband providers come in as the third most popular channel with a 9-10% preference each for purchase, installation, and maintenance functions.

Park Associates Chart

Moderated by Brad Russell the CONNECTIONS™ session, “Service Providers: Defining New Roles in the Smart Home, sponsored by F-Secure,” addresses the role of the service provider in providing comprehensive smart home solutions. Speakers examine the unique position of service providers in the smart home ecosystem and present strategies to capitalize on consumers’ needs regarding connected devices in the home.

This session takes place on Tuesday, May 21 from 3:00 p.m. to 4:00 p.m. Speakers include:

  • Tali Chen, Chief Marketing Officer, DSP Group
  • Sheila Hicks, Vice President/General Manager, Cox Homelife, Cox Communications
  • Todd Grantham, Chief Marketing Officer, Plume Design Inc.
  • Jochen Koedijk, Chief Marketing Officer, ADT

 

For more information, visit www.connectionsus.com


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