How to Generate Revenue From Your Smart Home Brands – Zonoff

Article Synopsis :

Smart homes are entering the mainstream. Evidence comes this Holiday season where ads for smart devices such as Amazon Echo and Google Wifi and Nest dominate.  How might insurers capitalize on this trend?

Almost half of US homeowners either own or plan to invest in Smart Home technologies this year 

“Consumer IoT Monetization Strategies: How to Generate Revenue From Your Smart Home Brands”, by Zonoff introduces us to the opportunities and challenges smart-home device manufacturers face in this segment. Though insurance isn’t discussed directly,  understanding how device makers approach the market is highly instructive to insurers actively pursuing IoT growth strategies.

The key takeaway is the need to step outside the device box and think more like a service provider. While consumers buy and experience one device at a time, with their homes getting smarter incrementally, manufacturers must force themselves to see the entire emerging ecosystem. Same goes for insurers.

Other considerations include:

1. Ongoing costs for continuous product support and development, compatibility and interoperability testing, cloud infrastructure, customer communication and support, technology licenses, and back-office cum analytics are often steep and dynamic. Insurers used to measuring product cycle times in years may not be able to cope with weeks or days.
2. Growing importance of Home Security and Safety: According to the Markets and Markets Report the Home Security market will grow at a CAGR of 9% to $48bn between 2015-2020. This growth is driven by rising burglary rates, insurance policy incentives and smartphone proliferation. Device manufacturers (and insurers) should think security first.
3. Home Management Solutions (HMS) potential applications include hub-and-point solutions, smart home analytics, inventory replenishment, home repair and other services; home-energy management, installation services, and concierge services are also possible.
4. Industry Subsidies: Smart Home brands need consumers to buy and continue to use their products. They also need support for the ongoing expenses of running a Smart Home operation. As many insurers are learning in their IoT programs, the devices themselves are often cost-prohibitive over time.

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