plumchoice: the new cardinal rules of iot adoption
TRANSCRIPT
The Cardinal Rules of IoT Adoption
Four Practical Practices that Underpin the Success of Connected Home Products & Solutions
NEW
Welcome
Karen McPhillips Vice President, Marketing
PlumChoice, Inc.
Housekeeping items
Introduction
Fireside chat
Four Cardinal Rules of IoT Adoption
Summary
Q&A
Age
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Hou
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Format for today’s webinar
Opportunities to ask questions
Audience surveys
Webinar recording
Image Source: Hanna-Barbera Productions (http://thejetsons.wikia.com)
Today’s Speaker
Peter Gerstberger Vice President and General Manager
Zonoff, Inc.
Overview
B2B2C, White-Label Model –
providing embedded home
automation software, cloud
services, mobile application
development, data analytics and
hardware reference designs
Experts in wireless mesh networks,
full service technology platforms,
protocol and device agnostic
Zonoff is a leading Consumer IoT Technology and Services Platform
Key Verticals: Retail, CE-OEM,
Service Provider, Home
Construction, Insurance
HQ in Malvern, PA with satellite
offices in Seattle, San Francisco
and Germany
© PLUMCHOICE, INC. 2015. ALL RIGHTS RESERVED. 6
Home Automation & Smart Security Platform
© PLUMCHOICE, INC. 2015. ALL RIGHTS RESERVED. 7
Solutions Ecosystem Add-on Services PaaS Third-Party Devices
White Label Turn-Key Co-Branded Q116
Home Automation Software
Smart home hub
End Point
Devices
Wiring Panels
Security Panel
Cable Box
New
Cloud Services
Mobile Apps Home Automation Home Security
Analytics and Data Services (Q116)
Security Sensors Lighting Energy Entry/Exit Home Audio Wearables
Video Store/Retrieve Professional Monitoring Home Repair/Improvement (2016)
Poll Question 1 How many smart or connected devices do you have in your home? (Select one answer)
a. 1-3
b. 3-5
c. 5-7
d. 7-10
e. 10+
Image Source: Hanna-Barbera Productions (www.zmescience.com)
9 © PLUMCHOICE, INC. 2015. ALL RIGHTS RESERVED.
Consumers IoT Ecosystem
10 © PLUMCHOICE, INC. 2015. ALL RIGHTS RESERVED.
Consumers IoT Ecosystem
11 © PLUMCHOICE, INC. 2015. ALL RIGHTS RESERVED.
Consumers IoT Ecosystem
12 © PLUMCHOICE, INC. 2015. ALL RIGHTS RESERVED.
Consumers IoT Ecosystem
13 © PLUMCHOICE, INC. 2015. ALL RIGHTS RESERVED.
Consumers IoT Ecosystem
What is missing the mark?
Traditional selling models need not apply
© PLUMCHOICE, INC. 2015. ALL RIGHTS RESERVED. 16 Image Source: Hampton’s Appliances, New York, 1947, earlytelevision.org
New selling models put customers’ needs first
17
Omni-channel purchase options put the customer in control and address needs of diverse personal technology environments.
© PLUMCHOICE, INC. 2015. ALL RIGHTS RESERVED.
18 © PLUMCHOICE, INC. 2015. ALL RIGHTS RESERVED.
Consumers IoT Ecosystem
Personal Technology Envelopes
© PLUMCHOICE, INC. 2015. ALL RIGHTS RESERVED. 19
TABLET
ROUTER
PRINTER
SMART PHONE UNIVERSAL
REMOTE CONTROL
Source: PlumChoice 2015
Personal Technology Envelopes
© PLUMCHOICE, INC. 2015. ALL RIGHTS RESERVED. 20
CAMERA
SECURITY SENSOR
THERMOSTAT
WATER SENSOR
SMOKE DETECTOR
TABLET
ROUTER
PRINTER APPLIANCES
SMART PHONE UNIVERSAL
REMOTE CONTROL
Source: PlumChoice 2015
Personal Technology Envelopes
© PLUMCHOICE, INC. 2015. ALL RIGHTS RESERVED. 21
FITNESS WEARABLE
SHIRT
CAMERA
SECURITY SENSOR
THERMOSTAT
WATER SENSOR
SMOKE DETECTOR
TABLET
ROUTER
PRINTER APPLIANCES
SMART PHONE UNIVERSAL
REMOTE CONTROL
GLUCOMETER AUTO
CROCKPOT
WATCH LIGHT
MUSIC SYSTEM
ACCELEROMETER
LOCK
HEART MONITOR
Source: PlumChoice 2015
Personal Technology Envelopes
© PLUMCHOICE, INC. 2015. ALL RIGHTS RESERVED. 22
FITNESS WEARABLE
SHIRT
CAMERA
SECURITY SENSOR
THERMOSTAT
WATER SENSOR
SMOKE DETECTOR
TABLET
ROUTER
PRINTER APPLIANCES
SMART PHONE UNIVERSAL
REMOTE CONTROL
GLUCOMETER AUTO
CROCKPOT
WATCH LIGHT
MUSIC SYSTEM
ACCELEROMETER
LOCK
HEART MONITOR
Source: PlumChoice 2015
Personal Technology Envelopes
23
© PLUMCHOICE, INC. 2015. ALL RIGHTS RESERVED.
FITNESS WEARABLE
SHIRT
CAMERA
SECURITY SENSOR
THERMOSTAT
WATER SENSOR
SMOKE DETECTOR
TABLET
ROUTER
PRINTER APPLIANCES
SMART PHONE UNIVERSAL
REMOTE CONTROL
GLUCOMETER AUTO
CROCKPOT
WATCH LIGHT
MUSIC SYSTEM
ACCELEROMETER
LOCK
HEART MONITOR
Support Paradigm Transformation
25
Sales conversion Value realization Adoption Additional purchases
Poll Question 2 What are the biggest risks to your IoT revenue growth? (Select all that apply)
a) Sales conversion
b) NFFR
c) Brand/product differentiation
d) Time to market
e) Multi-vendor technology
environment
The New Support Services Paradigm
Services
Internet of Services stack
1. Specialty Devices
Source: PlumChoice 2014 © PLUMCHOICE, INC. 2015. ALL RIGHTS RESERVED. 28
Services
Internet of Services stack
1. Specialty Devices
2. Connectivity - Fog
Source: PlumChoice 2014 © PLUMCHOICE, INC. 2015. ALL RIGHTS RESERVED. 29
Services
Internet of Services stack
1. Specialty Devices
3. Connectivity - Cloud
2. Connectivity - Fog
Source: PlumChoice 2014 © PLUMCHOICE, INC. 2015. ALL RIGHTS RESERVED. 30
Services
Internet of Services stack
4. Control Devices
1. Specialty Devices
3. Connectivity - Cloud
2. Connectivity - Fog
Source: PlumChoice 2014 © PLUMCHOICE, INC. 2015. ALL RIGHTS RESERVED. 31
Services
Internet of Services stack
4. Control Devices
1. Specialty Devices
3. Connectivity - Cloud
2. Connectivity - Fog
5. Point Control Apps
© PLUMCHOICE, INC. 2015. ALL RIGHTS RESERVED. 32 Source: PlumChoice 2014
Services
Internet of Services stack
6. Aggregator Solutions
4. Control Devices
1. Specialty Devices
3. Connectivity - Cloud
2. Connectivity - Fog
5. Point Control Apps
© PLUMCHOICE, INC. 2015. ALL RIGHTS RESERVED. 33 Source: PlumChoice 2014
Services
Internet of Services stack
6. Aggregator Solutions
4. Control Devices
1. Specialty Devices
3. Connectivity - Cloud
2. Connectivity - Fog
7. Cloud/SaaS
5. Point Control Apps
© PLUMCHOICE, INC. 2015. ALL RIGHTS RESERVED. 34 Source: PlumChoice 2014
Services
Internet of Services stack
6. Aggregator Solutions
4. Control Devices
1. Specialty Devices
3. Connectivity - Cloud
2. Connectivity - Fog
7. Cloud/SaaS
5. Point Control Apps
© PLUMCHOICE, INC. 2015. ALL RIGHTS RESERVED.
RETAILERS
35 Source: PlumChoice 2014
Services
DATA
Internet of Services stack
6. Aggregator Solutions
4. Control Devices
1. Specialty Devices
3. Connectivity - Cloud
2. Connectivity - Fog
7. Cloud/SaaS
5. Point Control Apps
RETAILERS
© PLUMCHOICE, INC. 2015. ALL RIGHTS RESERVED. 36 Source: PlumChoice 2014
Services
DATA
Internet of Services stack
6. Aggregator Solutions
4. Control Devices
1. Specialty Devices
3. Connectivity - Cloud
2. Connectivity - Fog
7. Cloud/SaaS
5. Point Control Apps
RETAILERS
© PLUMCHOICE, INC. 2015. ALL RIGHTS RESERVED.
SEC
URITY
37 Source: PlumChoice 2014
Services SE
CUR
ITY
DATA
6. Aggregator Solutions
4. Control Devices
1. Specialty Devices
3. Connectivity - Cloud
2. Connectivity - Fog
7. Cloud/SaaS
5. Point Control Apps
RETAILERS
Source: PlumChoice 2014
Internet of Services stack
© PLUMCHOICE, INC. 2015. ALL RIGHTS RESERVED.
Service complexity compounds as we move up the stack and/or add more devices
38
Services SE
CUR
ITY
DATA
6. Aggregator Solutions
4. Control Devices
1. Specialty Devices
3. Connectivity - Cloud
2. Connectivity - Fog
7. Cloud/SaaS
5. Point Control Apps
RETAILERS
Internet of Services stack
© PLUMCHOICE, INC. 2015. ALL RIGHTS RESERVED.
Service complexity compounds as we move up the stack and/or add more devices
Services
39 Source: PlumChoice 2014
Services SE
CUR
ITY
DATA
6. Aggregator Solutions
4. Control Devices
1. Specialty Devices
3. Connectivity - Cloud
2. Connectivity - Fog
7. Cloud/SaaS
5. Point Control Apps
RETAILERS
Internet of Services
© PLUMCHOICE, INC. 2015. ALL RIGHTS RESERVED.
Service complexity compounds as we move up the stack and/or add more devices
Services
40 Source: PlumChoice 2014
Getting started Four Practical Practices
that Underpin the Success of Connected Home Products & Solutions
Create and protect revenue: Lifecycle support services
42 © PLUMCHOICE, INC. 2015. ALL RIGHTS RESERVED.
REMEDIATION and/or USAGE
SUPPORT INTERCONNECTION INSTALLATION
& ACTIVATION
CONSIDERATION SELECTION AWARENESS
BUYER
INCREASED UTILITY
CUSTOMER
PURCHASE
BUYER CUSTOMER LIFECYCLE EXPERIENCE
Apps downloads are promising, but sales do not take place When sales convert: less than desirable ARPU/Size of Basket Poor customer experience
Pain point: Pre-Purchase/Pre-Sales
43
CUSTOMER
PURCHASE
REMEDIATION and/or USAGE
SUPPORT INTERCONNECTION INSTALLATION
& ACTIVATION
CONSIDERATION AWARENESS
INCREASED UTILITY
BUYER
Too many choices; complexity Confusion Negative emotion
NO
SUP
PORT
Brand End user
SELECTION
© PLUMCHOICE, INC. 2015. ALL RIGHTS RESERVED.
Apps downloads are promising, but sales do not take place When sales convert: less than desirable ARPU/Size of Basket Poor customer experience
Pain point mitigated: Pre-Purchase/Pre-Sales
44
CUSTOMER
PURCHASE
REMEDIATION and/or USAGE
SUPPORT INTERCONNECTION INSTALLATION
& ACTIVATION
CONSIDERATION AWARENESS
INCREASED UTILITY
BUYER
Too many choices; complexity Confusion Negative emotion
NO
SUP
PORT
Brand End user
SELECTION
NO
SUP
PORT
SU
PPO
RT
Differentiate and create preference Accelerate purchase decision Create baskets: convert to sale Increase ARPU/Size of Basket Establish a positive customer experience
Simplicity Confidence Positive emotion
© PLUMCHOICE, INC. 2015. ALL RIGHTS RESERVED.
45 © PLUMCHOICE, INC. 2015. ALL RIGHTS RESERVED.
BUYER CUSTOMER JOURNEY
REMEDIATION and/or USAGE
SUPPORT INTERCONNECTION INSTALLATION
& ACTIVATION
CONSIDERATION SELECTION AWARENESS
INCREASED UTILITY
CUSTOMER
PURCHASE
Don’t lose the sale after the sale: Lifecycle support services
Pain point mitigated: Integration as part of Installation & Activation
46
NO
SUP
PORT
SU
PPO
RT
Brand End user
REMEDIATION and/or USAGE
SUPPORT INTERCONNECTION
CONSIDERATION SELECTION AWARENESS
INCREASED UTILITY
PURCHASE
CUSTOMER
© PLUMCHOICE, INC. 2015. ALL RIGHTS RESERVED.
NFFR Low adoption rates Poor customer experience Negative brand association
Frustration Unrealized value Working without a net
INSTALLATION & ACTIVATION INTERCONNECTION
Pain point mitigated: Integration as part of Installation & Activation
47
Reduce returns Increase adoption Build positive customer relationships Increase perceived value
Simplified process Confidence Time to Value Brand has my back
NO
SUP
PORT
SU
PPO
RT
Brand End user
REMEDIATION and/or USAGE
SUPPORT INTERCONNECTION
CONSIDERATION SELECTION AWARENESS
INCREASED UTILITY
PURCHASE
CUSTOMER
© PLUMCHOICE, INC. 2015. ALL RIGHTS RESERVED.
NFFR Low adoption rates Poor customer experience Negative brand association
Frustration Unrealized value Working without a net
INSTALLATION & ACTIVATION INTERCONNECTION
Pain point: Ongoing/Advanced Usage Support
48
NO
SUP
PORT
Brand End user
REMEDIATION and/or USAGE SUPPORT INSTALLATION
& ACTIVATION
CONSIDERATION SELECTION AWARENESS CUSTOMER
PURCHASE
INTERCONNECTION INCREASED
UTILITY
CUSTOMER
NO
SUP
PORT
SU
PPO
RT
© PLUMCHOICE, INC. 2015. ALL RIGHTS RESERVED.
Falling short of customer expectations Limiting value exchange Minimizing lifetime value Lack of influence on customer experience
Limited use of technology value Don’t know who to turn to Frustration with interoperability
Pain point mitigated: Ongoing/Advanced Usage Support
49
NO
SUP
PORT
Brand End user
REMEDIATION and/or USAGE SUPPORT INSTALLATION
& ACTIVATION
CONSIDERATION SELECTION AWARENESS CUSTOMER
PURCHASE
INTERCONNECTION INCREASED
UTILITY
CUSTOMER
Meet and exceed customer expectations Provide ongoing value exchange that nurtures habituation Increased perceived value and lifetime value Deepen customer relationships
Ongoing value Brand has my back My technology works as I
expect it to
NO
SUP
PORT
SU
PPO
RT
© PLUMCHOICE, INC. 2015. ALL RIGHTS RESERVED.
Falling short of customer expectations Limiting value exchange Minimizing lifetime value Lack of influence on customer experience
Limited use of technology value Don’t know who to turn to Frustration with interoperability
Limited lifetime value Missed revenue opportunity Missed share-of-mind
Pain point: Additional purchases
50
New technology needs Complexity and compatibility
questions Lack of insight to outdated or
less-than-optimal technology NO
SUP
PORT
Brand End user
REMEDIATION and/or USAGE SUPPORT INTERCONNECTION INSTALLATION
& ACTIVATION
CONSIDERATION SELECTION AWARENESS
INCREASED UTILITY
PURCHASE
UPSELL/CROSS-SELL
© PLUMCHOICE, INC. 2015. ALL RIGHTS RESERVED.
Limited lifetime value Missed revenue opportunity Missed share-of-mind
Pain point mitigated: Upsell/Cross-sell
51
Increase perceived value Broader/deeper customer relationships Increase revenue Greater lifetime value
Brand has my back Confidence in Personal
Technology Envelope Brand met or exceeded my
expectations
NO
SUP
PORT
SU
PPO
RT
Brand End user
REMEDIATION and/or USAGE SUPPORT INTERCONNECTION INSTALLATION
& ACTIVATION
CONSIDERATION SELECTION AWARENESS
INCREASED UTILITY
PURCHASE
UPSELL/CROSS-SELL
© PLUMCHOICE, INC. 2015. ALL RIGHTS RESERVED.
New technology needs Complexity and compatibility
questions Lack of insight to outdated or
less-than-optimal technology
The Cardinal Rules of IoT Adoption 1. Reduce confusion and uncertainty in the buying process:
Evolve your sales model to include expert, easy-to-access, pre-sales technical guidance
2. Minimize risk of returns: Expand installation services to guide customers beyond the threshold of initial use
3. Enable adoption through better customer experience: Transform your support paradigm – help customers be successful with your product or solution as part of their existing tech environment
4. Expand Lifetime Value with a services wrapper: Wrap support services around your customer (not your product) for ongoing value exchange
NEW
Ground Zero: Pinpoint your pain point in the purchase process. Bringing a new product to market? Plan to support pre-purchase in addition to installation, onboarding and activation.
Next Steps: 1. Establish desired customer experience
2. Determine target outcomes
3. Assess execution models: benefits and downsides of changing existing
resources (eg, contact center) and a specialized team
4. If specialized, identify pros and cons to internal and outsourced models
Next Steps
53 53 © PLUMCHOICE, INC. 2015. ALL RIGHTS RESERVED.
Insource Support
Outsource Support vs
APPLY FOR A PLUMCHOICE WORKSHOP www.info.plumchoice.com/workshop
Q&A
The New Cardinal Rules of IoT Adoption
Peter Gerstberger Vice President and General Manager
Zonoff, Inc.
[email protected] www.linkedin.com/in/gerstberger
Karen McPhillips Vice President, Marketing
PlumChoice, Inc.
[email protected] www.linkedin.com/in/kmcphillips
For more information please contact the presenters, email [email protected] or
visit us at www.plumchoice.com
THANK YOU
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