plumchoice: the new cardinal rules of iot adoption

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

nda

Hou

seke

epin

g

Format for today’s webinar

Opportunities to ask questions

Audience surveys

Webinar recording

Image Source: Hanna-Barbera Productions (http://thejetsons.wikia.com)

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


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)

http://www.zmescience.com/

9 © PLUMCHOICE, INC. 2015. ALL RIGHTS RESERVED.

Consumers IoT Ecosystem



http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&docid=lI5fo0mln38c9M&tbnid=8SZKwuE0bIY3VM:&ved=0CAUQjRw&url=http://www.fitsugar.com/Comparison-Nike-FuelBand-FitBit-Jawbone-Up-More-21429516&ei=c469U5DHF6epsQTk8YCwCw&bvm=bv.70138588,d.cWc&psig=AFQjCNGXGHa-vDV1tdOe6EwVn8lWsBCM3g&ust=1405018053199023

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&docid=hgmFGh7lyPzUCM&tbnid=GXyVbVRgYtG7oM:&ved=0CAUQjRw&url=http://www.blackpressusa.com/2013/10/review-roundup-samsung-galaxy-gear-smartwatch-not-worth-buying-yet/&ei=fI-9U9qLPJLNsQSLr4HgCQ&bvm=bv.70138588,d.cWc&psig=AFQjCNGoSe_fDXoVH-MVzZeECRerdpDuoQ&ust=1405018351946574

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.

Personal Technology Envelopes


TABLET

ROUTER

PRINTER

SMART PHONE UNIVERSAL

REMOTE CONTROL

Source: PlumChoice 2015



CAMERA

SECURITY SENSOR

THERMOSTAT

WATER SENSOR

SMOKE DETECTOR

TABLET

ROUTER

PRINTER APPLIANCES


REMOTE CONTROL




FITNESS WEARABLE

SHIRT

CAMERA

SECURITY SENSOR

THERMOSTAT

WATER SENSOR

SMOKE DETECTOR

TABLET

ROUTER

PRINTER APPLIANCES


REMOTE CONTROL

GLUCOMETER AUTO

CROCKPOT

WATCH LIGHT

MUSIC SYSTEM

ACCELEROMETER

LOCK

HEART MONITOR



23


FITNESS WEARABLE

SHIRT

CAMERA

SECURITY SENSOR

THERMOSTAT

WATER SENSOR

SMOKE DETECTOR

TABLET

ROUTER

PRINTER APPLIANCES


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



2. Connectivity - Fog


Services



3. Connectivity - Cloud



Services


4. Control Devices





Services


4. Control Devices




5. Point Control Apps

© PLUMCHOICE, INC. 2015. ALL RIGHTS RESERVED. 32 Source: PlumChoice 2014

Services


6. Aggregator Solutions

4. Control Devices






Services



4. Control Devices




7. Cloud/SaaS



Services



4. Control Devices




7. Cloud/SaaS



RETAILERS

35 Source: PlumChoice 2014

Services

DATA



4. Control Devices




7. Cloud/SaaS


RETAILERS


Services

DATA



4. Control Devices




7. Cloud/SaaS


RETAILERS


SEC

URITY


Services SE

CUR

ITY

DATA


4. Control Devices




7. Cloud/SaaS


RETAILERS




Service complexity compounds as we move up the stack and/or add more devices

38

Services SE

CUR

ITY

DATA


4. Control Devices




7. Cloud/SaaS


RETAILERS




Services




Services SE

CUR

ITY

DATA


4. Control Devices




7. Cloud/SaaS


RETAILERS

Internet of Services



Services




Getting started Four Practical Practices

that Underpin the Success of Connected Home Products & Solutions

Create and protect revenue: Lifecycle support services


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



& ACTIVATION

CONSIDERATION AWARENESS

INCREASED UTILITY

BUYER

Too many choices; complexity Confusion Negative emotion

NO

SUP

PORT

Brand End user

SELECTION


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



& 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



BUYER CUSTOMER JOURNEY



& ACTIVATION


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


SUPPORT INTERCONNECTION


INCREASED UTILITY

PURCHASE

CUSTOMER


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


SUPPORT INTERCONNECTION


INCREASED UTILITY

PURCHASE

CUSTOMER


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


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


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


INCREASED UTILITY

PURCHASE

UPSELL/CROSS-SELL


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


INCREASED UTILITY

PURCHASE

UPSELL/CROSS-SELL


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

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

mailto:[email protected]

http://www.linkedin.com/in/gerstberger


https://www.linkedin.com/in/kmcphillips


http://www.plumchoice.com/

Convenience, control, and simplicity: The promise of the IoT.

Deliver on that promise with Specialized Technical

Support Services.