The biggest single challenge for appliance manufacturers is to move from a product-based strategy toward a service-first operating model.
This means organizing business operations around long-term consumer relationships.
And creating new core competencies around APIs, data analytics, cloud computing, and IoT ecosystems.
Our relationships with our consumers can then be transformed from distant, infrequent, and reactive to connected, constant, and proactive.
In this scenario 4 distinct revenue streams open up:
1๏ธโฃ ๐๐๐๐๐ผ๐บ๐ฒ๐ฟ ๐๐๐ฝ๐ฝ๐ผ๐ฟ๐
Proactive IoT-powered customer support enables companies to decrease the 'cost to serve' over the life of a product.
In addition, it generates direct revenue through the sale of additional services and upgrades.
2๏ธโฃ ๐-๐ฐ๐ผ๐บ๐บ๐ฒ๐ฟ๐ฐ๐ฒ, ๐๐๐ฏ๐๐ฐ๐ฟ๐ถ๐ฝ๐๐ถ๐ผ๐ป๐ ๐ฎ๐ป๐ฑ ๐ฎ๐๐๐ผ-๐ผ๐ฟ๐ฑ๐ฒ๐ฟ๐ถ๐ป๐ด
The ability to sell consumables and complementary products and services is significantly enhanced when a device is connected or โsmart".
Such additional services can of course be automated through subscription or direct consumption models.
3๏ธโฃ ๐๐ฎ๐๐ฎ ๐บ๐ถ๐ป๐ถ๐ป๐ด
Usage data can help manufacturers to provide preventative maintenance and improve the design of the next generation of products.
Equally, these insights can be leveraged by partners to provide additional applications and services to consumers.
4๏ธโฃ ๐๐ฑ๐ฑ๐ฒ๐ฑ ๐๐ฎ๐น๐๐ฒ ๐๐ฒ๐ฟ๐๐ถ๐ฐ๐ฒ๐
Working with other product manufacturers and service providers potentially opens up new revenue opportunities in the home services economy in areas such as cleaning, cooking, and maintenance.
For deeper insights into monetizing the smart home, please see our recent blog on how to drive CX and revenue through digital transformation.
Feel free to call Chris on 07927 638711 for an informal chat on this subject
