By Jim Carroll and Michael Silva
Consumer surveys identify the relatively high cost and privacy associated with smart devices as the significant barriers to smart homes' mass-market adoption. The retail price is at multiples of the non-connected counterparts, and consumers are wary of the value created for them or the reward associated with sharing their data.
Stacey Higginbotham of Stacey on IoT has a great post, "Avoid IoT Ponzi Schemes," where she addresses the inexpert architecture of connected devices leading to ongoing runaway cost for manufacturers. Driving manufacturers to increase sales volume to cover the support cost of previous units sold. Consumers have already paid a premium for the device's expanded feature set; additional expenses post-sale like subscriptions for basic functionality impedes a meaningful value exchange for the consumer.
Manufacturers haven't delivered enough customer value to warrant subscription revenue. We see the challenge as a conflict between the pipeline transactional sales business model and the IoT outcome-economics model.
As a manufacturer of connected devices, do you create a value exchange that is both meaningful to the consumer and profitable for you?
At Sendal, we believe an expertly designed IoT ecosystem delivers a lifetime customer value that is a positive cash-flow proposition for device makers. Our outcome economics model rewards device manufacturers for being the home's physical layer, enabling advanced applications with the utility of their devices as actuators and sensors, displacing hardware-centric subscription plans. The Sendal platform creates positive network effects between device manufacturers, our platform, and advanced applications to create meaningful, lasting value exchange for the consumer. These advanced applications represent a suite of al la carte services that are presented in a single UX delivering the ultimate in interoperability and personalization to the user. The Sendal platform is the enabler; our vision is a home that is both sensitive and responsive to individuals by tending to their unique needs.
Connect with us here to learn more about how Sendal can help your technology deliver a meaningful value exchange and increase sales and profits.