From the consumer standpoint, the things they may consider purchasing within The Internet of Things better be priced right.
Despite all the whiz bang IoT capabilities being introduced or talked about in the marketplace, the cost of a smart device leads the list of reasons for not yet purchasing.
I’ve been noticing this in numerous IoT research studies, including the latest from McKinsey, which is based on a survey of 2,000 households.
Here’s what consumers say is holding them back from making a buy:
In a separate study by The Demand Institute, 88% of consumers see a smart home as being too expensive and only 23% had at least one smart device in their homes.
This should be no surprise for two reasons.
Before economies of scale are reached, it’s relatively expensive to produce a small number of smart devices. Secondly, marketers have not necessarily gotten through to consumers with clear messaging articulating the value of any particular connected object.
Not surprisingly, 71% would at least consider purchasing a smart home product, with thermostats leading the list of items, as I wrote about here earlier this month (71% Would Consider Buying a Smart Home Product).
The key is that the product must have perceived value.
For example, connected thermostats can be viewed as a technology that can save a consumer money in heating bills.
In the McKinsey survey, the most popular connected device was a connected smoke detector, which can be perceived as potentially saving lives. (The connected thermostat was second.)
When it comes to connected or smart objects, consumers aren’t necessarily looking for small appliances like toasters and microwaves to be part of their in-home network.
And no matter which smart device they consider, consumers will be constantly weighing if it’s worth it.