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3 things Connected Consumers want from their smart home

by Karthik Venkatakrishnan , 26.06.2017

Whether it’s smart speakers, thermostats or refrigerators, one thing is clear. The much hailed about ‘internet of things’ is slowly but certainly becoming a reality.

The benefits are obvious for customers – smart homes represent the ultimate in convenience. Back in 2015, Amazon’s Dash button for Tide captured our imaginations by showing us that buying washing detergent need not involve routine, mind-numbing trips to the supermarket.

Of course, there are other benefits. According to NEST, the company’s programmable thermostats helped customers save between $131 to $145 each year.

Smart homes benefit businesses too. Other than making products easily available to consumers, it also changes the way brands interact with them.

In an age where consumers are far less loyal to brands than they used to be, creating a memorable and personalized experience for customers can help one stand out from the clutter.

Smart homes in Asia – where’s the growth?

According to a report by the Singapore Business Review, Asia's smart home market is expected to reach $115 billion by 2030. That’s huge news.

Globally, smart air conditioners registered sales amounting $42 million in 2016, with Taiwan leading the market share in Asia, followed by Australia, New Zealand, Thailand and Vietnam demonstrating sizable growth.

As expected, China, with its exploding middle class and strong manufacturing and tech ecosystem will lead this charge. Japan is the other major player. Not only is it already among the world’s top five global markets when it comes to smart home penetration, its aging population will very likely continue to drive growth with the adoption of smart health and wellness solutions.

What are some barriers in adoption?

Despite the vast potential the smart home industry has, there is still some way to go before the technology truly becomes mainstream. In our research, we found that the most common smart device found in homes is still the Smart TV. 17.38 million were sold in Europe alone in 2016, up from merely 5.61 million in 2011.

In comparison, to date, approximately only 8.2 million people own Amazon Echo unit, a smart speaker connected to Alexa, a voice-controlled intelligent personal assistant service which responds to your voice commands, plays music, controls your smart home, and gives you information on news and the weather.

Why is this the case? Here are three areas where we think the industry can improve on.


At present, the proliferation of devices, appliances, manufacturers and retailers in the market is confusing consumers. To make matters worse, not all smart appliances work with one another. That makes the buying experience downright perplexing, especially considering how much these cutting-edge devices cost.

The solution? We believe that it's about building the right user experience. We have to deeply examine the user and the marketplace to identify a new set of unmet needs that offer opportunities for customer innovation. In this regard, a concept testing approach will be beneficial as it measures concepts that audiences are likely to embrace, and the extent to which the concept improves their lives, placing emphasis on consumers’ needs. With access to consumers’ emotional reactions such as level of excitement and engagement to the product concept, brands are better equipped to proactively enhance their product aligned to consumer behavior and perceptions.


The benefits of a smart home, and the way it will enhance consumers’ lives, need to be clearly communicated, and adapted to the different needs of each part of the market.

For instance, when we asked people why they monitored or controlled a smart device in their home, the responses differed greatly by age group. 62% of Boomers chose “To save money by reducing my utility costs” as their main consideration. In contrast, Gen X-ers ranked “To keep my home safe and secure” as their top priority.

Consumers have individual ways of building up commitment, energy and willingness to act. Therefore, the brands that successfully communicate the affordability of the product, ease of use and the value it brings, often see success in facilitating adoption.


In our 2017 Tech Trends Report, we found that the older Millennials (Gen Y) are early adopters and leading the charge, with 33% globally planning to purchase smart devices in the next two – three years, compared to 28% of younger Millennials.

Therefore, instead of targeting indiscriminately, brands need to concentrate their efforts on the segments that matter most.

Smart devices and the Connected Consumer

For businesses to successfully utilize the potential of smart home devices, it is first crucial to understand the type of consumers they are targeting.

We live in the era of what we like to call the ‘Connected Consumer’, and there are three key benefits they seek from brands – freedom, acceleration and intimacy. Simply put, that means:

  • They want brands and businesses to help make their lives simple and convenient. From smartphones to smart homes, they do so with the myriad of devices at their disposal.
  • They have reduced attention spans as compared to their predecessors. That means that simplicity, ease-of-use and a seamless experience is crucial to retaining their interest. More than half (54%) of consumers globally agree that, “If a new technology product is not simple to use, I lose interest.”
  • They expect an experience when they interact with a brand. Using customer and data analytics – possibly collected using smart home devices – businesses that deliver that engagement can generate long-term relationships.

Hence, it is increasingly crucial for brands to harness current and emerging technologies to deliver personalized experiences and enhance living, thus deepening customer loyalty.

As smart homes become a reality, the most successful brands will be those that deliver the simple, seamless experience that consumers seek.