After a decade of unprecedented growth, companies in the consumer technology industry must find ways to re-ignite consumer interest. According to our 2016 Accenture Digital Consumer Survey, consumer demand for traditional devices is plateauing for a few reasons: the smartphone market has reached maturity, devices lack wow factor to attract new consumers and all traditional categories are stalling.
Plus, demand for the next generation of devices enabled by the Internet of Things (IoT) is not growing fast enough to balance the declines in traditional categories. To accelerate growth, companies need to overcome the three key roadblocks preventing greater IoT device adoption by consumers: price, security concerns and ease of use.
Companies must face these three adoption challenges quickly to drive the consumer technology industry’s next phase of growth.
First, for the majority of consumers, the lack of compelling value proposition is reflected in concern over pricing. Therefore, companies must offer compelling customer value propositions by either keeping price points as they are and enhancing the perceived value of devices, or by finding ways to reduce pricing for customers.
Second, as consumers choose to abandon products and services over security concerns, companies must establish customer trust. And lastly, two-thirds of consumers surveyed experienced a challenge when using a new IoT device in 2015. Therefore, companies must ensure superior customer service and ensure customers are comfortable understanding and using their devices.
IoT in fact offers a better possibility of creating solutions that meet customer needs more than ever before. Moving from technology-led innovation to innovation that connects technology with a deep understanding of core consumer needs is critical to accelerating IoT device adoption.
In addition, while new device form factors or services can bring incremental growth, disruptive innovation is needed now. The winners will be the companies who can work with their ecosystem partners to push disruptive innovation by connecting humans with technology in ways that meet their most fundamental needs.