The Internet of Things and connected consumer electronics devices are morphing the technical needs of consumers, according to a recent report.
Park Associates’ research found that more than 56 percent of smart home device owners were willing to pay extra for monthly tech support services. Parks Associates’ study also found that 16 percent of U.S. broadband households own a smart home device and one-third have experienced at least one technical problem with their devices.
“Most consumers expect device manufacturers to offer some support services free of charge, but the growing adoption of smart home and IoT products, along with the complexity of broadband homes, is increasing the value that consumers attach to premium support services,” said Patrice Samuels, research analyst, Parks Associates. “Currently 15 percent of connected CE consumers are willing to pay $49.99 per year for a comprehensive support service, and interest increases with the number of devices owned.
“The average U.S. broadband household owns approximately seven connected devices, and at the high end, 68 percent of consumers with 20 or more CE devices are willing to pay an annual fee of $99.99 or higher.”
As one example, 31 percent of owners of smart garage door openers and 26 percent of owners of smart smoke detectors have experienced technical problems. Among smart home device owners in U.S. broadband households, 56 percent were willing to fork out $9.99 per month for a tech support service, and 43 percent would step up to pay $39.99 per month.
“Smart home technologies are in their infancy, and companies ranging from service providers to product manufacturers have the opportunity to establish valuable offerings for the growing base of smart home owners,” said Parks Associates President Stuart Sikes. “Tech support plays an increasingly important role in brand and product strategy across all service and product categories within the connected home.”
