New Customer Segmentation Improves Smart Home Marketing Strategies in Western Europe
Strategy Analytics today announces the availability of a new customer segmentation for Western Europe which helps smart home product and service providers improve their marketing and communications strategies. The segmentation identifies seven groups, ranging from Convenience Seekers to Affluent Nesters, all of which are potential customers for smart home products but which must be targeted in different ways. Strategy Analytics used a Latent Class Analysis methodology; this avoids the pitfalls of traditional age- and demographic-based approaches, which mistakenly assume that everyone of a certain age behaves the same way.
Some smart home products and services have struggled to gain acceptance because they focus on issues which are less relevant to certain customer segments. For example, some people are less interested in technology, but are willing to pay for products and services that will help them to better manage their homes.
“The idea of home management encompasses everything from energy management to budgeting to maintenance and repair,” said Bill Ablondi, Director of Strategy Analytics’ Smart Home Strategies service. “To appeal to a mass market, companies should focus on solving real problems for consumers.”
The segments identified by Strategy Analytics are:
– This group is the largest, and also the most challenging to reach, with lower incomes and very little interest in technology or concern about environmental issues. Most smart home products and services are unlikely to resonate with this segment.
– This is the second largest segment, which are later to adopt tech, but could be attracted by service providers who focus on the convenience of smart home products and de-emphasize the technology.
– This is a sizeable segment which is challenging to sell to, but may be persuaded by messaging focused on how smart home products can help with issues of pollution and global warming.
– Greens are not the only segment concerned with environmental issues, but they are the only group prepared to pay a premium for eco-friendly products and services, so smart home providers focusing on environmental benefits should target this group.
– This group is happy to pay for products and services which help manage the home, and are ready to adopt new technology, but are not particularly concerned about the environment, so marketers should adopt a different approach to reaching this segment.
– This affluent group readily adopts new technology and is also concerned about the environment, so is a prime target for all sorts of smart home products and services.
– These technophiles are happy to pay for new products to manage the home but are less concerned about their home’s appearance and environmental issues. A tech-focused marketing strategy is needed for this segment.
“There are some consumer groups that will be easier to reach than others,” said Joe Branca, Principal Industry Analyst at Strategy Analytics. “This research helps to identify some of the challenges associated with reaching customers outside of the early adopter segments.”
Strategy Analytics surveyed a total of 6351 smartphone owners who own or rent their own residences across the following Western European countries: France, Germany, Italy, Spain, and the UK. The survey was conducted in the latter half of 2016 and the data was weighted by age and gender to demographically reflect the population of smartphone owners.
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Strategy Analytics, Inc. provides the competitive edge with advisory services, consulting and actionable market intelligence for emerging technology, mobile and wireless, digital consumer and automotive electronics companies. With offices in North America, Europe and Asia, Strategy Analytics delivers insights for enterprise success. www.StrategyAnalytics.com