Smart device manufacturers are learning a lesson that most internet-based service companies know very well. At least half of the consumer market is willing to trade their personal information, and trade it cheaply, according to a recent study conducted by Parks Associates titled, “The Value of Data – New Smart Home Business Models.”
The key finding of the report was as described above, but the report goes into some detail, breaking customers down by the products they use. For example, their findings indicated that owners of the following smart products would be willing to share their personal information if a discount on electricity usage was offered:
• 51 percent of smart thermostat owners
• 48 percent of smart clothes dryer owners
• 50 percent of smart water heater owners
Those statistics may seem surprising on the face of it, but on reflection, they’re nothing new. Consider how much personal information consumers readily give away when they use free services like Facebook or free email accounts. For that matter, consider how much personal information your own small business is likely holding about your client base.
What we’re seeing here, then, is a new frontier of opportunity for manufacturers. Smart devices make it easier than ever to collect detailed information about consumer habits, and the consuming public has already demonstrated a receptiveness to give away that data, or sell it cheaply.
In fact, the study found that in some cases, customers expressed a willingness to part with their information, even when non-monetary incentives were offered.
According to Brad Russell, one of the analysts at Parks Associates, “consumers are more likely to share data for non-monetary value related to warranties, product improvements, product education and remote technical support. They are less likely to share data to receive product recommendations or to simplify ordering consumables. For data-sharing programs to be successful, service providers and utilities need to ensure they are communicating value propositions that align with their own customers.”
So how much is your data worth to you? Odds are that you're voluntarily sharing tons of information, far more than you realize, on social media platforms. So if the information is already out there, is it worth gaining some monetary advantage for it? Or are your smart devices the line in the figurative sand? We've warned over and over again how vulnerable smart home devices can be to cyber security risks- does that change your attitude on your thermostat gathering your temperature request information? Let us know in the comments!
