Marketing Smart Home Devices in Bundles Can Help Boost Adoption Rates
Compatibility remains one of the biggest barriers to consumers buying more than a handful of smart devices.
Smart home devices have numerous benefits for consumers. They have the potential to bring greater convenience, improve safety and help buildings feel more secure. But compatibility remains one of the biggest barriers to consumers buying more than a handful of smart devices. Multiple studies confirm this, with a 2024 study published in Intelligent Buildings International pointing out that “users place a high value on seamless integration, and it may influence their acceptance of smart home technologies.”
While part of the “compatibility problem” comes from numerous competing standards, the marketing for smart home devices often focuses too much on a single product or brand rather than providing clear signals about third-party compatibility. A Matter, Alexa, Apple Home or Google Home logo can work for smart home fans, but may not give enough information to someone buying their first smart device. However, it’s possible to use marketing strategies to cut through the confusion to help new customers understand what’s possible. Let’s explore a few things you can try.
Taking a page from the home security book
For decades, home security systems have more or less been the gold standard for bundling smart devices together. Their primary strategy, which is also common among smart home integrators, is to offer only devices that work within a single ecosystem. The typical foundation of a security system is a proprietary control panel or base station, with accompanying sensors and accessories.
When a security provider sells third-party devices, thermostats, and lighting, it always curates a small selection of models guaranteed to work with the other equipment. Retailers could consider a similar curated approach by offering only products supported by a single smart home standard—these products can also be compatible with multiple platforms. However, having a plainly stated focus will help new customers know that compatibility will be less of an issue.
When to break from the security system model
Although the security system model is a good template for smart home bundling, it has a few drawbacks for retailers. Foremost is the requirement of a central hub or control panel, which instantly adds complexity and can feel intimidating to a new customer. Another issue is that security providers primarily use bundles to sell monitoring service subscriptions and reserve more advanced equipment to upsell pricier plans.
This reliance on subscriptions doesn’t translate to smart home systems, which have a turbulent relationship with monthly plans—at least when security monitoring isn’t included. Power users may appreciate the extensive features of a paid smart home plan, but it’s tougher to convince a typical customer to subscribe to control their handful of devices.
A major strength of retail smart home devices is that they can work independently of these restrictions. People can buy only the products in their budget while expanding the system over time. For retailers, this means a chance to develop an ongoing relationship with repeat customers.
Simplify the decision process
Whether you run a physical store or sell exclusively online, there are strategies you can use to inform users about smart home compatibility. The simplest solution is to organize your product displays and pages with smart devices in distinct groups based on their shared compatibility with a single smart home standard.
If you carry products with multiple compatibilities, a separate display for each standard has the potential to make a major difference. This may result in some products appearing on multiple shelves in a retail setting. Consider a showroom approach that places display units in groups while providing clear signage that directs customers to a more conventional shelving layout. Online, you can provide a simple interface for users to explore each standard.
You could consider offering a promotion or custom smart home bundle with unique packaging (with the collaboration of smart home brands, if possible). This is especially true for smart home hubs, which benefit from the inclusion of sensors.
Inspire the customer with a demonstration
The final barrier to smart home compatibility is a customer’s knowledge and familiarity with the tech. Even people who already own multiple compatible products may not understand how to create useful automations with different devices. Retailers can step in to fill this knowledge gap by providing functional demonstrations, brochures, information pages, and trained staff to teach users to harness the potential of the smart home.
For example, you could show customers how a video doorbell, smart lock, smart light, and entry sensor make perfect partners when automating the front door. Perhaps the doorbell triggers a light when a delivery arrives, or the sensor warns the smart lock not to engage until the door closes.
How you choose to inspire and inform your customers about their smart home options can provide a smoother process and a more enjoyable experience.
SOURCE: John Carlsen/TWICE