Consumer-connected devices and why they matter to platform companies

I am an enthusiast for smart devices and an early adopter of new technologies. I am fascinated by how far we have come and cannot wait to see how these devices will further transform our lives and work.

The landscape of IOT devices is evolving rapidly, driven by the relentless pace of technological advancements. As IDC predicts, by 2025, there will be 55.7 billion connected IoT devices, and consumer-connected devices will account for a significant portion. This surge in connected devices is revolutionizing how big tech companies and platform players create great customer experiences and enrich consumers’ lives.

A recent Capgemini Research Institute Report on Connected Products suggests that 67% of surveyed consumers consider connected products a necessity. At the same time, one-third use some connected product at any time of day or night. 37% of consumers think they will own more connected products in the next 12 months than they do now. Smart home security and health wearables are the connected products consumers plan to purchase in the next 12 months. Voice assistants and health wearables provide positive consumer experiences.

Consumers are unsatisfied with the current state of data privacy and integration of connected products.

Consumer-connected devices, such as smart home assistants and wearables, have grown exponentially in recent years. These devices offer convenience, personalized experiences, and enhanced lifestyle management, making them indispensable for modern consumers.

Have you ever wondered why Smart Devices, also known as Consumer-Connected Devices, i.e., Pixel Phone, Meta Quest Headset, and Alexa Voice Assistant, are so crucial for Google, Meta, Amazon, etc, even though these products might not significantly contribute to the revenue compared to the core businesses of these platform companies?

In today’s digital era, the emergence of consumer-connected devices has completely transformed our interaction with technology. For platform companies, these devices are not just a part of the technological landscape; as listed below, they play a vital role in shaping the future of how they drive consumer engagement, get user behavior insights, deliver services, and gain customer loyalty.

#1: Enhancing Customer Engagement 

– Personalized Experience: Connected devices provide valuable data that enables platform companies to offer personalized services and recommendations, leading to enhancing the user experience. 

– Constant Connectivity: These devices ensure that consumers stay connected to the platform, increasing engagement and loyalty. 

– Feedback Loop: The continuous interaction with consumers through connected devices offers real-time feedback, allowing for quick improvements and adaptations

#2: Data-Driven Insights 

– Rich Data Collection: Connected devices serve as a valuable source of consumer data, including usage patterns, preferences, and behavior. 

– Predictive Analytics: By analyzing this data, platform companies can predict market trends and consumer needs, giving them a competitive advantage. 

– Targeted Marketing: The insights gained from device data enable more effective and targeted marketing strategies.

#3: New Revenue Streams

– Value-Added Services: Connected devices create opportunities for additional services and features, opening up new revenue streams.

– Subscription Models: These devices facilitate subscription-based models, ensuring a steady revenue flow and enhancing customer retention.

– Partnerships and Ecosystems: Platform companies can collaborate with other service providers and manufacturers and create a broader ecosystem around their devices.

#4: Enhancing Product Development 

– User-Centric Design: Feedback and data from connected devices guide product development, ensuring that new offerings are tailored to consumer needs. 

– Innovation: The insights gained can fuel innovation, leading to the development of cutting-edge technologies and features. 

– Competitive Edge: Continuously evolving products based on consumer data help maintain a competitive edge in the market.

Conclusion: 

Consumer-connected devices are more than just impressive technological advancements; they are a fundamental element for platform companies in their pursuit of providing exceptional services, gaining valuable insights, and staying relevant in a rapidly evolving digital world. By embracing these devices, platform companies can enhance customer engagement, drive innovation, and unlock new revenue growth and success opportunities. 

While it remains crucial for platform players to stay close to users, the world of connected devices is changing fast. Consumers expect hyper-personalized experiences and their providers to understand their identity, interests, and needs, delivering lightning-fast service. Consumers are even willing to pay more for sustainable, cutting-edge experiences. When we overlay the technology trends, advancements in technologies such as GenAI, Edge computing, 5G, Spatial Computing, and Custom Silicon are turning once-impossible experiences into reality today. Considering the compact size, limited computing power, and battery capacity of devices introduces additional complexity to tech adoption. It impacts every aspect of the value chain, from design to build, testing, and launch.

What’s Next

Connected devices is a complex world to navigate and that’s where the One Capgemini team comes in, we are proud of bringing SCALE, HORSEPOWER, and KNOW-HOW to help companies ACCELERATE their product launches from SOUP TO NUTS and at the end everyone wins. We are trusted by thousands of customers including popular brands that we know and love from VR headsets to Adventure cameras, smartphones, and voice assistants to Cat feeding Smart Bowl.

If you have an excellent idea or are interested in discussing how consumer-connected devices transform our world, let’s connect and explore together! Happy reading!