Introducing “Turmoil In the Home:” An In-Depth Report by Parks Associates on How Smart Home CX Troubles are Impacting Both Consumers and Businesses

The current state of consumer experience for connected households is disjointed and fragmented, sowing confusion and frustration among customers. The number of smart home devices is exploding, with the average household carrying nearly twice as many as only five years ago. Meanwhile, most OEMs and other providers in the space have failed to keep up in terms of offering truly helpful and beneficial customer experiences, resulting in most consumers adopting a DIY attitude when it comes to learning about their devices and troubleshooting issues. The result is a disconnect between brand and customer that is ultimately harming long-term customer loyalty and mitigating recurring revenue potential.

Released today, “Turmoil in the Home,” authored by Parks Associates and commissioned by Asurion, dives deep into the current state of Smart Home CX, how customers interact with both their devices and the companies that make them. It then explores what OEMs and other providers can do to revolutionize their Smart Home tech care and build customer trust and loyalty as consumers continue to buy more connected home devices.

Here are five key takeaways from the report:

1. The connected device explosion. More and more devices are joining connected home ecosystems. In 2023 there were an average of 17 connected devices per household, up from 10 in 2018. More devices mean consumers need to juggle more setup instructions, troubleshooting, and confusing warranty plans than ever before. The inherent connectedness of smart home devices also means that when something does go wrong, it can be challenging to identify the true source of the problem. This is a double-edged sword for Smart Home OEMS: consumers are met with more frustrating experiences with devices, but the OEMs that offer real and beneficial help during these moments stand to gain real opportunities to develop strong relationships with customers.
2. There is no second chance to make a first impression. Onboarding is the number one reason why consumers return connect home devices, with 39% of consumers citing it as the reason why they returned a device within the past 12 months. This essential first step in the relationship between the device and customer is crucial for OEMs. Those that invest in ways to ensure that onboarding and setup are as seamless and enjoyable as possible earn the opportunity to continue to develop strong relations with the customer. Those that don’t have an extremely high chance of losing them as a customer forever.
3. Going at it alone. When something goes wrong, most consumers opt to self-solve. In fact, four out of the top five cited solutions from customers with broken devices were DIY tactics. This includes going down the rabbit hole of YouTube videos or searching Google for examples of other customers who have experienced similar issues. This DIY mentality is dangerous for brands and their desire to strengthen bonds with customers. Third party, unauthorized troubleshooting content can vary in quality, leaving the customer more frustrated than before. Additionally, it can expose consumers to competing offerings, opening up a likelihood that they will “jump ship."
4. Multichannel matters. For those that do eventually opt to engage in technical support, consumers are split in terms of which support channels they prefer. The top three tech support channels (phone - 31%, live chat - 28%, and in-person - 27%) are near parity. This parity puts the onus on brands to provide a holistic, multi-channel tech care offering. Sacrificing quality and efficacy in one channel means that the OEM is likely to leave a sour taste in nearly one-third of their customers’ mouths when it comes to customer support and troubleshooting.
5. Exceptional customer service + warranties = a match made in heaven. The report found that 48% of consumers would prefer an extended warranty for a smart home device that is bundled with technical support service. The combination of truly valuable warranties and customer service makes inherent sense. Together they provide a CX ecosystem for the customer that makes their lives a lot easier when it comes to addressing any issue they have with their smart home device. The result is greater customer loyalty and trust, helping to reduce churn rates and develop longer lifetime value.

Read more about how brands can start taking the right steps now when it comes to Smart Home tech care in Parks Associates’ Turmoil in the Connected Home: Impact on the User Experience, available at: asurion.com/homereport