The rise of internet-enabled smart home devices presents both opportunities and challenges for consumers. While these devices offer advanced, intuitive features to create a smart home ecosystem, they also bring security vulnerabilities that can compromise the safety and privacy of users. This concern is reflected in a recent white paper by Assurant and Parks Associates, which found that 72 percent of consumers are worried about the security of their smart home products and networks.
With news of hacks and unauthorized access to personal data becoming more prevalent, consumers are increasingly seeking options to prioritize their household’s data security and privacy. They want assurance that their homes and families are safe from physical and virtual intruders, and that their personal data cannot be compromised.
In response to these concerns, home security providers have the opportunity to offer combined bundles of device protection plans and data privacy services. By leveraging their expertise and trusted relationships with customers, they can deliver advanced safeguarding and home monitoring systems that address the evolving threat landscape. This approach not only lowers the barrier to wider smart device adoption but also increases consumer confidence in adopting new products.
Data security and privacy are crucial for the success of smart homes in the future. Parks Associates’ research shows that approximately half of consumers with connected devices have experienced data privacy and security issues. As the number of connected devices in a home increases, so does the level of risk and anxiety about data privacy.
To overcome these challenges, leading tech giants, OEMs, and start-ups need to address privacy and unauthorized access concerns directly. They must develop practical solutions and cybersecurity features that guarantee consumer data remains protected. By offering monitoring subscriptions and holistic protection features, these companies can entice consumers to explore and commit to device purchases, thus embracing the connected home model.
Companies seeking to provide value-added services for the smart home market must think strategically and tailor their offerings to two different constituencies: prospective purchasers and existing owners of smart devices. By doing so, they can address the fears of consumers and become trusted advisors in helping them choose additional smart home devices.
Building trust in the smart home is crucial, as only 37 percent of consumers trust companies with access to their personal data. Add-on security services for smart devices can address this lack of trust, with 67 percent of consumers showing interest in a cybersecurity add-on that guarantees their equipment cannot be monitored or controlled by unauthorized people. By delivering peace-of-mind services such as self-monitoring alerts, premium technical support, advanced data privacy solutions, video storage, and warranties, security providers can restore confidence in the smart home vision.
Ultimately, security providers and smart home device manufacturers have the opportunity to add value to their offerings by diversifying into additional service elements that deliver peace of mind to customers. These services not only incentivize consumers to purchase new devices and expand their smart homes but also strengthen customer relationships. By addressing data security and privacy concerns, these companies can positively reset consumer expectations and fortify the secure smart home of the future.