Research Finds Manufacturers Underestimate Users’ Sentiments on Privacy and Ecosystem Needs

Perficient, the leading global digital consultancy transforming the world’s largest enterprises and biggest brands, today announced research findings featuring insights across product market categories to help shape connected products strategy. The research highlights commonalities and discrepancies between manufacturers and end users, both consumers and commercial users, regarding product usability, quality of integration within a larger connected ecosystem, most popular features and benefits, and what it would take to increase adoption and improve loyalty.

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Perficient Research Finds Consumers Rank Data Privacy as Top Connected Products Concern

Connectivity is quickly becoming a key factor in today’s market, from smart home systems and appliances to in-store capabilities. Manufacturers are accelerating their efforts to compete in this space within their market categories, yet consumers and commercial users are still navigating this new landscape of features and raising concerns about data privacy and security. As organizations shape their connected product strategies, integrating consumer sentiments like these is crucial to defining an effective strategy that not only meets manufacturers’ objectives but also propels their products ahead in the market.

Perficient conducted a study to gain a comprehensive understanding of consumer sentiments within the connected products environment, as well as manufacturers' plans for future products and features. More than 1,300 survey responses across industries, departments, and seniority levels revealed information that should inform connected product strategies.

"The goal of our research was to understand where users and manufacturers align or disagree on priorities and perceptions of connected products,” said Jim Hertzfeld, area vice president, Perficient. “What rose to the surface were discrepancies in the value of trust users place in a company’s data collection policies, as well as the current integration of these products into a larger connected ecosystem. By conducting research into customer needs, we can help manufacturers make more effective investments in product improvements, increase adoption, and explore new opportunities for revenue growth and loyalty.”

Research Findings Reveal Next Steps for Building a Powerful Connected Products Strategy

Perficient’s research found that consumers ranked trust as their top influential factor when deciding to purchase connected products. However, when connected product manufacturers were asked about the factors most influential to their customers' purchasing decisions, they ranked trust among the lowest. In addition, consumers reported that their primary concern about these products was data privacy, and only 19% of consumers felt they were “very aware” of the data being collected by these products.

Despite raising concerns about trust in data collection from connected products, end-user responses regarding benefits and future capabilities were overwhelmingly positive.

“It’s clear that consumers value connected products. To remain relevant and resilient in an increasingly crowded market, manufacturers need to shift from a product-centric approach to a solution-oriented strategy,” said Kevin Espinosa, manufacturing industry lead, Perficient. “A successful connected products strategy begins with manufacturers leveraging data to understand customer needs and address their reservations, and it ends with improved brand loyalty.”

The research offers further insights into the sentiments of consumers and commercial end users, as well as the priorities and plans of manufacturers. Connected product manufacturers can explore the data and consider next steps for their strategy, such as evaluating the state of their data collection and utilization, enhancing the user interface and customer experience, and implementing new revenue streams like subscriptions.

Visit Perficient.com to learn more about the results of Perficient’s connected products research study.

With a deep understanding of the challenges that manufacturers face, Perficient helps these companies develop intelligent strategies, implement appropriate supporting technologies, accelerate speed-to-market, and create exceptional customer experiences. For more information about Perficient’s connected products expertise, follow us on social media.

About Perficient’s Connected Products Research Study

Perficient surveyed end users and manufacturers of connected products to discover the factors influencing sales, user behavior, and future market trends. Perficient gathered insights from a total of 1,307 respondents across three surveys representing 23 industries, nine divisions, and five roles.

• The consumer survey was distributed to individuals identified as 18 years of age or older across North America who own and use connected products.
• The commercial survey was distributed to professionals who currently use connected products in their job at a company with more than 501 employees.
• The manufacturer survey was distributed to professionals currently working at manufacturers of connected products with more than 501 employees.

About Perficient

Perficient is the leading global digital consultancy. Our strategists, designers, technologists, and engineers enable the world’s largest enterprises and biggest brands to boldly advance their business and drive real results through the power of technology. We shatter boundaries, obsess over outcomes, and forge the future for our customers. For more information, visit www.perficient.com.

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