The Customer Journey or Discovery Process
There are two approaches to the IoT products marketplace. You either have a product out of the box, in which case you showcase all your capabilities, proof of concepts, specifications, compliance, certifications, and industrial requirements to which the product conforms. A potential customer goes through your catalog of products and connects if he feels like something has piqued his interest. Suddenly he may give a call and ask over the phone, “Oh so what all does this smart temperature sensing device do? Does it also work for cold storages? To how many sensors does your product scale? Does it work for confectionery and processed food markets which have stringent temperature and humidity control requirements?”
After the initial set of questions, the customer then gets to the core of his requirements, “but do you have something which … “, and then you hear all the special set of requirements which the customer has in mind. Once you hear the requirements, you know (and the customer knows) that it needs some customization.
This brings us to the dichotomy of selling IoT products. Most startups create POCs and working products which they try to sell in the market. They showcase it online and create inbound marketing campaigns to attract customers. However, what some startups claim is this - creating out-of-the-box solutions in an IoT market does not work very well and can be counterproductive to their sales actually. We need to know what the customer really wants. Why so?
Every Customer Has Special Needs
“Customers have specific requirements and your product needs to be customized. Out of the box seldom works unless it is industry-specific.”
Can we make a completely “generic” all-purpose IoT device? Something say, as simple as a temperature or humidity sensing device? The more generic and general-purpose the product, the more the cost! Size, shape, and form factor may still need some tweaking since it depends on the site/location where the customer intends to use this device. Any IoT device which is generic enough may not be the cheapest or best option available to the customer.
Customers Do Not Want to Commit to Anything Which They Have Not Seen Operating as per Their Needs
Now this seems like a contradiction of sorts. When it comes to the software market, customers are happy sharing their requirements and in turn be provided a customized or turnkey solution! They are willing to pay and this is a fairly well-accepted mode of working.
Then why not the hardware or IoT market? Why are customers hesitant collaborating with an IoT product company, share their requirements, and get a working prototype made? The answer to this question lies in the way the consumer hardware and electronics market has evolved over the last century. When customers look for an IoT product or solution, which is a hardware solution with an electronic sensor part to it, they have been trained to get “out of the box” solutions - very similar to other consumer electronic devices and contraptions. The perception that hardware can be “customized” just like software is still not a widespread notion.
The perception a typical customer has is - “Someone must have already cracked this problem and hence found a solution to it”. It does not look right that I have something unique or I should engage with someone to find a hardware solution catered to my needs since I would not be the first one asking for such a device! Can I get something working out of the box. I do not want to spend too much time waiting for all the customizations I may need.
Also, if I ask them to build something tailored to my needs, it may turn out to be an expensive affair or be practically unusable at all. In fact, I am not even sure what all requirements I may have in the future or discover along the way? And how am I supposed to test this device and figure out that it’s the right product for me and my business needs? There are too many questions buzzing in the mind.
Surprisingly, the software industry over the last few decades has “thrived” upon the very fact that customization and turnkey solutions are equally important as out-of-the-box products. However, the same is not a prevalent notion in the hardware, embedded, or electronics industry. This is a perception which the industry leaders will have to change. Industrial and commercial-grade IoT products would need to be sold as solutions which are “customizable” and “programmable” to the common man. They would have to be educated and the perception needs to be molded that they are not limited to getting only out-of-the-box solutions. Also, such out-of-the-box solutions may or may not be most suitable for their business and that it is ok to ask for customization.
But Then There Are Customers Who Are Willing to Partner with Potential IoT Solution Providers
The common perception when selling IoT products has been this. Customers want the product owner to “create” a POC before they commit to a purchase. The number of consumers who are willing to fund or pay for the customization are few and far between. They just want their hands on a working solution and get an experience very similar to what they get when they go to a local electronic store. Just talk to the salesman or shop owner and be guided to the best fit solution literally “out of the (cardboard) box” and walk off by ordering N number of units of the same.
As experience shows, it is only the people who have an idea about the IoT/embedded space who understand this field who partner and show willingness to get the customization done. Although, it is prevalent in the software industry to get customized solutions, probably the problem which IoT product manufacturers face when asking customers for customization is another one. The problem is…
Customers Do Not Know What They Want!
Customers want to see something working for which they do not want to burn any money. They want to see something foolproof and workable for their requirements. They are jittery trusting their own instincts and are not sure that they know everything under the sun under which this IoT device or contraption is supposed to work. They want the “specialists” to figure out on their own and give them the product which they (need to be educated on) is the best fit for their requirements.
The above issues come from the way the consumer has been trained to look for hardware or electronic devices. The RadioShacks, Home Depots, and other stores have spoiled the average customer. The customer is trained to expect a “solution” which the experts have already figured out and suits their needs. They expect the solution to be already sitting somewhere on some aisle and some shelf “already”, assuming that the experts would already have figured out some solution and produced a working product for it. It is only a matter of them inquiring about it and they will be guided to the store and the aisle number on which it can be picked up, ready to work. I am not really supposed to ask them to make something specially for me! That does not sound right! After all, I am not an expert and I may not know what all the product is really supposed to do?
So How Can the Industry Perception Be Molded?
This is where the industry leaders need to spread awareness at many levels along the following key activities.
- Showcase products which have been very successful post hardware customizations. Showcase such products which have been more successful than their “off-the-shelf” counterparts.
- Make industry leaders and key decision-makers aware of the “hardware studios” which have made successes for their customers. Educate users how partnering with them for your needs can actually make their products more successful.
- Since there is a common perception that hardware solutions have higher turnaround times, they still need to be educated that this is true of all their competitors too and that the product timelines would need to incorporate this point. The sales and marketing teams should plan likewise.
- Promote hardware consultancies (like software consultancies) and highlight successful stories.
- Educate people more on the “next level for IoT platforms” available. After the customer has toyed around with Arduino and Raspberry Pi based solutions for an introductory or POC kind of an application, he is not aware of the channels or resources which can help him take this POC to the industrial-grade IoT product or hardware that he envisions.
