If you grew up in the retail industry, you know that success in this space depends almost entirely on your ability as a retailer to develop strong relationships. Basically, the act of a retail transaction is based on the relationship between the customer and the retailer. But that's just the tip of the iceberg.
(Image credit: Nationwide Marketing Group) Retail relationships extend to the brands that line store shelves, the distributors whose products they ship, the service providers they turn to to help keep their store running smoothly. efficiently and even other businesses in your community. Of course, there's also the relationship between the retailer and their buying group, which our team at Nationwide Marketing Group knows a thing or two. See also: What is a smart home? It is these very relationships, and how you as a retailer can leverage them in your day-to-day operations, that will help you stand out from the competition and stand out in this new era of selling a connected home experience.
The smart home opportunity
Whether we like to admit it or not, technology is rapidly seeping into every corner of the house. At CES 2020, we saw sensors and smart technologies in everything from appliances and toilets to mattresses, furniture, and more. This technological transformation should not worry the independent distribution channel. On the contrary, smart home technology presents a great opportunity for local businesses to enter this market, educate their buyers and develop relationships that help them create customers for life. Oh, and there's a dollar or two up for grabs, too.
(Image credit: Nationwide Marketing Group) According to data from Google, the connected home industry represents a $490 billion annual market. But there's plenty of room for that number to grow exponentially. Statista's analysis shows that only 32,4% of households in the United States have at least one smart home device installed, and that number is expected to surpass 52% by 2024. What's more exciting are the results in More than 42% of new Google Nest buyers purchase another smart home product within the first month of their initial purchase. That's a ton of potential revenue just waiting to be sucked into the independent retail channel. To get there, retailers must overcome two major hurdles: raising awareness of smart home technology and educating consumers on how it all works. Part of the challenge has been the lack of tools and resources available to help them bridge the gap with their customers. The first step should be to look at your buyer pool to see what opportunities exist in the connected home space. Which products (or groups of products) are available to you. Evaluate what's on offer from a marketing perspective and don't be afraid to dive into this new and growing category. For Nationwide members, the Google Nest Prime Retail program is an example of that level of product access that consumers are actively seeking. This includes things like security cameras, smart speakers, smart doorbell cameras, Wi-Fi routers, hubs, thermostats, smart plugs, and more.
(Image credit: Nationwide Marketing Group) The connected home is a topic of customer discussion and can transform your store into a smart home destination in your market. However, smart devices only tell part of the story when it comes to the connected home. To connect and control all of these products at home, you need an Internet connection and wireless service. Consider stepping outside of your comfort zone a bit and exploring opportunities in the wireless and home internet categories. Without this connectivity, the smart home cannot exist. Nationwide Marketing Group's solution in this regard was to partner with AT&T to offer members a program that allows them to sell smartphones, wireless services, broadband internet, entertainment services and more. It is imperative that the retailer is able to paint a complete picture of what the smart home looks like, how it is assembled and how it works.
An evolving retail experience
Smart home technology has had a huge impact on the home experience. But it has also had a huge impact on the retail experience, from the way consumers search for these products to the physical checkout process and the way products are served.
(Image credit: Nationwide Marketing Group) Technology will continue to evolve at breakneck speed, and today's successful retailers must evolve along with it. Careful attention should be paid to everything from how these products and services are displayed in your store, to how you help deliver and install them at the customer's premises, to the kind of response you can give when this customer is having technical difficulties with their system. . . Whether through vendor partners you've partnered with or programs available through your purchasing group, mapping the entire customer journey is essential. Serve as a bridge between your customer and the promise of a truly connected lifestyle. For the unaware and unassuming shopper, this technology can be downright intimidating and maybe even a bit off-putting. Change that narrative for them. Show them why the connected home is important. And don't be afraid to call on your partners, perhaps even the Nationwide Marketing Group, to help you capture a piece of this huge business opportunity.