How to Monetize Connected Devices and Drive Smart Home Growth

In the rapidly evolving landscape of connected solutions, businesses grapple with challenges in monetization amid new technologies and heightened competition. Finding effective strategies to spur user growth, boost lifetime value, nurture customer loyalty, and deliver valuable services is no small feat. In this article, we explore how IoT brands are monetizing connected devices.

1. Adjust Pricing and Packaging using Subscription-Based Pricing Models

One of the most popular and effective monetization strategies for IoT brands is subscription-based pricing models. These models offer a variety of benefits for businesses, including recurring revenue, predictable cash flow, and the ability to focus on long-term customer relationships, all of which are cornerstones of a robust IoT subscription framework.

Three Advantages of Subscription-Based Models in IoT Applications:

  • Predictable Revenue: Establishing steady, recurring income streams for sustainable growth.
  • Flexibility: Tailoring subscription packages to cater to varying customer segments and budgets.
  • Scalability: Accommodating evolving customer bases and expanding services seamlessly.

To effectively monetize connected devices through subscription-based pricing, consider offering different tiers of service with varying features and benefits. This approach allows customers to select the service that best meets their needs, while also allowing you to upsell features and encourage them to upgrade their subscription level.

Another key aspect of successful subscription pricing models is offering flexible plans that cater to changes in usage patterns and customer preferences. Providing flexibility in subscription plans can help ensure customer satisfaction and increase user engagement by enabling them to adjust their subscription to best suit their needs.

Pepper enables businesses, such as Merkury Innovations, to seamlessly implement and manage subscription-based pricing models, offering different tiers of service with varying features and benefits. This approach fosters customer engagement and loyalty while driving revenue growth through upselling and recurring billing opportunities. 

2. Leverage IoT Data to Understand and Market to Strategic Cohorts

IoT generates an abundance of data, and harnessing this data effectively can be a game-changer for your monetization strategy. Understanding your customer base and identifying strategic cohorts through data analytics enables targeted marketing, optimizing your efforts for maximum impact.

Here are a few ways to leverage your IoT Data to drive smart home growth:

  • Segmentation: Segment your customer base based on behavior, preferences, and usage patterns.
  • Targeted Marketing: Craft targeted marketing campaigns tailored to specific customer cohorts.
  • Product Optimization: Leverage data insights to refine and enhance your IoT offerings. Understand what features are most valued by specific customer segments and tailor your product roadmap accordingly.

Unlocking the power of IoT data is crucial for a successful monetization strategy. By segmenting your customer base, crafting targeted marketing campaigns, and optimizing products based on data insights, you not only enhance the impact of your efforts but also set the stage for cultivating lasting customer relationships across the lifecycle. 

Pepper empowers businesses to leverage IoT data analytics to understand customer behavior better, refine product offerings, and deliver personalized experiences. By segmenting customers and tailoring marketing efforts accordingly, businesses can enhance user engagement and drive revenue growth and smart home growth.

3. Nurture Relationships across Your Customer Lifecycle to Grow Retention and Revenue

Customer relationships are the lifeblood of any successful business, and IoT brands are no exception. Building a solid foundation and maintaining these connections throughout the customer lifecycle is paramount for retention and revenue growth.

Start improving your customer lifecycle by working on the following: 

  • Onboarding Excellence: Provide a seamless onboarding experience to ensure customers quickly understand and maximize the value of your IoT solutions.
  • Personalized Communication: Leverage data insights to craft personalized messages, offers, and updates that resonate with your customers’ needs and preferences.
  • Proactive Support: Anticipate and address customer needs promptly.
  • Exclusive Offers: Reward customer loyalty with exclusive offers, early access to new features, or special discounts. Pepper enables you to effortlessly manage and execute these initiatives.

Connected solutions offer immense potential for revenue generation, provided they are optimized to meet evolving market demands. Pepper’s Platform as a Service (PaaS) facilitates product optimization by enabling businesses to refine IoT offerings based on proactive support, customer feedback, and data-informed insights.

Drive Smart Home Growth by Monetizing Connected Devices

In smart home and connected solutions, growing users’ lifetime value is essential for businesses looking to improve smart home growth. Building IoT solutions internally demands significant resources in terms of both time and expertise. Alternatively, collaborating with an IoT Platform as a Service (PaaS) provider, such as Pepper, streamlines the development, management, and monetization of innovative connected solutions.

Pepper collaborates with brands to design tailored subscription plans driving Lifetime Value (LTV) and Monthly Recurring Revenue (MRR) growth. By providing comprehensive user insights, customizable pricing models, and a marketing strategy to enhance user experience across the customer lifecycle, Pepper empowers brands to strategically monetize connected devices and grow predictably and sustainably.

With seamless user experiences and data-backed decision-making, learn how Pepper’s PaaS empowers partners to deliver customized monetization strategies for long-term success.

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