Appliance makers are befuddled, wondering why consumers are choosing not to connect their appliances to the internet.
Many mid and high-end appliances come with a host of connectivity options. Appliance makers are, unfortunately, getting on the subscription bandwagon, using the data they collect from smart appliances to sell their customers additional features, subscriptions, and replacement parts — the latter being arguably the only valuable option of the bunch.
Companies just have one big problem, according to The Wall Street Journal: customers are not embracing the tech. In fact, LG says less than half of its customers have connected their smart appliances. Whirlpool places the number at more than half of their customers, but they don’t provide any specifics.
“We want to continue to leverage the technology in the product,” said Whirlpool CIO Dani Brown.
Henry Kim, US director of LG’s ThinQ, was more pointed in his take:
“We do believe that connectivity will solve a lot of problems that we encounter in terms of really understanding customer insights and consumer behavior,” said Mr. Kim, “And without the connectivity it is going to be very difficult for us to do that.”
Appliance makers face two major challenges to getting consumers on board. The first challenge involves keeping consumers connected through router changes since the devices have to be reconnected whenever the home network equipment is replaced.
The bigger challenge, however, may be simply convincing customers their data won’t be misused and abused. Smart TVs and appliances have been around long enough for many consumers to have heard the warnings about how such appliances are glorified surveillance devices and are choosing privacy over convenience.
Unfortunately, it seems the appliance makers have yet to get the memo.
“The challenge is that a consumer doesn’t see the true value that manufacturers see in terms of how that data can help them in the long run. So they don’t really care for spending time to just connect it,” added Mr. Kim.
Perhaps, Mr. Kim, it’s not that consumers don’t see the value to manufacturers. Perhaps, just perhaps, consumers simply value their own privacy more than what manufacturers want.