In 2022, home robot company iRobot will be acquired by Amazon for $1.7 billion. How did a company that initially specialized in military and aerospace robotics become such a success story? By swinging through the IoT industry, iRobot has been able to beat the market. Today, more than 40 million robots have been sold, making the Internet of Things the winning formula for iRobot.
If the first mention of the Internet of Things goes back to 1999 American intervention Kevin AshtonThe interconnectedness of the Internet and things has really blossomed over the past 10 years. It offers endless opportunities for the industrial sector, which thus began one of the greatest revolutions in its history: the migration to a new strategic roadmap crucial to its survival. But to succeed in this transition, companies must follow these three commandments to the letter.
Abandon transactions for relational
The pandemic and the containment measures implemented around the world have brought about a rearrangement of the consumer society as we know it. Forced to stay at home, people preferred basic acquisitions, and also during this period the number of subscribers in France increased. This new situation has had an unprecedented impact on companies and their priorities. The product is no longer property and possession has become an obsolete commodity, passing into the background behind the idea of use.
A good example of this transformation is the American company GoPro It saw its economic model weaken in 2020. In the midst of the pandemic, the manufacturer was forced to announce mass layoffs, hit hard by the disruption to travel and other outdoor activities. Society must then urgently reinvent itself. In response, it chose to accelerate the growth of its subscription offer. With very tangible results: In 2021, one year after the company’s strategic transformation, GoPro recorded an increase of 109% of the number of its subscribers. To make up for the drop in income caused by the restrictions, GoPro had the necessary flexibility by adding a new category of income but also by expanding the customer relationship.
Moving from individual pricing to dynamic monetization
What is the best example of dynamic monetization from the media sector? Convulsed by growing disillusionment with its audience and declining advertising revenue, the industry had to win back its audience, while securing a revenue base. Therefore, the media became specialized in collecting data about their customers. These allow them to understand their preferences, to suggest the offer best suited to their needs. In this way, the identity of the customer is hidden and the brand is able to show adaptability and understanding.
This type of strategy has been implemented before The New York Timesthat are targeting now 15 million subscribers by 2027. But we must also move to a sector SVOD Especially Amazon Prime Video. The user pays for the Prime offer who can later add other channels according to his needs and desires. Sports fans can complete their subscription with a Ligue 1 extension and families can opt for TFou Max, for example. Far from being overwhelmed by the proliferation of offers and prices, subscribers can choose the ones that suit them best and pay the right price. A clever way for the company to retain its most loyal customers and attract a new potential audience, which is part of an underlying trend. In fact, according to the Joint Research Center, in 2021, 26% affiliate French It is considered that the Reduce costs was one of Key benefits of subscribing The diversity of offerings came second (25%).
Breaking the product life cycle
Fast fashion and social networking have become symbols of our society where everything goes out of style and outdated. Numerous studies support the phenomenon of consumer fatigue. Therefore, companies are drawn into an upcoming race, looking for the product that (maybe) will make a splash. However, this dynamic does not create a virtuous circle for consumers, companies, or even the environment. It becomes imperative for companies to change their way of thinking by moving from a transactional model to one based on the customer relationship. In this case, the company must ask itself the question: “What do our customers want?”. The answer is quite clear. Indeed, L.N 73% of the Frenchthe Product durability is guaranteed by subscription offers It is one of the main motives for signing up again according to the same study.
The challenge now is to create a viable product over the long term, accompanied by a suite of service offerings capable of sustaining the use of the asset. Handrail, one of the leading guitar manufacturers, well understood this. By definition, one of their products can be purchased by both an experienced guitarist and a beginner. To support its customers and improve their experience, Fender has created a subscription offer to take advantage of tutorials to learn to play the guitar. To date, the company records 200,000 subscriptions. By changing its strategic roadmap, Fender has broken the life cycle of its products while creating a true customer relationship and experience.
To paraphrase Americans, companies must now ask themselves if they want to prioritize their ability to be business income or one business results. In other words, should the company focus on its products and profits or rather on its customers, people and environment?
Only by asking this single question will companies then be able to start their revolution and adapt to the new consumer society.
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