When it comes to digital lifestyle, consumers are looking for offerings that bundle telecommunications, entertainment, Internet, home security and energy management in one neat, easily accessible packaged service, according to the inaugural J.D. Power and Associates 2012 Digital Lifestyle Study.
“Referred to as a digital lifestyle service package, this integration of services is invoiced on a single bill and allows customers to digitally monitor and control several aspects of their lives simultaneously from their computer or handheld device, such as smartphone, game console or tablet,” J.D. Power explains in a press release.
“Consumers are looking for a way to consolidate invoicing and to manage their lives with easy-to-use digital packages,” elaborated Frank Perazzini, director of telecommunications at J.D. Power and Associates. “The challenge for consumers is finding an economically attractive service package that meets the feature and functional needs of their household.”
Forty-five percent of survey respondents indicated they’d choose a digital lifestyle package from a cable provider, 19% indicated they’d select a telecom company, 17% indicated a security provider and 10% an energy provider. Cable packages are especially appealing to those renting an apartment or home, J.D. Power found. Renters preferred a cable provider 48% of the time as compared to 43% of homeowners who responded.
Home automation is opening up big opportunities for businesses spanning several industries, J.D. Power notes. “Companies that are first to market are poised to gain the most from the convergence of these technologies,” Perrazzini continued.
“The key to the success of these integrated packages will be minimizing customer discomfort during the transition process—no surprise charges and no compromises in service, particularly where at least some of the existing service must be moved from another provider, such as a security alarm company.”
“Our research indicates that energy management is becoming an important pillar in the market for digital lifestyle services,” added Christopher Perdue, smart energy practice director. “These services may draw new customers, increase retention among current customers, and lead to new recurring revenues. There is huge value in information, and many companies are looking at ways to leverage consumer data to drive the next wave of energy management solutions.”
A majority of consumers would prefer a pricing plan with a low upfront payment and monthly installments as opposed to one with one higher up-front payment or to pay zero upfront and a monthly fee, J.D. Power found.
