When it comes to privacy, consumers are willing to toss it out if it means saving money : Roughly half (50%) of US broadband households are willing to share data and device control for discounts on electricity.
Research firm Parks Associates, in the 360 View Update: The Value of Data—New Smart Home Business Models report, found that interest is consistent across different product categories, with 51% of smart thermostat owners, 50% of hot water heater owners and 48% of owners of smart clothes dryers willing to share data and control for electricity discounts.
“The real value from the internet of things will be derived from the data collected by smart products,” said Tom Kerber, director of IoT strategy at Parks Associates. “In general, IoT industries agree that the consumer owns the data from smart products and that smart home solution providers are the stewards of the data. Given this reality, it is essential for all IoT players to understand consumers’ willingness to exchange data for services, their views on privacy and security, and the conditions under which they will grant access to their data.”
Parks Associates also found that 40% to 50% of consumers are willing to share data under some circumstance when presented with a variety of non-monetary incentives.
“Consumers are more likely to share data for non-monetary value related to warranties, product improvements, product education and remote technical support,” said Brad Russell, research analyst at Parks Associates. “They are less likely to share data to receive product recommendations or to simplify ordering consumables. For data-sharing programs to be successful, service providers and utilities need to ensure they are communicating value propositions that align with their consumers.”