A medium-size technology company, well-established in a niche commercial market for room control and automation, had opportunities to expand into the residential market. C-suite customers requested similar capabilities designed for their offices, in their homes. Interest was initially generated by word of mouth and installation was executed by the same commercial dealer channel.
Sales grew slowly but steadily, until the residential business plateaued. The company sensed a much broader market opportunity but were unsure how to capture it.
After interviewing several stakeholders, including internal sales and engineering teams, dealerships, and customers, I identified three critical issues to address. First, the market perceived the company as offering commercial or industrial products rather than consumer products for the home. Second, the technology was perceived as complicated and costly to purchase and maintain. Third, the user experience was inconsistent and cumbersome.
I proposed spinning off a separate business unit focused on the affluent to high-net-worth home market. The SBU would have a new brand identity, consistent with, but differentiated from the established commercial brand. All new communication channels would need to be established, including a new website, social channels, blog, showrooms, and trade show booth designs.
The new division was distinguished as a luxury lifestyle brand rather than a technology manufacturer. The marketing approach shifted from relieving “pain points” to enabling and amplifying “passion points.”
Instead of custom programming each system and creating a bespoke user interface (touch screen design and layout) for every customer, I advised the company to provide a branded user experience with limited customization options. The technology had to be simple, scalable, and repeatable. The UX needed to be clean, modern, consistent, and simple. This approach removed complexity as a barrier to entry. Further, the total system cost for the consumer would substantially decrease while enabling the installer to maintain higher profit margins and increase operational capacity.
A “home” brand was established with new positioning as delivering the ultimate luxury lifestyle; a new promise of comfort, convenience, and peace of mind; a new persona of distinction and class; and new expressions, such as color palette, font, visual language, and professional associations.
Sales increased double digits YoY for the next several years, even surpassing the commercial business at certain points.
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