I am losing money! Customers are not using my IoT system as they are supposed to!
LM: First of all - congratulations! Your system delivers value for users! Not every IoT deployment does.
Owner: But customers are not using my IoT system as they are supposed to and I am losing money!
LM: That is often the case when customers are interacting with the solution differently than estimated in the business case. Predicting the running costs of an IoT ecosystem is a tricky task.
Owner: What can I do about it? I can not afford to provide a service that costs me money.
LM: I suggest you analyze the gathered data to understand how your customers are actually interacting with your IoT system and why they are doing so (what benefits they gain this way). You created a valuable offering for your customers without knowing it.
Once you discover the how and why motivations of your customers, you are ready to fix your situation.
Proposed solution
Think about value-added services you can offer to your customers that meet their needs. This might require some additional investment (const of development), but you have the proof of the existing business need and data on how to satisfy it.
Before spending money on the development, create an appropriate business case (or re-evaluate the existing one). How can you monetize this new functionality?
How much customers are willing to pay for your services? What could you add to your existing offering as a value-added service? You understand your customers better than when you designed your initial solution - use that knowledge to design a better and profitable service.
To get even more data, conduct a short survey. Ask your customers if they would use your new service and how much would they pay for it.
Do the math and calculate the expected income vs predicted expenses. Hopefully, you can find a solution that will deliver value for the customers at an acceptable price while being profitable for you.
Reach out in case of any questions! I’m happy to help :)
