Nest – technology marketing that is hot and cold

If ever there was a market for for one of the hottest/coolest (excuse the pun) technology propositions the Nest thermostat it is the UK. One minute it’s sunny and warm but the next (and actually most of the time) it’s cloudy and cold. So surely us Brits are target market for better managing the temperature of their home.

 

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How much cooler does this Nest thermostat look than the drab old white or grey plastic thermostat that you have hidden somewhere in your house?

And that’s the great thing about this. By offering a thermostat that is attractive to look at and with a very simple user experience it actually means that you will interact with the technology to help you better control the temperature in your home and hence reduce your energy costs. 

The problem that they are hitting on is that if you’re like me your current thermostat is so fiddly to use and hidden that you simply don’t bother meaning that your energy consumption is very inefficient.

Even better the Nest thermostat uses smart technology to learn how you like your home temperatures and can regulate accordingly and also allows you to manage remotely via the web. This really promises to change the behaviour of how you manage your home energy. 

This then is a great example of breakthrough innovation technology marketing.

  1. Find a real customer need – improve home energy control and costs
  2. Develop a breakthrough proposition – a learning thermostat that you want to use
  3. Focus on customer experience – design an elegant and easy to use product
  4. Get people excited to talk about it – judging by the reviews in the US clearly the media and early customers are very happy to recommend the Nest

You won’t be surprised that the designer of this great looking product (Tom Fadell) was also responsible for designing the iPod.

It’s another great example to all of us that aspire to developing winning technology propositions to focus on how we want the customer to engage with our product.

While I wait for this great product to come to the UK I’ll just have to hope it gets sunnier again soon.

 

 

 

E.ON – the wrong time to stop innovating!

I don’t think there is ever a good time to stop innovating – in fact I believe it is a core value to drive innovation on a daily basis for all successful businesses.

So I was amazed to see that E.ON – one of the UK’s leading energy suppliers – is to close its innovation arm.

Energy brands are often viewed as a commodity service and consumers are encouraged to switch suppliers based on the latest price deals – especially true when their prices are regularly increased as they are at the moment.

This is exactly when innovation needs to play it’s part by adding new value to customers.

Surely there are lots of opportunities for E.ON to help us change our consumer behaviour and usage of energy. Not just in providing innovations such as renewable energies and services that make our energy usage more efficient but also in amazing general customer service and marketing initiatives that create more valued & loyal customer relationships.

I’m sure that E.ON will say something like ‘innovation is core in our business and doesn’t need a separate business unit’ but from my experience a company as large and important as E.ON this is not enough to deliver the big changes that are possible.

At at time when there are a number of small businesses developing interesting new energy propositions such as the Nest learning thermostat in the US the big energy suppliers – like the big telcos before them – run the risk of becoming even more like a ‘price led commodity’ than ever before.

Still, all the time energy suppliers are able to set and follow their competitor prices in a ‘near-cartel’ fashion maybe they are content not to take the risk and effort to invest in innovation and simply suck-up the almost guaranteed profits that the sector provides.

I hope this is not about the lack of value of innovation to energy companies but perhaps more to do with their ability to harness and execute it properly in the business.