Zac Amos – October 28, 2024
Collected at: https://www.iotforall.com/how-can-the-iot-industry-regain-consumer-trust
Cybersecurity enthusiasts and techies alike have had a rocky relationship with the Internet of Things (IoT). Data compromises and compliance oversights riddle the industry, and it’s time to improve consumer trust in IoT. But how can tech companies convince customers to trust them again?
What Is the Importance of Consumer Trust in the IoT Sector?
Why should the IoT industry care whether or not buyers trust it, especially when smart tech is the trendiest it has ever been?
Adoption and Market Growth
Upward momentum won’t last forever, even if the number of connected IoT devices is projected to rise by 13% by the beginning of 2025. Consumer confidence equates to repeat integrations. One IoT device becomes 10 if shoppers are willing to invest in companies, but if businesses are known for being insecure, they won’t reconvert.
Data Privacy and Security
IoT companies are responsible for collecting customer data and making it usable. People who don’t trust their devices to handle this won’t hand anything over, especially if it’s sensitive. Personal information is some of the most powerful for IoT devices, so consumer trust encourages thorough corporate risk mitigation.
Brand Loyalty and Reputation
More than 80% of all businesses have one or more data breaches in the modern age. Devices that are hacked make headlines and tarnish long-term relationships with shoppers. Reputation management is crucial if a company wants to maintain long-term relevance, primarily when the market is oversaturated with all things IoT. Placing importance on buyer loyalty prompts companies to source and act upon customer feedback.
Regulatory Compliance
Users are more likely to be trustful if an enterprise complies with regulations. Companies that want to keep those promises to customers will update compliance as needed. Some of the most critical guiding bodies are:
- Laws like the General Data Protection Regulation or the California Consumer Privacy Act
- Standardization organizations like the International Organization for Standardization
- Regulatory agencies like the National Institute of Standards and Technology
Crisis Management
Reputable businesses are better equipped to handle emergencies and failures in their technologies. IoT providers that come back from a breach gracefully can hold onto consumers without monumental losses. Rebuilding during the aftermath is easier if users perceive organizations as responsive and attentive.
What Causes Low Consumer Trust?
Low IoT trust gradually solidified because of three main trends — security breaches, privacy violations, and poor use experience. What are some examples of the most influential disasters?
Smart vacuums became the subject of negative press in 2022. They were snapping images of people in their homes to train AI algorithms without consumers’ consent. Companies claimed buyers signed agreements upon usage, allowing data harvesting. If this was the case, the permissions weren’t visible enough to be widely acknowledged by a layperson.
Amazon came under fire from customers because its Alexa devices were recording people’s conversations. Despite users knowing it is a voice-activated digital assistant, shoppers didn’t anticipate it always being on in this regard. Google and Apple were called out for this too, until it made consumers anxious about what they were using these recordings for. In the last several years, it became popular for tech publications to create guides on how to disable these features to keep users safe.
Additionally, the New York Times’ famous Wirecutter publication, which recommends tried and tested technologies, put a pause on its advocacy for the Wyze smart home suite. The Times acknowledges Wyze has experienced multiple security incidents from 2022 to 2024 and failed to properly address its vulnerabilities. IoT companies must pay attention to incidents like this. Publications with high readerships who rescind their endorsements could prove fatal to corporate growth, research, and innovation.
What Can IoT Companies Do to Earn Consumers’ Trust?
Establishing proactive goals related to consumer priorities and pain points is the best way to address customer trust. These manifest through technological enhancements, updated compliance, transparency, and education.
Devices that are recalled or face hacker threats need updates and boosted cybersecurity hardware. Companies are responsible for pulling unsafe products and making adjustments based on industry-leading recommendations. This is also an opportunity to reinforce staff training by requiring updated certifications curated for IoT security.
Users should also have greater control over their data privacy. They should be able to back up, delete, and access what they want through a user-friendly interface. This helps them build data literacy while having greater agency over what companies and threat actors have access to.
Accessible transparency must be the pillar behind all improvements. Buyers who have questions about security should get answers in an understandable, reliable format. It should explain what encryption measures the company uses, how it responds to breaches, and what it does with consumer data. Transparency documentation should also lead users to additional resources so they can verify compliance with data protection regulations.
Trust in Technology
IoT has limitless potential to enhance people’s quality of life and workplace productivity. Nobody will leverage it if it’s known for being unsafe. The sector has a chance to bounce back from its lows by engaging with customers and amplifying their device standards. Balancing these objectives will improve IoT’s reputation and secure it for the future.
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