New Feature Optimization

Client Need

As a leader in home security, Arlo sought to push the boundaries of innovation with next-generation features like facial recognition and seamless device integration. However, launching these new offerings required more than just technical know-how—it meant understanding how potential customers would perceive and adopt these ideas. The challenge: uncovering the right combination of features, messaging, and target audiences to turn innovative ideas into increased revenue.

Methodology: Feature and Service Research

We partnered with Arlo to design a two-phased research program that would provide actionable insights into customer attitudes and preferences:

• Phase 1: Quantitative Discovery
  Through a survey of over 600 homeowners aged 35–44, we identified key attitudes toward home security, evaluated barriers to adopting new features, and quantified the relative importance of Arlo’s new offerings using advanced techniques like MaxDiff analysis. TURF analysis further revealed the optimal bundle of advanced services and features to maximize Arlo’s reach.

• Phase 2: Qualitative Exploration
  To dive deeper into customer motivations, we conducted a series of partner focus groups with couples, fostering open and honest discussions about their reactions to new feature concepts. This unique approach uncovered emotional barriers and helped refine messaging strategies to build trust and excitement.

Results

The research gave Arlo a roadmap for positioning its new features, including a clear understanding of how to minimize rejection and drive acceptance. The impact on the business: Record service revenue of $61.9 million, marking a 21.2% year-over-year increase.

By identifying and addressing customer needs at every stage of the innovation process, Arlo not only delivered groundbreaking features but also achieved unprecedented growth in its service revenue.