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Go-to-Market Strategy for smart locks

Discover the ultimate go-to-market strategy for smart locks and learn how to successfully launch your product in the market.

Smart locks have become increasingly popular in recent years, with the market expected to continue its upward trajectory for the foreseeable future. If you're looking to bring your smart lock product to market, having a solid go-to-market strategy is essential for success. In this article, we'll cover the key components of a successful go-to-market strategy for smart locks, from market analysis to pricing and revenue models, and everything in between.

Understanding the Smart Lock Market

Smart locks have become increasingly popular in recent years due to their convenience and security features. They allow users to lock and unlock their doors remotely, monitor who enters their homes, and provide access to trusted individuals without the need for physical keys.

Market Size and Growth Potential

According to a recent report by Grand View Research, the smart lock market is projected to grow at a CAGR of 12.5% from 2020 to 2027. By 2027, the global smart lock market is expected to reach USD 4.26 billion. This growth is driven by factors such as increasing adoption of smart home technology, rising concerns about home security, and the convenience of keyless entry.

Key Players and Competitors

The smart lock market is highly competitive, with key players such as August Home, Kwikset, Schlage, Yale, and SimpliSafe. These companies offer a range of smart locks with varying features and price points to cater to different customer needs. August Home, for example, offers a smart lock that can be controlled via a smartphone app, while Schlage offers a smart lock with built-in alarm sensors.

Target Customer Segments

Smart locks appeal to a range of customer segments, from homeowners and renters to small business owners and property managers. Homeowners and renters appreciate the convenience of keyless entry, while small business owners and property managers can benefit from the ability to grant access to multiple individuals without the need for physical keys. It's important to understand the needs and pain points of your target customer segments when developing your go-to-market strategy.

Market Trends and Opportunities

One of the key trends in the smart lock market is the increasing demand for integration with smart home platforms, such as Amazon Alexa and Google Assistant. This allows users to control their smart locks using voice commands and to integrate their locks with other smart home devices, such as security cameras and doorbells. Other opportunities in the smart lock market include the development of smart locks with enhanced security features, such as facial recognition and two-factor authentication. These features can provide an additional layer of security for users and help to differentiate products in a crowded market.

Defining Your Unique Value Proposition

As the market for smart home technology continues to grow, it's important to develop a product that stands out from the competition. Your unique value proposition should clearly communicate the benefits of your smart lock product and why customers should choose it over other options.

Product Features and Benefits

When considering the features and benefits of your smart lock product, it's important to think about what will truly set it apart. While ease of use and remote access are important features, consider taking it a step further. Can your smart lock integrate with other smart home devices, like security cameras or lighting systems? Can it be customized to fit the unique needs of individual customers?

Another important consideration is the level of security your smart lock provides. Does it offer advanced encryption technology or multiple layers of authentication? Communicating the benefits of these features to potential customers can help you differentiate your product from competitors.

Competitive Advantages

Identifying your competitive advantages is crucial when developing your go-to-market strategy. Take a close look at your competitors and think about what sets your smart lock apart. Perhaps it offers a unique security feature, like facial recognition technology or voice activation. Or maybe it has a more affordable price point than other options on the market.

Whatever your competitive advantage may be, make sure to clearly communicate it to potential customers. This can be done through marketing materials, product packaging, and even in the product name itself.

Addressing Customer Pain Points

Smart locks are designed to solve a range of customer pain points, from the inconvenience of carrying keys to the need for enhanced home security. Understanding these pain points and addressing them in your product design can help you develop a product that truly meets customer needs.

Consider conducting surveys or focus groups to gather feedback from potential customers. This can help you identify pain points that may not be immediately obvious and develop solutions that truly address customer needs.

Aligning with Market Needs

Your smart lock product should align with the needs of your target customer segments and the broader market. Conducting market research can help ensure that your product meets market needs and stands out from the competition.

Consider factors such as price sensitivity, preferred features, and brand loyalty when developing your product. By aligning with market needs, you can increase the likelihood of success and ensure that your product resonates with potential customers.

Pricing and Revenue Models

Bringing your smart lock product to market requires careful consideration of pricing and revenue models. In this section, we'll explore some key strategies to help you make informed decisions.

Pricing Strategies

One of the most important decisions you'll make is how to price your smart lock product. There are several pricing strategies to consider, including:

  • Cost-plus pricing: This involves adding a markup to your production costs to determine the final price of your product. It's a straightforward approach that ensures you'll make a profit, but it may not be the most competitive pricing strategy.
  • Value-based pricing: This involves setting your price based on the perceived value of your product to your customers. For example, if your smart lock offers unique features that make it more convenient or secure than other products on the market, you may be able to charge a higher price.
  • Competitive pricing: This involves setting your price based on the prices of your competitors. If you're entering a crowded market with many established players, this may be the best approach to remain competitive.

The pricing strategy you choose will depend on a range of factors, including your production costs, the value proposition of your product, and the pricing of your competitors.

Subscription vs. One-Time Purchase

Another decision to make when developing your pricing strategy is whether to offer a subscription-based model or one-time purchase option. Subscription models can lead to more predictable revenue streams, which can be beneficial for your business. However, some customers may prefer a one-time purchase option that doesn't require a monthly fee.

Consider your target market and their preferences when making this decision. You may also want to offer both options to give customers more flexibility.

Bundling and Upselling Opportunities

Bundling your smart lock product with other related products, such as home security systems or smart home hubs, can provide upsell opportunities and increase overall revenue. By offering a package deal, you can entice customers to purchase more products from your company.

Additionally, offering premium features for an additional cost can help you capture additional revenue from customers who are willing to pay for added convenience or security.

Profit Margin Considerations

It's important to consider profit margins when developing your pricing and revenue models. You'll need to ensure that your pricing is high enough to cover your production costs and leave room for profit, while also remaining competitive in the market.

Consider conducting a thorough cost analysis to determine your production costs and the minimum price you'll need to charge to make a profit. From there, you can adjust your pricing strategy to ensure that you're maximizing revenue while remaining competitive.


Developing a successful go-to-market strategy for your smart lock product requires careful consideration of a range of factors, from market analysis to pricing and revenue models. By understanding the needs and pain points of your target customer segments, identifying your unique value proposition, and developing a pricing strategy that aligns with market needs, you can set your smart lock product up for success in a competitive and growing market.

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