The home insurance market is becoming increasingly competitive, as more players move into the market and existing competitors jostle for more market share. On top of that, 74 percent of Americans say they shop around when looking for a new policy, and almost all of those insurance shoppers report saving money. But for some insurers, the time may be ripe to employ another ways to stand out from the pack, notes Kate Rojas, VP of Marketing for Notion.

"Many insurance companies are looking to move the conversation away from price alone – using smart home technologies as a differentiator," says Rojas. "But understanding when to offer a smart home program and knowing some tips for success can help make your program more impactful."

Considering smart home technology

For those insurance companies that haven't adopted smart home technologies over the past several years, one consideration may revolve around timing. Rojas recommends evaluating the following criteria to determine if a smart home technology may benefit your company.

Retaining customers is a top priority. Customer expectations are rising, and insurance companies need a way to communicate with customers outside of the typical interactions, such as annual renewals or claims activity. Smart home technology allows insurers to provide ongoing value and engagement to promote more policy renewals.

Attracting more customers is an important strategic goal. Customers are comparison shopping more than ever and need a good reason to select your policy. Smart home technology provides a much needed "tipping point" between you and a competitor.

Customer lifetime value has room for improvement. Smart home technology helps reduce claims risks, such as water incidents, which is a top goal for many insurance companies.

"When you have fewer overall claims, the cost of maintaining each customer is lower," says Rojas. "Additionally, if a customer receives a discount for using this technology, that is another promoter of retention."

How to make your program more successful

As you look to launch a successful program, stakeholder alignment is critical: you need to get everyone on board and put the right resources in place to support the program. Also, consider starting small so you can show results and strategically expand the program.

Rojas suggests some insurers getting used to a new smart home program try it in stages, such as through different channels or on a regional level before rolling out state by state.

Drive impact for your customers and your bottom line

What's important is to be clear about your goals, whether it's retention, attracting new clients or reducing claims. But it's worth it, as the benefits from a smart home program make for a happier customer, and a healthier bottom line.

"It's a great story for their shareholders," says Rojas, "and if it pairs well and actually helps with the lifetime of that customer as well, it's actually a win-win."