Earning Loyalty and Changing Minds: Consumer Electronics Nanocoatings
Ryan Moore | March 4, 2021
With global spending on traditional and emerging consumer electronics increasing at a five-year CAGR of 5.1%, there is no denying the market is growing. But so are the risks for OEMs. When a consumer device breaks before the end of its lifecycle, it doesn’t bode well for brands.
Many things can jeopardize a device, but the number one offender is liquids when it comes to electronic threats. Corrosion and short circuits can destroy hearables, wearables, and smartphones – literally, any consumer electronic device.
According to IDC, the annual cost of liquid damage related to smartphones alone is upward of $97 billion, and this doesn’t sit well with consumers, who proactively seek out devices with appropriate protection from liquid hazards. A recent survey revealed that the biggest draw for consumers was waterproofing. 66% of respondents reported that this feature meant they were “somewhat” or “much more” likely to purchase a waterproof phone.
View our market page on the impact of protection for consumer devices.
Waterproofing Boosts Brand Loyalty
Waterproofing does more than attract sales. Properly protected devices shape brands. Strong brands influence customer choice and create loyalty by making their products less “substitutable,” creating economic value by mitigating risk and generating higher growth and returns. Minimizing the risk associated with purchasing a device through waterproofing is a powerful way to garner loyalty.
Case in point, a recent survey sought to determine what influenced Millennials’ brand loyalty, and the most significant factor is reliability, as cited by two-thirds (68%) of respondents. The second most crucial factor was high-quality items given the price (54%).
Brand Loyalty Benefits
Brands that establish customer loyalty can lower expenses associated with capturing new customers and profit from strong relationships marked by repeat and ancillary sales. Consider smartphones. The initial sale is a one-time transaction. However, this sale provides the basis for addons such as extended warranties, cross-sales such as apps, and up-sales, such as music and cloud backup services. The revenue from these incremental sales can easily eclipse the initial sales’ profitability. The value of brand loyalty is evident, no matter what type of consumer device.
Damaged Devices Destroy Trust
On the other hand, repairs, warranty claims, and recalls can be detrimental to brand perception. After just one product recall, around 15% of customers will never buy the recalled product again, and 21% will not purchase from any brand associated with the manufacturer. With financial stakes this high, it benefits brands to ensure that their manufactured products work as designed, no matter the environment.
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How to Bolster Your Brand With Nanocoatings
To differentiate brands, change minds, and earn loyalty, design teams and OEMs need to think differently about protecting consumer devices from the environment. Mechanical seals and gaskets are a standard method for liquid protection, but they can easily deteriorate with time and exposure to harmful elements like liquids and chemicals. Besides being a reliability hazard, seals and gaskets are aesthetically unappealing and can add weight and bulk to devices in an industry that demands smaller form factors.
Nanocoatings, functionalized protective coatings applied directly to PCBAs, components, or devices themselves, present an ideal way to stand out in the crowd. Deposited with a defect-free process, plasma-enhanced chemical deposition (PECVD), nanocoatings draw from a wide range of materials and can be tailored to specific business needs.
Our HZO Sentinel Series of nanocoatings are hydrophobic, meaning that water rolls off of their surface. They are also resistant to chemicals and excel through robust testing such as Mixed Flowing Gases (a test that seeks to simulate the corrosive and harsh industrial environment). And at nanometer thickness, your customers can enjoy reliability with virtually any sized consumer device.
At nanometer thickness, your customers can enjoy reliability with virtually any sized consumer device.
Enhance Your Brand With HZO
At HZO, we work with some of the biggest brands in the consumer electronic industry – fortune 100 companies shaping the future of technology. Our brand has earned their trust with exceptional quality assurance – there hasn’t been a single product return attributed to our coatings since our inception. Our nanocoating solution is cost-competitive, ensuring you get all of the benefits from partnering with us (our proprietary, optimized equipment, automated processes, and technical know-how) so your customers can receive value without having to break the bank. We encourage you to discover more about our people, process, and materials so you can enhance your brand. Reach out to us today; it only takes a moment!
Waterproofing does more than attract sales. Properly protected devices shape brands.
Director of Marketing
Ryan is a 9-year veteran to the world of protecting electronics from harsh environments and a lover of all things technology.
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