Home Security Systems: Dealers, Purchase Trends and Triggers – Security Sales & Integration
Parks Associates’ latest security research, Security Buyers: Purchase Styles and Causes , finds that 49% of DIY security system owners report that they purchased their home protection system due to a burglary at their home or the home of a loved one, compared to just 27% of professionally installed program owners.
The research firm featured its latest research during its virtual session, “State of the Home Protection Market, ” on Aug. 18, as part of the particular 26 th annual CONNECTIONS: Premier Connected Home Conference.
Parks Associates brought together industry players from the pro-service channels and heard directly about connectivity challenges plus incorporating smart home technology into offerings. The 75-minute session included visionary insight from leaders and interactive discussions on the impact of new technology and services and the challenges that come with smart technologies in the home.
There are many new entrants in the particular DIY plus monitoring landscape, so companies must go beyond the standard peace-of-mind value proposition to differentiate in this crowded market. Benefits such as ease of use and access control innovations can help solutions stand out. Some safety companies branch into new sectors, like energy services and vehicle monitoring.
Part of the rise in the adoption of residential security systems is the separation associated with professional installation from professional monitoring. Self-installation provides a new way for consumers to buy with lower upfront costs. Lower prices, no-contract offerings, plus new set up and service options provide consumers along with the ultimate choice in home security, automation, and monitoring solutions.
Consumers expect their protection systems in order to provide basic interactivity that enables them to remotely access and manage the household safety system plus receive notifications as scheduled or requested.
Consumers can determine the particular optimal combination of installation, monitoring, and automation that provides a sufficient level of security and convenience for their own household — a package that is “safe enough” for their needs. The study firm found that 24% of expert monitoring protection cancellations inside 2021 were due in order to consumers acquiring smart house devices like networked cameras.
Though consumer demand is high for pro-monitoring, and NPS scores are relatively good for professional monitoring providers, many customers still statement a high likelihood of switching providers. This large segment of consumers wanting to switch providers may not have much to do with the service of the provider. Still, the attraction of cheaper options through DIY players as the particular price for professional monitoring continues to rise for pro-install established gamers in the space.
Parks Associates also reports that 41% of customers reporting a high likelihood to switch providers could be the “canary within the coal mine” that rising monthly monitoring fees from established pro-install players as well as the availability of less expensive monitoring options from DO-IT-YOURSELF players are usually attracting customers away from the $40 to $45 per month checking model, leading consumers to “price hop” to cheaper pro- monitoring services.
When looking in purchase channels, online purchasing has become dominant. By divorcing system installation from the system purchase, DIY solutions have expanded the channels through which consumers acquire safety systems.
The most common method of acquiring a security system is now online, accounting for nearly a third of all program purchases. The online form of purchase allows customers to look and research all their particular choices for the security provider.
Customers’ ages highly influence channel preferences, with younger consumers purchasing online or at retail and older customers buying from a company representative or using a system already installed in their homes. Providers should be aware of the particular potential frustration consumers may experience by not providing transparent pricing or easy-to-navigate websites, ultimately impacting their own potential customer base.
Sadirah Pathan is a Contributing Writer with regard to Parks Associates.
SSI has partnered with Parks Associates for the creation of DO-IT-YOURSELF FYI , a column designed to help dealers keep track associated with important smart home market developments, what the competition is and whether they want to jump into something they see as the new opportunity.
Parks Affiliates will virtually host the particular next CONNECTIONS sessions upon Oct. 20 and Nov. 10. This particular executive conference includes presentations from Recreational areas Associates’ leading analysts plus visionary sessions featuring executives in the connected entertainment and digital home technology industries. Register here .