Who is the “Next Gen Security User” or in other words who is your customer of the future? This is an extremely important question for you to answer. Do you serve both the residential and commercial markets? If so, what do your customer demographics look like today? How do those demographics compare to 15 years ago? Who is the “Next Gen Security User” or in other words who is your customer of the future? This is an extremely important question for you to answer.
Do you serve both the residential and commercial markets? If so, what do your customer demographics look like today? How do those demographics compare to 15 years ago?
It is important to understand the changes in your customer profile because you need to adapt your business model, product/service offering, pricing and how you reach them.
It is much easier to get ahead of the changes and position your company to succeed in the next 5-10 years if you have a strong grasp of the changing trends now.
Speaking of trends, according to the Parks Associates Security Dealer Survey 2016: Smart home offerings have helped revitalize the overall security market opportunity and are now part of the value proposition for professionally monitored security Approximately 60% of U.S. security dealers report that 60%-100% of their security system installations include some smart home control features Nearly 75% of U.S. security dealers provide security with interactive services, up from less than 50% at the end of 2015.
“Financials from large national security players show continued growth in this market, even though the total number of subscribers has increased only marginally since 2014,” said Dina Abdelrazik, research analyst with Parks Associates.
“The introduction of interactive services has helped improve revenues in home security, and moving forward, the growing adoption of smart home devices and services opens opportunities to bring more U.S. households into the security market, provided security providers adapt their business models to the new IoT reality.”
According to Parks Associates’ Home Security NUMBERS™ research, U.S. households with professional security monitoring will generate nearly $14.7 billion in 2021, reaching a five-year CAGR of 4.7%. The research also shows that 26.6 million U.S. households will have security with professional monitoring by 2021.
The smart home movement is here to stay and as the statistics above reveal, it has gained traction very quickly. If you are not offering smart home technology and interactive services to your residential customers you have missed the boat. Today’s customers demand these solutions. In order to stay relevant and compete in the marketplace you must keep up.
For more, download the July/August edition of ESA’s print magazine, Security Nation. Security Nation is a glossy magazine publication. This exclusive ESA Member Benefit is mailed 6x per year, including profiles of ESA Members, industry news, association updates, best business practices and more. For more information on becoming an ESA Member, contact [email protected].
ESA Members, access Security Nation here
