3. Identify service offerings to deliver
— Technology providers and application developers have responded to the growth in consumer adoption of mobile devices by bringing to market a wide array of interactive services that dealers can integrate into their broader home security offering.
Dealers, however, must resist the urge to go for the “shiny object” and instead focus on applicable services that:
- Consumers will actually use in their day-to-day lives. Choose services that increase the consumer’s daily usage of the system, like notifications pushed to their phone, live video feeds and the ability to instantly adjust the lights and temperature remotely.
- Consumers can afford. Five years ago some dealers attempted to roll out video monitoring solutions. Yet the price point for cameras, installation and monitoring exceeded what the average consumer could afford. While the technology was available, it could not be delivered in a cost-effective way for consumers that dealers could also generate revenue from.
- Integrate with a consumer’s security system. For the security dealer, interactive services come back to the underlying security platform. This is actually a great advantage for the security dealer since the individual services are enhanced through a connected security platform. Home energy, automation and video solutions are now more tightly integrated with the security system. This means you can adopt solutions that allow consumers to set triggers based on security system actions.
4. Determine how to position and sell interactive services — As with any security system offering, marketing, pricing and positioning interactive services to consumers is critical. This once again comes down to knowing your market.
Will a complete end-to-end interactive services solution resonate in your area? Is the end-to-end approach already being offered by competitors and if so, can you deliver one at a compelling price or with superior services?
Alternatively, you might consider selling interactive services independently, allowing clients the flexibility to add only the pieces they want and adding more services over time. Another option is to focus on installing a basic wireless security system that already has the technology and interactive capabilities built in for new customers. Follow up with enhanced services a few months later.
5. Don’t overlook your existing customer base — Dealers are understandably focused on generating new customers. Though with interactive services, the mindset must be adjusted to not lose sight of your existing customer base. This is important for several reasons. First, failing to communicate new interactive services to existing customers leaves them vulnerable to being poached by competitors who proactively market the services. Second, these interactive services offer new revenue opportunities that not only improve RMR, but also deliver greater value to customers using the system. Finally, consumers have become accustomed to a rapid pace of technology change, and dealers who deliver innovative services will position themselves as forward thinking in the eyes of the market.
Employing the strategies outlined above when it comes to offering interactive services can enable you to stay competitive in an increasingly crowded market, differentiate your suite of services, increase RMR, reduce customer attrition, and grow your business in a strategic and sustainable way.
Jay Kenny is Vice President of Marketing at Alarm.com, a Vienna, Va.-based provider of interactive security solutions.
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