Security Sales and Integration Magazine

Advisory Board Forum

It’s Time to Offer Real Alarm Response

By Mike Jagger | January 13, 2012 | Comments (4) | Post a comment

Our industry has had a good run. For decades we were able to get away with providing an incomplete service. We installed and monitored alarms, but as soon as they actually tripped, the police department handled the immediate response. The police provided that crucial component of our industry's 'service,' mostly without any real cost. What other industry has experienced a free ride like this?

Today's reality is different. Response is more important than ever, but the ability of police to provide it no longer exists in most of North America. While the budgets of most police departments have gotten tighter, the number of installed alarms has grown exponentially. More alarms meant more false alarms. More false alarms meant more wasted police time. More wasted police time has led to verified response or nonresponse policies.

It doesn't matter how well the system was installed, whether your installer cleaned up after him/herself or even how friendly your central station operator was to your client if when the alarm actually tripped, nothing happened. That is the reality in most homes and businesses. When the alarm trips, nothing happens. Nobody responds. Nevertheless, our industry continues to sell an outdated story that is simply not true anymore.

Big-budget television commercials mislead consumers by suggesting that when an alarm trips, police will respond. In many of those ads, the police arrive to arrest the burglar — who is invariably dressed in black and sporting a balaclava — just in time to save the day for the hapless woman home with her two young children. In others, the crowbar-wielding crook simply runs away after hearing the alarm siren.

Our industry is still making money using fear to sell that failed promise. It won't last much longer. Rather than tackling the reality that our industry has changed and we can no longer sell a service that relies on the police (at least without paying for them), industry organizations like the Security Industry Alarm Coalition (SIAC) have instead fought to prolong the death of an outdated business model.

Lobbying city councils and police departments in an effort to retain police response is one thing, but creating new ways to mislead consumers is much worse. "Enhanced Call Verification" (ECV) has been heralded by many in our industry as the solution to the false alarm problem. SIAC certainly thinks so.

ECV has reduced the number of false police dispatches, and that's great. What isn't great is it has achieved that 'success' at the cost of rendering a burglar alarm even less effective. Isn't anyone worried about clients catching on? Rather than wasting time calling one number while a home is broken into, the alarm company will call two. That's the 'enhanced' part. It's certainly not enhanced for the client.

It's not like there aren't any viable solutions. Audio verification has been a solution for commercial properties for years. There is no shortage of companies using video verification to separate real burglaries from false alarms. At our company, Provident Security, we provide a guaranteed five-minute response, by our own guards, to client alarms.

False alarms are not the problem; they are the opportunity and future of our industry's business model. Rather than wasting time trying everything possible to hang on to an old and broken business model, why not focus on providing the service that clients really need?

There is a lot of talk in the industry about the 'threat' of telephone and cable companies offering security services. The bigger threat is clients wising up to the fact that our industry has lied to them. The latter will hurt all of us far more than new competitors offering a different version of the same broken service.

Mike Jagger is President of Vancouver, British Columbia, Canada-based Provident Security.

 

Review / Comment


Mr. Jagger’s fundamental premise in his Security Sales and Integration “Advisory Forum” is that alarm companies are misleading customers, police departments and the public about how quickly and effectively response occurs to homes and businesses. Yes, dealers should explain that response can vary from a few minutes to an hour or more (metro areas), however he calls for a new model. We disagree. The current model ordinance, endorsed by the Security Industry Alarm Coalition (SIAC) , the International Association of Chiefs of Police (IACP), and many other organizations involved in public safety/alarm management, has been shown to work effectively time after time, if properly implemented and executed. It’s nice to hear he has customers willing to pay a premium for a five- minute response in what is likely a small geographic area. That ignores the big city traffic complications and crime activity in larger metro areas. Try applying that model to the city of Dallas, which attempted Verified Response (VR), and rejected it as unworkable. The city has approximately 140,000 alarm systems and 3,000 sworn officers, and can’t even begin to get to all priority one calls in under five minutes. There are 36 million legacy systems across the country. These owners are desperate to secure their properties and can't rely on a police department to patrol or detect break-ins without these affordable systems as their eyes and ears. They also can’t afford personal private response. In some parts (high crime) of major cities, they couldn't get a response even if they could afford to pay the fee. The model ordinance, as noted above, which includes a multitude of features, has been shown to reduce the need for police response up to 90 percent (60% is typical the first year or so). Is that perfect? No, but that type of reduction allows police departments to be tremendously more effective. Don’t forget, as the Rutgers Study has strongly pointed out: Alarm systems deter crime
Stan Martin
January 27, 2012
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A few points to clarify: 1. My fundamental premise isn't that alarm companies are simply misleading consumers, it is that the current model of 'monitoring' an alarm, coupled with no/very slow response, is going to kill the industry as we now know it. Consumers, particularly those that Stan identifies as 'unable to afford personal private response', will learn that it is far cheaper & more efficient to monitor their own home alarm via their iphone/blackberry for free than to pay a 3rd party to call them when their alarm rings. Focusing on 'model ordinances' that focus on making life easier for the Police &/or alarm company, at the expense of the consumer, will eventually backfire. 2. "It's nice to hear that he has customers willing to pay a premium for a five minute response in what is likely a small geographic area. That ignores the big city traffic complications and crime activity in larger metro areas." For the record, we operate in the city of Vancouver, B.C. ... one of the largest metro areas in North America. As recently as 2007, Vancouver was "recognized" as having the highest break-in rate of all major Canadian and American cities (four times higher than New York City). http://www.cbc.ca/news/canada/british-columbia/story/2007/12/14/bc-vancouvertopsinpropertycrime.html We are not operating in a little town without traffic or crime. We are solving a major problem for both our clients and the Vancouver Police Department. 3. While the Rutgers Study makes for a good sound bite or quote at the bottom of an alarm sales brochure, the study showed that alarms had a positive impact in Newark... a city with about 100,000 homes and an exceptionally low number of alarms (about 1,500 homes had alarms at the beginning of the study and about 2,800 at the end in 2005). Taking that study, and making a blanket statement that 'Alarm systems deter crime' is pure spin. In Vancouver, the percentage of homes with alarms is much higher than 3% ... and it has been f
Mike Jagger
January 27, 2012
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In Vancouver, the percentage of homes with alarms is much higher than 3% ... and it has been for decades. Alarms may deter crime in Newark, but they certainly don't in Vancouver. Our industry is capable of offering tremendous value to consumers... it is in our collective best interest to focus on communicating that value. Spinning stats & pushing self serving programs like ECV is not good for any of us. [Continuation from previous comment]
Mike Jagger
January 30, 2012
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A "good run" indeed! Despite the best efforts of the industry to remain viable, this cash cow has been milked dry and it will be foolish investors that will bear the weight of failure. No bigger example of industry hubris, and ultimate demise, exists than the savvy "Kevin, Tom, and now Sean/Shawn" robo-calls. These are a plague upon the American consumer, worse than the auto warranty, or 'Rachel from Card Services' scams. Dealers use these shady techniques, send junk faxes, and even post fake package delivery notes on front doors of new homeowners just to get a prospect on the phone. The lie of police response is just stacked upon the heap! The largest monitoring companies, the source of capital for dealers via private equity and/or securitization of contracts, turn a blind eye to this conduct. Dealers thumb their nose at state licensing regulations, telemarketing rules, and acceptable business practices. And the industry thinks this behavior won't come back to bite? I will assure you this. With local public safety budgets tighter than ever before, the industry is pushing its luck. You have no idea how many people are furious about these harassing phone calls. The tipping point is near. Good luck to you! Jim B. Email: [email protected]
Jim B.
March 6, 2012
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