“I use free monitoring as a referral incentive, usually three free months if a client gives me a name of someone who then buys a system,” explains Norman Dayton, president of Dayton Security Inc. in Hoisington, Kan. “I also offer one month of free monitoring if they give me six names.”

No other way of generating new prospect lists even comes close to customer referrals. Neighborhood canvassing, new homebuyer lists and Dodge reports/bid requests were next in the survey, but all were only mentioned about one-fourth as often. While the two former categories closely mirrored the 2001 study, the latter nearly doubled since then — probably due to a post-9/11 spike in government-related projects.

Another large increase was seen in those using LeadTracker, an online service for accessing request for bids (RFBs) and requests for proposals (RFPs) on large-scale projects, which was mentioned by 8 percent of the respondents. LeadTracker, a product of SSI, debuted in May 2002.

Literature Is Most Popular Tool When Making Sales Presentations
Not only have customers become more sophisticated, they are also dealing with more demands placed on their precious time than ever before. Hence, it makes sense for security contractors to respect that limited time by putting together marketing materials that are professional and to-the-point.

However, only 57 percent of respondents to the 2004 survey stated they use a structured sales presentation with prospective clients. That figure has not budged much in recent years, as it was 55 percent in 1999 and 59 percent in 2001. A company’s sales literature (57 percent vs. 37 percent in 2001) and the literature from manufacturers (46 percent) are far and away the most prevalent tools used in contractors’ sales presentations.


220;I intend to perform more direct marketing in 2004 in the form of a company brochure and good old-fashioned knocking on doors,” says Mike Votaw, president of Larry’s Lock & Safe Service Inc. in Angola, Ind. “I am losing sales to companies that have a more significant presence in the marketplace. I have customers who don’t know all I do, and potential customers who don’t know who I am. It’s a transition stage between being a ‘mom-and-pop’ and a large integrator.”

Other presentation tools high on dealers’ lists included product samples, product demonstrations and sales contracts. These results contrast rather sharply with the findings of the previous survey. In 1999, respondents ranked yard signs/decals as the No. 1 presentation aid at 44 percent (vs. 30 percent in 2004), while the use of crime and industry statistics have also curtailed sharply.

The vast majority of these materials are being produced in-house. In fact, not a single respondent said they exclusively outsource creation of their marketing materials, whereas 6 percent reported doing so in 2001. However, 22 percent said they use a combination of in-house and outsourced labor and resources.

Security Contractors Not Ready to Fully Embrace the Web Just Yet

In the late 1990s, American businesses finally began to catch up with user demand as the incidence of companies establishing their own Web sites skyrocketed. Electronic security contractors were part of this explosion as SSI data indicates the percentage of dealers with their own Web sites doubled (to 70 percent) from 1999-2000.

Somewhat unexpectedly, perhaps associated with the dot.com crash, that figure has diminished to 67 percent. Many dealers either don’t want to spend the time and money building a site or simply believe the return does not warrant the investment.

“I do not have a Web site because of the time and cost involved. Also, I am not convinced it would be a benefit for my company,” states Dayton. “I serve a very rural area and my best advertising is local TV and I have good coverage through that.”

However, percentage-wise, Web sites have generated a greater volume of leads than any other source. The 2004 survey found nearly 19 percent of respondents received significant action from their sites, while the 2001 number was just fewer than 5 percent. No other category came close to a nearly fourfold increase.

Still, many security contractors who have adopted a Web presence seem to do so reluctantly.

“I still hold fast that a Web site for my company will not have a direct affect of my sales,” says Votaw. “I do believe though that, in this day and age, a Web site is a necessary component to business if for no other reason than to provide credibility to the organization. It should at least supply a list of services offered, links to products and contact information.”

Note that having a Web site is different from advertising on the Internet, which was a separate survey category in which 5 percent reported it was among their top lead generation methods. Rounding out electronic techniques, 5.6 percent endorsed E-mail solicitations, while 1.3 percent selected advertising in other companies’ E-mail.

Nearly 4 of 10 Prospects Are Falling Through the Cracks

Every security installation company wants “closers” – salespeople who are as adept at reading a potential customer and navigating any situation as Tiger Woods is at perfectly negotiating the greens. According to the 2004 Sales & Marketing Survey, dealers are closing an average of 61.24 percent of their new customers.

However, the most common response for closing rate ranged between 71 and 80 percent (26 percent of all respondents).

“Our close rate is around 75 percent. Why? Because we advertise our products and services,” says Felix. “When customers call, they already have an interest in purchasing. Closing these types of accounts is easy compared to door-to-door sales, which have a close rate of around 3 percent to 8 percent.”

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