Dealers Need to Offer More Than Alarm Monitoring to Compete, Report Says
A large majority of security dealers are now offering services other than traditional monitoring to better compete in the market, Parks Associates finds.
Parks Associates' annual Security Dealer Survey found 42% of security dealers report offering video verification services, and 21% offer aging-in-place/independent living solutions.
DALLAS — More than 70% of security dealers in the United States offer services beyond traditional monitoring as these firms continue exploring ways to strengthen service bundles and differentiate in an increasingly competitive market, according to Parks Associates.
Parks Associates’ annual Security Dealer Survey found 42% of security dealers report offering video verification services, and 21% offer aging-in-place/independent living solutions.
The survey analyzes key trends, including top challenges, intended product offerings, and factors related to interactive services. It quantifies the dealers’ view of security market performance, with data compared across multiple years, and analyzes competitive pressures, industry conditions, and the addition of smart home and interactive technologies.
“A segment of consumers [40% of pro-monitored subscribers] are willing and likely to switch security providers for as little as a 10% savings in monthly fees,” says Dina Abdelrazik, senior analyst, Parks Associates. “This finding indicates that once a security system is installed, monitoring services are providing little differentiation between companies.”
The project asked dealers about other service offered, including home network and cybersecurity, PERS, aging-in-place/independent living, and vehicle alarm monitoring. Video verification leads in services offered, followed by home network/cybersecurity and PERS.
“Differentiation of pro-monitoring is critical to retaining subscribers in the face of downward pricing pressure,” Abdelrazik says. “Dealers must consider how to strengthen their bundles in competitive environments. Differentiation strategies include offering value-added services such as cybersecurity, video verification, and aging-in-place solutions that allow expansion into adjacent markets.”
The Security Dealer Survey notes competitive turbulence and pricing/fee pressure are both accelerating. Smart home and interactive services can offer additional competitive differentiators, so the industry as a whole will benefit as systems expand integration capabilities across smart home devices and security manufacturers invest in additional training for their security dealers.
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