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What we are
going to concentrate on is enhancing professional security or connected home experience. ”From voice to video, the “it” technology of the moment has a positive effect on dealers, says Greg Blackett, of Tyco Security Products. “A lot of these products drive interest in security. There is an opportunity there in the form of reaching a customer that hasn’t had security before by delivering new products. Maybe
they will start with a point product but then possibly migrate to a more secure, professional solution. Those are the types of things that will help us…. As an industry we are doing good work making sure products can connect in a meaningful way. ”While homeowners are nearly 2. 5 times more likely than renters to have a working security system, a significant portion 43 percent of recent buyers acquired their systems as part of the purchase of a new or existing home. While interactive services have taken hold in the industry, radically improving customer satisfaction and retention, the addition of home control products including lighting and thermostats has also expanded the value of security solutions. Bundling smart energy, home security, and smart home services has made the security industry the leading channel for smart home services.
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In all cases, it seems dealers and manufacturers
alike view competition as untapped opportunity, a philosophy that also factors into the healthy optimism this year. Welsh has similar observations: “We have 5,000 security dealers we work with and they had a great year. We are hearing that the DIY systems are addressing a different
segment of the market. They are not necessarily cannibalizing the market. is a legitimate segment that is growing but we haven’t seen it be a significant factor for the small and medium guys. Even with the cable and MSOs that have taken share, I think that perhaps it is more at the big guy level. ADT and Comcast are going back and forth while the independent security dealers win business by being local and being a part of the community. ”That is exactly what Rehman is noticing in his business. “The big companies are growing the market, not taking share away. They are trying to penetrate a market that never really had an alarm system before. They are already in the house for telephone, Internet or cable and trying to throw a spin in there to bundle this home security in.
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I think the traditional security companies can
take a page out of these direct to consumer companies and market the product based on what people are dying to do, which is protect homes and families and alleviate problems. Traditional security companies would be well served to follow suit in
their marketing and ad campaigns. ”One thing many in the industry do caution about, however, is not to let the medium swallow the message. “There are a lot of things the industry is starting to focus on as enhancement to the core offerings; but it is important not to get caught up in buzzwords or even the technology itself, but what it enables the customer to do,” says Greg Blackett, senior product manager, Tyco Security Products, Toronto, Canada. “It is still very early days. The end goal is to enhance the existing products and make them more intelligent and help the customer reduce false alarms and bring their total security experience to the next level.
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