Tuesday, March 07, 2023

Security monitoring cancellation intentions are down, but younger households are more at risk of churn

38% of Gen Z households with home security monitoring report intentions to cancel security monitoring contract

Parks Associates’ new consumer study Security Monitoring: Business Models, Pricing, Attrition finds that younger households are at higher risk for cancelling their professional monitored security, even as plans to cancel have dropped among all households. The research firm reports that 38% of Gen Z home security monitoring subscribers intend to cancel their contract, while overall, only 17% of those with pro-monitoring report a likelihood to cancel, significantly lower than in 2020, likely due to households not moving.

The research study, available to purchase online, highlights the market expansion due to more self-install and self-monitoring system options. It quantifies and examines security system owners’ preferred business models, preferred price points, and reasons for attrition.

“The end of a contract is a trigger for cancelling professional monitoring subscriptions,” said Elizabeth Parks, President and CMO, Parks Associates.  “More than 30% of those who intend to cancel have contracts that will end within two years. Early cancellation penalties may keep subscribers on the plan, but consumers are increasingly opting for home services without contract terms. The video services market, for instance, has been upended by streaming services with no contract terms. Providers must not wait until the end of a contract to reach out to retain subscribers with new, more flexible options.”

Security Monitoring: Business Models, Pricing, Attrition, a consumerstudy of 10,000 US internet households, addresses the adoption of pro-monitoring and self-monitoring services, reasons for cancellation, incentives to retain subscribers, and levels of interest in new services. The research firm will address the growth of the security market at its 27th annual CONNECTIONS conference, held May 23-25 at the Omni Frisco Hotel in Friso, Texas.

To request data or an interview, please contact Rosey Sera at rosey@parksassociates.com, 972.996.0233.

About Parks Associates: Parks Associates, a woman-founded and certified business, is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates provides business intelligence and research services through its proprietary methodologies developed over decades, including quarterly surveys of 10,000 internet households.

The company's expertise crosses many industries: home security and smart home, streaming video, broadband and pay-TV services, digital media and platforms, gaming, Wi-Fi and home networks, connected health, support, consumer electronics, home control systems, energy management, and tech solutions for the multi-dwelling (MDU), small-to-medium business (SMB), and commercial building markets.

Each year, Parks Associates brings thousands of leaders together for its webinars and annual events. The firm hosts the annual executive research and strategy conferences CONNECTIONS™, Connected Health Summit, Smart Energy Summit, Smart Spaces, and Future of Video. https://www.parksassociates.com

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