Monday, February 10, 2020

Sixty-two percent of US security dealers report that smart home devices increase support costs

Dina Abdelrazik presents research at SecurityNEXT conference sharing insights on security dealer trends in DIY, smart home, and interactive services

New security dealer research from Parks Associates shows smart home devices are adding cost and complexity for dealers in the security industry, where 62% of all dealers report that smart home devices increase their support costs. Security Dealer Survey reports 22% of dealers most frequently employ a truck roll to resolve smart home support requests, which would severely impact their bottom line.

Dina Abdelrazik, Senior Analyst, Parks Associates, will present research from Security Dealer Survey and highlights from Parks Associates’ consumer and industry research at the upcoming SecurityNEXT conference on February 11 in New Orleans. This research analyzes the results of a survey of installers/dealers employed by security firms installing security systems in US households, including top challenges, intended product offerings, and factors related to interactive services.

“Twenty-eight percent of dealers find it very difficult to integrate smart home devices with a security system,” said Dina Abdelrazik, Senior Analyst, Parks Associates. “Dealers accept that they need to expand their offerings to include smart home devices in order to succeed, increase RMR potential, and compete effectively. Consumers’ desire for smart home devices integrated with the system calls on dealers to expand their expertise so that they ensure proper installation and minimize support costs. There is also pressure on manufacturers to continue to improve the installation and operation of their products.”

Parks Associates - Home Security Dealer Support Costs and Methods

Security Dealer Survey reports that Honeywell (now Resideo) is the dominant brand for DIY security systems offered by dealers, followed by Interlogix and DMP. Dealers not currently selling DIY are split on future intentions – 45% report that they are likely or very likely to start offering DIY systems in the next year while 40% report that they are unlikely to do so.

“DIY systems are gaining momentum in the security industry, but they still are a minority of system types sold,” Abdelrazik said. “With increasing demand, combined with competition from new market entrants, security dealers are forced to consider whether or not to add DIY solutions to their business. To implement a DIY business model successfully, dealers must position such a system effectively alongside their traditional, professionally installed offerings and highlight the differences clearly to their customers.”

Additional research findings:

  • 85% of all broadband households with a security system are professionally monitored.
  • 36% of all dealers find that DIY systems cut into the demand for their professionally installed systems.
  • 14% of dealers spend more than $500 a year to serve and retain an existing customer.
     

Parks Associates is hosting Smart Energy Summit: Engaging the Consumer on February 17-19 in Austin, Texas. For more information, contact sales@parksassociates.com. To request data or an interview, contact Elizabeth Parks at eparks@parksassociates.com, 972-490-1113.

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 creates research capital for companies ranging from Fortune 500 to small start-ups through market reports, primary studies, consumer research, custom research, workshops, executive conferences, and annual service subscriptions.

The company's expertise includes the Internet of Things (IoT), digital media and platforms, entertainment and gaming, home networks, Internet and television services, digital health, mobile applications and services, support services, consumer apps, advanced advertising, consumer electronics, energy management, and home control systems and security.

Each year, Parks Associates hosts industry webinars, the CONNECTIONS™ Conference Series, Smart Energy Summit: Engaging the Consumer, Connected Health Summit: Engaging Consumers, and Future of Video: OTT, Pay TV, and Digital Media.

http://www.parksassociates.com

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