Firm presents new research at Electronic Security Expo (ESX) showing importance of interactive services
Parks Associates shared new research at the Electronic Security Expo in Nashville last week, showing that professional monitoring service providers offering basic security systems suffer from poor NPS (net promoter scores), while those offering interactive security and home control systems have NPS more than 50 points higher. According to the firm’s 360 View: Residential Security, monitoring service providers that do not offer interactive services lost more than 10 points and fell into negative territory in their NPS over just one year.
“Interactive services and home controls are important differentiators for security providers, and they are crucial to a firm’s consumer retention and engagement,” said Dina Abdelrazik, Research Analyst, Parks Associates. “Changing NPS scores show subscribers will guide friends and family away from their current provider if it does not offer interactive services.”
Parks Associates research shows professionally monitored services with a basic security system received an NPS of 7 in Q4 2015. That score dipped to 5 the following year before hitting -6 in Q4 2017. During that same time, the NPS for professionally monitored services with interactive security and home control systems increased from 33 to 48.
“Consumers now expect smart home products and interactive services as part of their security offerings,” Abdelrazik said. “Overall, Parks Associates estimates that 51% of professionally monitored security systems had interactive services in 2017. Given that interactive services have become mainstream, eliminating the basic security system offer and shifting interactive services to the value-tier offer will dramatically improve RMR (recurring monthly revenue) and help dealers compete.”
Abdelrazik spoke on the session “Smart Home Market Becoming a Brilliant Opportunity?” on June 22 at ESX. The session examined opportunities in the smart home, including market size trends and customer segmentation. Panelists from ADT, Comcast, and Nortek discussed the importance of smart home products and services to compete effectively and provide additional value for security systems.
360 View: Residential Security addresses the current state of the residential security market; the leading channels for professionally monitored security; the market dynamics, such as price, interactivity, and installation method, affecting the security industry; the impact of the smart home market on residential security; and key trends in the residential security market.
For more information about Parks Associates’ research, contact sales@parksassociates.com. To schedule an interview with Dina Abdelrazik or to request specific data, contact Julia Homier at julia.homier@parksassociates.com, 972-996-0214.
About Parks Associates
Parks Associates is a global research, consulting, and marketing firm with 40 years of experience delivering proprietary consumer data and industry insights for businesses. The firm produces market research reports, forecasts, surveys, and competitive business intelligence on connected consumer, small business, and commercial technologies and related business solutions. Parks Associates provides custom research, strategic consulting, and forward-looking analysis across connected home, small business, and commercial markets, including security, smart home, broadband, entertainment, energy, multifamily, smart buildings, connected health, and emerging AI-driven technologies.
Parks Associates supports industry growth through proprietary research, consulting, and executive networking and convenes thousands of leaders each year through its flagship conferences, including CONNECTIONS™, Connected Health Summit, Smart Energy Summit, Smart Spaces, and Future of Video. Learn more at https://www.parksassociates.com.
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