A number of non-traditional companies, mostly cable and telecommunications companies have been entering the electronic security market. As this article in Reuters
explains, these companies are attempting to shore up their declining profits from rising costs, price pressures, and declining subscriber numbers by tapping into the profitable residential security and home automation market. Their pitch: you already have our technology in your home, so why not use it for home security, and for less than you are paying now.
One way to protect your customer base from this new competition is to communicate the key value differences between you and these companies to your existing customers and prospects. Two of these key differences are customer service and expertise.
It’s no surprise that, according to a study released this spring
, cable companies score well below the average company on the American Consumer Service Index. Within the cable industry, a majority of the companies that have rolled out home security services reside at the very bottom of the list. Given these low rankings, it begs the question: should customers trust them with the protection of the homes and families?
When it comes to the protection of their homes and families, homeowners want fast, reliable and customer-friendly service from their security company – whether it’s for critical services like monitoring and responding to alarms, or for customer service issues like system malfunctions, or even billing and account questions – not the customer service records the cable companies are known for.
Good security companies focus on the customer rather than the contract. In addition to making an excellent customer experience a priority, electronic security providers have the expertise and industry experience to be able to provide systems tailored to meet homeowner’s individual needs. In contrast, cable companies are attempting to increase their RMR by simply tacking on security and home automation services to an already wide range of services they offer. This “all things to all homeowners” approach results in an offering of a “bundle of services” that makes access to the latest movies as important as keeping families safe and secure.
Cable companies advertise that they have both the knowledge and the technology infrastructure already in place to provide excellent security services at low cost, but this is not exactly true. Good security companies keep up to date with industry standards and technological innovation within their core functions – providing residential security. They employ licensed technicians with the technological knowledge and expertise to properly install and service security systems. In addition, even articles
citing the potential benefits of using cable, phone or Internet providers for home security acknowledge that the systems and solutions they provide are not always inexpensive, even if the monthly monitoring fee is part of a set of bundled services.
Homeowners want to protect their property and family with systems and services from companies they trust. One way to protect your company from competition from the cable and telecommunications companies that are entering the electronic security marketplace is to communicate the value of your services, and your industry knowledge and expertise.