New Players: Boon, Distraction, Threat?
One topic that keeps resurfacing in the alarm industry over the past few years is the influx of new entrants in the market. Technology behind the new, connected home – the integration of automation, video, and other systems with security – has both attracted and been driven by companies that a decade ago either weren’t associated with the alarm business or didn’t even exist.
But here are a few key questions you can ask yourself during this time of change, to turn uncertainty into an opportunity for your business.
1. Are these new players taking market share, or “growing the pie”?
As telco, cable and DIY suppliers like Nest, Blink and SimpliSafe spend their marketing dollars to let the public know of their new products and services, they raise awareness for the entire industry. Giving consumers more knowledge creates more demand.
So rather than looking at the new players as a threat, look at how can you capitalize on the overall increasing consumer demand for smart home technology.
Use the influx of marketing dollars to your advantage. Look at your marketing – are you duplicating their effort (a losing proposition) or are you using the conversation to help create a unique positioning for your business?
2. How are the new players changing consumer attitude?
Because security is so tightly integrated with the re-invigorated home automation market, there’s an interesting change happening. The attitude towards alarm systems is moving from something that’s necessary “but-we-hope-we-never-need-it” to something that is enjoyed and used daily. This can only be a good thing.
Your relationship with your customers changes as well. You become a source that adds to the convenience of their lives, not just protects their belongings.
So, if you aren’t already, you need to be, at least, offering the integration and automation of lights, locks and cameras.
If you embrace the influx of smart home technology, it brings with it more opportunities to upsell customers and increase your RMR – and that’s been a challenge for many alarm businesses to identify until now.
3. If you can’t outspend them, how can you outsmart them?
A simple answer is to outsmart the competition by making your customer smarter. Educating your audience is the best way to position yourself in your market. It establishes trust, positions you as an authority, and connects you with your customers in a way no ‘faceless corporation’ can.
Keep in regular communication with your customers, teaching them about what is available and how to apply it in their lives. Let them know what you are doing, what’s on the horizon, and show them how they will benefit.
Your customers can get confused by all the new information being thrown at them. Help them make sense of it and they’ll reward you with their loyalty.
So, while the landscape may be foggy for a while, pushing yourself to look at how to take advantage of new entrants in the market and how to springboard off their efforts will keep you on a clear path to success.
How are you taking advantage of new players in your market? What challenges are you facing? Send us an email – we’d love to hear from you.