ISC West, the largest largest security industry trade show in the U.S. was held last week in Las Vegas. There were vendors, educational opportunities, celebrations and of course new product launches, but I learned the most from the intimate conversations with security dealers. Spending the week immersed in “shop talk” led me to reflect on the opportunities and challenges facing security dealers. Listed below are 5 key areas that I believe are important for independent security dealers to master this year and beyond.
Home Automation
Home automation and interactive security must be a key part of any dealer’s array of service. Cable and telecom companies are aggressively pushing ‘look in’ video as an extension of their core services. With Nest abruptly disabling Revolv, some cited Comcast as a better model, a company widely reviled for its poor customer service. Small independent security dealers can compete with larger companies but will need to be able to effectively defend their turf, and keep their subscribers.
Interactive Services
The number of internet-connected devices first outnumbered the human population in 2008 and it is predicted that by 2020 there will 50 billion internet connected devices (Pew Research, The Internet of Things Will Thrive By 2025).
As interactive services become widely adopted by consumers, network security for both home and business networks becomes a higher priority. One ISC West attendee warns that connected security is a reality and we need to be ready for it. Many experts agree citing privacy and security concerns as the downside of this growing trend. Security dealers will need to think beyond physical security and prepare for the inevitable future.
Workflow Management
Workflow management continues to go mobile, so to compete dealers increasingly need to be able to quickly access their work orders, schedules, inventory, and more from the field. This includes real-time invoicing and field-based payment options. This year we released a major upgrade to our online software platform, Version 39, in response to growing demand for full life-cycle, cloud-based account management software. Security alarm dealers will have to be smarter with how they deploy technology in order to effectively compete.
Customer Retention
Regular communication with a dealer’s subscriber base is critical, both to promote exciting new services that are available, and to uncover potential customer issues that could lead to attrition. Proactive marketing, surveys, and customer communications need to be the way of the future to support a strong, growing, and delighted subscriber base.
Smart Home
New home construction, and related security and smart home business, continues to be strong. In 2016, revenue in the smart home market is $9.7 million and expected to grow to $20.8 million by 2020.