The Internet of Things has created a lot of opportunity for many businesses. IoT technologies have empowered consumers with products and services they couldn’t have imagined just a few years ago.
Among the growing IoT categories, the one with the most consumer interest is smart home security. Even though much of the growth in this market is focused on Do-It-Yourself products, professional home security businesses need not fear this new trend — it should be embraced, as the IoT ecosystem presents enhanced prospects for security dealers and installers.
As more consumers integrate IoT technologies into their homes, more doors will open for home security companies to act as the homeowners’ trusted experts. It’s also a good way to form new revenue-generating relationships.
Adding to the Bottom Line
Adding smart home technologies not only makes for a more savvy security dealer, but it also contributes to the bottom line. By being not only the neighborhood home security expert, but also the trusted smart home expert, dealers can earn more per client than with monitored security alone.
Smart home customers provide reliable monthly revenue with little churn. Cloud-based IoT services come with much lower infrastructure costs than traditional monitored security. ADT reported in its July 2015 quarterly earnings statement that its cloud-based Pulse hybrid security and automation system drove higher RPUs, and that customers who selected a home automation package had significantly better attrition rates after 36 months.
Consumers are also looking for value-adds from their security system and today’s smart home technology can provide additional safety features to a system. A dealer who can layer proactive smart home technologies and home safety on top of a security monitoring service not only creates more customer satisfaction (which reduces attrition) but also can increase monthly revenue opportunities.
An Easy Sell
Aside from the revenue possibilities, why do home automation and home security go hand-in-hand? Many of the features of smart home devices are designed to perform daily tasks so the homeowners do not have to, and many of those tasks can do double duty as both convenience features and proactive security features (some are also great energy savers too).
The key to designing home security that prevents as opposed to reacts means looking beyond the point of intrusion, all the way to the home’s front curb. Today, smart home and IoT technology is being developed to add layers of security.
Take smart lighting for example. Automating a home’s lights offers more than just convenience. A lighting system that is triggered by motion or sound can automatically turn on when an intruder is in the area (or rings the doorbell), and thereby act as a deterrent to prevent crime, while a traditional home monitoring system only responds after the fact. Using home automation, control and preventative safety technologies can help to create the appearance of authentic occupancy within the home and ensure effective crime prevention.
“Here in south Florida with power outages from severe storms, the concept of having lights at the touch of a button without the need of a flashlight would be a great add-on,” says Scott Hoxter, owner of dealer Protection Plus Inc. “We are always looking for innovative and simple-to-install security and smart home solutions that add value and provide additional peace of mind for our customers.”
As customers become savvier about smart home devices and more selective in their home security needs, they will look for dealers who can offer the total package. Homeowners want an app that can arm their security system, turn off the lights, lock the door, adjust the temperature and let them view the dog with a WiFi camera. They want remote services that give them the same level of control out of the house as they have in the house.
Smart security, combined with smart home devices, allows for a more personalized system experience, and a more engaged customer. As a dealer, you can work with the homeowner to craft the system that fits the family’s individual needs, and thus make the customer more invested in the system and your services.
Alexei Erchak is the founder and CEO of BeON Home. Request more info about the company and its smart lighting solution at www.securityinfowatch.com/12069234.
