Security Monitoring: Business Models, Pricing, Attrition

Description

SYNOPSIS:

The residential security market is in a moment of fundamental realignment. Self-install and self-monitoring system options have expanded the market and resulted in millions of new security households. This flagship study quantifies and examines security system owners' preferred business models, preferred price points, and reasons for attrition.

ANALYST INSIGHT:

"In 2023, residential security providers will continue to push the envelope on product innovation and services they provide in order to increase revenue in a market of slowing adoption." - Ryan Hulla , Research Analyst, Parks Associates.

Executive Summary

Security System Ownership
Installation Among Recent Security System Buyers
Adoption of Security Services
High Likelihood to Switch Monitoring Provider
Demographics of Security Households in US Internet Households
Technology Affinity by Security Monitoring Services
Installation Method for All Home Security Systems
Installation Method for Home Security Systems Acquired within the Past 12 Months
High Likelihood of Adopting New Services
Likelihood of Cancelling Security System Contract by Age Group
High Likelihood of Reconsidering Cancellation When Offered Incentive

An Overview of Security Systems in US Internet Households - 2022

Home Security System Ownership
Interactive Systems Among Home Security Households
Security Solution Adoption
Security Service Adoption
Home Security System & Service Adoption
Home Security System Installation
Installation Method for All Home Security Systems
Installation Method for Home Security Systems Acquired within the Past 12 Months
Alternative Security Solutions Considered, Among Recent System Buyers
Demographics of Security Households in US Internet Households

Residential Security Services

Adoption of Security Services
Security Monitoring Service by Installation Method
Top Security System Brands
Top Professional Monitoring Service Providers, YoY
Paid Home Security Service, YoY
Paid Home Security Service by Service Provider
Professional Monitoring Service Provider Net Promoter Score (NPS)
Top 10 Brands by NPS, July 2022
NPS of Top Professional Monitoring Providers, QoQ

Equipment Financing and Preferred Business Models for Security Monitoring

Average Upfront Fees for Home Security Systems
Security System Equipment Payment Method
Security System Equipment Payment Method by Installation Method
Security System Equipment Payment Method by Security Service Fees

Security Service Fees & New Services

Average Monthly Fee for Home Security Service, YoY
Avg Monthly Fee by Top 10 Brands, July 2022
Home Security Service ARPU by Generation
Home Security Service ARPU by Age Group
Home Security Service ARPU by Family Size
Security System Owner High Interest in Additional Services

Acquisition Channels and Triggers

Security System Purchase Channels Among Recent Buyers
Security System Purchase Location Among Recent Buyers
Triggers of Security System Acquisition
Security Monitoring Service by Purchase Triggers
Experience of Accident or House Damage
Beyond Intrusion: Top 3 Conditions for Security System to Detect
Top Three Desired Features Beyond Intrusion Protection

Monitoring Provider Churn

Changes Made to Home Security System in the Past 12 Months
Reason for Switching Professional Monitoring Provider
Reason for Cancelling Professional Monitoring Service
High Likelihood of Switching to New Professional Monitoring Service Provider
High Likelihood of Subscribing to Professional Monitoring Service
High Likelihood of Switching Monitoring Providers by Monthly Home Security Service Cost

Cancellations and Retention Incentives

High Likelihood of Cancelling Pro-Monitoring Service
Likelihood of Cancelling Security System by Generation
Likelihood of Cancelling Security System Contract by Age Group
Left Length of Contract, Among Intended Cancellers
Impact of Contract Terms on Cancellation Plans
Impact of Retention Incentive on Cancellation Plans
Impact of Service Pricing Discount as Retention Tool

Self-monitoring: Reasons and Selection

Reason for Choosing Self Monitoring Service
Reason for Choosing Specific Monitoring Service Than Other Options
Attitudes toward Self-Monitored Security System
Would these prompt you to subscribe to professional monitoring?
Reason for Switching from Self to Professional Monitoring

Security System Intentions

Security System Purchase and Intention to Buy
Method of Security System Monitoring and Responding
High Likelihood of Change to My Pro-Monitored Security System