Differentiating Your Security Business

Alex Flitton
Mar 5, 2019 9:18:05 AM

A recent Parks Associates study revealed that more than 70 percent of security dealers in the United States offer services beyond traditional monitoring in order to stay competitive. It is either a sign of the times, or a wake up call for security companies behind the pace of the market.

In addition, the study reveals that 40 percent of professionally-monitored consumers are “willing and likely” to switch providers for as little as 10 percent savings in monthly fees.

That means you should hurry and drop your prices so you can steal your competitors’ customers, right? Not so fast.

Defining Your Value

Retaining customers is more than being the cheapest. There’s a reason half the planet prefers iPhones over cheaper alternatives, and that is something worth examining.

It’s not just about offering the lowest prices. Sure, you can go the Wal Mart route, but the research shows that a low-cost pricing model is incredibly difficult to use and remain profitable. Instead, your strategy should include developing unique differentiators that treat consumer needs while leveraging periodic touch points that keep your customers engaged with your products and services. In essence, you should make service a priority.

Attracting And Retaining Customers

There are several key components that attract and retain customers. Each of which you can use to your advantage.

Image source: Hubspot

Attract:

  • Price
  • Social Proof
  • Comparison

Price

Essentially, you price communicates something, especially when consumers can quickly see the cost of comparable products and services. Taking a low-cost route communicates that you are a quick fix, but not the best one, and the opposite can be said of the higher-cost solution

Social Proof

Sources of social proof like consumer reviews are absolutely necessary in attracting new customers, and you should make it a priority to provide a service worthy of high customer reviews. In addition, you should regularly solicit your customers’ participation in consumer review sites so that more potential customers associate your brand name with positive social proof.

Comparison

Are you listed in local business listings, or business review pages? Because you should be. As buyers go through the purchase decision process, they will scour the internet for as much information about your products and services as possible, and most importantly, compare them with your competitors. If you have measurable differences in your service quality and overall value, you will become their top choice.

Retain:

  • Service Quality
  • Cross Evaluation
  • Course Correction

Service Quality

The quality of service you provide is the first method you use to confirm that their purchase decision was the right one. Few factors are more detrimental to the lifetime value of a customer than a poor first touch point.

Cross Evaluation

After finalizing the first touchpoint with the customer (finishing an installation, or other service) you should quickly evaluate how the customer feels about the service thus far. Using their feedback, you can evaluate deficiencies in your own service and identify additional needs that you could potentially satisfy.

Course Correction

Evaluation has no effect unless you make regular and meaningful course corrections. If one of your installation technicians was unprofessional, or if the wiring was poorly done, a course correction must be made in order to rectify the situation. The ways in which you course correct can mean great results when retaining and delighting your customers for the long term.

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