Retention shouldn’t be a difficult thing, yet it affects every business regardless of the products or services provided. After talking to subscribers for decades, we have discovered there are 5 main reasons security subscribers leave. So we’ve put those reasons together in a comprehensive list starting with the the least common to most frequent. They account for nearly every hole in the bucket and, if properly addressed, can result in a 95% improvement in retention.
The least common of all, but important to address is cost. Some customers, no matter what, will look for the cheapest products and services on the market. At the end of the day, that can’t be helped, and those might not be the customers you want anyway. But, what we have noticed, is customers are noticing a disparity in the cost of their system with the level of service they are provided. So, in order for dealers to fill the void, we suggest establishing follow-up visits or phone calls after systems are installed. To raise the perceived value of your service, consider setting up loyalty rewards or free product check-ups. These small tokens can be powerful signs of appreciation to customers, making them feel valued and consequently turning them into advocates for your brand.
2. Lack of System Features
As global companies like Amazon and Google enter the security space, their top-shelf, low-priced DIY products are catching the eyes of consumers like water in the desert. It is becoming increasingly important to differentiate your business by establishing unbeatable service standards. With WiFi connectivity and a bit of motivation, a typical consumer doesn’t need a full-service dealer to set up a DIY security system. So, it is up to you to make your service levels unbeatable, and monitoring capabilities convenient. If a subscriber feels they can monitor their systems themselves, what will you do to make them want to pay for a monthly monitoring service? One way an effective monitoring partner can help in this area is by providing a chat tool platform that allows subscribers to conveniently interact with their alarms alongside other members on the account. The easier you make the setup and maintenance of customers’ alarm systems, the more likely they are to stay.
There is nothing more obnoxious to a subscriber than an unsilenceable, high-pitched scream coming out of the wall. That sound alone is the reason 74% of attempted burglaries are not completed. So why would a subscriber want to keep paying for a system they don’t know how to use? Especially for the aging population, learning new technology can seem intimidating and deters many people from buying in the first place. For those who finally make the leap and fail to learn how to use their new system, cancellation typically becomes inevitable.
One of the best ways a dealer can sell a long-term account is by properly training customers to use their devices and even following up to re-train. While operators can provide certain troubleshooting tips, proper installation and education is the responsibility of an effective dealer.
95% of the time we hear a customer wants to cancel their subscription, it is because they can’t get in contact with the alarm provider’s main office or a technician. Most alarmingly, the issues they need help with take less than five minutes to resolve! Subscribers who fit under this category most frequently have questions about billing or need help fixing a faulty installation. If we could encourage dealers to improve one thing, we would put all focus on making it easy to get in contact with dealers’ front offices. If your front office doesn’t have the resources available to answer customer calls, most monitoring providers offer 24-hour answering services that can help aid in the process.
The single theme that transcends our top five reasons why customers leave is a disruption in communication. If you can establish effective methods of communication to help customers get the help they need, and set expectations, you can keep customers longer and grow your business.
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Did you know that retaining just 5 percent more of your customers can improve profits by up to 100 percent? Read our white paper on the importance of customer retention.
