3.10.23 – CE Pro
Parks Associates consumer study on security monitoring services looks into business models, pricing and attrition trends facing the market.
The study also quantifies and examines security systems owners’ preferred business models, preferred price points and reasons for attrition.
In a press release highlighting some of the key points in the study, Parks Associates notes that younger households have been found to be more at risk of cancelling their professional security monitoring services. However, security monitoring cancellation intent has gone down compared to previous years.
Overall, only 17% of those with professional monitoring services report a likelihood of cancellation.
Despite younger generations making up the lion’s share of homebuyers in recent times, homeownership among these group still accounts for a small portion of the market compared to older generations. According to Zillow data from 2021, homeownership among Millennials and Gen Z represented only 18% of homeowners in the US, leading homeowner behavior to still be largely influenced by older generations.
Changing Outlook on Security Contracts
Elizabeth Parks, President and CMO, Parks Associates, also noted how the state of streaming media has potentially influenced client churn patterns.
“The end of a contract is a trigger for cancelling professional monitoring subscriptions,” Parks says.
“More than 30% of those who intend to cancel have contracts that will end within two years. Early cancellation penalties may keep subscribers on the plan, but consumers are increasingly opting for home services without contract terms.
“The video services market…has been upended by streaming services with no contract terms. Providers must not wait until the end of a contract to reach out to retain subscribers with new, more flexible options.”
Parks Associates will be addressing these findings at its 27th annual CONNECTIONS conference, held May 23-25 at the Omni Frisco Hotel in Friso, Texas.
Those interested in conducting an interview or procuring additional are instructed to contact Rosey Sera at rosey@parksassociates.com.
ABOUT THE AUTHOR
Nick Boever is the former editor of DesignWell and current Web Editor of CE Pro. With a focus on wellness and sustainability, he is constantly searching for new and emerging technologies improving the health and wellbeing of people and the planet through the built environment. In his off-time he can be found in the workshop, writing, or relaxing at the top of a mountain.
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