Security providers offering only basic services suffer from poor NPS

Firm presents new research at Electronic Security Expo (ESX) showing importance of interactive services

Parks Associates shared new research at the Electronic Security Expo in Nashville last week, showing that professional monitoring service providers offering basic security systems suffer from poor NPS (net promoter scores), while those offering interactive security and home control systems have NPS more than 50 points higher. According to the firm's 360 View: Residential Security, monitoring service providers that do not offer interactive services lost more than 10 points and fell into negative territory in their NPS over just one year.

"Interactive services and home controls are important differentiators for security providers, and they are crucial to a firm's consumer retention and engagement," said Dina Abdelrazik, Research Analyst, Parks Associates. "Changing NPS scores show subscribers will guide friends and family away from their current provider if it does not offer interactive services."

Parks Associates research shows professionally monitored services with a basic security system received an NPS of 7 in Q4 2015. That score dipped to 5 the following year before hitting -6 in Q4 2017. During that same time, the NPS for professionally monitored services with interactive security and home control systems increased from 33 to 48.

"Consumers now expect smart home products and interactive services as part of their security offerings," Abdelrazik said. "Overall, Parks Associates estimates that 51% of professionally monitored security systems had interactive services in 2017. Given that interactive services have become mainstream, eliminating the basic security system offer and shifting interactive services to the value-tier offer will dramatically improve RMR (recurring monthly revenue) and help dealers compete."

Abdelrazik spoke on the session "Smart Home Market Becoming a Brilliant Opportunity?" on June 22 at ESX. The session examined opportunities in the smart home, including market size trends and customer segmentation. Panelists from ADT, Comcast, and Nortek discussed the importance of smart home products and services to compete effectively and provide additional value for security systems.

360 View: Residential Security addresses the current state of the residential security market; the leading channels for professionally monitored security; the market dynamics, such as price, interactivity, and installation method, affecting the security industry; the impact of the smart home market on residential security; and key trends in the residential security market.

For more information about Parks Associates' research, contact To schedule an interview with Dina Abdelrazik or to request specific data, contact Julia Homier at, 972-996-0214.

About Parks Associates
Parks Associates is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start-ups through market reports, primary studies, consumer research, custom research, workshops, executive conferences, and annual service subscriptions.

The company's expertise includes digital media and platforms, entertainment and gaming, home networks, Internet and television services, digital health, mobile applications and services, support services, consumer apps, advanced advertising, consumer electronics, energy management, and home control systems and security.

Each year, Parks Associates hosts industry webcasts, the CONNECTIONS™ Conference Series, Connected Health Summit: Engaging Consumers, and Smart Energy Summit: Engaging the Consumer.

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