How do you maximize value in your security alarm company? If you hired a consultant to analyze your business, what types of recommendations would he or she give?
One thing that makes a consultant’s recommendations so valuable (and his hourly rate so high) is that he typically has an excellent understanding of what drives consumers to purchase security products – and what prevents them from doing so. The Consumer Electronics Association’s September 2013 report, Adoption and Usage of Home Automation Technologies has several great insights on these very topics, and you can use them to evaluate your business yourself before adding a hefty consultant’s fee to your already-strained budget.
The Informed Consumer
Consumers have always been driven to purchase security products for emotional reasons. In essence, they are buying “peace of mind.” However, because the Internet has provided consumers with access to more information than ever before, they are researching all their options and comparing multiple solutions before making a final buying decision.
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Armed with all of this data, prospective customers are prepared to ask tough questions that your sales staff will need to answer without hesitation. Today’s consumers are quick to move on to the next company on their list. A well-educated sales staff, armed with the following tips, can be the difference between closing and losing the sale.
1. Get to know a little more about your customers before showing specific products and services. Features that may deter one person may actually attract another. For instance, some consumers dislike the idea of having permanent fixtures installed in their homes while others see permanency as a great benefit. If you can glean this information in advance, you can avoid focusing on any products that might crush your chances of a sale..
2. Highlight benefits of your products that consumers may not be aware of, such as decreased insurance premiums and reduced energy consumption.According to the CEA report, “two-thirds (66% and 65% respectively) of consumers would be more likely to purchase home automation technology if either of these benefits were offered.”
3. Have data prepared to counter common customer objections.The CEA report found that the following issues are the top concerns consumers have when considering the purchase of home security and alarm systems:
- Ongoing service and monitoring costs
- Installation costs
- Security and privacy issues, such as third parties gaining unauthorized access to the system
- System malfunctions
- Repair costs
- Energy consumption
These concerns can often be abated with the presentation of factual data, such as details on how costs can be offset and how the system is protected from hackers and others with ill intent.
4. Offer budget-friendly packages. One of the most-cited reasons given by consumers who claim they are not interested in home security options is price. While cost may have been a very restrictive factor 10 years ago, today’s technology offers many affordable security solutions that the average homeowner may not be aware of. If you’re trying to expand your customer base, it may be worth your time to add some of these lower-priced options to your list of services.
5. Provide in-person demonstrations. Even though consumers are spending a considerable amount of time researching security products online, they still value hands-on demonstrations before making their final buying decisions. Online videos and other educational materials may bring more leads to your door, but it will be much easier to close sales if you offer a way for customers to personally test the products themselves.
Interested in learning about other ways you can maximize your business’s value? Contact Rory Russell of AFS at 800-354-3863 for a free, confidential business evaluation. You can also download our free ebook filled with expert advice on how to make sure you’re getting top dollar for your security alarm company when the time is right for you to sell.
© Rory Russell and Acquisition and Funding Services, 2014. Unauthorized use and/or duplication of this material without express and written permission from the author and owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Rory Russell at AFSSmartFunding.com with appropriate and specific direction to the original content.