Whether you’re new to the alarm industry of you’ve been working in it for years, it should not come as a surprise that competition in the home security market is fierce – and constantly on the rise. Consumers have many home security providers to choose from, plus an increasing number of DIY home alarm system options that they can implement themselves.
Attrition is a constant concern in the alarm industry, as it’s a key indicator of the success, profitability and overall health of alarm businesses. It’s also one of the key factors that impacts how much an alarm company is worth. When it comes to gaining and retaining customers, alarm business owners need to be on top of their game now more than ever in order to successfully combat attrition.
Preventing Alarm Company Attrition
Here are a few of our top tips for preventing attrition within your alarm company.
1. Stay Up To Date
Keeping with the times is imperative if you’re hoping to retain your existing customers and earn new ones. Customers want the latest and greatest in security alarm technology – and they are trusting you to provide them with it! Even if you are ultimately planning to sell your alarm business and the time to sell is drawing nearer, keeping your alarm business up to date is key to preventing attrition.
2. Market Yourself Effectively
Don’t become complacent with your marketing efforts! Even if you have a solid customer base, make sure you are keeping your business out there and promoting all you have to offer. You want to be sure that you stay top of mind with your existing customers and among consumers who may be considering a new alarm system provider.
3. Nurture Customer Loyalty
Fostering the loyalty of your current customers is one of the most important things you can do if you intend to keep other alarm industry competitors from stealing your customers. Earning your customers’ trust, protecting your customers from competitors and door-knockers, and communicating consistently with those consumers who have given you their business are three ways to nurture loyalty and build the bond between your business and your customers.
4. Provide Unbeatable Customer Service
Attentive customer service is one thing that can truly set a business apart. Show your customers how much you care by providing them with customer service that can’t be beat. Show them consistently that you are reliable and trustworthy so you establish your alarm business as a reputable organization. By sharing valuable insight with them, responding to their inquiries and requests in a timely manner and going above and beyond to exceed their expectations whenever possible, you will foster loyalty and consistently remind your customers why they chose you over your competitors.
5. Listen To Your Customers
To retain customers, you have to provide them with the services and experiences they are looking for. What’s the best way to figure out what your customers truly want and expect from you? Listen to them! Surveying your customers and being attentive to any feedback offered is a great way to be sure your alarm business is catering to the needs of the consumers you serve. Plus, implementing customer recommendations can help your customers feel like they are truly being heard, helping to build loyalty and trust while strengthening the bond between consumer and company.
6. Diversify
Another effective way to combat attrition is to actively work towards diversifying your company. Consider venturing into new service areas (perhaps commercial if you’re primarily focused on residential security, or vis versa), servicing larger facilities, expanding your service offerings to current customers, and/or actively marketing service agreements to new customers. You can also consider growing into another vertical, such as fire or CCTV if you’ve primarily focused on intrusion. Having a diversified account base can help you grow your revenue and protect you from the risk of lost accounts while also making your company more appealing to potential buyers willing to pay top dollar when it comes time to sell.
Protect Your Alarm Business from Attrition
Whether you’re planning to stay in the industry for years to come or you’re preparing your alarm business for sale in the near future, attrition is an important thing to keep in mind. Understanding attrition in the alarm industry – and how to protect your business from a high attrition rate – can truly help you to combat it and keep your business on track for success.
Looking to improve your customer retention rates? These strategies are a good place to start.
Have questions about alarm industry attrition, or about selling your alarm company or alarm accounts? Contact Rory Russell of AFS online or by phone at (800) 354-3863 (personal cell) today!
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