After a somewhat sluggish start to 2023 due to the uncertain economy, the security and alarm industry is seeing shifting demand and new opportunities due to many new tech advancements. These changes include increased adoption of Cloud connectivity across the board, AI becoming more prevalent, and niche markets like health services and multiple dwelling units needing specific resources sooner rather than later. For example, “according to Parks Associates research, 80% of property managers plan to introduce smart home devices in their units within the next 12 months.”
Dealers must effectively adapt and identify opportunities as they arise in order to efficiently meet their customers’ changing needs. If your security and alarm business isn’t ready to address these shifts in demand, it can have a serious impact on your business success.
The dangers of not being ready to address shifting demands
1. Missed opportunities
If you’re not ready to make the most of the latest security and alarm technology, another dealer might be. To avoid missing out on opportunities and new customers, staying up to date is essential. Otherwise, you might be losing valuable business to your competitors.
2. Decreased customer satisfaction
An inability to address shifting demands can lead to a lot of headaches for your customers. Whether they have to wait ages for security camera upgrades or they hardly hear from you and experience long wait times before they receive responses, these issues create tension. Unsatisfied customers can damage your business’ reputation for years to come if they spread negative word-of-mouth or leave less-than-stellar customer reviews.
3. Inability to grow
Long-term success, profitability, and business growth potential all rely on the ability to adapt and shift your business as demands change. Meanwhile, the competitive landscape is changing. More tech services companies are expanding their lines of business, so your competition is continuing to grow over time. Growth is a core functionality of any thriving business and, if you don’t monitor how your business is addressing shifting demands, you risk falling behind.
We’ll get into ways that you can effectively manage changed demand due to new tech, for now, let’s dive into some of the new tech that’s currently driving demand across the board in the security and alarm industry. When you’re armed with this knowledge, you can better prepare your business for the shifts in customer demands that lie ahead.
New tech currently driving demand in the Security and Alarm industry
1. Enhanced visuals broadening the usefulness of video surveillance.
Dim lighting at night? No problem! Capturing images only seen on the visible light spectrum? Not anymore! The latest imaging technologies and perception capabilities are overcoming these hurdles. Bi-spectrum image fusion technology and artificial intelligence-based signal processing have helped to reproduce vivid colors in low-light environments and improved visual noise reduction so video surveillance at night is clearer than ever. At the same time, multi-dimensional perception capabilities are converging with security tech to create innovative solutions like “radar assisted video systems for perimeter protection, integration solutions of video and sonar arrays for traffic management, and alarm systems with a wide range of detectors for smart home applications.” These exciting developments are just beginning to emerge so there’s plenty of room for additional growth in this sector.
2. Wireless and biometric security systems
Where wiring is too time-consuming, challenging, or cost-ineffective, the latest wireless security tech is ready to stand in its place. Thanks to recent advancements they offer improved flexibility and
, “advanced sensors, intuitive data analysis, and better tamper resistance.” Also, more businesses are adopting biometric security systems that incorporate facial recognition, voice biometrics, and fingerprint identification to improve accuracy and secure their premises with enhanced precision. These additions to physical security systems are driving demand as the tech becomes more affordable and accessible to a wider range of customers.
3. Cloud-based video data security and AI use-cases
The desire for enhanced remote access and cloud-based video data continues to increase. In order to handle the complex cybersecurity challenge that cloud-based video data can present, building a secure infrastructure base that customers can rely on is essential. A lot of the latest cloud-based video surveillance innovations are incorporating AI to increase the accuracy and range of what they can detect and, as these AI use-cases become more widespread, cybersecurity protocols will need to keep up with rapidly developing technologies.
The first step you need to take to avoid the dangers of not being prepared to handle technology shifts in your business is to stay up to date with what they are. Now that you have a better understanding of the latest security and alarm technology developments, consider implementing the following tips to help your business adapt.
Tips for efficiently addressing changes in demand
1. Increase recurring monthly revenue (RMR) with video-as-a-service
As video surveillance technology continues to improve, a lot of dealers are thriving on a video-as-a-service model. According to SIA, “options are now available that can boost RMR more than ever before, such as proactive video monitoring…not only does this service deliver high-value RMR, it also helps alarm companies to develop stronger connections with their customers”. If you’re hoping to expand on the value you can offer your existing customers to enhance your customer retention while boosting your overall profits, this efficient option accomplishes both.
2. Follow the tides towards Cloud-based and away from on-premises
While many customers are still happy with their existing on-premises security solutions, the market is continuing to shift towards cloud-based solutions. As bandwidth expands, data security issues are proactively addressed, and scalability becomes more achievable, security and alarm companies need to efficiently follow the tides towards increased Cloud adoption. Companies can benefit from reassuring customers of the increased reliability, flexibility, and functionality of cloud-based solutions to help migrate existing on-premises devotees. Also, investing in retraining employees who are well-versed in on-prem but not as up-to-speed in Cloud-based solutions is an effective way to utilize the talent that’s already part of your team.
3. Effectively manage and update your inventory
As older equipment becomes outdated and new solutions emerge, keeping your inventory under control is essential if you want your security and alarm business to run efficiently. Maintaining accurate inventory counts and shifting to automated, just-in-time delivery models will help your business reduce waste and keep your shelves from being overstocked with outmoded technology. For more information on the best ways to manage your small business inventory, this comprehensive guide can help.
4. Leverage business automation technology
By automating repetitive tasks such as data entry, report generation, and inventory management, businesses can streamline their operations, reduce errors, and free up employees to focus on higher-level tasks. Leveraging the right business automation technology can also help your business scale your operations more efficiently, allowing you to quickly respond to changes in demand without adding more staff. It can also help your business provide a better customer experience by improving response times, reducing wait times, and providing more accurate information to customers. For example, using chatbots to provide instant answers to common customer inquiries or using automated notifications to keep customers informed about the status of their service requests.
It’s an exciting time to be a part of the security and alarm industry, as technology continues to develop rapidly, businesses that are staying up to date with the latest developments and on-top of their inventory management are positioning themselves to thrive no matter the economic outlook.
As your business helps customers gain peace of mind through security solutions, we hope to help you build a better business so you can sleep better at night. Want to learn more about building a recession-proof business with a sturdy foundation? Take a look at these seven proven strategies that will help you maximize cash flow and diversify your services.