Monitoring for Millennials
Alarm monitoring provides a deep sense of security in our ever-changing world. Having the necessary technology in place can make the difference between life and death. The alarm monitoring industry has seen great change over the past few years, and will continue to evolve as technology continues to change. Just like the technology, the millennial consumer has evolved, with distinguishing tastes and a deep dependence on immediate information. The millennial generation numbers around 80 million in the US and were the first generation to grow up around personal computers. This has fostered a tremendous need for technology and information within this age group. With this said, let's take a look at some of the trends that will transform the alarm industry for the millennials over the next 2-3 years.
Innovation: Alarm monitoring companies need to remain relevant to the consumer. The marketplace for monitoring services is gradually changing from perimeter based to device/sensor based. Traditionally, alarm companies have installed sensors to monitor your doors and windows to establish a perimeter defense. However, the consumer space is now littered with surveillance cameras, proximity sensors, and the alarm monitoring space is adapting to these technologies. Smart appliances are part of the "new norm" and consumers will no longer need to troubleshoot a problem after it occurs. Devices will notify us when there is a problem so that we as consumers can proactively fix it ahead of time. Systems will integrate your calendar and, combined with your thermostat, will adjust the temperature of your residence whether you are home or not. By expanding their suite of services to include home monitoring and device monitoring, alarm companies remain relevant to the millennial consumer, one who has an insatiable appetite for fingertip information.
Data Analytics: Businesses both small and large have always used alarm monitoring to provide a sense of security after hours. The traditional human patrol guard of decades ago is now replaced by smart surveillance cameras and sensors that provide us "on-demand activity" information. If a camera detects motion, an immediate SMS message can be sent to a recipient along with a video recording being preserved. However the current renaissance is in information analytics, the process by which information can be carved into business intelligence. By harvesting pertinent alarm monitoring data, a customer can now determine how often sensors are alarming or if there is a discernable pattern to the motion detection. A customer can also determine if in fact their child actually came home when they did. For the immediate term, alarm monitoring companies can distinguish their service offerings by providing key analytic information on how effective the services are, and help their customers understand what the data all means.
Industry Consolidation: It's no secret that the alarm monitoring business is in consolidation. Larger companies are looking to expand their reach and footprint and offer more value to their customer base. Smaller alarm companies are struggling to find the technical expertise to adapt to the changing marketplace as well. As the industry adapts to newer technologies, the industry as a whole will be differentiated into large wholesale offerings with a wide variety of services and products, and smaller companies who provide a necessary service to geographically disparate regions or communities. Overall, the consolidation should provide a deeper commitment to information delivery across a wider audience. However, in the coming years, rural areas of service will be on par with those services in the major metropolitan regions of the US.
Information is King: Throughout each technological advance, it was common thought that the technology would drive the market. Product would determine the marketplace. However, the marketplace has consistently operated in quite the opposite fashion. The millennial demographic have shown that they want to be in charge and have very discriminating taste. The growth of personalized information, mobile applications, and the need for the individual to always be "on" will force companies to provide new types of information. Alarm monitoring will no longer be about reacting to real-time events: the renaissance will be in how you deliver this event-driven information in order to enable the consumer or business with the means to choose how to react. Simply put, to own the information is to own the business.
The information revolution started many years ago with internetworking, personal devices, and mobility. These factors lead to the creation and rise of the millennial consumer. Personal security, monitoring, and fingertip information are all important to these consumers and their appetite for information should enable industry growth for years to come. However, alarm monitoring companies will need to rethink their traditional business models to include other "high-value services" in order to remain competitive for the business of the millennial.
Gary Stevens is a product marketing manager at Secure Global Solutions and has over 24 years of technology product management expereience. When he is not working, he is an avid photographer, certified drone operator, and enjoys playing soccer and rescuing golden retrievers.
