ADS Security launches initiatives to retain resi customers, grow commercial side

Super-regional nears $3 million in RMR
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Monday, March 14, 2016

NASHVILLE, Tenn.—ADS Security has hit the ground running in 2016 with aggressive campaigns to maintain residential customers while growing its commercial business, and a continued strong pace of acquisitions.

John Cerasuolo, ADS Security president/CEO, told Security Systems News that 2015 was “probably the best year we have ever had by almost every metric. Our RMR is in the $2.7- to $2.8-million range and closing in on $3 million. We finished last year with almost $43 million in revenue, and we are projecting for 2016 our revenues to be growing at a good pace depending on the timing of some of the acquisitions and when we close on them.”

The company completed four acquisitions in 2015 and five in 2014, as well as two already this year: the acquisition of Security and Fire Equipment Co. (SAFECO) of Northport, Ala., which was completed early last month, and the acquisition of customer accounts from Central Carolina Security of Sanford, N.C. this month. ADS will retain the Sanford location, marking its 20th branch.

“That pace is very helpful,” he said. “And our organic growth was the strongest that we have ever had—it was a fabulous year for us.”

In addition to acquisitions, a primary strategy on the residential side is creating programs to retain existing customers, and specifically to prevent them from opting for bigger cable and telecom companies.

“We have some pretty creative things that we doing—some loyalty programs for existing customers,” Cerasuolo explained. “As their technology partners, we are continuing to invest in and update their systems, so they can take advantage of some of these new smart home technologies that are available today and that they are asking about.”

With all of the smart home technology storming the market, he noted that it is important not to lose sight that ADS is primarily a security company, not a smart home company.

“Being able to integrate some of these smart home technologies is very important to our future, but our play is to customers who want, need and appreciate the value of a security system, and who may also be interested in some of these other smart home features,” he said.

“The technology is great and it allows us to elevate the features and service that we deliver to our customers, so we are very interested in staying at the forefront in technology without losing sight of what we do best, which is security and providing legendary service.”

Another key initiative for ADS Security in 2016 is investing in its commercial business.  

“We see that [the commercial side of the business] as much more defendable turf, because of the barriers for entry for new competitors, and we feel we can really aggressively grow our business on the commercial side. So we have some new services that we are offering, RMR-based services, and some new technologies that we are trying to bring to our commercial sales organization to get and help grow our commercial business.”