Subscribe to RSS - Residential Security

Residential Security

Some takeaways from Honeywell's Connect2014

 - 
Saturday, November 15, 2014

ORLANDO, Fla.—“The Big Picture” was the focus of Honeywell’s annual event for authorized dealers, Connect2014.

The conference, held here, started Nov. 13, but the glitzy kickoff was on Friday morning with a general session that was quite a production, featuring a live orchestra, big screens, top execs, award winners and more.

Marek Robinson, president of the First Alert Professional and CSS Authorized Dealer programs, told the audience that “The Big Picture” means taking a step back and looking at everything that’s going on in the world and the industry. “How does it impact the industry? What are your resources to deal with it?” Those are the questions dealers should be asking, he said.

People are spending from three to five hours a day on their devices, said Ron Rothman, president of Honeywell Security, and they’re inundated with technology.  Honeywell and others have been waiting for this trend for a long time, but that also means a slew of new entrants are going after a piece of Honeywell’s pie—31 new start-ups just in October, he said.  However, the power of the Honeywell brand and the upcoming investments the company will make in technology, marketing and advertising will prevail, he said.

Alex Ismail, ACS president and CEO, said Honeywell aspires to be the Apple of industrial companies when it comes to customer satisfaction and loyalty. A five-star customer experience was a recurring theme throughout the two-hour session. (More on that later.)

Inder Reddy, president of Honeywell Security Products Americas, reminded dealers that while they need to adapt to the new environment they also need to stay grounded in the fact that they are protecting families, homes and businesses. “Security is still central to the Connected Home and Connected Building,” he said.

Authorized dealer tenure awards were presented, and the general session wrapped up with a moving tribute to the folks who helped saved a little girl’s life—they received the Life Safety award. A 6-year-old boy, a nurse, a Palm Bay, Fla., police officer and the Palm Bay Fire Department all played a crucial role in resuscitating an 8-year-old girl who was found unconscious at the bottom of a swimming pool. She was on stage to present the awards to her heroes.

The second general session of the day featured a boisterous Rudy Wolter, director of the North America Region of Citigroup Security and Investigative Services and a key player in Honeywell’s End Users Group. A “five-star” experience for end users is “partnership, not perfection,” he said.  (More on this later, too.)

Raymond Dean, former president and founder of PEI and now senior vice president at MSA Systems Integration, spoke on treating customers as a company’s best assets.

“Take care of the customer and they’ll take care of you,” Dean said.

Visit customers regularly when there are no problems and they won’t associate you with negative connotations; don’t send new hires out to a homeowner without a formal introduction from someone they know; show respect, he said.

“Growth makes us complacent, the roots of our success get forgotten,” Dean said. Customers made you a success, don’t drift away from customer service, he added.

Keynoter Jeffrey Gitomer, a best-selling author and sales and customer service professional, gave a humorous and insightful talk to the appreciative crowd. He discussed the need to be adept at social media to boost company reputations and branding, because “the old way of selling doesn’t work anymore. Social media has changed the way you sell and serve forever.” (More on this later, too!)

I also attended three breakout sessions, the first of which was “Communication Strategies—2G, 3G, 4G and Beyond,” Dan Jarnigan of Guardian Systems, Dave Hood of EPS and Alan Buffaloe of Gill Security discussed their approaches to customer upgrades.

Next was a discussion on the Connected Home with Jeremy Bates of Bates Security, Larry Comeaux of Acadiana Security Plus and Rence Coassin of American Total Protection. The panel discussed tailoring “connectedness” to meet customers’ needs, while reminding customers that security comes first.

Honeywell’s Jan McBride presented “The next BIG THING: Emerging Technologies.” It’s not just wearable devices, she said, showcasing a number of other products—“not sure if they’re creepy or cool”— that could impact the industry. Those include Bluetooth-enabled gloves; smart appliances that can text you when, for example, your clothes are finished in the dryer and refrigerators that can track your eating habits; smart doorbells that allow you to “answer the door” via cellphone even when you’re not home; and home robots that can not only read to your children, but can remind you of appointments and take photos of your events so you can be in the pictures.

Eye-tracking technology, gesture recognition (to pull down window blinds, for example) are all here now, McBride said. “These trends will be a driving force in terms of home automation. The impact on our business is whether these things are of real value or are these applications a passing fad?”

On the final day of Connect 2014, Steve Means, district sales manager for Honeywell in Texas, encouraged dealers to leverage Honeywell’s services to grow their businesses. “Connected solutions are what your customers want, and it will be good for your business,” he said during the morning’s general session. From detecting mold to being notified when kids get home from school, along with myriad other applications, it’s the way to go, he said.

Russ Ackerman, district sales director for Vector Security, said his company’s RMR will be up 20 percent this year because of Connected Home. He doesn’t care about competition. “I don’t care what Comcast and AT&T are doing. Competition is for crybabies, sissies and whiners. I don’t want to compete. I want to dominate.” Connected Home will “help get us there,” he said.

New selling techniques are required. Where before Vector would use with its customers a “security evaluation questionnaire,” now it uses a “lifestyle analysis,” Ackerman said. Vector gives prospective customers a test drive of its products rather than “glossy pictures” of those products. It shares a two-way voice demo during the sales presentation.

“We’re closing 83 percent of presentations on the first call,” he said.

Other speakers during the general session drilled down on Connected Building for the commercial sector.

I attended two educational sessions later in the day, one on “Building Your Brand,” the other “Creating a Culture People Love.”

John Schwartz, marketing director for ADS, discussed a number of branding myths—for example, that branding is complicated, expensive and had to be done solely by marketing professionals; advertising vs. branding—advertising is pushing the message out, branding is solidifying that message; and social media’s power, both pro and con—“if someone is mad at you, they can go on every social media outlet and let everyone know.”

Sales people should be involved in branding, with input from customers, Schwartz said. Companies should pick one word they want to be associated with, such as “trust,” and take it from there, he said. Facebook can be used for “sideways selling:” let people know how your company helps the homeless or conducts other community service projects, he said.

At my final Connect2014 educational session, LOUD Security’s John Loud explained how his company, with 57 employees, has built its culture to be engaging and fun. It all starts with company leadership, he said. Events for employees, teamwork and recognition all matter, he said. (Read more about this later, too!)

Complete with a ‘70s Fever Costume Party and the Awards Gala, Connect2014 put on a big event in keeping with its “Big Picture” theme.

Which generation is big on smart home technology?

 - 
Wednesday, November 12, 2014

MADISON, N.J—Question: Who is most willing to spend money on smart home technology?

Answer: The Millennials, those consumers born between 1982 and 2000. That’s according to a recent survey conducted by ERA Real Estate and HGTV.

Overall, 2,437 consumers participated in the survey this past August.

Forty-six percent of the respondents said they believe it is important that their current home or the next home they buy be equipped with smart home technology; 51 percent said they would consider installing such technology to make their house have a higher resale value.

Millennials were 10 times more likely than Gen Xers, those born after post-WWII Baby Boomers, to make the smart home investment, the survey showed.

"While still a growing trend, smart home enhancements have the potential to increase savings, safety and resale value," Charlie Young, president and CEO of ERA Real Estate, said in a prepared statement. "As we have seen through this survey and (through) our one-on-one interactions with buyers and sellers, a smart home is one that is well-positioned for the future and aligns with a growing reliance on mobile technology."

Mobile technology and control are rising to the top, particularly with Millennials, the survey found. Seven in 10 Millennials believe it is important that smart home technology integrates with their smartphones.

Five in 10 survey respondents reported having a security system in their current home. Demonstrating consumers' practical preferences, the most commonly found technologies were those that could help homeowners save money, including automated climate control, energy management, remote home monitoring and lighting control systems, the survey said.

For more findings from the survey, go here.

American Alarm’s N.H. move promotes its growth plan

Customer service, jobs should increase as a result, president says
 - 
10/29/2014

ARLINGTON, Mass.—In keeping with its plan for aggressive growth, New England security provider American Alarm and Communications expects to increase its customer service capabilities and add jobs with a new and bigger New Hampshire office.

New resi dealer eyes Southern California market for growth

 - 
Monday, October 27, 2014

LONGVIEW, Wash.—Aaron Wenner, the owner of Universal Security and Alarm Inc., which got up and running here in April as an authorized Monitronics dealer, is looking to the Southern California market to expand, primarily because of “its nice, big retirement community.”

“Those door-knocking companies only work four to five months out of the year, but we need to work year round, especially when it gets darker earlier; these (retirees) are home during the day,” he said during an introductory phone call with Security Systems News.

Universal “doesn’t do a whole lot” of door-knocking,” although Wenner did when he worked for Utah-based NorthStar. He got tired of coming in “behind others who had totally ripped off customers,” he said.

The company, which promises “no sneaky fees,” has been doing well since its start-up, he said.

“We have a unique opportunity with Monitronics. We can sell our contracts to them or keep them for ourselves—it’s totally up to us which ones we keep,” he said. So far he has kept 200.

The company offers residential and commercial alarm systems, medical alert buttons and fire monitors to customers in Washington, Oregon and California. The wireless systems also provide remote access.

Ackerman Security donates to Leukemia & Lymphoma Society

 - 
10/14/2014

ATLANTA—Ackerman Security has donated $5,000 to The Leukemia & Lymphoma Society Georgia Chapter.

Video verification in the home on CEDIA agenda

One presenter says deploying cameras outside the home, rather than inside, is the way to go
 - 
09/10/2014

DENVER, Colo.—Just a few years ago, the idea of holding a video verification seminar at a residential technology expo might have seemed farfetched. But that’s exactly what’s happening at the 2014 Custom Electronic Design and Installation Association (CEDIA) expo, held Sept. 10-13 at the Colorado Convention Center.

Envision Security gets $3m in financing

The new mezzanine loan will allow the small company to retain accounts, build RMR and expand
 - 
09/03/2014

PEORIA, Ariz.—A new $3 million private equity loan will allow Envision Security, a small door-knocking company based here, to keep many of its accounts in house so it can build RMR and grow.

Video in the home goes mainstream

Checking in on kids, elderly parents and pets facilitated by residential video surveillance
 - 
09/02/2014

In the second decade of the 21st century, home security is no longer just about catching bad guys.

Possible Protection 1 buyers: PE firm, telecom or cableco

Pro 1 is reportedly up for sale with a $1.5b price tag, and an analyst tells SSN having an 'asset of this quality' on the market is unusual
 - 
08/06/2014

YARMOUTH, Maine—Home security giant Protection 1 is up for sale for more than $1.5 billion, Reuters reported this week. Likely buyers could range from a top private equity firm to a telecom or cableco, an industry analyst told Security Systems News.

ADT closes Protectron acquisition

 - 
Tuesday, July 8, 2014

The ADT Corporation announced yesterday that it has closed its acquisition of Canadian monitoring giant Protectron.

ADT, which executed a definitive agreement to acquire Reliance Protectron in April, acquired the company for total cash consideration of CAD $555 million.

ADT has now officially added 400,000 customers and 31,000 accounts north of the border, worth approximately $11 million in RMR.

ADT, which already has two central stations in Canada, adds four more through the acquisition. Protectron, a portfolio company of investment funds managed by Alinda Capital Partners, has 900 employees. Its customer base is 75 percent residential.

ADT’s plan, as stated at the time it agreed to acquire the company, is to use the acquisition as the platform for a stand-alone business in Canada with a dedicated management team, a move designed to address the country’s specific market needs. In a news release, ADT said it planned to continue to using the Protectron brand under ADT ownership.

In late April, following the acquisition agreement, Lee Jackson, regional VP Canada, said it was too early to say whether ADT would keep all six Canadian central stations in operation. He noted that ADT has yet to determine which resources and administrative functions it will transfer to Canada to supports its expanded account base in that country, now up to 800,000.

The acquisition goes down as ADT’s largest since becoming an independent company, far surprassing its 2013 Devcon deal, according to John Mack, EVP and managing director at Imperial Capital, who spoke to SSN when the agreement to acquire became public. At the time, Mack said the deal signals a return to “growth initiatives [through] high quality acquisitions” and predicted the deal would help ADT’s attrition profile while bolstering its enhanced services sales.

It will be interesting to wait and see if Mack's words prove to be prophetic.

Pages