Security Monitoring Cancellation Intentions Are Down, But Younger Households Are More At Risk Of Churn, Finds Parks Associates
Households are at higher risk for cancelling their professional monitored security, even as plans to cancel have dropped among all households.
38% of Gen Z home security monitoring subscribers intend to cancel their contract, while overall, only 17% of those with pro-monitoring report a likelihood to cancel.
The study highlights the market expansion due to more self-install and self-monitoring system options, including security system owners’ preferred business models, preferred price points, and reasons for attrition.
Elizabeth Parks, President and CMO, Parks Associates
Parks Associates’ new consumer study Security Monitoring: Business Models, Pricing, Attrition finds that younger households are at higher risk for cancelling their professional monitored security, even as plans to cancel have dropped among all households. The research firm reports that 38% of Gen Z home security monitoring subscribers intend to cancel their contract, while overall, only 17% of those with pro-monitoring report a likelihood to cancel, significantly lower than in 2020, likely due to households not moving.
The research study, available to purchase online, highlights the market expansion due to more self-install and self-monitoring system options. It quantifies and examines security system owners’ preferred business models, preferred price points, and reasons for attrition.
“The end of a contract is a trigger for cancelling professional monitoring subscriptions,” said Elizabeth Parks, President and CMO, Parks Associates. “More than 30% of those who intend to cancel have contracts that will end within two years. Early cancellation penalties may keep subscribers on the plan, but consumers are increasingly opting for home services without contract terms. The video services market, for instance, has been upended by streaming services with no contract terms. Providers must not wait until the end of a contract to reach out to retain subscribers with new, more flexible options.”
Security Monitoring: Business Models, Pricing, Attrition, a consumerstudy of 10,000 US internet households, addresses the adoption of pro-monitoring and self-monitoring services, reasons for cancellation, incentives to retain subscribers, and levels of interest in new services. The research firm will address the growth of the security market at its 27th annual CONNECTIONS conference, held May 23-25 at the Omni Frisco Hotel in Friso, Texas.
For more information, please visit parksassociates.com.