Latin America. Speaking of alarms and monitoring services, it could be concluded that confusion reigns. Just look at the current landscape: manufacturers and distributors try to penetrate "connected" alarm systems while the largest percentage of integrators and monitoring centers maintain the sale of conventional systems. And if you look at the end user, it demands more and more quantity and quality in services paying a lower price, typical of mass markets ... what to do?
To begin with, it is necessary to define some elements. A "Connected" alarm system refers to those that have bidirectional data communication to a monitoring center or a cloud service, this connectivity makes possible the interoperability of the system with mobile applications and Web services, granting the end user interactivity with the devices, useful information in real time and integration of technologies. Opposite to this, a conventional system has a limited means of communication, with the sole purpose of sending signals in one direction and complicated or no remote access.
Alarm systems that use telephone line as a communication mechanism are examples of conventional systems, the customer's interaction with them is limited to being in front of a keyboard, which by the way is complicated and archaic, or using a remote control similar to that of the car. Conventional systems should be part of the past, however, they struggle to survive in the market and their main lifeline is the low price.
An argument that is not totally true since the little or no interaction, added to an insecure communication channel ends up generating losses. If the user does not interact with your alarm system and it does not provide additional benefits, it will result in one more account payable that will direct you directly to look for a lower price offer, and there will always be someone willing to sacrifice your margin.
The proliferation of conventional alarm systems also limits the penetration of other potential markets such as residential. There the monitoring service has great competitors: television in demand, online games, APPs of all kinds, all with very low cost. Why are they competitors? Because the user will compare the benefits of a monitoring service and its price vs all the other services it receives and its corresponding price. The balance will show that a conventional alarm system offers no greater advantage.
On the other hand, connected systems present a different and very promising picture. The integration of the alarm system with sensors that capture images and a mobile application to control the devices, access the video of cameras and even see the position of the whole family looks great, but its anchor is the price... Monitoring companies see with great concern how the cost of these services take a large slice of the value they bill for monthly services and in many cases are subjected to using a single brand.
Conventional systems have received a dose of energy with the change of the means of telephone transmission. Communication using GPRS, 3G and IP channels has reinforced the role of the traditional system in the market, provided more secure means and some signs of interactivity. This seems to become the middle point or balance between the conventional and the connected, something like a mixed system. The prices are moderate because it allows the resumption of conventional systems already installed and reduces large expenses in the change to connected systems.
At this point it is interesting to ask a question: Is it worth an intermediate step from conventional systems to connected systems? A pertinent answer to the Latin American market is that it is worth it. Thousands of users use telephone lines and making a total change of hardware components is so expensive that it will take a considerable period of time, it is then healthier to add a simple piece of hardware that raises the level of service, costs less and the possibility of interactivity. And how to add the other integration options provided by a connected system? The answer lies in the software, not the hardware. A customer can have different types of devices, of different brands and see them "connected" from a single mobile application or web service. This last step makes it viable cloud platforms (Cloud platforms) that recently make their way into the security market and that will surely be increasingly flexible and affordable.
So the healthiest thing is to take firm steps and not rush. Starting with the migration of telephone clients to IP, GPRS and 3G transmission systems is essential, if these include a mobile application for the user the leap is huge, positioning the monitoring service on a new level and refreshing the relationship with customers. New customers should have at least the same approach as those migrated from the lines. Even better if systems that integrate GPRS and 3G communication are used at the factory, they expand the level of interaction with mobile applications and cloud services. As far as software is concerned, a monitoring center has to have the ability to integrate signals from all devices, including video and GPS.
As for the end customer, this will demand more and more services, utilities and interaction with both the devices and the provider. It is there that communication with customers cannot be limited to the first contact made for sale, the monthly invoice and the renewal of the service. The communication must be permanent and this does not refer to automatic messages from the alarm system or reports from the monitoring center of openings and closings, it refers to critical security information in your home and work area, security tips, guides to use your services, promotions, benefits and everything that makes the service perceptible to the client. In this, fully customized mobile applications adapted to the services of the monitoring center play an essential role.
Finally giving a change now is fertilizer for a positive future, otherwise it will be the market that will force the changes abruptly. Alarm monitoring services have a high growth potential, but it is a very different future from the present market.
For more information please contact us through www.solutecllc.com or [email protected]
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