Customer Service Interaction Crucial to Maintaining Home Security Customers

Monitronics Ranks Highest in Inaugural Report

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Oct 18, 2016, 08:00 ET

COSTA MESA, Calif., Oct. 18, 2016 /PRNewswire/ -- Poor customer service can quickly send home security system customers to another provider regardless of their overall satisfaction level, according to the inaugural J.D. Power 2016 Home Security Satisfaction Report,^SM released today.

While the study shows that 31% of customers have considered switching providers, those who indicate they will change providers in the next 12 months are doing so predominantly because of a lack of available features/options, price or poor customer service.

"It's such a basic principle—provide good customer service—but it requires a commitment throughout an organization," said Greg Truex, senior director at J.D. Power. "Spending time and money on designing, building and selling a product is great, but if the execution of the customer experience is lacking, it can all be for naught."

The customer service experience is significant because 40% of all customers contact their provider at some point with a question, problem or request. Satisfaction is significantly higher among customers who say the response was helpful (869 on a 1,000-point scale) than among those who didn't find the response helpful (655). Satisfaction also is higher among customers who don't contact their provider (867) than among those who do (850).

Following are additional findings of the report:

Satisfaction is 62 points higher among customers who do not consider switching providers than among those who do consider switching (880 vs. 818, respectively).
The three leading reasons customers select a system are brand reputation (54%), price (46%) and positive reviews/online rating (45%).
Nearly 9 in 10 (87%) customers indicate they're able to control their system outside of their home, while only 59% indicate they control it from their mobile device.

Following are loyalty findings related to delighted customers:

More than 9 in 10 (92%) delighted home security customers (overall satisfaction scores above 900) say they "definitely will" recommend the brand to others, compared with the report average of 72%.
Nearly 9 in 10 (85%) delighted customers say they "definitely will" remain a customer of the brand, compared with the report average of 68%.
Delighted customers make an average of 6.6 recommendations to family and friends, compared with the report average of 4.9.

Report Rankings

Monitronics¹ (877) ranks highest in overall customer satisfaction, performing particularly well in six of the 12 factors: reliability of the system; system installation and setup; ease of using the system; clarity of owner's manual; effectiveness of securing my home; and speed of monitoring response.
STANLEY Security (875) ranks second, performing particularly well in helpfulness of online support documents; price paid for products/services received; variety of payment options; and contact with customer service.
Vivint Smart Home (865) ranks third, performing particularly well in variety of features; ease of using the system; ability to control from various devices (e.g., smartphone, tablet, PC, laptop); and speed of monitoring response.
Overall satisfaction among home security customers is 860.

About the Report
The 2016 Home Security Satisfaction Report measures overall satisfaction with home security brands among customers who purchased a home security system within the past 12 months. Satisfaction is examined across 12 factors (listed in order of importance): price paid for products/services received; reliability of the system; helpfulness of online support documents; variety of payment options; effectiveness of securing my home; ability to control from various devices (e.g., smartphone, tablet, PC, laptop); speed of monitoring response; system installation and setup; clarity of owner's manual; contact with customer service; ease of using the system; and variety of features. Satisfaction is calculated on a 1,000-point scale.

The report is based on responses from 2,282 customers and was fielded in August-September 2016.

See the press release online at http://www.jdpower.com/pr-id/2016277.

Study Rankings

Overall Customer Satisfaction Index Ranking
(Based on a 1,000-point scale)

Satisfaction Index Scores		JDPower.com Power Circle Ratings
Monitronics*	877	5
STANLEY Security	875	5
Vivint Smart Home	865	4
Comcast (Xfinity Home)	861	3
Report Average	860	3
ADT	857	3
Protection 1	848	2


Power Circle Ratings Legend 5 – Among the best 4 – Better than most 3 – About average 2 – The rest

¹ Monitronics was rebranded as MONI on Sept. 30, 2016.

Award-Eligible Home SecurityBrands Included in the Study
Company Name	Executive Name	Company Location
ADT	Tim Whall	Boca Raton, Fla.
Comcast (Xfinity Home)	Brian Roberts	Philadelphia, Pa.
Monitronics	Jeff Gardner	Dallas, Texas
Protection 1	Tim Whall	Romeoville, Ill.
STANLEY Security	James Loree	New Britain, Conn.
Vivint Smart Home	Todd Pedersen	Provo, Utah