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Doing your due diligence

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07/17/2013

YARMOUTH, Maine—When a bank considers making a loan to a security company it goes through a standard due diligence process, so if you’re a security company looking to acquire a competitor, “you should look for the same things that we look for in your business,” according to Jennifer Holloway, managing director in the Security Industry Group at The PrivateBank.

New options driving connected home growth

Home safety products top homeowners’ wish list of additional features
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07/17/2013

DALLAS—A survey of consumers by Parks Associates found that the more features homeowners have in a home control system, the more likely they are to recommend the system to family and friends.

Valenteen returns to The Protection Bureau

Despite a serious ailment and medical procedure, Wanda Valenteen’s comeback to The Protection Bureau is complete
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07/17/2013

EXTON, Pa.—She’s back. A few things might have changed during Wanda Valenteen’s two-year hiatus from the monitoring world, but the evolution of the industry, no matter how difficult to stay abreast of, is nothing compared to her experiences away from the professional sphere.

Capital Fire & Security invests in mesh

Madison integrator building out network
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07/16/2013

MADISON, Wis.—Capital Fire & Security, an integrator based here, has built out a new mesh network in this market and it’s expecting the adoption to accelerate as it launches a campaign to let current and new customers know about this new offering.

Credit scores and attrition: Correlation?

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Monday, July 15, 2013

The quest to reduce the dreaded attrition rate remains a high priority for anyone in the monitoring space, and companies continue to explore new ways to predict and prevent cancellations. Companies don’t just track attrition rates; they look for clues, like usage patterns, that could yield information about whether certain customers may be more prone to stay or go. 

While usage patterns remain a valuable tool for evaluating customers and forming effective business strategies (conventional wisdom says upsell to active users, and reduce prices to the less engaged), it’s not the only predictor companies use. There is also a significant correlation between credit scores, or Beacon scores, and attrition rates, according to Michael Barnes, a partner in the consulting and advisory firm Barnes Associates, who in a response on the CSAA’s Accent forum, said his firm reviewed data on over 2 million accounts. Here’s a bit of what he had to say:

“Generally speaking, the correlation changes over four ranges of scoring. Below 600, the statistical experience is very bad. That is, the accounts have a very high cancellation rate. Between 600 and 650 the results improve dramatically, with a general inflection point around 620+/-, which is why so many dealer programs (and, in some cases credit facilities) have restrictions around this area of scoring.”

Barnes added that scores above 700, in terms of attrition and retention, tend to behave the same as scores around 800. Scores in the ballpark of 650 tend to have poor cumulative performance, with the rates of cancellation almost twice as high over the first four years, Barnes notes. Unsurprisingly, rates of “infant mortality’—cancellations within the first year of existence—were exceedingly high among those with sub-650 Beacon scores, according to Barnes’ data.

While the data sample is large enough to provide a thorough understanding of the relationship between credit scores and attrition, Barnes points out that some qualifications are needed, since a slew of factors can create exceptions. Some of these key variables include installation fees, services provided, pricing and payment method, and even geographic location.

The above graph, made for SSN in 2009 by the Edmonds Group, also charts the correlation between attrition rates and Beacon credit scores. 

iControl Networks sues Alarm.com, FrontPoint Security

Lawsuit seeks damages, injunction
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07/15/2013

REDWOOD CITY, Calif.—Home technology provider iControl Networks on July 10 filed a patent infringement lawsuit against competitor Alarm.com and FrontPoint Security, an Alarm.com customer.

Silent Knight offers MNS, CO detection training

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07/15/2013

NORTHFORD, Conn.—Silent Knight by Honeywell recently announced that its nationwide series of fire alarm training courses has been expanded to cover IntelliKnight’s mass notification and carbon monoxide detection capabilities.

North Carolina may pass CO legislation after hotel poisonings

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07/10/2013

ST. CHARLES, Ill.—Several recent deaths caused by carbon monoxide poisoning in a North Carolina hotel room may lead to a law in that state requiring CO detectors in lodging places.

Senate immigration bill includes major security measures

The bill, which passed the Senate 68-32, would devote more than $40 billion over the next decade to security enforcement measures
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07/10/2013

WASHINGTON—A major security-focused amendment to the Senate immigration bill, proposed by a pair of Senators one day before the legislation passed 68-32, might have played a critical role in making the overhaul more palatable to several more Senate Republicans.

Cablecos and Telecoms: Readers debate the new competition

Do smaller professional security companies stand to gain from the emergence of new players?
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07/10/2013

YARMOUTH, Maine—Brand recognition, national reach and advertising clout are some of the obvious advantages afforded the telecom and cableco giants now entering the security space.

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