AlarmForce announced their quarterly numbers on Monday, September 11th and one of the highlights is the fact they have lost over 4000 customers in the first nine months of this fiscal year. The truth is that AlarmForce lost significantly more than this. The 4000 customer loss includes the total number of new customers signing up! So if AlarmForce got 12,000 new customers signing up for services, they actually had 16,000 customers cancel! This is a huge net loss for them. This is by far their largest net loss in the history of the company. The big question is why are they losing so many customers.
There are many reasons for this. Our belief is that it’s because of these factors:
Their lowest price option is $25/month for monitoring. While at one time this was the lowest in the industry, times have changed. Now customers can get significantly lower monthly monitoring rates elsewhere. AlarmForce, however, is locked into this rate for their lowest price. If they lowered it there would be a rebound effect, as their 100,000 customers could opt for the lower price and thus sink their financials.
So what do you do when you can’t lower your prices? You do the opposite. If fewer people are signing up for services, you try to find a way to get customers to pay more. This is why AlarmForce has raised prices. Their standard monitoring is now $29.99/month. This is $5 more than a few years ago. And packages go up to over $55/month.
AlarmForce continues to try to squeeze more juice from fewer lemons. The result has been fewer people signing up and more customers choosing to leave for other alarm companies.
Long Term Contract
AlarmForce requires customers to sign a 3-year contract. This is to benefit the company, locking customers up long term. In the past, customers would agree because there weren’t many other companies that offered a no-contract solution. If you wanted a $25/month system, then you’d agree to the contract. But now there are multiple alarm companies that offer a no contract security solution. What effect have these companies had on AlarmForce? Customers that end their contract are now free to switch to another company. And by the quarterly results AlarmForce announced, it looks like they have.
Inconvenient Installation Process
You’ve decided you want an alarm system? You call AlarmForce and sign up. You’re ready to get protection. Guess what, you’ll have to wait until there’s an installer-free. This could be the next day or it could be over a week from the time you called. What if there’s a storm or bad traffic? Or what if the installers earlier installation at someone else’s location took longer than expected? Your installation may get rescheduled.
This is a major problem with AlarmForce. Customers want something as soon as possible, and the installation process forces the customer to wait. And with the installation, the customer has to take a day off work to be home for it. And since AlarmForce doesn’t give “windows” for installation time, the actual booking ends up pushing times back further.
This also ties into the servicing for AlarmForce systems. If you have a customer issue, you get put into the same installation queue, which could take days or over a week to get your system issue resolved.
AlarmForce prides themselves on quality customer service. When you look at their ratings on HomeStars and Trustpilot, there are better options out there. For example on HomeStars they are rated 7.6/10 and on Trustpilot, they are rated 7.8/10. Think Protection is rated 9/10 on HomeStars and 8.4/10 on Trustpilot.
The fact that there are other companies with better ratings, leads one to assume that AlarmForce customers are leaving for other companies.