Network Security Is an Open Door

Could ISPs Increase Their NPS and Loyalty with Cybersecurity?

The concerns over data invasion and security are not felt solely by prospective purchasers but carry over to current device users as well, impacting not only how they use their smart home devices, but also their propensity to purchase additional smart home devices.

The continued uncertainty surrounding the safety and privacy of connected devices and their associated data has led to increased interest in add-on security services for smart/connected devices. The data below shares end-users’ concerns:

 49% of those with connected devices have experienced at least one data security or privacy problem, with almost 75% of households displaying concern or high concern about the presence of spyware/viruses on their smart devices.

72% of consumers are concerned/very concerned about the security of personal data collected and transmitted by devices as well as concerned/very concerned about someone gaining access or control of smart devices without permission.

Among smart home device users, 55% of consumers are worried about hackers while 39% fear technology companies having unauthorized access.

Only 37% of consumers trust the companies that have access to their personal data.

As a result, residential customers see the value of increased protection and privacy in their home, while commercial customers (whether businesses and/or property managers) may wish to augment the security of the devices in their businesses.Industry data suggests there is an opportunity for those companies who can leverage end-users interest in cybersecurity services as add-ons. Considering only 21% of security companies that offer pro monitoring say they are likely to add cybersecurity services within the next year, there may be an open door to the smart home for home service providers, like broadband and security services.

 With service providers facing their own competitive pressures from mobile OTT and the demise of the traditional Internet + pay-TV bundle, they are continually looking for ways to increase ARPU and reduce churn. Today, market leaders offer customers bundles of value-adds from multiple streaming services to smart adaptive Wi-Fi services and premium technical support. Half of US Internet households receive at least one of those value-add services from their ISP. Interestingly, the more services end users receive, the higher the Net Promoter Score (NPS) the subscriber gives the provider. (See Figure 1.)

The connected home is only as reliable as the devices operating within it. Consumers desire peace of mind that their devices are working as intended and that they are not being accessed by unwelcome parties, whether that comes from malware or big tech.

Is it time for home service providers to add cybersecurity value-added services to their bundle to reinforce loyalty with their smart home customers?

For more information, visit https://parksassociates.com/whitepapers/protect-home for the entire research white paper,Protect the Connected Home: Home Security Meets Personal Privacy,developed withAssurant.