ADT wins big from fusion of home automation, security monitoring

Home automation services have been a big asset for ADT, according to the home security giant’s latest earnings call. Third quarter results reveal a growing customer base for ADT Pulse. The said home automation service had 140,000 new customers and an additional 30,000 upgrades from existing customers. This brings the total number of the service’s patrons to 1.4 million, and is now 21 percent of the company’s total customers.

ADT, the largest security company in the US and Canada, has a share of about 25 percent in those two countries in the residential market. ADT Pulse is billed monthly and has its own hub but can have most Z-Wave-compatible devices installed by the user on their own.

The strategy combining home automation and security appears to be a winner so far this year. In the residential market, direct sales increased by 63 percent and dealer-channel residential ads were up 40 percent. In addition, customer attrition for those with Pulse was 40 percent lower over the past 36 months compared to its traditional lineup.