Regional Cable Company | SMB Security & Video Service Concept
How ACBC conjoint analysis revealed the optimal feature bundles, pricing strategy, and go-to-market approach for small business security and video surveillance services.
The Challenge
A regional cable company wanted to evaluate the market for adding intrusion detection and video surveillance services for small businesses (1–20 employees). The team needed to learn which feature bundles drive adoption, how price and installation fees shape demand, and what it would take to win consideration—and potential switching—from current security providers.
Our Approach
ACBC Conjoint Framework
PROOF Insights designed a quantitative web study with an Adaptive Choice-Based Conjoint (ACBC) module to identify the highest-value configurations and entry price points.
- • Category importance analysis
- • Utilities by feature level
- • Market simulations for optimal bundles
- • Monthly fee optimization
Target Respondents
U.S. SMB owners/managers responsible for buying business services, including both current customers of the regional cable company and non-customers.
- • Current system usage and satisfaction
- • Purchase likelihood assessment
- • Provider consideration analysis
- • Installation-fee tolerance testing
Key Research Measures
Security Services
- • Intrusion detection systems
- • Remote monitoring capabilities
- • Alert and notification preferences
- • Integration with existing systems
Video Services
- • Camera hardware options
- • Cloud backup preferences
- • Remote access features
- • Storage and retention policies
Key Findings
Price + Bundle = Adoption Engine
- • Monthly fee was the most influential driver
- • Bundled services consistently outperformed single-service offers
- • Combined packages showed higher overall adoption rates
Feature Trade-offs That Matter
- • Remote control features added little value relative to security basics
- • Hardware purchase preferred over leasing to reduce monthly fees
- • Cloud backup appealed to some segments but wasn't universal
Installation Fee Sensitivity
A single combined install fee for both services was a friction point; lowering or discounting installation materially improved stated likelihood to purchase.
Provider Dynamics & Switching
Non-customers showed strong willingness to consider the offer when the bundle/price was right, especially when integrated with existing internet provider relationships.
Impact & Outcomes
Offer Architecture
Launch with a two-tier structure:
- • Core Bundle (intrusion + video)
- • Plus Bundle (Features identified)
Pricing & Fees
Anchor monthly price near the conjoint "sweet spot" and subsidize or promo the install (e.g., limited-time discount or bundled install with internet).
Positioning & Messaging
Lead with "See more. Worry less." Emphasize always-on monitoring, simple remote control, and straightforward alerts.
Go-to-Market
Prioritize non-customer SMBs in-footprint that already buy internet/phone, and tech-forward segments that value remote/cloud features.
Conclusion
The research clarifies how a regional cable company can credibly add SMB security + video and capitalize on the trust and convenience of the existing connectivity relationship. The ACBC analysis provided clear direction on optimal bundling, pricing strategies, and go-to-market approaches that leverage existing customer relationships while attracting new business segments.