Don’t Let Loyalty Go to Voicemail: A Business Lesson from My Friend's Alarm System

The other day, my friend called me about her ADT security system. It’s one of those older setups that still runs through a landline. Problem is — her phone provider, AT&T, is phasing out landline service in her area. So, her security system? About to go silent.

She called ADT to see what her options were.

They told her she’d need to buy a whole new system that runs on cellular. No problem, she said — she’s been a loyal customer for decades. She wasn’t expecting it for free, but maybe a discount? A little love for being a longtime subscriber?

Nope. ADT told her she’d need to pay full price. No loyalty discount. No retention incentive. Nothing.

So she’s switching to a new provider.

Let’s break that down.

The Monthly Subscription Is the Real Revenue

ADT’s business model isn’t about selling equipment — it’s about monthly subscriptions. That recurring revenue is gold. It’s what investors love, and what fuels growth. So why wouldn’t they spend a little now to keep someone who’s been paying reliably for years?

They just lost a long-term customer over a one-time hardware install.

Retention Is Cheaper Than Acquisition

You’ve heard the stat: it costs 5x more to get a new customer than to keep an existing one. But businesses still obsess over acquisition and ignore the small moments that keep people loyal. This is such an import point!

In this case, a modest discount or upgraded plan could’ve saved the relationship. Instead, they pushed her into the arms of a competitor — one who happily offered a deal to earn her trust.

People Remember How You Treat Them When They’re Vulnerable

My friend wasn’t calling to complain. She was calling to solve a problem — one ADT didn’t cause, but could’ve helped fix. These are the moments that define a brand. When customers feel unheard or undervalued, they don’t forget it.

What’s the Lesson for Your Business?

• Look at your long-term customers. Are you rewarding their loyalty, or taking it for granted?

• Audit your retention strategy. Do you have one? Or are you letting automation and policies push people away?

• Empower your frontline teams. Give them the flexibility to make the kind of judgment calls that can save relationships.

Sometimes, keeping a customer isn’t about a big strategy shift — it’s about a small moment handled right.

If ADT had just picked up the phone a little differently, they’d still have my friend's business. And they’d still be collecting that sweet, recurring revenue.

Instead, they let a landline issue become a loyalty issue.

Don’t be like ADT.

– Dax Kimbrough

Founder, Convection Consulting