Page 40 - Security Today, September/October 2024

DEALER STRATEGIES
RECURRING MONTHLY REVENUE
Creating Value
for Security Integrators
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By Monique Merhige
In recent years, we have seen an influx of security systems in- tegrators getting on the recurring monthly revenue (RMR) bandwagon post-pandemic. During this time, the security industry has experienced a high demand for as-a-service of- ferings, not only from customers, but on the integration side.
Today, integrators are looking to build a seamless revenue stream one customer at a time and putting a stronger empha- sis on long-term customer relationships. A company that can accurately predict its revenue year-after-year has the power to make the right decisions when it comes to future growth and expansion strategies.
Taking the business to the next level can be a seamless process when using the RMR model as security integrators are no lon- ger just selling a system but providing a service to customers. The model requires integrators to put their focus on building long-term customer relationships, which changes the name of the game.
Integrators benefit from the RMR model with higher mar- gins, accurate revenue predictions, a fixed monthly pricing model, and reduced operating expenses and upfront costs. Since RMR models rely on ongoing subscriptions or payments, the focus is not just on acquiring customers, but also retaining them for the long haul. This sounds too good to be true, but the model continues to prove itself as a powerful tool for integrators.
One experienced New York-based security systems integra-
tor has implemented the RMR model into their business plan and is a prime example of how to do it right. SAS Technolo- gies, a security systems integrator based in Hewlett, NY, has made RMR a major focus of their business strategy.
“With RMR the focus is not just on acquiring customers, but also on retaining them over the long term. Lower customer ac- quisitions costs (CAC) allow our business to focus on maximizing customer lifetime value (CLV) by investing in customer success, improving retention strategies, and enhancing overall customer experience,” said Sandra Rocha, president at SAS Technologies.
“I believe in the past, security integrators were slow to adapt to the RMR model, you only really saw it in alarm system sales, but now we are seeing many integrators that are starting to em- brace it, along with our customers and end-users,” said Mi- chael Troiani, integration engineer at SAS Technologies. “SAS has been in the integration space for more than 20 years and understands the ongoing challenges facing system integrators.”
RISING WITH CLOUD-BASED SOLUTIONS
With all the cloud service offerings that are now available, customers are more open to cloud-based solutions and sub- scriptions. For example, Google Gmail Suite has more than 1.8 billion users1, and has shown to be easy-to-use, secure, depend- able and accessible. The same can be said for security solutions
DS10 SEPTEMBER/OCTOBER 2024 | DEALER STRATEGIES TODAY