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How to Transform Your Company Into an RMR-Generating Machine

Learn how to build your company's recurring monthly revenue by implementing a three-step model.



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When strategizing RMR is also wise to be well aware of which situations tend to generate the easiest and most profitable situations. Higher types of RCM sales include new system installations, hardwired systems and existing customer upgrades. Lower types of RCM sales include competitive takeovers, transfers/resales, fire test & inspection services and maintenance/service contracts.

On the sales side, the presenters said the mentality must be that of an assembly line in that everything is predetermined and consistent. The objective is creating a plug-and-play sales model that is simple with menu-driven pricing. They said it is imperative to get across to the sales force both the WHY (why it makes sense for the company and the customer) and HOW (how to get it done and do it with great success) of the RMR approach. They recommended placing salespeople on commission only, perhaps with some allowances, and giving sales managers salaries and incentives. 

Operationally, one of the critical points is minimizing attrition so you don’t lose customers as soon as their initial contracts run out, a critical juncture in ensuring an ongoing and highly profitable RMR stream. Lohse and Ryan urge putting yourself in the shoes of your customers to discover pain points, investing in customer support and convenient billing processes, and surveying customers often. And it is imperative to implement a customer retention program.

In wrapping up, the presenters said that a true RMR company embraces a sales first mentality. Such an enterprise also uses RMR-centric vernacular (RMR, RCM, etc.) and instills a high energy, dynamic and competitive work environment. This type of business also uses rewards and incentives to inspire superior performance, with compensation and performance metrics built around RMR growth as priority one. That is building a business based on an RMR-driven culture.

 

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Article Topics
Business Management · Blogs · ISC West · Managing Your Business · RMR · All Topics

About the Author
Scott Goldfine
Scott Goldfine is Editor-in-Chief and Associate Publisher of Security Sales & Integration, directing all editorial aspects of the magazine brand in print, electronically, online and in person. The voluminous, innovative and award-winning body of work he has distinguished himself with since joining the publication in 1998 includes groundbreaking research, landmark features, leadership roundtables, high profile case studies, and many industry exclusives. Well versed in the technical and business aspects of electronic security (video surveillance, access control, systems integration, intrusion detection, fire/life safety), Goldfine is a nationally known figure in demand as an industry presenter and subject matter expert to mainstream media. He is responsible for developing many unique products and programs, including the SSI Industry Hall of Fame, Control Panel (industry’s first E-mail newsletter), Police Dispatch Quality (PDQ), Marketing Marvel, Installers of the Year, Integrated Installation of the Year, Security Industry Census, Systems Integration Study, Installation Business Report, Operations & Opportunities Report, Commercial End-User Study and Security’s Fantastic Fleets. Recognized for his relationship building, integrity and lead-by-example ethic, Goldfine is a solutions-oriented team player who advises and collaborates with industry dealer/integrator, consultant, distributor, central station and manufacturer icons, luminaries and executive business leaders on a daily basis. He is also actively involved in several security events and organizations, including the Electronic Security Association (ESA), Security Industry Association (SIA), Security Industry Alarm Coalition (SIAC), False Alarm Reduction Association (FARA), PSA-Tec, SAMMY Awards, International Security Conference and Exhibition (ISC), Electronic Security Technology Summit (ESTS), Mission 500, Electronic Security Expo (ESX), ASIS Int’l, Honeywell CONNECT and other supplier conventions. Goldfine also serves on several boards, including the CSAA Marketing and Communications Committee and PSA Cybersecurity Advisory Council. A certified alarm technician, former cable-TV tech, audio company entrepreneur, and lifelong electronics and computers enthusiast, Goldfine graduated with honors from Cal State, Northridge with a management degree in Radio-Television-Film. His professional media endeavors have encompassed magazines, Internet, radio, TV, film, records, teletext and books. Goldfine resides in the Charlotte, N.C., area with his wife, son and three cats.
Contact Scott Goldfine: sgoldfine@ehpub.com
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