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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Managing Your Business