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9 Show Highlights From ISC West 2014

SSI Editor-in-Chief Scott Goldfine reviews his top highlights from ISC West 2014.
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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 joined SECURITY SALES & INTEGRATION in October 1998 and has distinguished himself by producing award-winning, exemplary work. His editorial achievements have included blockbuster articles featuring major industry executives, such as Tyco Electronic Products Group Managing Director Gerry Head; Protection One President/CEO Richard Ginsburg; former Brink’s Home Security President/CEO Peter Michel; GE Interlogix President/CEO Ken Boyda; Bosch Security Systems President/CEO Peter Ribinski; and former SecurityLink President/CEO Jim Covert. Scott, who is an NTS Certified alarm technician, has become a respected and in-demand speaker at security industry events, including presentations at the Central Station Alarm Association (CSAA) Annual Meeting; California Alarm Association (CAA) Summer and Winter Conferences; PSA Security Network Conference; International Security Conference and Exhibition (ISC); and Security Industry Association (SIA) Forum. Scott often acts as an ambassador to mainstream media and is a participant in several industry associations. His previous experience as a cable-TV technician/installer and running his own audio company -- along with a lifelong fascination with electronics and computers -- prepared Scott well for his current position. Since graduating in 1986 with honors from California State University, Northridge with a degree in Radio-Television- Film, his professional endeavors have encompassed magazines, radio, TV, film, records, teletext, books, the Internet and more. In 2005, Scott captured the prestigious Western Publisher Maggie Award for Best Interview/Profile Trade for "9/11 Hero Tells Tale of Loses, Lessons," his October 2004 interview with former FDNY Commander Richard Picciotto, the last man to escape the Ground Zero destruction alive.
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Managing Your Business, RMR