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.
ASG Security's Bob Ryan and Secure-i's Brian Lohse talk building RMR at an ISC West educational session.
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.
If you enjoyed this article and want to receive more valuable industry content like this, click here to sign up for our FREE digital newsletters!
About the Author
Scott Goldfine
Scott Goldfine is the marketing director for Elite Interactive Solutions. He is the former editor-in-chief and associate publisher of Security Sales & Integration. He can be reached at [email protected].
Related Content
Security Is Our Business, Too
For professionals who recommend, buy and install all types of electronic security equipment, a free subscription to Commercial Integrator + Security Sales & Integration is like having a consultant on call. You’ll find an ideal balance of technology and business coverage, with installation tips and techniques for products and updates on how to add to your bottom line.
A FREE subscription to the top resource for security and integration industry will prove to be invaluable.
