// Recurring Revenue
Insiders Dish Proven Strategies for
Growing RMR
Growing RMR
Insiders Dish Proven Strategies for
Along with offering RMR services à la carte, Elite Interactive Solutions bundles services such as remote access management with its remote and virtual guarding platforms.
IMAGE COURTESY OF ELITE
Leading security dealers and integrators explain the essential strategies and insights that drive success in the realm of recurring monthly revenue.
By Rodney Bosch, SDM Senior Editor
Where technological advancements continually reshape industry norms, one constant remains at the forefront of success for many installing security contractors: recurring monthly revenue (RMR). For security dealers and integrators, RMR isn’t just a financial metric; it’s the lifeblood that sustains their businesses, providing stability, predictability and long-term growth opportunities.
In an industry where competition is fierce and client expectations are constantly evolving, dealers and integrators face the ongoing challenge of not only attracting but also retaining customers. From video and access control systems to live video monitoring and fire alarm solutions, the breadth of RMR offerings present both opportunities and complexities for those companies seeking to navigate this terrain.
SDM consulted with a half dozen leading installing security contractors to tap their strategies and techniques for building and increasing RMR. From tailoring customized solutions to proactive customer engagement, from leveraging innovative technologies to nurturing long-term client relationships, the strategies unveiled ahead offer a roadmap for other security professionals looking to unlock the full potential of RMR.
What’s more, a number of subject matter experts from the vendor community explain key performance indicators (KPIs) that dealers and integrators should be tracking to assess the success and growth of their RMR initiatives.
RMR Flavors & Pricing Structure
Louis Boulgarides, president and CEO of Ollivier Managed Security, Los Angeles, is of the opinion that “the days of selling parts and pieces are over.”
“We don’t even call ourselves a security integrator anymore,” he says. “The companies that will be standing five years from now will have to adopt a service model and provide more value to their clients than just installing equipment and walking away.”
Boulgarides describes the products and services that drive RMR for Ollivier, a member of Security-Net, as being fluid. “We offer some cloud-based access control and video, but we also have multiple offerings that we have created and host ourselves,” he explains. “As a managed security provider, we are constantly trying to help our clients either reduce costs or make their existing operation more efficient.”
We use a formula that considers the number of cameras, hours of monitoring, number of total devices comprising the security system, and amount of alert activity expected at a particular site. These factors are used to determine the appropriate RMR for a client site.
— Elite Interactive Solutions, Scott Blakeman
Ollivier is currently experiencing strong demand for products and services related to remote video monitoring and virtual guarding, as well as tenant self-administration of access control systems. Managed access control has always had the lower attrition rate of any RMR product, Boulgarides expresses.
“Our RMR model is based on a 50 percent margin model,” he continues. “As a managed security provider, we have to make sure there is enough margin for us to provide both 24/7 phone and monitoring support and operational support during deployment. This creates a win-win situation for us and the client.”
Elite Interactive Solutions, Los Angeles, describes the core of its business as crime and catastrophe prevention, with virtual guarding its primary and consistent source of RMR. Scott Blakeman, vice president, security solutions, explains Elite will perform a detailed forensic analysis of a client’s property to identify areas of concern and areas where intruders may enter a site. A customized solution is then designed to address the specific threats identified.
“Once the design is approved by the client, Elite’s team installs the hardware and configures the analytics and machine learning to detect unwanted activity on the property,” Blakeman says.
Along with offering services à la carte, Elite will bundle services such as remote access management with its remote and virtual guarding platforms.
“We use a formula that considers the number of cameras, hours of monitoring, number of total devices comprising the security system, and amount of alert activity expected at a particular site,” Blakeman says. “These factors are used to determine the appropriate RMR for a client site.”
Phil & Son, Crown Point, Ind., has built an entire cloud-based platform to drive recurring revenue. The integrator, led by Allen Panté, president, supports Brivo and Eagle Eye Networks on the access and video side, along with Resideo and DMP on the security alarm side of its business. Most of the company’s systems are packaged together with multiple elements in a cloud subscription format.
Overall, these systems yield a higher RMR amount of value by combining them, as well as deliver lower attrition rates, Panté says. Phil & Son typically bundle a main package price for the core systems and support as a whole, while API integrations are offered à la carte.
“We take into account the lifecycle of the system, the support that will be required and have standardized on a package price usually per element or cloud service,” Panté explains. “That gives us the most consistency on projections of income related to projects, project types, as well as projections on RMR value as we plan and strategize. We are disciplined on our offering of specific brands, and that allows us to be more accurate on that systems lifecycle costs and integration capabilities.”
Security dealers and integrators can emphasize the additional value provided beyond just the security equipment itself, such as remote monitoring, regular maintenance and software updates.
shapecharge/E+ via Getty Images
IK Systems, Victor, N.Y., leverages a diverse portfolio of services and products that contribute significantly to its RMR, including but not limited to traditional alarm monitoring services, ISP resales, certificate compliance, preventative maintenance, and comprehensive support contracts, explains Jarrod Turner, director of engagement.
“We’ve observed that services offering continuous value, such as 24/7 support and maintenance agreements, tend to generate more consistent RMR,” he says. “These services not only ensure ongoing revenue but also reinforce our commitment to providing full service solutions to our clients.”
Determining the optimal pricing structure for IK Systems’ RMR services involves a careful analysis of market trends, geographic locations, cost structures and the perceived value of its offerings. While some services are offered à la carte to cater to specific client needs, Turner says the company has found that bundling multiple services often presents a more compelling value proposition, encouraging clients to opt for comprehensive solutions.
“We aim to strike a balance between competitive pricing and the premium value associated with our brand and service quality,” he adds.
Sara Eslamlou, head of business development for ParSecurity, Golden Valley, Minn., says in the past couple of years the demand for IT services has really grown as security products and solutions have evolved. Examples of IT services offered by ParSecurity include network configuration, cloud integration, remote access and management, mobile app development and in-house technical support.
“For determining optimal pricing, we analyze costs, research the market, consider customer value and gather feedback for adjustments. When choosing between bundled or separate options, it depends on what customers like and what’s happening in the market,” Eslamlou says. “Bundling makes buying easier and helps customers understand everything they’re getting, while separate options let customers pick exactly what they want, which might be better for those on a tight budget.”
Strategies for Overcoming Hurdles in RMR Creation
Despite the appeal of recurring monthly revenue (RMR), installing security contractors face numerous challenges in its pursuit, from fierce market competition to evolving customer demands. However, through strategic adaptation, innovative solutions and a steadfast commitment to customer satisfaction, dealers and integrators can successfully navigate these obstacles, forging sustainable RMR streams and propelling their businesses forward.
Market saturation and the constant pressure from competitors offering seemingly comparable services at a lower rate comes immediately to mind for Jarrod Turner of IK Systems when asked what challenges he encounters most in building and sustaining RMR.
“We’ve overcome these hurdles by staying agile, continuously investing in new technology solutions, and maintaining close relationships with our clients to understand their changing needs,” he says. “Lessons learned include the importance of adaptability and the need to view every setback as an opportunity for growth and improvement.”
For Allen Panté of Phil & Son, one challenge that is top of mind is to make sure you are building the value of the entire lifecycle into account. “The ongoing sales support, and tech support requires team members,” he says. “The field service support all comes into account. That value has to be accounted for and baked into the total offering so you don’t find yourself coming up short on delivering a great experience.”
Panté advises his fellow integrators to stick to core brands of products and services that everyone in the company can learn, support and service.
“Selling a bunch of different brands of hardware led to incorrect compatibility, different tiers of support levels and inconsistencies in the overall customer experience,” he says. “That took us a while to get corrected and delayed scalable growth. For the past several years now we deliver a really great customer experience overall, due to that change.”
Another advice nugget from Panté: Streamlining services through a back-end field service system and auto billing is a must. That will lead to lower staffing requirements, and quicker payment terms with better projections on income.
Transitioning from a project-based company to a recurring revenue-centric model posed several challenges for LVC. One of the major hurdles the company faced was aligning its back-end ERP software and processes with the diverse ways security manufacturers charge for recurring revenue.
“Unlike standard NET30 terms, security manufacturers have varying approaches, such as automatic subscription renewals billed by user or door, or service shutdown if contracts aren’t renewed,” says LVC’s Bert Bongard. “To address this, we focused on ensuring our back-end system could accommodate the different methods manufacturers use to sell their recurring services. We also refined our contracting approach with customers to align with our business model and protect our interests, while minimizing the need for frequent renewal follow-ups.”
With managed security services, LVC quickly learned that offering pre-determined packages labeled as “good, better, best” doesn’t resonate with customers. Unlike fire alarms, security solutions are not solely code-driven; they depend heavily on perspective, interpretation and opinion regarding how to best secure an environment, Bongard explains. “This uniqueness means that customers’ needs in a managed service contract and provider are diverse and require detailed discussions to identify their specific pain points.”
To address this LVC focuses on customizing packages that not only address the client’s security needs but also remove operational hassles, enhance their reputation with their superiors, and ultimately result in cost savings.
“This tailored approach ensures that our solutions meet the unique requirements of each customer,” Bongard says.
Following the global pandemic, challenges in RMR — such as elevated costs, heightened competition and evolving regulations — have intensified, says Sara Eslamlou of ParSecurity.
“With the cost of living rising for many, determining optimal pricing for business offerings has become more complex. It’s crucial to evaluate market conditions and consider customer affordability when establishing pricing strategies,” she continues. “Giving your customers options can be beneficial; it aids in retaining their business but also adapts to prevailing market conditions. We like to offer our customers payment plans, package deals and 24-hour support after installation. This not only retains their business but also ensures we are able to adapt to different market conditions that may arise.”
Louis Boulgarides of Ollivier Managed Security suggests the No. 1 challenge of creating and maintaining a managed security program and driving RMR is investment.
“By investment, I mean both time and dollars,” he says. “We had to build a monitoring center and create a staffing model to support the effort. Without this investment, we would not have the 20 percent-plus year-over-year growth we do today. This investment takes commitment by leadership since profitability will not be seen early on.”
Boulgarides says the biggest challenge with offering managed security products is the technology itself. “I always say that we want to be on the leading edge, not the bleeding edge. We get calls every day from companies that want to partner with us to help them sell RMR.”
This leads Ollivier to ask two questions: Is this company a good fit for us and the markets we serve; and is their technology fully baked and ready to go to market?
“We have been burned multiple times by companies that have said they can do something, but we find out after they deploy that they can’t. This ultimately makes us look bad, not the manufacturer,” Boulgarides says. “As the trusted advisor, we can’t go back to the customer and blame the manufacturer or provider.”
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Offering both options gives customers more choices, Eslamlou adds. “One way to do this is by creating two quotes showing both options, sometimes bundling multiple services together can actually save customers money.”
Having provided them for an extended period, monitoring services have become Minneapolis-based LVC’s primary source of recurring revenue, says Bert Bongard, president. The company’s menu of RMR-generating offerings include service contracts, managed service contracts, remote resolution services (quarterly bucket of hours to remotely resolve issues instead of rolling trucks), and licensing/subscriptions.
However, access control stands out as the pinnacle of advanced annual revenue (AAR) and RMR in its own right, Bongard says.
“This is especially true when considering credentials for Apple Wallet/Google Wallet, service/managed service contracts, SSA/SUSPs, and overall system management, including schedules and user management,” he adds. “We are experiencing significant growth in recurring revenue from the various services we offer through access control. Looking ahead, we project an even higher ceiling for growth throughout 2024 and beyond.”
Bongard says being the first provider to introduce new managed security services to the market has had its advantages, as it positioned LVC as a cutting-edge provider. However, one of the most challenging aspects was determining optimal pricing in local markets, where there is often no standard or comparable services to serve as a guide.
“In such situations, the strength of our customer relationships becomes crucial. Our close ties with customers allow us to have open discussions about pricing fairness and explore new services we can offer,” Bongard says. “This collaborative approach helps us navigate the pricing challenges in local markets and ensures that our services are valued appropriately by our customers.”
Customer Acquisition & Retention
Where technological innovation and service offerings abound, the cornerstone of success often lies in more than just cutting-edge solutions; it rests on the bedrock of exceptional customer service. As security dealers and integrators navigate the intricacies of customer acquisition and retention in the pursuit of RMR, sources say prioritizing exceptional service becomes paramount in establishing and maintaining long-term client relationships.
“We find the best retention strategy is talking to our customers. We schedule periodic check-ins with customers to assess their needs and see if there are any additional services or upgrades, they could require,” Eslamlou says. “This shows that you value their business and are committed to meeting their needs.”
Offering subscription-based pricing models that provide customers with predictable monthly costs and incentivize long-term commitments can ensure profitability for the dealer or integrator.
Ashi Sae Yang/iStock / Getty Images Plus via Getty Images
Eslamlou says keeping open lines of communication can result in receiving customer feedback such as, “I wish I could access my cameras remotely” or “I feel like we need to add more cameras.”
“This can create RMR opportunities but more importantly provides exceptional customer service,” Eslamlou says. “Keeping communication ongoing with your customers is key to RMR and CLV (customer lifetime value).”
To retain existing customers, IK Systems emphasizes exceptional service delivery, regular communication and periodic system upgrades to ensure its solutions remain current and protected from cyber vulnerabilities.
“We communicate the value proposition of our RMR services by demonstrating how they contribute to reducing overall security risks and ensuring peace of mind for our clients, similar to traditional insurance policies such as homeowners’ insurance,” Turner says. “Personalized consultations and demonstrations help clients appreciate the long-term benefits of our RMR services.”
Bongard also emphasizes that effective communication is the linchpin of customer retention. Without open lines of communication, identifying and addressing customer concerns becomes challenging, risking the potential for attrition.
“To address this, we have implemented a new customer portal that is user-friendly and ensures our technical specialists are resolving issues or answering questions within our expectations,” Bongard says. “This portal serves as a centralized hub for customers to interact with us, making it easier for them to get the support they need.”
In addition to the customer portal, LVC established an inside sales department dedicated to its contracted customers. This team serves as the primary point of contact for services outlined in the contract, guiding customers from contract signing through onboarding, service implementation, training and ongoing support.
“Their performance is measured by contract growth year over year, and they conduct quarterly business reviews with customers to assess satisfaction and explore additional service opportunities,” Bongard adds.
We also put an emphasis from billing to sending monthly invoices and providing detailed reports on the work completed, including how much they saved by being under contract compared to if they were billed on a time and materials (T&M) basis. It’s crucial to be strategic and intentional in showcasing the value of our service.
— Bert Bongard, LVC
Security dealers and integrators pursuing an RMR business model are fortunate to exist in a subscription-centric world, Bongard says, but customers still need to see the value in what they are paying for. Thus, LVC has strategies in place, from sales to ongoing service, aimed at clearly demonstrating to customers how the company can effectively manage certain aspects of their operations. This allows them and their team to concentrate on their primary responsibilities.
“We also put an emphasis from billing to sending monthly invoices and providing detailed reports on the work completed, including how much they saved by being under contract compared to if they were billed on a time and materials (T&M) basis,” Bongard explains., “It’s crucial to be strategic and intentional in showcasing the value of our service. When done correctly, customers won’t hear many issues about the service, which could lead to misconceptions about the amount of work being done if it’s not clearly communicated.”
Providing exceptional customer service may seem like a simple enough concept to embrace, but execution is a wholly different endeavor. It’s one that proves glaringly problematic for a good many security dealers and integrators.
“The key to retaining customers is service,” Boulgarides says. “Where I see most companies fail in driving RMR is a lack of commitment to the effort.”
Good communication to the customer starts with a clear understanding of a company’s purpose and focus within the organization, Boulgarides expresses. “Who we are and what we stand for are in our logo and our mission statement. We are a managed security company. … Also, since we have an entire managed security division of the company, we have multiple resources that can assist with messaging when an opportunity is created either with an existing customer or a prospect,” he adds.
Efforts to foster strong partnerships at Elite include security consultants who are not only involved in the original sale and installation of the system, but they continue to manage the account after the program launch. This partnership model ensures continuity with end customers, Blakeman says.
“We also perform annual client reviews where a detailed analysis of the client site along with crime prevention results are presented and discussed with each client. These meetings ensure Elite stays ahead of emerging threats to any property and reinforce our position as a valued security partner,” he explains. “Due to this tight partnering and high level of service, Elite’s gross attrition, on 100 percent commercial accounts, is an almost unheard of 4 percent.”
Elite’s value proposition is further supported by providing each client with a daily recap of events. Not only is the company’s proprietary system monitoring the health of the network and equipment, the reports depict every significant event from the prior shift.
“This includes all voice-down crime preventions,” Blakeman says. “If law enforcement is engaged, event details including the dispatcher taking the call, the police event number, camera numbers used to catch the perpetrator, and photos of the event are provided to Elite’s clients each morning.”
Straight From Vendors: Key Metrics for Benchmarking RMR Growth
SDM sought insights and advice from several vendors on how installing security contractors can best go about tracking and evaluating the success and growth of recurring monthly revenue (RMR) initiatives. We asked these participants to answer this question: What metrics or key performance indicators (KPIs) should dealers and integrators be tracking to assess the success and growth of their RMR initiatives? Their responses follow here:
Kerstin Demko, Vice President of Global Sales Programs, Brivo
“Overall, you should look at your company’s breakdown of hardware vs RMR and understand the percentage difference. Successful growing businesses should have +40 percent RMR. The higher the percentage or recurring revenue, the higher the valuation of your company.
Also using a lifetime value metric will show you the value recurring revenue has over time. There are several ways to calculate based on individual churn rates, but this will help determine the value over time recurring revenue is contribution to your business.
You should also set RMR goals by each sales individual. You can break down sales by hardware and RMR to see how each salesperson is doing as a percentage hardware to RMR.
To get an even better sense of what products your sales team can sell the best, have them track how many times they have pitched RMR services and subscriptions and how many quotes include the products. You’ll see your best sellers and what services your team may struggle to sell.”
Ken Francis, President, Eagle Eye Networks
“A systems integrator seeking to convert their business from project revenue to recurring revenue should establish goals for the share of their revenue coming from RMR (the inverse being one time revenue). Many integrators new to RMR initiatives start with share targets of 35 percent, 40 percent or 45 percent. Ultimately, a fully converted business will want more than 50 percent of its revenue coming in the form of recurring revenue. A strong RMR business will generate 60-75 percent of its revenue from RMR.
In my experience, the successful security integrator establishes RMR targets for each of its primary recurring revenue sources including: video services, access services, intrusion services, preventive maintenance services, break-fix services (when contracted as RMR), and any managed services they can reasonably offer. Total RMR should grow at a minimum of 25-30 percent annually with retention in the 90-92 percent range and net attrition (the addition of new RMR on top of the loss of the RMR) above 120 percent.”
Clint Choate, Senior Director of Security Markets, Snap One
Let’s talk about the nuts and bolts of keeping your RMR humming in the security business. These are the key metrics you, the integrators, need to track to see if your RMR program is firing on all cylinders.
- New Customer Acquisition: Sales and marketing have to pull their weight, right? Track how many new RMR accounts you’re landing each month, quarter, and year. This shows if your lead generation is working.
- Customer Acquisition Cost (CAC): Every new customer has a price tag. Keep an eye on CAC, which factors in marketing spend, sales commissions, and onboarding costs. Aim to bring that number down over time — efficiency is key.
- Customer Churn: Losing customers is a drain on RMR. Track the customer churn rate — that’s the percentage who ditch your service each month. A low churn rate is what you’re after — loyal customers are golden.
Average Revenue Per User (ARPU): Think of this as your monthly haul per customer. Upselling additional services or premium packages can bump this number up.
Now, let’s zoom in on how to grow that RMR:
- Monthly Recurring Revenue (MRR): This is the big kahuna — your total monthly RMR. Watch this metric climb steadily; it’s the lifeblood of your program. Annual recurring revenue (ARR) is the yearly version, giving you a broader growth perspective.
- RMR Penetration Rate: This shows what percentage of your customer base actually has RMR service. The higher the rate, the more customers are contributing to your recurring revenue stream.
Efficiency is key to happy customers:
- Installation Time: Nobody wants to wait on hold all day. Track your average installation time to see how quickly you can get a system up and running with RMR activated. Faster installations translate to a smoother customer experience.
- False Alarm Rate: False alarms are a nuisance for everyone. Track and reduce this rate to keep customers (and authorities) happy.
- Service Resolution Time: Nobody likes waiting forever for service. Track how fast you’re addressing customer issues related to RMR. A speedy resolution keeps customers feeling valued.
Here’s the extra edge:
- Customer Satisfaction: Happy customers are repeat customers! Regularly track customer satisfaction with surveys or feedback forms. A satisfied base is more likely to stick around and boost your RMR.
- Marketing ROI: Is your marketing machine actually generating new RMR customers? Analyze the return on investment (ROI) to see if your marketing efforts are paying off.
By keeping a close eye on these metrics, you’ll have a clear picture of your RMR program’s health. Use this data to refine your sales and marketing strategies, improve service delivery, and watch your RMR climb steadily.
Paul Metzheiser, President, TAMCO
The first KPI is that multiyear service/maintenance/monitoring plans need to be proposed and recommended 100 percent of the time with project-based sales. If there’s an exception to exclude within the proposal, management needs to approve. You can’t build RMR if it’s not offered, and you never want to solely leave it up to the salesperson’s discretion if it should be included. Here’s the irony on this KPI. Over 85 percent of all security integrators and dealers can price up and stand behind a 3-to-5-year service level agreement (SLA), and it usually pulls in a margin over 50 percent, yet the inspection of this being included in every proposal is rare.
It’s important to note that before this becomes a KPI, leadership must make selling services a priority for their company and with consistency. There also needs to be a clear compensation element for the salesperson for selling services. It just can’t be because we want to sell more services to build RMR, it must be done with purpose. For example, it’s the integrators that shift their solutions from hardware to desired outcomes, with hardware becoming a secondary or even tertiary concern. It’s about solving with risk mitigation and selling the experience. Everyone in the company needs to believe in this mindset and pivot.
The next KPI is the success rate of contractually securing multiyear services with the number of project-based sales, which will give you a report card on actual RMR. This KPI outcome will help dealers and integrators adjust any selling tactics and strategy.
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Upselling Strategies for Expanding RMR
As installing security contractors seek to expand recurring revenue, strategically upselling existing clients emerges as a pivotal avenue for growth. By employing tailored approaches and highlighting value-added services, dealers and integrators can effectively nurture client relationships while maximizing opportunities for upselling and expanding RMR opportunities.
“One way we identify opportunities to upsell additional RMR services is by staying up to date with technology,” says Eslamlou of ParSecurity. “Technology is consistently evolving. New security products and smarter solutions are coming to market all the time: cameras with advanced features such as higher resolution, improved night vision, wider field of view or alarm systems with AI-powered analytics for more effective monitoring and threat detection.”
Video services represent an especially promising avenue for generating RMR, Eslamlou comments. This involves charging a monthly fee for providing live video surveillance of customers’ sites or businesses, as well as creating customized videos for their needs.
“In situations like break-ins, customers need assurance that we’re there for them. Providing assistance in creating investigation videos and offering after-hours live video surveillance can strengthen this assurance,” she says.
A tactic to encourage customers to upgrade their subscriptions, Eslamlou says, is to emphasize how these solutions address their concerns and enhance their overall security and peace of mind. “Additionally, consider offering special promotions or discounts to incentivize them to take advantage of these upsell opportunities,” she adds.
Quarterly partnership reviews are instrumental in expanding LVC’s wallet share with contracted customers, Bongard says. During these reviews, inside sales specialists use a survey to delve into various aspects. They identify competitors the customer is working with, the scope of their business operations, and their satisfaction levels with these vendors. Additionally, the survey gauges the customer’s satisfaction with LVC across different areas such as sales, operations, billing, communication and overall performance.
“Based on the survey scores, we determine action steps. A very poor score may lead to an escalated meeting with upper management, possibly even involving me, the CEO,” he says. “Conversely, a very good score prompts us to request a Google review and arrange a meeting with one of our sales specialists. This meeting aims to explore if we could potentially take over the business from the customer’s existing competitors.”
We don’t even call ourselves a security integrator anymore. The companies that will be standing five years from now will have to adopt a service model and provide more value to their clients than just installing equipment and walking away.
— Louis Boulgarides, Ollivier Managed Security
During the quarterly reviews, LVC analyzes data on service calls for each site or device, providing customers with insights into their annual spending to maintain these assets. This data-driven approach helps customers make informed decisions about budgeting, often leading to system upgrades and increased subscriptions or contracts, Bongard explains.
“We also review contracted services, particularly remote resolution services, tracking hours used,” he adds., “If customers exceed their allocated hours and incur time and materials charges, we recommend adjusting their contracted hours to prevent future T&M charges, demonstrating cost savings and enhancing the value of their contract with us.”
Elite’s model is to have the client’s original security consultant manage the partnership from the beginning. Because the account manager is so familiar with the client’s property, Blakeman explains, the company is in a unique position to guide the evolution of the security program.
“Recommendations are communicated in the regular client meetings conducted by Elite’s security consultants,” he says. “Threats are ever-changing and security programs are living and breathing entities. Consistent communication of threats and security challenges inevitably brings additional opportunities to increase the size and/or hours of monitoring for our client partners.”
Blakeman further explains because Elite’s clients are in regular communication with their security consultants, a partnering pattern is established. When trends are identified, the issue is discussed between Elite and the client. Remediation plans are devised to address the new threat(s). This often includes the addition of equipment and/or extended monitoring hours.
“The other key aspect to consider is that Elite focuses its remote guarding solution primarily on commercial enterprise clientele,” he says. “Thus, a lot of growth is derived through expanding existing relationships in that, say, a customer with 50 locations, adds 10 more sites to its present 10 remote guarded facilities. Along with that, clients are commonly expanding buildings or grounds that call for more site coverage.”
Panté of Phil & Son comments the practice of persuading customers to purchase additional or complementary products or services in addition to their initial purchase comes down to figuring out the need and use case. The upsell may be the game changer to how the system can be more efficiently used, or provide another layer of security, he says.
“When new services and features become available we reach out to that vertical on how end users are gaining more from their current system,” Panté adds. “On a renewal basis most renew automatically, so not too much conversation on having to renew.”
Turner of IK Systems also says identifying opportunities to upsell involves a thorough understanding of the client’s evolving security needs. Regular assessments and consultations enable IK Systems to recommend timely upgrades or additional services, he explains.
“Our approach to encouraging upgrades revolves around showcasing the latest advancements and how they can enhance our clients’ security posture, often backed by case studies and success stories,” Turner adds. SDM
