What is RMR? Adding Value & Opportunities for our Customers
Most of us participate in this model as a consumer without thinking much about it. Think about buying the following everyday products that rely on the RMR model: • Printer Ink
Most people may not be familiar with the acronym ‘RMR.” It stands for Recurring Monthly Revenue, and more specifically, is predictable revenue generated monthly from active subscriptions for goods and/ or services. In the Security Integration space, RMR consists of value added services that are provided for customers for a monthly investment including: • Service Plans/Maintenance Agreements • Software Support Plans • Managed Services: • Managed Access Control • Managed Video Surveillance
• Refrigerator water filters • Replacement razor blades • Netflix
The opportunity for developing RMR also exists within our Division 8 business and is currently happening in specific cases focused on things like break/fix service plans; however, this can also expand to include preventative maintenance inspections and door operator maintenance. There are RMR opportunities all around us, and customers have become accustomed to paying for them provided they add value. As Cook and Boardman continues to grow, RMR will be a critical component of that growth. The ask for each employee is simple: Think to yourself, “what can we do better than anyone else that adds value for our customers?”
• Intrusion/Fire Alarm Monitoring • Security Device Health Monitoring • Inspections
By adding RMR to a regular installation job, we are not only successful in implementing a solution for a customer, but we are establishing an ongoing relationship that will result in repeat business for years to come. Through RMR, there is a guaranteed touch point on a regular basis with customers, which puts us front of mind, resulting in a more consultative relationship and creates additional opportunities. It’s been proven that customers, out of loyalty, will continue to buy from partners they are already engaged with - versus going to a competitor. This generates repeat business with less effort than finding new customers. The margins on RMR are historically much higher than one-time installations. Not only are we enhancing the value that we are providing to our customers, which is paramount, but there is also a financial benefit. RMR is not limited to only the Security Integration industry. Most businesses have a recurring model established to ensure future business and sales.
Bill Hickox Vice President of Operations, Security Integration
4
5
Made with FlippingBook Digital Publishing Software