Tracking and Increasing RMR Opportunities
As security integrators in residential and commercial markets transition to Recurring Monthly Revenue (RMR) based business models, many integrators find that tracking and compensating for RMR is a challenge. Learn how specialized software can help ease the burden in this Q&A session with Ben Hedenberg, North American Sales Director for simPRO.
1. What are some of the common challenges integrators face when tracking RMR-based jobs?
Quite often, we see that security integrators don’t have the right tools to track RMR-based jobs because they are quite different to do.
While do-and-charge jobs can be scheduled at the drop of a hat, RMR jobs take considerable planning. You need to consider how you’ll remind customers when you’re going to visit them to complete recurring work and also ensure that you have enough labor to deal with both RMR jobs and your normal do-and-charge jobs. And that’s just the tip of the iceberg.
This is where the importance of a clear, complete and centralized overview of your business comes into play. An integrated approach such as an all-in-one software is key to managing all the services your business offers.
2. What are some best practices that integrators can use to track RMR and related compensation?
The most critical thing for integrators to do when tracking RMR is to use tools such as job management software to help you stay organized. Job management software helps you quickly access past communications and work that you’ve previously completed with a customer. It also gives you a clear understanding of all upcoming maintenance work, how much labor you’ll need and how to maintain assets for the next three, six, or 12 months. With better visibility into your resources and upcoming work, you can better plan for and complete larger RMR jobs. .
3. What insights can integrators get by moving RMR management from paper to a software-based system?
For rapidly growing businesses, paper-based systems just don’t cut it. Especially if you’re juggling service work, recurring maintenance jobs and projects. A lot of things can fall through the cracks when you’re using paper. You also don’t have the complete or accurate overview of business performance data which you must have to understand where opportunities for optimization and new revenue can come from.
A software-based system for job management becomes your single source of truth for your business, gathering data from every area of your daily operations into one spot from which you can make better, more informed decisions. For example, job management software lets you run reports that give you an overview of testing averages per employee with the click of a button, and therefore help you understand the asset type and service level of your RMR jobs quickly and easily. You can even forecast the required labor in advance and determine how much time you’ll need to test assets.
4. What are some ideas/tips to help techs and salespeople transition to an RMR selling model?
Whether you’re a residential security integrator diversifying into RMR work or a commercial business that is trying to boost its RMR selling power, there are four things we suggest when considering moving to a RMR model.
- Build a loyal customer base. It’s cheaper to retain customers than it is to find new ones so ensure you’re going the extra mile for your customers. And, if they’re regular customers, chat to them about moving onto a maintenance schedule and the benefits that regular service can provide.
- Create packages of recurring service or maintenance work and make sure your technicians are trained on how to sell them. For example, teach techs to lead with the cost saving and benefits of signing up to a package as opposed to having to pay a call-out fee every time they need something unexpectedly fails.
- Implement a system that tracks your profitability per contract. This will ensure you’re not selling maintenance agreements just to break-even at the end of the year. In addition, have a system that gives you the flexibility to run your maintenance agreements based on your evolving business needs. For example, you may want to charge customers up front annually or send an invoice every month while only servicing a few times a year.
- Send your sales team out to apartment buildings, retail spaces, or facility maintenance companies that might contract out security installation and service (i.e. shopping centers). Then, ask for the building manager and offer them a list of the repairs and maintenance services you provide as a way to win new business.