Security Sales & Integration August 2022 - 35

Sponsored by
As emphasized here in the past, recurring
monthly revenue (RMR) is not only the gift
that keeps giving in terms of ensuring an ongoing
stream of income that allows firms to earn
money 24/7; it also delivers a host of additional
business benefits. RMR-based or subscription-style
accounts enhance company equity
and convey the kind of value to investors and
the financial community that they comprehend
and seek out. Furthermore, RMR customers
represent myriad opportunities for selling more
products and services, allowing for " stickier "
long-term alliances that can foster positive
word-of-mouth that spurs referrals and growth.
Now in its fifth year, Security Sales & Integration's
Recurring Revenue Deep Dive survey
assesses the opportunities, challenges and identifies
key benchmarks dealers and integrators are
experiencing. Given the historic and turbulent
incidents affecting Americans and the world the
past couple of years, security and RMR has held
up astonishingly well. As compared to many
fields, the critical importance security and safety
plays in everyone's lives largely buffers the industry
from extreme or protracted hardships.
According to the study findings, although
94% of the respondents cited the supply chain
as an obstacle, the average amount of residential
and commercial RMR still rose in total and
Supply Chain Impact on Adding
More RMR
Supply Chain Impact on
Adding More RMR
Major
11%
Significant
33%
Noticeable
33%
Almost all survey respondents note the
supply chain slowdown having some
impact on their ability to cultivate more
recurring revenue. Nearly half (44%) report
a significant to major hinderance.
Approximate RMR Growth
During Past Year
Approximate RMR Growth
During Past Year
None
6%
Slight
17%
Supply Chain Impact on
Adding More RMR
per account. The former checked in at $41 and
the latter $116. However, some disparity is evident
in contrasting presumably better-run (or
perhaps more fortunate) companies as more
than a third of dealers/integrators reported no
growth or a decline in RMR during the past
year. Perhaps some of those firms may also not
be as highly focused on RMR.
Among the metrics reflecting the harsh realities
of today's competitive landscape, respondents
reported rises in both residential
and commercial accounts attrition. The latter
spiked by nearly 5 percentage points or 29%.
The Great Resignation and talent shortage also
reared its head in a big way with staffing skyrocketing
to the top of dealer/integrator challenges
in implementing more RMR-based services.
There is no doubt building RMR requires
committed management along with dedicated
sales and administrative personnel.
Flipping back to the bright side, dealers and
integrators are projecting double-digit growth in
all areas of RMR business as well as overall company
revenues for 2022. Dig into all the trends,
discover the product features and support mechanisms
most coveted by your peers, and learn
about offerings from three leading technology
partners that are at the ready to help you fortify
your company with more RMR.
Percentage Companies' Total
Revenue Comprised of RMR
More than
75%
17%
51%-75%
11%
21%-50%
10%
16%-20%
17%
While the largest bracket of responding
security dealers and integrators (25%)
classified the percentage of their overall
recurring monthly revenue as 6%-15% of
their total revenues, the average came in
higher at 33% (was 31% in 2021). Nearly one
in five (17%) have RMR attached to at least
75% of their accounts.
Approximate RMR Growth
During Past Year
Approximate RMR Growth
During Past Year
Approxima
Approxim
securitysales.com
Declined
No growth
1%-5%
AUGUST 2022 Security Sales & Integration 35
Declined
No growth
1%-5%
6%-15%
25%
None
8%
1%-5%
12%
Percentage Companies' Total
Revenue Comprised of RMR
Percentage Companies' Total
Revenue Comprised of RMR
Percentage Residential
Percentage Residential
Revenue Comprised of RMR
Revenue Comprised of RMR
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Security Sales & Integration August 2022

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