Building Value Into RMR

Grow your profits while creating happy customers

Over the last several years, the security industry has seen the range of recurring monthly revenue (RMR) grow by a great deal. As the simple security model expands into more home automation and camera setups, and the demand for high quality sales reps increases, the RMRs have predictably grown to help cover those costs. Conversely, many companies are advertising some of the lowest rates we have ever seen to attract new customers.

To set proper RMR ranges, you must know the dynamics of those rates and build value into every dollar you charge the customer.


It’s often easier to charge a higher RMR when selling door-to-door than it is when attracting prospects through advertising online or in other media. A door-to-door sales rep can build value into the system before dropping the price. An online shopper will often see the price first and then make their comparisons before speaking with anyone.

Some companies choose not to advertise prices at all, so they can retain the ability to build value first. If you do advertise a price, it’s important to be clear on what the rate includes and not give someone a false impression of a low rate, then increase it drastically during your presentation.


If your approach is to charge a higher RMR in order to minimize upfront payment and cover additional equipment you are offering, you must be consistent and clear in your approach. For example, if one customer has a maxed out RMR because they are on a full home automation and video plan, it is important that you not allow that same RMR to be used for a customer with a more limited offering of equipment and services.

A customer with a high RMR with less value tied to it is much more likely to cancel at the end of their term or be convinced to do so by a competitor who can beat the rate and provide more equipment and services.


Make sure your sales staff has some simple packages or guidelines on what RMR ranges they can offer and make sure every one of those packages is profitable for you. If you have packages that are not profitable and others that are designed to make up for them, more often than not, you will find that sales reps will gravitate toward the nonprofitable plan and you will end up having to change the packages.


Remember, regardless of products or services, the customer’s experience and the emotions they have related to the purchase are going to have the largest impact on whether they are satisfied and willing to pay the RMR in the long term. MONI Smart Security recently introduced its Customer Bill of Rights as a creative way to engage customers, ensure transparency, and commit to treating each individual customer like they are the most important one. Handling each customer like a VIP and giving them an extremely positive experience will not only build value in the RMR, but will earn referrals for your company.

It’s never too late to rethink your strategy and refine your approach. A small change can make a large impact, so start implementing these ideas today for a better, more profitable 2017.

This article originally appeared in the April 2017 issue of Security Today.

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