Upgrading Customers to Interactive Services: Some Ideas That Work
Interactive services – the ability to control and receive alerts from a security system via smartphone – have brought big changes to the security industry. Once viewed as an important but unexciting expense, security systems now have considerably more sizzle – and for alarm dealers, interactivity can boost recurring monthly revenue (RMR).
But what about customers that bought their systems without interactivity, perhaps predating the interactive era? Upgrading these customers can help lock them in and increase RMR.
As an alarm distributor with 37 years in the low-voltage industry, we’ve talked to a lot of security dealers. Here are some ideas we’ve heard have worked for them.
- Give customers interactivity for 60 days at no charge. This technique works for Spotify and Amazon and other companies that offer services billed on a monthly basis. It can work for you, too. Once customers have a chance to experience interactivity, they are likely to find it hard to part with.
- Use bill stuffers, newsletters and the like to make sure customers know about all the things they can do with interactive services. One of the most popular options is getting an alert, or even a video, when a child arrives home from school. But don’t overlook other options. For example, pet owners may appreciate the peace of mind they can get by receiving an alert when the person they enlisted to feed or walk the pet has been to the house.
- One thing that may prevent some customers from using interactive services is a lack of cellular or internet connectivity on their control panels. To address that, consider upgrading those customers to new security equipment with cellular connectivity without an upfront charge if they sign a 36-month agreement that includes an additional $10 a month. (Customers may need to switch to a cellular panel anyway if they drop their landline phone. Be sure you let any customers in that situation know that they should consider adding interactive services to their systems.)
We’ve heard of alarm suppliers upgrading as many as 60% of their existing customer base to interactive services using tactics such as these. Perhaps they can work for you, too.
Security Equipment Supply is one of the leading wholesale alarm equipment suppliers. With 37 years of experience serving low voltage dealers, we not only offer security equipment, we also offer advice and expertise to help you in serving your customers. If you like the ideas we’ve discussed today, give us a call and we can help you add interactive services to your product offerings.