The advent of the internet might be one of the most important advancements in human history. We now have more ways to communicate, entertain, create, explore, and educate than ever before, and that’s just the tip of the digital iceberg. Industries and the businesses within them have evolved their operations into something almost unrecognizable when compared to just a couple of decades ago. Products and services are sold online, and service models have seen a huge change. In the security industry, more providers are reimagining their services to operate on monthly fees rather than an up-front cost, a change that is good for everyone.
What’s the Difference, and How Does it Help the Provider?
Think about how the TV and movie industry has changed. You used to have to go to the store to buy or rent your production of choice. These days, the majority of consumers have adopted one or more streaming services that they pay $7–$15 for per month. That fee gives them access to an endless stream of content at an exceptional value when compared with the structure of the past. The security industry is no different.
While a security company might very well be able to stay afloat and provide adequate customer satisfaction while sticking to up-front fees, adopting a monthly fee plan opens the door to advantages for both the provider and the customer. The provider now has a much more reliable stream of profit thanks to the Recurring Monthly Revenue (or RMR) they are receiving from each customer. This reliability allows for more accurate business planning in the near and distant future of the company.
So What’s In it for the Customer?
A large price point can be scary, even if it’s for a one-time payment. This alone could deter a prospective customer from buying into a service, even if they need it in the end. By charging a monthly fee, the barrier to entry is much lower for whoever is buying. Plenty of service providers across multiple industries offer this pay-as-you-go model, with additional account tiers and add-ons being offered to those willing to pay a bit more.
An Experience, Not a Product
You may be thinking that in the end, most customers will end up paying more for the sum of their monthly fees than a one-time, up-front cost. This may be true, but they also know this, and they’re still okay with it. Why? Because people are willing to pay a little more for continued service, support, and increasing features. They expect an experience rather than a product.
What sounds better? An intercom security system that never has more than its out-of-the-box abilities, or one that is always connected and allows for continuous iteration and remote upgrades?
With MVI’s KeyCom® and its provided services, our dealers are able to constantly provide for their customers’ needs, while ensuring reliable RMR. This translates to stability for your business and satisfaction in your customers. This evolution of service structures wouldn’t be possible without the rapidly expanding abilities of the internet.
The security industry has always provided good products. At MVI Systems, our aim is to take that and turn it into great ongoing services.