Monthly Recurring Revenue (RMR) offers a steady stream of subscription income for your integration business. Adding warranties and service contracts to your installation projects establishes a healthier business model that provides a predictable amount of dependable income. You can introduce RMR to existing customers and make it a standard practice as you acquire new customers.
Review these 4 steps to build a recurring monthly revenue model:
1. Build warranties and service into your existing contracts
Many integrators still sell service separate from an installation project and that limits the service offered to include only warranty work. Adding more comprehensive service into your initial install not only helps with the profitability of maintenance, but also serves as a terrific opportunity to sell a more complete service offering.
Some integrators worry about pricing themselves out of a project and combat that by making service part of the deal. This tactic requires more selling. Never understate the importance of service. It’s important for the integrator, but also for the client. Systems require a lot of maintenance. As an integrator, you can offer peace of mind while building up that recurring contract business.
2. Form support service nationally
Even smaller organizations can have national footprints. It seems to be part of the growing mobility and internet age to have companies spread across multiple states and even countries. Partnering with the right subcontractor, can expand your capability to offer broader services (and of course integration) that will expand your reach.
3. Compensate your sales team appropriately for selling service
Failure to compensate sales professionals for selling service has long been a problem. We want our sales professionals to push our service products, yet service sales tend to make up the smallest portion of a sales person’s compensation. As company leaders, it’s important to incentivize the appropriate behavior. If you want the sale of service contracts or other types of services to be a priority, then you must provide the greatest benefit for those sales. Compensation drives behavior, but if you continue to incentivize old behavior, then you will continue to get the same old results.
4. Identify the appropriate staff to support your efforts
Sometimes sales and service products aren’t enough. Make sure you understand the requirements from your staff to deliver good service. This may mean shifting roles, creating new roles, and bringing in new people to support the commitment of a service-oriented business. Introspection is required to determine whether your current staff can migrate to a service approach. Once you’ve made that determination, it’s important remember that a service business means taking response and results seriously. Making response and results a priority from the top down may mean that employees are required to meet new expectations, and new blood can help to energize your efforts as well.
If all of this seems a little overwhelming, call Herman Integration Services at 844-441-1669. We can help you make the transition to a service model an easier one with qualified nationwide technicians and the support services to get you started!
LEARN MORE
[inpagepromo]
