Subscriber Discussion

RMR Retention Strategies?

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Virgil Reed
•Nov 16, 2016

We are a medium-sized commercial integrator and also have approx. 4000 monitored home and small business security system accounts. 

While we are continuing to grow every month, our attrition rate is around 8 percent on the existing monitored accounts. 

Reasons Provided:

Moves, Cancelling Home Phone Line (did not want our no phone line option), Not Using System, Dispute of Paying for a Service Call,   Non Payment/Collections, Bad Experience, Found a Better Rate, Door to Door High Pressure Competitor, Other

Our attrition rate is 1 percent on commercial in house leasing/service plans.

What's a normal attrition rate?

What measures have successfully worked for you?

What measures have failed?

(2)
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Brian Karas
•Nov 16, 2016
IPVM

Virgil, can you clarify the following statement:

While we are continuing to grow every month, our attrition rate is around 8 percent on the existing monitored accounts.

It sounds like you are talking about gross attrition (for every 100 accounts, 8 leave), because you say you are growing, it sounds like your net attrition (total account base over time) is negative, you are gaining new accounts faster than old ones leave?

I do not have specific data for resi burg monitoring stats, but I worked with a number of central stations in the past for video monitoring, and the general theme was that resi burg was becoming a very tough business.

DIY systems, rising costs in other areas (bills, etc.), and also cable companies and phone companies getting in to this business are all making it harder for independents like yourself to do well in this segment.

Topics I have heard at ESX and other events involve adding things like smart home functions to keep resi customers happy and paying.

What panel(s) do you use for your resi jobs? Do they support any smart home/connected home features you could upsell?

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Virgil Reed
•Nov 16, 2016
In reply to Brian Karas

Let me clarify. Over the last 90 days we have signed up 200 new accounts and lost 100 from the existing client base. NET we are actually ahead 100 new accounts.

Nearly 90% of our new sign ups have alarm.com with basic interactive (signal forwarding, apps, arm/disarm, notifications) and 1/4 of the entire account base has alarm.com.

Entry level panels are Simon XTi. Better panels are DSC NEO and DSC Touch/Qolsys IQ.

Another thing I should mention is that after the initial 3, 4, or 5 year term the subscriber can cancel their service with 30 days notice. This is the law in our jurisdiction.

UI
Undisclosed Integrator #1
•Nov 16, 2016

We try to add smoke detectors to every residential system we install. When the customer calls to cancel due to not using the system we have the line "We understand you may not be arming the system, but your smoke detector provides protection 24/7, and the discount it provides on your insurance covers a portion of your monthly fees" or something like that. It works.

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