The way security dealers have grown their businesses and revenue has evolved, says Woodie Andrawos, President, National Monitoring Center (NMC).

Streamlining revenue

Gone are the days when hardware-based installs were the first choice.

Software and AI have inundated the market and dealers have had to embrace technological change to stay afloat.

For these businesses to succeed in a competitive market, their revenue model must change, too.

Moving from one-time transactions to service-based models is a necessity as it’s proving to be a more sustainable approach that offers both financial stability and ongoing client engagement.

As these models take center stage, advanced technologies like AI and the cloud are transforming how dealers manage their businesses as well as the services they offer commercial and residential customers.

By adopting a security services model, one that drives recurring monthly revenue, and smart systems that predict and prevent security issues before they escalate, dealers can provide better customer outcomes while streamlining their operations.

Are you smart?

Let’s face it: the industry is moving from reactive to proactive security solutions.

Traditionally, alarm monitoring services would fall in the reactive bucket – helping end users react to incidents in progress or after they occurred, but today’s solutions focus on prevention.

With AI, security systems can analyze behaviors and predict potential issues before they arise.

This proactive approach helps detect anomalies and patterns, offering actionable insights to security operators.

The ability to forecast issues means that security personnel, even those within the monitoring facility, can respond swiftly and more precisely.

Operators can review active alarm triggers in real-time and decide whether immediate action is required.

This blend of technology and human oversight makes monitoring services more efficient and valuable to clients, helping them to avoid costly security breaches.

The big, wide world of RMR

In the past, many dealers relied on one-time hardware sales and installs, which resulted in inconsistent revenue and complex forecasting.

The introduction of RMR services – ones that support a subscription-based model – is a game-changer.

Offering ongoing services stabilizes income while strengthening client relationships.

Why? Clients are continually engaged with their dealer partners through regular support, updates and system checks.

This type of on-going face time leads to longer-lasting relationships. 

RMR models also provide dealers with financial consistency (yes, you can sleep better at night!), allowing them to invest in growth and explore new service offerings.

Whether it’s cloud-based solutions, advanced analytics or intelligent monitoring, they open the door to scalable business and revenue opportunities. 

AI’s role in alarm monitoring

AI has become a force to reckon with in alarm monitoring.

By processing large amounts of data in real-time, AI allows systems to go beyond simple motion detection, helping dealers identify patterns and potential threats before they escalate. 

False alarms, which can be triggered by pets, user error or environmental conditions such as swaying trees, can be both time-consuming and costly for dealers and their clients.

AI-driven monitoring systems distinguish between harmless activity and actual threats, minimizing unnecessary responses and allowing resources to be better allocated.

AI allows dealers to provide a higher level of service.

Customers benefit from more accurate, faster responses, which builds trust.

As AI continues to evolve, its role in transforming the alarm monitoring industry will only become more integral, helping dealers offer premium, intelligent services that differentiate them from the competition and generate higher levels of revenue.

Can I get some service here?

One of the best ways to build lasting client relationships is by ensuring they have access to support whenever they need it.

Providing reliable assistance around the clock – whether for routine system maintenance or urgent troubleshooting – gives clients the confidence that their security solutions are always functioning as expected.

Security incidents do not abide by a predictable schedule, so it’s imperative that end users can rely on security service providers to support them when their guard is down. 

This continuous availability shows a commitment to meeting clients’ needs beyond typical business hours, ensuring they feel valued and supported no matter the situation.

Offering this level of service fosters trust, reduces the likelihood of them seeking alternative providers and strengthens the dealer’s role as a dependable partner.

By ensuring support is available after hours, dealers are able to enhance client satisfaction and build stronger, long-term partnerships.

This kind of service drives loyalty and sets a solid foundation for future growth.

Opportunities for growth and innovation

With stable revenue streams from RMR contracts, dealers can focus on growth and innovation.

This predictable income allows for investments in new technology, infrastructure and training that enhance service offerings.

Dealers can also explore new markets and offer advanced solutions such as AI-driven monitoring that better meet the demands of modern customers.

For example, data-driven tools such as business intelligence applications can give dealers insights into which services are most valuable to their clients based on customer data trends and patterns.

With growing customer preferences for more intelligent, data-driven security solutions, dealers who are proactive about expanding their service portfolio will capture new business and build even stronger relationships with their current customer base. 

Customers expect fast, reliable service; to meet those expectations, dealers need tools that help them work smarter.

For technicians, having instant access to critical details like system histories and service records makes a big difference.

They can show up to a site ready to fix issues without unnecessary delays, which improves response times and keeps customers happy.

Features like location services and smart mapping also help technicians move between sites more efficiently, reducing wait times and resolving issues as soon as possible.

Growth is on the horizon

Monitoring is a fundamental pillar of the technology stack offered by security dealers, but growth through differentiation should be their priority.

The industry is dynamic, requiring a progressive approach to delivering value to dealers and end users.

Those new technologies you’re constantly hearing about are reshaping perceptions and applications of technology.

The results? New opportunities for dealers to make their businesses more valuable.

To meet changing client expectations, security dealers must move beyond outdated sales methods and antiquated technologies.

By adopting a service-based business model and generating steady monthly revenue, dealers can broaden their offerings to cover a broader range of customer needs within the industry, making their business a key component of their clients’ daily operations.

Dealers embracing innovative strategies to address longstanding challenges will position themselves at the forefront of the industry.

This article was originally published in the October edition of Security Journal Americas. To read your FREE digital edition, click here.