5 min
Expanding from one-time installations, also known as project-based revenue, to continuous service offerings can significantly enhance business growth and client satisfaction.
Recurring services provide a stable revenue stream and foster lasting relationships with clients. By ensuring systems remain efficient, secure, and up-to-date, businesses can enjoy predictable income and increased customer loyalty.
Learn how to provide recurring services to not only create a steady revenue stream but also build long-term relationships with clients.
This article explores the following:
What is Recurring Revenue?
Recurring revenue is the portion of a company’s income that is expected to continue in the future at regular intervals.
This steady stream of income, often derived from subscriptions or service contracts, provides financial stability and predictability, enabling businesses to plan and grow confidently.
This predictable revenue helps smooth out cash flow income, decreasing the spikes and valleys caused by changes in the economic environment as well, which helps your business credit line.
Why Are Commercial Integrators Interested in Offering Additional Services?
One-off jobs are an essential revenue stream for you as a commercial integrator, but they’re hard to rely on solely. Customer acquisition costs are rising, and constantly bringing in new customers takes time, effort, and marketing skills.
Offering additional services would help you to tap into the value of recurring revenue. Service contracts allow for a regular stream of work and more predictable income.
However, the benefits of extra services also extend to their customers. Additionally, modern businesses enjoy leveraging subscription services too. Finally, using a commercial integrator allows a company to access expertise without adding to its employee headcount.
When is the Best Time to Talk About Adding Service Plans?
All The Time.
Consider this, your client is coming to you because they trust you, or they trust the recommendation that got you to the conversation your are having with them now. The hardware and the software you will install is similar to your competitors and fundamentally achieves the same outcome. What is different is you. It’s your companies pre- and post-sale services that make you unique.
You need to continously point out that your team is there and the reasons you are there. This service you provide is where the value is and you should be paid for this differentiation.
How to Communicate and Sell Your Recurring Services Model
Don’t communicate costs to your customers.
Communicate VALUE.
- Have one service agreement.
- Develop an easy and repeatable pricing model for your offerings.
- Propose your recurring services by default to every client.
- Show the cost-effectiveness of signing a multi-year agreement.
- Include remote support & basic monitoring.
- Fix whatever is broken at no additional cost except the standard exclusions.
How Can Commercial Integrators Build Recurring Revenue?
Building a recurring revenue model does not happen overnight. It is a strategic business journey. You should develop it over the course of 2-3 years.
To build recurring revenue, commercial integrators must prioritize offering comprehensive support services, with monitoring included as a key component of these agreements.
In other words, integrators need to focus on offering support services first and include monitoring in their agreement.
You don’t need to offer numerous types of services. Monitoring isn’t a useful solution if there’s no support attached to it. Simply providing monitoring services without support is insufficient, as monitoring alone does not resolve issues.
Instead, bundle monitoring with robust support to address and fix problems proactively. By delivering ongoing, value-added services that ensure network reliability and performance, you can foster long-term client relationships and generate consistent, recurring revenue streams.
Monitor Anything from Anywhere with Domotz
Your service model will be more than just monitoring. Yes, you can monitor anything with Domotz, but consider the fact that Domotz also helps your support team and engineers be more efficient.
Curious about what Domotz can monitor? Read on to find out.
1) Remote Connectivity
Remote connectivity is key to a successful service model.
The number one thing you get from Domotz is Secure, Remote connectivity to ANY device you are monitoring on the network. This helps you respond faster to service issues and can remove the burden of an onsite visit.
Knowing what is happening in the network and being able to remotely access or even power cycle the troubled device will improve your company’s response time and save you significant costs.
2) Basic Monitoring
Continuous network monitoring and management is one of the most critical services you can offer. With Domotz, you can provide real-time visibility into network performance, helping clients prevent issues before they become critical. This service can include:
- Proactive Monitoring: Set up alerts for potential issues, ensuring you can address them before they impact the client’s operations.
- Remote Control: Remote access of any device, remote power cycling, and device control.
- Remote Troubleshooting: Use Domotz’s remote access capabilities to remotely troubleshoot issues quickly without needing on-site, saving time and resources.
3) Asset and Inventory Monitoring & Management
Managing numerous devices across various locations can be daunting. An asset management service can help clients keep track of their technology investments. Services can include:
- Automated Inventory Tracking: You can use Domotz to keep an up-to-date inventory of all network-connected devices.
- Lifecycle Management: Track device lifecycles and provide recommendations for replacements or upgrades.
- Asset Reports: Provide detailed reports on the status and location of all assets.
Check out our infrastructure inventory features.
4) IoT Device Monitoring
As IoT devices become more prevalent, managing them can become a challenge for businesses. Offering a service to handle this can be a significant value-add. This service can cover:
- Device Monitoring: Keep track of all connected devices, ensuring they are functioning correctly.
- Firmware and Software Updates: Regularly update devices to ensure they are secure and operating efficiently.
- Troubleshooting: Offer remote troubleshooting and repair services to minimize downtime.
Learn more about the Domotz IoT monitoring and management features.
5) Cybersecurity Monitoring
Security is a top priority for many businesses. Offering recurring services that include regular checks and updates of security systems can be very attractive. Consider services like:
- Surveillance System Monitoring: Ensure all cameras and security devices are operational and provide regular status reports.
- Security Updates: Regularly update firmware and software to protect against vulnerabilities.
- Incident Response: Offer quick response services for security breaches or alerts, ensuring peace of mind for your clients.
Offering cybersecurity services makes sense if you’ve already developed relationships with a client as a commercial integrator. You already have a working knowledge of the business’s equipment, software stack, and sector. Additionally, if you are familiar with their niche, you should know the regulatory compliance they need to meet to keep their licenses and avoid fines.
Check out all network performance and security features.
6) After warranty assistance monitoring
Installing IT equipment and software is a significant investment. However, when warranties run out, companies are left in the dark.
IT hardware cycles have limitations. When the equipment enters the ‘End of Service Life’ (EoSL) stage, vendors withdraw their support and encourage end users to upgrade to the new models. However, if the equipment still works well, making a new investment only sometimes makes sense.
Commercial integrators can offer after-warranty assistance to businesses to ensure they get maximum ROI on their spending. This support can involve maintenance or troubleshooting issues.
The availability of these services translates to money-saving for businesses. Instead of upgrading equipment, they can increase profits or invest money in other areas by increasing the life cycle of their IT investments.
Help your clients save money and be more sustainable by offering energy management services. This can involve:
- Energy Usage Monitoring: Use Domotz to track energy consumption to identify inefficiencies.
- System Optimization: Recommend and implement changes to reduce energy use.
- Sustainability Reporting: Provide reports on energy usage and savings, helping clients achieve their sustainability goals.
8) AV System Monitoring
For clients relying on audio-visual systems for presentations, conferences, or entertainment, reliable performance is crucial. Recurring services for AV systems can include:
- Routine System Checks: Regularly inspect and test AV equipment to ensure optimal performance.
- Firmware Updates: Keep all AV devices updated with the latest firmware to improve functionality and security.
- On-Call Support: Provide priority support for any issues that arise, ensuring minimal downtime.
Conclusion
By offering these recurring services, you can not only create a reliable revenue stream but also build stronger, long-term relationships with their clients.
Domotz gives you the power to monitor, manage, and troubleshoot any device remotely.
Leverage Domotz to provide exceptional service that addresses the ongoing needs of your clients, ensuring their satisfaction and loyalty.
Further reading: