Technology Roundtable:
How to Maximize Integrator Success in the Smart Homes

Two seasoned integrators and an expert manufacturer explore ways to increase RMR, incorporate new technologies into an overall offering and much more (Sponsored by Snap One)

Coming off a smart home-focused trade show like CES, both security integrators and customers have been presented with an array of snazzy new smart home devices and technologies. But how do these technologies and products make a smooth transition from show floor to a customer’s living room?

This is where residential integrators can play a key role.

In this exclusive technology roundtable sponsored by Snap One, three experts will guide integrators through deploying technology that will enable the functionality that smart home customers demand, while at the same time delivering the back-end RMR that integrators are looking for.

What recent technology innovations in the smart home are most appealing to residential security integrators?

Fritzley: My two biggest standouts in this area are the major improvements in standardization and integration. While it feels like the world came to a stop the past two years, innovation did not. We are now seeing more product interoperability and connectivity than ever. These new opportunities include add-ons for our clients to really customize their system with cutting edge technology like AI/voice control, deeper integration with music systems, and improved control and management for advanced security, lighting, shading, and comfort controls. Thanks to newer security systems offering connectivity and management via IP, Zigbee, Z-wave, and even the cloud, we can offer more value and functionality than ever while creating additional revenue streams as integrators.

Carter: With so many smart home innovations coming available every day, I feel these answers will be different depending on the clientele each integrator deals with. Specifically, security systems have come a long way in wireless equipment options. I personally like deadbolt and automated lock solutions.

Choate: Artificial intelligent technologies, specifically video AI, is very appealing to residential security integrators. Video AI is improving very fast right now and we will see a much tighter integration of video-based AI events and intrusion. AI will enter homes in video first and cross category integration down the road. Giving homeowners intelligence about what is happening in and around their home drives value. Customers have demonstrated an appetite for video AI generally, but intrusion systems will need to leverage AI to enhance professional offerings and reduce the ever-present false alarm problem.

How do you vet these products and make good decisions about adding them to your offerings?

Carter: We rely on personal experience and reviews from our peers. I would highly recommend finding a group of peers that do business the right way and talk shop – it will change how you look at things and open your mind to new ideas.

Fritzley: Before we ever offer a new product to a client, we do a thorough test internally at our office and even with our lead technicians on their personal systems so they can live with the product and see how it performs. While its obviously important that the product works as intended, the other major factor is the level of support and communication we have with the manufacturer. We have seen plenty of products that work well initially, but when it comes time to involve the vendors support team – that can be a make-or-break for us. If the vendor support team, warranty, or RMA process does not meet our expectations then we will usually pass on a product going forward. The last thing we want is that process adding to the frustration for the client by adding delays or extra hoops to jump through before issues get resolved.

Choate: Vetting these solutions is no different than any new technology for an integrator. Test-test-test, understand the limits in real world applications so you can confidently explain the features, benefits, pros, and cons to your customers. Setting customer expectations always leads to a better customer experience.

What are some out-of-the-box ways to add recurring revenue in the residential market?

Fritzley: One of the simplest ways for residential security integrators to add recurring revenue is through extended support/service plans for smart home products that are connected to the security system. As security integrators, we are already set up to bill customers for security monitoring, so having service plan add-ons available for managing and supporting the rest of the technology in the home is a quick and simple way to increase that RMR. If you are offering smart home and networking solutions and not offering support plans for that technology, you are missing out on a big opportunity to create more revenue and more value for your clients.

Carter: Parasol and service contracts are becoming more and more popular. Our systems are having a bigger and bigger presence in the lives of clients. There can be a lot of different fail points in what we offer. We can’t control the outside fail points, but we can eliminate the self-inflicted issues. It is our job to set these systems up for success and not let outside forces drive what we design.

Choate: The easiest entry into adding recurring revenue is smart home and intrusion, but you can add to that with the following:

• Remote maintenance and device health monitoring: Like Snap One’s OvrC, not all remote cloud monitoring services charge fees to integrators. That does not mean the integrator shouldn’t charge the customer a monthly fee. I advise our partners charge for remote maintenance and device monitoring all the time, regardless of the cost to the integrator. With that fee, offer a premium for expedited or remote response. OvrC provides the tools to offer such a service remotely. Integrators should implement different service levels, consider each customer’s needs independently, and tie RMR into a service agreement. Customers who have professional smart home systems installed want peace of mind and continued service provides that.
• Video monitoring: Central stations offer video monitoring services that provide the customer with exceptional coverage. This is more of a commercial application, but we service fairly high-end customers who are often interested in knowing someone is watching out for them. By implementing video monitoring, you can provide customers the highest quality of security and response.
• Network management: With many people working from home, network support and management are increasingly popular services. Integrators can create support plans that service residential customers directly or act as an extension to a company’s IT department. In addition to making yourself available for inbound service calls, integrators should deploy products that allow visibility to the router, switch, or controller via detailed logs of every action in real time. Implementing products with this visibility allows you to proactively analyze alerts in real-time and solve problems before the customer is even aware.

​What are some best practices to help avoid or combat attrition?

Carter: The best way to avoid attrition is to always strive to be the best at what you do. Design a great foundation for every system you offer. Listen to your client’s needs. Set clear expectations for your client. Then deliver what you said you would and stand by your project.

Fritzley: We have been very lucky to keep our attrition extremely low. This obviously was something we learned over time, but in the end the solution is simple: What are you doing to maintain relationships with your customer base, and are you adding value that makes them not want to go anywhere else? Competition is everywhere now – from other small local integrators in your market, to national brands like ADT, Ring, and SimpliSafe. Because there is so much competition, you must stay in touch with your clients to maintain that relationship. Whether you are sending monthly emails or letters with tips and tricks for their system, or announcing new products and services, communication is key. Second, consider adding value by offering smart home technology outside of the base alarm system as well as support and service plans. The combination of proactive communication and being their go-to person for all their technology makes it highly unlikely they will go anywhere else!

Choate: Retaining customers is a focal point in our industry. To combat customer attrition, we suggest implementing extended services with recurring monthly fees. Being available and attentive to your customers when something happens is key. Additionally, providing systems that do more than intrusion (ex: smart home products) make “switching anxiety” higher as the system is used more broadly in the home. Sell a complete system, install and service it well, and manage contract terms carefully. Those are the keys to reducing attrition.

What are the best ways that integrators who are focused on residential can expand into commercial markets?

Carter: I would say access control. Then, bring the way you deal with residential clients to the commercial realm. You need to be really organized. Commercial is a totally different animal. Been doing it for years. The key is setting the GC’s expectations. Even then, you are going to have to stick to your guns because there are a lot more outside forces that can affect a project. There is a lot of prep work that needs to be done. Your foundation is key.

Fritzley: First and foremost, check your local city or state laws to ensure you are properly licensed, insured, and prepared before you dive into commercial! The last thing you want is to assume you can just transition into commercial and end up in a bad situation. My personal recommendation is to start small – coffee shops, retail stores, and small businesses are usually quick and easy to install and manage. While it may seem cool to take on a huge project like a hotel, in the end, you can grow your commercial customer base much quicker and increase revenue faster by focusing on smaller locations. Afterall, there are WAY more of those then there are hotels!

Choate: We recommend starting with small-medium businesses, but the key is to stay in the zone of your expertise. This would include bars and restaurants where A/V, control systems, surveillance and security system experience is key. Also, general SMB offices are a great starting point where security, surveillance and access control become the center of the offering. The one technology I would recommend they pick up prior to marketing to SMB/commercial is access control, if not already doing so. Access is a very large market and is becoming more ubiquitous all the time. I would also advise integrators to stick to projects featuring products they know well and could easily service down the road. To start, stay away from large commercial projects that require heavy wiring and intensive labor, that is a different business model that isn’t a great starting point for a residential focused company.