8.6.18 – Security Sales & Integration – Scott Goldfine
Wholesale monitoring providers share the new products and services they are utilizing to strengthen the industry’s foundation of alarm signal transmission and response.
Affiliated Monitoring’s UL-Listed, TMA Five Diamond center utilizes some of the industry’s most sophisticated technologies.
One of the most thrilling aspects of war, Western frontier or crime movies is when seemingly against all odds the cunning, scrappy or heroic protagonists have done everything humanly possible to fend off a foe far outnumbering their own ranks and just when all hope seems lost . . . reinforcements, the cavalry or backup storms in to save the day.
That scenario is not unlike the security battlefield for today’s dealers, particularly a residential market that has been besieged by multiple service operators (e.g. Comcast), DIY and other competitors.
Fortunately, the industry has its own high-tech version of the cavalry in the form of wholesale monitoring providers. Today’s leading third-party central stations are among the most sophisticated facilities in all the security industry, and as such are well armed to fortify customer accounts captured by dealers with the latest and greatest offerings.
Those dealer partners gain access to the most advanced technologies and guidance for succeeding with related services, as well as reliability, redundancy, business assistance, sales and marketing tools, and broad support across it all.
But there is a multitude of monitoring forces out there ready to help power dealers to victory — how to choose? Security Sales & Integration is here to help with this year’s central station roundup, in which executives from eight top-notch wholesale monitored services specialists respond to five key questions spanning technical capabilities to RMRgeneration to self-monitoring.
In addition, an included directory provides contact information and summarizes their businesses. For some dealers this will be basic training, for others it will present the opportunity to re-enlist with the monitoring partner that best meshes with their company’s needs and aspirations. Cue the “Charge” bugle call.
What are the latest technological improvements within your facilities?
Morgan Hertel, Vice President of Technology & Innovation, Rapid Response Monitoring Services: The expansion at our headquarters facility has been completed and has moved to Phase Two, which is focused on remodeling/enhancing the previously existing space. Expansion work is also underway at our redundant facility in Corona, Calif.
In addition to these projects, we have continued to invest in and implement the most advanced firewalls and networking and telecom technologies to accommodate dealers’ wide-scale adoption of cellular/radio and IP communication paths.
Trey Alter, President & CEO, Dynamark Monitoring: At our main office we recently added the SureView Immix platform to help our dealers expand deeper into video as a service solution [VaaS]. This year we have also started the transition to an upgraded hardware and software automation system from Bold to support the new UL requirements. We have also invested heavily in phone upgrades and cybersecurity improvements.
Justin Bailey, President and COO, AvantGuard Monitoring:We recently finished a building-wide remodel of our Ogden [Utah] location. It sports a brand new central station and office space that promotes internal communication and productivity. In fact, we specifically designed every aspect of the building to meet those objectives. Annually, we spend about $1 million on new technology in order to stay ahead of the trends and needs that our industry requires.
Grant Graham Sr., Director of Monitoring Operations, Brinks Home Security [formerly MONI]: Our alert system, ASAPer, which sends the customer mobile alerts seconds after an alarm is triggered, has had a big impact for us. But showing a lot of promise are digital support communication tools like texting and chat.
We have a new division called Digital Support, working with customers who prefer to deal with us through text message or live chat rather than calling in. We see that as the future of customer communication. So we see an actual use in the Alarm Response Center with the same technological backbone that Customer Care is using successfully.
Teresa Gonzalez, President, UCC: UCC recently underwent a full remodel at our primary facility in San Antonio, all new paint, carpet, furniture, kitchen and break room. We are prepared for the next phase to support future growth. UCCrecently integrated with and launched the Numera Libras mPERS solution, which dealers are adopting as we are also in the process of rolling out a second location in Dallas that will allow for live monitoring from two geo-diverse locations. Having the second site will mean that all critical monitoring components — our phone lines, receivers, automation systems and staff — are fully redundant in case of a disaster or outage at one of our locations.
Daniel Oppenheim, Executive Vice President, Affiliated Monitoring: As interactive video monitoring has continued to become a bigger part of our business and a driver of increased RMR for our dealers, we have invested in a dedicated video monitoring platform. In partnership with Sureview Systems, we have implemented the Immix CS monitoring platform, and integrated it with our MAStermind automation system.
This platform allows us to offer a wide range of interactive video services to our dealers without limiting them to a small subset of manufacturers. Our Alert Message mobile app and platform has also been a great success; more than 60% of our dealers have started using this custom group chat service, and they have all seen their false alarm dispatch rates decrease dramatically. Developed in house and with the specific needs of our dealers in mind, Alert Message allows subscribers to chat with other contact list members and collectively decide how to handle an alarm situation.
Jim McMullen, President & COO, COPS Monitoring: We’ve spent millions on technology and infrastructure and will continue to do so into the future to ensure the security and reliability of our customer data and network of UL-Listed, active load-sharing monitoring stations. To ensure we meet the highest standards, we contracted with leading audit firm KirkpatrickPrice to conduct an independent Service Organization Control [SOC] 2 Type attestation engagement report.
Our SOC 2 certification illustrates we have the security, systems and control procedures in place across the largest network of monitoring centers in the U.S. We are going all-in on mPERS monitoring. First, our internal team of programmers are integrating mapping software though our API to facilitate the monitoring of mobile products and dynamically identifying the correct authorities based on longitude and latitude. Second, we’re also building two dedicated mPERS dispatch centers; one in our New Jersey headquarters and another site for redundancy to be announced.
AvantGuard Monitoring’s primary UL-Listed, TMA Five Diamond facility is shown here in Og-den, Utah. The central station services provider also operates a location in Rexburg, Idaho.
How is your central station helping security dealers increase their RMR?
Kevin McCarthy, National Sales Manager, EMERgency24:EMERgency24 developed a two-way mass notification system that enables alarm contractors to compete for jobs that integrators had previously claimed as their own. Mass notification can provide a significant revenue stream because alarm contractors charge based on the number of people on the contact lists. This technology lets you monetize the population of a building.
Another unique application that EM24 developed to help alarm contractors increase recurring revenue is our Filtered Response Video Service. This is a low-cost way to offer video capabilities — with unlimited interior and exterior cameras — to subscribers. When a video alarm is generated at the subscriber’s property, the signal/clip is sent to EM24.
Simultaneously, the signal/clip is sent to the subscriber to review on their smart device via our proprietary app. After reviewing the video clip, the subscriber uses the app to select if they want to dispatch the authorities or dismiss the signal. If dispatch is selected, EM24 notifies the authorities, video-verified, that possible criminal activity occurred at the subscriber’s property.
Ron Bowden, Director of Dealer Development, UCC:Demonstrating that the most valuable asset of the dealer is their existing customer base and the value of proactive contact and remarketing of the base, including attrition control, sale of additional products/services, strategic and managed RMR price increase, new customer referral programs. Introduction of new services that produce additional RMR to the customer base and new accounts — PERS, mPERS, interactive products and services, home automation, video monitoring, extended repair agreements, identity theft protection.
Hertel (Rapid Response): We focus on integrations and innovations that provide dealers with new vertical market opportunities they can add to their service offerings. These may be add-ons to existing services or completely new services that will provide additional revenue streams. The industry is shifting and we believe in working closely with our dealers to position them for performance ahead of the change.
Alter (Dynamark): The most important thing we do is expose them to new technology, new lines of business, and then provide them the things that they need to begin using them. We spend a great deal of time evaluating new products and services, testing them, and then once approved exposing them to our dealer base. We also help them understand their business better, more effectively tackle attrition and lower administrative overhead costs. Everyone loves to talk about RMR but margin matters a whole lot more. Helping them understand margin and track it is probably the most impactful thing we can do.
Oppenheim (Affiliated): In the near future, the senior population of the U.S. will nearly double to over 70 million people, with 96% of those wanting to remain in their own homes. Affiliated’s low-priced PERS equipment and monitoring package allows dealers to tap into the fantastic earning potential of the growing senior market. We can also integrate video into any security installation with support for a broad array of DVRs, NVRs and cameras. Video monitoring opens up a new avenue of significant recurring revenue. Each account with advanced interactive video services can generate hundreds of dollars in RMR.
What are some value-adds you offer contracted security dealers?
Bailey (AvantGuard): We host monthly webinars on some of the latest technologies, often providing our dealers special pricing because of our relationships with manufacturers and other service providers. We also provide them apps such as our ‘Dealer Tools’ app to keep their back offices efficient, consequently saving them time and effort in multiple areas.
We also provide an app for technicians to help them make their time in the field more valuable and efficient. Both apps allow an account to be placed on test so the signals can be checked as they go through the system. This saves significant amounts of time. We also have dedicated dealer service representatives to answer questions in realtime, and with real people.
Graham (Brinks): Our value-add is that we buy your account. There’s also powerful value from our brand. The Brinks Home Security name has high recognition among dealers and customers, and we’re finding that it’s a major differentiator for a security dealer.
McCarthy (EM24): More and more, subscribers want smart home technologies so they can interact with their alarm systems remotely. This includes solutions that allow subscribers to control lights, locks, thermostats, garage doors and cameras remotely using a desktop, tablet or smartphone. These security and automation upgrades can result in a significant increase to a dealer’s profitability.
Of course, use of video continues to increase, particularly for verification of alarms. We support technologies that allow alarm dealers and their customers to access video feeds though online portals, which can be branded with the dealer’s logo and contact information. As such, end users, our alarm monitors and authorized agencies have access to better information to prioritize their resources through the use of live video.
Hertel (Rapid Response): Our facilities exceed all industry standards and many dealers showcase them as a way to acquire new customers. Our in-house Software Development Team focuses on interfacing with leading technologies, crafting API connections, deploying monitoring platform enhancements and developing brandable apps/web portals for our dealers and their customers.
Our experienced monitoring center team members are the most educated, professional and respected personnel in the industry and deliver unmatched service. Each staff member has a minimum two-year college education or equivalent military experience and undergoes a rigorous six-week training process. We continuously develop and enhance relationships with industry-leading companies to bring our dealers new vertical market opportunities.
We vet and introduce qualified vendors to our dealer base, and bring them new technologies and assistance in marketing, product purchasing, legal, financial partners, acquisitions, and sale of accounts. Finally, our SGS Stages software package is not just great monitoring center software, but also offers dealers countless ways to better manage and grow their business.
McMullen (COPS): In partnership with SS&Si, our new Equalizer Program gives dealers the ability to purchase equipment and then pay for it over time in their monitoring bill from COPS. Much like a traditional dealer program, our dealers also have access to funding companies that offer aggressive multiples. Some programs also allow dealers to keep their accounts and the long-term equity in their contracts.
Our MPower Dealer Access and Account Management system gives our dealers the tools they need to help run their business, monitor activity, reduce false alarms and increase their bottom line. Private Label Subscriber access allows our dealers to offer computer, tablet and smartphone access to their customers, branded with the dealer’s logo and color-matched.
Direct Subscriber Billing Services helps relieve our dealers of what can be an immense and tedious task that requires an infrastructure, software and other expensive resources. TeleMax Dealer Messaging provides operators to answer our dealers’ phones in the dealer’s name to make sure they never miss another sale, service call or opportunity. We also have programs that offer discounts on equipment purchase, employment ads, office supplies, and more.
Alter (Dynamark): We exist to support independent alarm dealers and to achieve that mission effectively you have to offer more than just monitoring. We view ourselves more as an extension of their team and are there to fill in the gaps they may have in their business. We focus heavily on training and marketing support. All dealers know they need more of both but never seem to find time to make it a priority. We bring the training and support right to their door to help make it a reality.
Each Rapid Response Monitoring team member undergoes intensive six-week training that includes classroom study, monitoring center time with tenured trainers and hands-on with supervisory staff.
Are self-monitored, or MIY, systems a threat to your business?
McCarthy (EM24): Self-monitored systems are not a threat at all. In fact, we think it’s great because people are thinking about home security. While there will be people who are fully satisfied with self-monitoring, eventually, many folks will tire of getting every alarm signal, day and night. As those people gain more assets, they become prime potential customers for alarm contractors.
Hertel (Rapid Response): MIY systems are not a threat, as central stations will always be a critical piece of managing the unfortunate emergency situations that life can present. And we see DIY systems as an opportunity for our dealers, so we monitor them provided they are fully licensed in all required jurisdictions/states. There will always be a need for professionally installed systems. The DIY businesses will produce new concepts, technologies and products for the industry that ultimately professional installers will be able to leverage for their own growth.
Gonzalez (UCC): We don’t believe MIY is a threat if we continue to be open to adopting new technology offerings. UCC sees DIY and MIY offerings as opportunities to partner with new entrants and bring RMR-generating solutions and opportunities to the table to and for our traditional/professional installing dealers.
Graham (Brinks): Most of the DIY demographic would likely not go to professional monitoring regardless. Self-monitored is probably going to take a couple of points away from our industry, but it serves a demographic that probably wouldn’t be attracted to professional monitoring anyway. They’re going to have their piece of the pie, but it’s going to be somewhat slim, for the immediate future anyway.
We’re finding that police departments, fire departments and PSAPs are not in favor of self-monitoring. If you open the floodgates on self-monitoring, it’s going to create a real resource problem for police and fire departments. I wouldn’t be shocked at all to see some jurisdictions take action to prevent or manage self-monitored systems.
McMullen (COPS): Before MIY and DIY, the only option customers had for a security was a professionally installed system by a local independent dealer or large national company. Now for the first time, MIY and DIY offers them options. Professionally installed, MIY, and DIY all appeal to a different type of customer for various reasons. One type of system might lead to another as a customer’s situation changes. For instance, a single customer that rents and lives alone might opt for MIY. When they buy a home, they may want DIY or a professionally installed system. Later in life, when they start a family and have less time on their hands, customers will continue to rely on the expertise of a local company to professionally install a whole-home system.
Every EMERgency24 operator goes through a rigorous eight-week training program to handle all aspects of subscribers’ accounts, as well as matters pertaining to dealers or the authorities.
Why should a dealer use a third-party center rather than monitor in-house?
Bailey (AvantGuard): Most important is cost, both in dollars and management time. The cost of redundancy, high availability and remaining UL Listed is tough to do when your other responsibilities also include acquiring and servicing a large enough customer base to fund an in-house monitoring center. Almost anybody can outsource their monitoring center and save money out of the gate.
We have a dealer who recently dissolved their central station and we saved them about $350,000 per year in hard costs. Most organizations spend a third of their time worrying, thinking and stressing about their central station when they could use that time instead to effectively grow their customer base.
McCarthy (EM24): Alarm contractors that operate their own central station are leaving money on the table and won’t be able to offer the full range of services as other dealers. By moving self-monitored accounts to a third-party central, alarm contractors can keep more money to fund operations and eliminate the hassle of operating a 24/7 mission-critical facility.
And as more markets push for higher minimum wages, third-party central stations can keep costs at bay with economies of scale that can spread increased labor costs among hundreds of thousands of subscribers across the nation. Consider competitors’ TV ads focusing on smart home systems. Sure, dealers can match the capabilities today — but at what cost per subscriber? And what will the next technological breakthrough cost for a dealer to remain competitive? That’s just for residential systems.
In commercial, there are technologies like mass notification and mobile geotracking. Can a dealer afford to continue to invest in the newest technologies that only keep them even for a year or so? A third-party central station not only provides a way to match technologies but also leading-edge services to get a headstart gaining market share before the nationals do.
Mark Matlock, Vice President of Sales & Marketing, UCC: Very few alarm companies have the economies of scale to justify self-monitoring. Contract central stations in most cases have technological and operation efficiencies, and service offerings through multiple manufacturers’ IP, cellular and interactive solutions, via multiple communication paths, along with advanced industry certifications. Contract central station redundancies are generally far beyond the typical central station of an installing alarm company. Most importantly, operating a monitoring station detracts from the goal of RMR account sales.