Posts by Scott MacDougal
Security System Monitoring (And Almost Everything Else)
Monitoring Everything? Monthly fees for security system monitoring are the main driver of company value in this industry. And the average monthly fee for alarm monitoring has been rising at a healthy clip in the last few years, why? More Monitoring = More Control The traditional perimeter security system monitored the entry points and interior…
Read MoreCustomer Acquisition Cost: Do you Know Yours?
How much does it cost you to acquire a new customer? Most security companies don’t really know – but they should. If you’ve ever seen an episode of “Shark Tank”, one of the most common questions from the Sharks is: what’s your customer acquisition cost? It’s a key metric for any business, and one you…
Read MoreLifetime Value of a Customer: What’s Yours?
There are a few key numbers that are extremely valuable to know, as owners plan and make investment decisions. One of those is the “Lifetime Value of a Customer”, or LTV. It’s pretty simple to determine, so let’s step through the process. No doubt your company has a wide range of recurring revenue amounts for…
Read MoreDON’T SELL! (But Be Ready To)
Many of our customers have owned their security alarm business for a long time…20 – 30+ years. Some are baby boomers that are no doubt thinking about retirement. Other owners have pulled back from their business a bit, and are in maintenance mode, enjoying the recurring cash flow. In the latter case, Cornerstone serves the…
Read MoreOutsourcing Recurring Billing: Saving Money Is Good – But Not Enough
About two years into our business, we were meeting with a central station ally. We were struggling with positioning our company with the dealer market. One of their senior sales reps said, with absolute certainty: “The only thing that matters is showing the dealer how your services will save them money!” Looking back, 20 years…
Read More6 Tips for Improving Alarm Company Office Communication
Security dealers usually have different departments—sales, service, administration, accounting, and so on. Because these departments are in regular contact, interoffice communication is a crucial factor for success. Technology tools can facilitate easier office communication. Cornerstone Billing Solutions, as a cloud-based company, has used a work-from-home office model for over 20 years. We understand that poor…
Read MoreWeather Disaster: Is your Alarm Business Prepared?
Planning for a weather disaster is no fun at all. Yet, when the winter storm hit last month Texas businesses that did have a disaster recovery plan were much better able to preserve their revenue streams and reputations. Many of those that did not…failed. Having no plan meant many companies suffered both short-term financial and…
Read More3G Upgrades: Good Process can Ease the Pain
Security dealers have worked very, very hard for their base of loyal subscribers. Every year, it takes work to KEEP those subscribers. This year, it’s going to take more work than usual. Major wireless companies like AT&T and Verizon are sunsetting their 3G networks, as you know. What a pain in the butt! Ignoring this…
Read MoreAlarm and Security Service Software: Why SSaaS beats SaaS
One of the big buzzwords right now is “SaaS”: Software as a Service. Today I’m coining a new term (drum roll please…): “SSaaS.” Let me elaborate on both of these and explain why SSaaS is superior. Cloud-Based or Local? The old business model for software, of course, was to buy it, install it on the local network, then maintain and upgrade it over time. MANY companies in…
Read MoreBreak the Spell of the Typical
We humans like our routines. I have many of my own that I follow day to day, week to week. One of the reasons 2020 has been so stressful is that our routines have been disrupted – often completely messed up. Covid has been the great disruptor, like a major life event – an accident,…
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