The New Metrics of RMR Tracking

Tracking recurring monthly revenue (RMR) has changed significantly in the past decade. Today, with a growing list of add-on services that security dealers can offer, accurately tracking RMR is far more complex. How do you handle a standard monitoring account that adds home automation? While not a brand new account, it is new RMR. Similarly, what if a subscriber has a bundle of services, and cancels one or two—is that attrition?

Valuations will still consider new accounts and cancels, but the key to tracking (and valuing) RMR will be service-level tracking—dollars, accounts, AND counts for each service. Each RMR stream will have its own growth, attrition and net growth rates.

Graph of RMRTo do this right is not easy, and requires software that helps you analyze these metrics and drill down as needed to figure out how you’re doing. Because Cornerstone works with dealers, and the funding companies that lend to them, we understand the importance of RMR as well as the real challenges facing dealers today in tracking it. The complexities make it necessary to rethink the process for defining RMR, tracking RMR growth, tracking attrition, accounting for rate increases/decreases, etc.

Because RMR is the basis for security alarm dealer valuations for both purchase and financing transactions, it is critical to provide an accurate report of recurring revenue. In this new world, security companies need to embrace both consistent account management processes and software powerful enough to give them the key information they need. To help you navigate these new challenges, we have released a brand new whitepaper,  The New Metrics of RMR Tracking . In it we share our insights on defining RMR, tracking RMR growth, tracking RMR attrition and more.

We know how difficult it is for independent security companies to manage the day-to-day, let alone investigate and navigate the fast-changing currents of RMR. We hope this new resource provides you with the information you need to accurately and confidently manage the new metrics of tracking RMR.

Cornerstone Billing Solutions has been helping security dealers with billing and account management since 1999. Our customers trust our commitment to this industry and our deep understanding of their business. If you are struggling with tracking and reporting RMR or just need a system that is designed for your business, give me a call, 224-577-1197.

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