Alarm monitoring has evolved and matured markedly over the years. For ADT, those years number 145, as the company has been working to protect homes longer than any other in the industry! There have been exponential advancements in monitoring technologies over all those decades, so it made good sense that ADT presented a peer-to-peer educational session at ESX in June that explored some of the most important innovations impacting modern day monitoring capabilities.  

ADT Security’s Vice President of Monitoring Technology, Larry Folsom, led this “Monitoring Innovation in Action” session. He was joined by co-presenters Anthony Iannone, Director, Affiliated Monitoring, Nicole Pitts, Calipsa’s Account Director for the Americas, and John Chiaramonte, President, Consulting Services, Mission Critical Partners. 

The four presenters offered various perspectives from different facets of the industry, which enabled attendees to explore the same issues from different views and experiences. In addition, the emerging ANSI-based monitoring association standard – the TMA-AVS-01 Alarm Validation Scoring (AVS) Standard, which is set to be released around 2024 – was also discussed. (Details on this important standard can be found on the TMA website at: The Monitoring Association (tma.us)

While each of the presenters shared topics from their industry perspective, all concur that, in today’s ever-changing marketplace, it’s critical for monitoring centers to stay on top of technology innovations, new enhanced services, and monitoring trends in order to remain relevant and successful. It can, undoubtedly, be a delicate balancing act for monitoring centers to process a huge influx of alarm signals while also striving to deliver a high-touch customer experience. Thankfully, state-of-the-art innovations and automation tools are answering the call that monitoring centers need to advance their services and deliver a quality customer experience, including improving operational efficiencies.   

Interactive Innovations

From ADT’s perspective, Folsom reports that they’re seeing better interaction with customers courtesy of text messaging, which is resulting in an impressive 58% reduction of false alarms. The ability to text message customers and speak directly with them is one of the larger trends they’re seeing, noting that it’s so important to be able to interact with customers in ways that are now truly relevant to the way they communicate. “We still make phone calls, but it’s an example of how our industry is reacting to today’s technology,” Folsom says. “Interactive monitoring messages during an alarm event are a very relevant trend.”  

This emerging trend is indicative of how evolving customer demands and expectations are impacting the way monitoring stations operate.

“We’ve got to communicate with customers in the way they communicate in an emergency,” Folsom adds.

“Call center workflows and our customers are not necessarily receiving phone calls, so it’s important to have better information in order to make better choices. Google took an investment in ADT, and I’ve connected Google platforms to ADT monitoring so we’re bringing relevant info appropriately to those end users. Communicating with customers on their terms – those are the grandest opportunities.”  

Iannone concurs, saying that much of Affiliated Monitoring’s innovation – which is really the development of new software tools and customer-facing applications – is driven by a competitive need to enhance the customer experience while reducing unnecessary dispatches. “Text messaging and push notifications, which are key to our efforts at improving the customer experience, is a solution we’ve implemented over the past few years. It balances innovation in technology with a better customer experience, is a worthy upgrade for all monitoring providers, and clearly makes a difference for both our dealers and our end users.”   

He adds that a topic of great interest to attendees is video analytics and how they can be leveraged by monitoring providers to offer enhanced video monitoring services. “The explosion of video analytics has certainly changed how we monitor large, challenging locations, and how our dealers market their video services.” 

Calipsa’s Nicole Pitts is well-equipped to speak to this topic, as Calipsa is a uniquely cloud-based platform that uses machine learning technology to reduce the number of CCTV alarms. “Video analytics and other AI-based technologies are game-changers in alarm monitoring centers by automating high-effort, low-value tasks such as continuously watching live footage,” she explains. “Now, operators can concentrate on effective incident response with video analytic platforms, which can keep watch 24/7/365 without losing focus or getting tired. Technology like Calipsa’s advanced video analytics filter out nuisance alarms, allowing operators to focus and respond quicker to valid alarms, avoid operator fatigue, and deliver better customer service,” she adds. “Innovations can provide a deeper understanding of sites and installations using metadata from cameras, video, clips to ensure the best results.”  

As President of Consulting Services for Mission Critical Partners, which provides expertise and comprehensive solutions across the entire critical infrastructure and public sector ecosystem, Chiaramonte added an interesting and pertinent perspective to the presentation, as well.

He notes,

“Although there is no question that the alarm industry is delivering innovative solutions and continuing to leverage emerging technologies, a high percentage of alarm calls ultimately do not require a response from police, fire, or emergency medical services. Many 911 centers are reporting that 10% or more of all incoming calls are alarm related. And, with the high rate of false alarms, the situation has desensitized first responders alike to alarms which, regrettably, can negatively affect responder safety.”

Like many organizations across the U.S., 911 services are facing unprecedented staffing challenges, he contends, with some centers operating at 50% of their authorized complement of staff.   

The good news, Chiaramonte explains, is that industry professionals are encouraged to see modernization efforts underway across the 911 community and some of these enhancements will improve how emergency dispatchers and the monitoring industry work together. Throughout the nation, he reports, several states are making a transition to Next Generation 911 (NG911) – an all-Internet Protocol (IP)-based solution – that will provide an opportunity for alarm monitoring agencies to directly connect to emergency services networks and 911 centers to share valuable information. Chiaramonte adds that the emerging Alarm Validation Scoring (AVS-01) standard also holds great promise to help 911 and law enforcement make better response decisions.    

This joining of industry experts from four different facets of the monitoring and monitoring-adjacent spaces made for a meaningful discussion on how modern-day innovations are continuing to advance the industry. As Iannone aptly sums up, “With representatives from both first-party and third-party monitoring centers, along with representation for the response agencies themselves and a leading provider of video analytic-driven event intelligence, the panel was able to provide attendees a holistic view of the realities of responding to emergency events today.” 

The Electronic Security Association’s Board of Directors unanimously passed a resolution on August 24, 2022, to support efforts to reduce false alarms through more efficient and effective notification methods. One of the greatest threats to the electronic security and life safety industry is the high rate of false alarm dispatches. This threat can cause many problems, including jurisdictions to push for “non-response” or “verified response,” which would drastically alter the value and the operations of many security companies across the nation.  

The ability to directly message customers when verifying alarm signals is a significant enhancement that the ESA Board supports. “At ESA, we have a long history of working with our members, other associations and our public safety community to reduce false alarms,” says ESA Chairman and president of LOUD Security Systems in GA, John Loud. “Now, monitoring centers are investing in modern technology so that we, as an industry, can partner with them to create a better solution for communicating with our customers and as a result, reduce attrition by meeting our consumers where they are.”  

“People tend not to answer their phone if the number is unknown and are more likely to respond to text or chat,” he continues. “By using group chat for verification, we’re able to connect quickly with the customer and verify the alarm signal and in many cases, we can cancel the dispatch. By leveraging more effective communication methods, our monitoring center partners are more efficient, our public safety community will be responding to far fewer false dispatches and, ultimately, our subscribers are happier — which leads to lower attrition.”  

The mission of ESA’s resolution is to encourage a mass adoption of this innovative alarm dispatch reduction technology, creating better communication with consumers in the way they connect during a potential emergency. 

“I want to encourage our ESA members and all security integrators to start a dialogue about how this investment from monitoring centers could help them reduce their attrition and enhance their customer experience.” says Loud 

ESX delivered on its promise of providing security professionals a forum for networking, education, and coming up-close-and-personal with the latest security tech. And while the Electronic Security Expo 2022, held in Fort Worth, Texas this June is now in the rearview mirror – and plans are already revving up for ESX 2023 – there are many key takeaways that should stay top-of-mind for security professionals. Among them are lessons learned from the educational sessions presented at the Expo. Those who may have missed some of the sessions on the roster need not miss out on the insights and instruction imparted. Here, we take a look at the topics covered in the “Powerful Hacks to Grow Your Recurring Revenue” presentation, led by Melissa Brinkman, CEO of Custom Alarm and ESA Board of Directors. 

Brinkman is well equipped to speak on the RMR topic, as Custom Alarm has been successfully serving the security needs of customers in Minnesota for some 50 years now. Their services span fire alarm, intrusion, video surveillance, access control, home automation and more in both the commercial and residential spaces.  

Like all of the peer-to-peer educational offerings on the ESX lineup, the “Powerful Hacks to Grow Your Recurring Revenue” presentation was designed to help electronic security pros move their business forward towards efficiency and productivity. Attendees were primarily security dealers and system integrators, eager to learn more about the RMR-related topics covered in the session.  

Recurring revenue is the heartbeat of every security business. Although it’s certainly not new to the security industry, innovative and profitable ways to grow recurring revenue can help a security company increase its average RMR per customer, which leads to greater profitability, sustainable growth, and higher enterprise value.  

Why Reviewing Your RMR Pricing Model Is Good Business  

This portion of the presentation explored the various reasons why it’s so important to regularly review your pricing models. Service agreements, labor costs, inspections, etc. should all be considered. As Brinkman pointed out, some security companies don’t look at implementing rate increases. She advises that they should take a closer look at their recurring revenues across the board, either annually or at the least, every other year, and ask themselves if those rates are at a minimum. If so, those RMR rates should be increased by a certain percentage that makes sense and keeps the company profitable. The best way to determine a reasonable rate increase is by looking at your pricing model and determining your overall operating costs and how they have changed since the last increase. Costs for everything and for everybody are going up in today’s economy. It’s likely you’re servicing a lot of customers at a cost below what your rate should be, so it’s worth considering that it’s time to communicate to them the value of your services that justify a reasonable rate increase. She cautions that companies that don’t regularly adjust their RMR margins are likely leaving money on the table.  

Newer Technologies and Services Based On A Subscription-based Model 

Simply stated, the times are changing. Are you? Brinkman, together with her co-presenter, Randall Renfroe, President, All State Security Industries, addressed some of the newer technologies that today’s security dealers and integrators should consider adding to their arsenals.  

Cloud-based solutions ranked high on the list. The model is being much more widely adopted and becoming an attractive alternative to traditional, on-site physical access control and video surveillance systems. The number of organizations making the migration is on the rise, as many end users are looking to lower their upfront investment costs, as well as their system maintenance costs. 

In terms of access, credentialing is actually markedly easier with a cloud-based system than it is with a physical access system which requires ongoing issuing and returning of access cards or key fobs. With a cloud solution, administrators can instantly grant or revoke access from any Internet-connected device.  

“If you’re not offering cloud options you should be looking at it,” Brinkman advises. “If we’ve learned anything in the last two years, it’s that many more businesses are operating remotely.”

“Pre-COVID, most offices opened at 8 and closed at 5, but now management teams are tasked with keeping their businesses safe at all different hours and with varying numbers of staff onsite. Cloud and mobile access technologies enable users to manage their system anywhere, anytime.” 

The good news for security dealers and integrators is that a cloud-based access or video surveillance system means customers pay one simple monthly subscription fee. This opportunity for dealers and integrators to create new RMR is a huge benefit, and one that also allows for more realistic budget planning for future growth.  

It’s All About That Base, That Base, That Base

A very smart place to start segueing into selling cloud-based solutions and other additional RMR-generating services is with existing customers who already know and trust you. While it’s always prudent to continually prospect new customers, Brinkman contends that there are usually many opportunities to sell more RMR within your existing customer base. This formula has worked well within her own company, Custom Alarm, as she reports that between 60-70% of their additional sales come from existing customers.  

As discussed in the “Powerful Hacks to Grow Your Recurring Revenue” presentation, there are many ways to successfully upsell more services to your existing roster of clients. As highlighted in the

session, it’s very likely that your security company is now offering newer solutions that your customers aren’t even aware of. You are already their trusted security integration partner, so never take that relationship for granted. Keeping in touch on an ongoing basis is vitally important. Customers look to you to keep them apprised of new technology capabilities that can help improve their operations and ensure their security systems are working optimally. Communication should be an integral part of your ongoing service to customers. This can be as simple as regular check-in calls, to sending out marketing pieces that keep customers informed of new offerings they may want to implement. Regardless of how security dealers and systems integrators maintain communication with their existing customer base, the important thing is to recognize how important that customer base is to their business and how vital it is to keep those relationships healthy, happy, and ongoing. 

Security dealers and system integrators rely on monthly recurring revenues to sustain their business and remain profitable. In turn, end users need to rely on their trusted security partners to keep their operations safe, secure and profitable.  

Savvy security professionals know that staying on top of the latest technologies ensures that their customers are reaping the benefits of the most reliable and robust security solutions available.