Recurring Revenue: The Future of Security Alarm Installation

For decades, the security industry has operated on a transactional model: an installer fits the system, hands over control to the customer and moves on to the next job. However, given the rise of smart home technology, cloud platforms and end user expectations around ‘always-on’ support, that approach is no longer enough.

The role of the installer has shifted. They are now seen not just as engineers, but rather as ongoing service providers who can realise maintenance after the installation is complete. This shift opens the door to a more stable and scalable way of working, incorporating service subscriptions to generate recurring revenue.

How can installers successfully transition to this model? What’s driving customer demand? Why is recurring revenue not just a commercial opportunity, but the future of the profession?

Recurring revenue 

Recurring revenue has been adopted in many industries for some time. From home broadband and television streaming services to home automation and desktop software, subscription-based business models have become the norm.

For a monthly fee, customers receive a continuous maintenance service, app access and installer support. The benefit to the provider is obvious: reliable and predictable income and stronger relationships with clients.

Although recurring revenue models are the ‘default’ in other industries, adoption in the intruder alarm sector has not been widespread. Now, though, the same logic is being applied to security systems and it’s changing the way in which many installers operate.

Cloud-connected advantage

One of the main drivers of this shift has been the evolution of cloud-connected alarm systems. Platforms such as SecureComm have created a permanent link between the installer, the system and the end user or homeowner.

This link provides more than just remote control. It enables diagnostics, alerts, event logs, firmware updates and even proactive maintenance, all without the need for a site visit. From a technical perspective, it represents a significant advancement, while from a commercial standpoint it fundamentally transforms the way in which security businesses operate.

These capabilities allow installers to transition from transactional businesses to service businesses. Instead of relying solely on the next job to bring in revenue, they can generate income month after month from systems they’ve already installed. This not only improves cash flow, but also makes the business more stable and better able to handle quiet periods or changes in demand.

Subscription familiarity 

The good news is that customers are increasingly open to this way of engaging with their business or home security. The subscription model has become a familiar and accepted part of modern life, duly encompassing broadband, TV streaming and video doorbells.

With benefits such as app control, automatic updates and peace of mind, many customers are happy to pay for a service plan that supports and enhances their system, but they are not always aware of the options available to them.

This is where installers have a vital role to play. By educating the customer and demonstrating the benefits of connected security, they can unlock new revenue streams, while also delivering a better user experience.

Mindset over marketing 

It’s important to acknowledge that this shift also involves a cultural change within the industry. Many installers still hesitate to charge ongoing fees due to the worry that it might put customers off. In practice, installers who understand and believe in the value they’re offering tend to have far more success when it comes to presenting these options.

Simplicity also helps. Rather than offering overly complex tiers or bolt-ons, many successful businesses bundle their services into one or two clear and well-priced packages.

The services included can vary depending on the system and the user. Typically, they might cover app access, remote system health checks, cloud back-up of event data or annual support.

For some installers, it may make sense to include a full warranty or battery replacement schedule as part of a more premium package. The most important thing to bear in mind is that the offering must be clear, useful and justifiable from the customer’s point of view.

Lasting relationships

This new business model can also reshape the installer-customer relationship. Instead of a one-time transaction, the relationship becomes ongoing, dynamic and service-led.

The installer isn’t just someone who turned up once and fitted a box on the wall. They’re now a trusted provider, a support contact and a visible presence in the client’s day-to-day experience of their security system. In many cases, this has the added benefit of reducing complaints or call-backs due to the fact that issues can be addressed remotely and proactively.

This kind of model has the potential to significantly reshape the way in which installers operate. For example, a mid-sized firm may choose to include a basic monitoring and support package with every new installation offered for a small monthly fee.

Over time, that could lead to a steady increase in service income, a reduction in unnecessary engineer call-outs and an improvement in overall customer satisfaction, driven by faster response times and proactive system support.

Alternatively, installers might choose to revisit their legacy customer base and target properties fitted with ‘bell-only’ systems. By offering those customers a simple upgrade that enables app-based control and cloud connectivity, they could tap into a previously dormant market, turning past installations into new recurring revenue opportunities.

With the right messaging, such a campaign could become a valuable part of the business’ long-term growth strategy.

Starting point

There are, of course, some barriers. Setting up billing systems, managing subscriptions and training staff to deliver support all takes time and effort, but with the right tools and a manageable scope any obstacles can be overcome.

Installers don’t need to build the perfect model on Day One. They can start small, perhaps by offering a recurring service plan to new customers only, and build from there. Software platforms like GoCardless, cloud portals from alarm manufacturers and job management tools all help in streamlining the process.

Another key factor is support from the manufacturers themselves. Technical training is essential, but installers also need help with commercial aspects: how to price their services, how to position them and how to respond to customer questions. Ongoing support, responsive helplines and real-world Case Studies all play a part in building confidence and competence.

Service-led future

Looking ahead, we see recurring revenue becoming a central part of the installer business model. It’s better for the installer, better for the customer and better for the longevity of the business. In a sector that has traditionally relied on reactive work and hardware margins, the move to service-led income represents a much-needed evolution.

Security systems will always need physical components, expert installation and a personal touch. Increasingly, though, the value lies in what happens after the install. Connectivity, convenience, control: these are the things customers care about and they’re willing to pay for them, month after month, if it means they feel protected, informed and supported.

For security installers wondering how to grow their businesses in a crowded and competitive market, the answer might not be to fit more alarms, but to build deeper and longer-lasting relationships with the ones they’ve already installed.

Richard Newey is Regional Sales Manager at HKC Security (www.hkcsecurity.com)