One of the most memorable lines from the 1970s hit television series The Brady Bunch came from frustrated middle sister Jan Brady. Tired of hearing others talk incessantly about her accomplished older sister Marcia, Jan vented to her parents, “Marcia, Marcia, Marcia!”
In the point of sale channel, the equivalent to Jan’s rant would be resellers exclaiming, “Recurring revenue, recurring revenue, recurring revenue!” POS resellers hear everyone else talking about the as a service business model, but their path to attaining maximum recurring revenue is oftentimes murky.
This list I’ve compiled should help lift the recurring revenue fog for you. I’ve built it over the past year as I’ve talked with successful POS solution providers who have embraced the recurring revenue business model. The list includes products and services they’ve converted to a monthly recurring revenue offering. Let’s look at the list and then I’ll offer some caveats about it.
Recurring Revenue Products and Services
implemented by POS resellers in hospitality, retail, or grocery
- Above-store management
- Audio system management
- BDR (Backup and Disaster Recovery) for non-cloud systems
- Cellular failover routers
- Cloud services
- Data analytics
- Digital menu building
- Email hosting
- Facebook services
- Firewall management
- Gift cards
- Hardware-as-a-Service (HaaS)
- Hardware rental
- Internet service
- Lighting management
- Loyalty program
- Maintenance agreement – phone and remote support
- Managed antivirus
- Managed print
- Managed services
- Network management
- Online ordering
- Payment processing
- Payroll integration/payroll services
- PCI assistance
- Phone system management
- Remote monitoring
- Remote access
- Software-as-a-Service (SaaS)
- Web hosting
- Website services/online content management
- Wireless device management
About the list:
- I don’t know of any resellers who are offering all 35 of these products and services. This list is a compilation of products/services that have been implemented across several POS resellers in North America.
- I’ve shared this list privately with POS resellers and ISVs, and they’ve used it to help them determine where to go next – which two, three, or four offerings they will pursue during the next quarter. You can’t start by implementing “all of the above”; you have to determine how much your organization and your customers can digest in the near-term.
- There isn’t one universal correct answer as to which product or service you should focus on next. For some hospitality resellers, it might be wise to offer online ordering. But if you have skills in web design and social media, you might want to offer website and Facebook services first. Or your roots might be in telecom, so the next right move for you might be phone system management.
This list should trigger more than just a mental exercise for you and your team. If you’re reviewing this list, nodding in agreement, and then going back to sell the same things you’ve always offered the same way to the same customers, you’re making a mistake that harms the future relevance of your business.
Take time during the next business day or two to determine which products and services you’ll investigate. Then, over the next one or two weeks, conduct online research, consult with your customers, and talk with solution provider colleagues, vendors, and distributors about the products/services you’re considering. (And feel free to include me as a resource. I’m a Reseller and ISV Business Advisor after all.)
Next, conduct an experiment with the products and services that best fit you and your customers. Try them out. Test them. Measure the outcomes. Implement changes. Continue experimenting. Measure the outcomes again. Integrate the offering into your linecard and marketing materials, and then train up your sales team. Then rinse and repeat with a new item or two from the list. This process isn’t magic, but it’s essentially what the most successful, growing, profitable POS resellers are doing today.
I’ve made the list. Now it’s your job to check it twice and begin making progress towards greater profits and predictable revenue.
One more important recurring revenue tool for you: I don’t like asking resellers and ISVs to part with their money, but this will be worth it. At the 2018 RSPA INSPIRE Conference, scheduled for Jan. 28-31, the executive-level education will include half-day sessions on business valuation, data security, and – you guessed it – recurring revenue. Recurring Revenue Day will feature:
- The “Recurring Revenue All-Star Panel” of Chris Rumpf of reseller/ISV Flyght, Hunter Allen of reseller Cervion Systems, Jeremy Julian of reseller/ISV CBS NorthStar, and Tom Bronson of ISV Granbury. They will share insights and best practices for bundling/pricing, forecasting, operations, sales, marketing, merchant retention, and hiring as related to recurring revenue.
- An introduction to business tools you can implement in your business after the conference. These free tools include a recurring revenue outlook calculator, a recurring revenue P&L worksheet, and a recurring revenue compensation worksheet.
- A workshop where attendees will strategize and practice overcoming objections related to recurring revenue products and services.
- Keynote speaker Dave Sobel of Solarwinds MSP showing POS resellers what’s around the corner for the as-a-Service business model.
The cost? It’s not cheap – but it will be worth your investment. INSPIRE 2018 will take place across four days at the Waikoloa Beach Marriott Resort & Spa in Hawaii, so for your meals, flight, hotel ($239/night), and registration ($700 for a reseller member), I would guess you’re going to spend between $2,000-$3,000 all-in. But what price would you pay to achieve greater profits, predictable revenue, and a more valuable business?