Guest Editorial: It is Time to Flip the Model

Nov. 12, 2019
For years, integrators have kept the manufacturer away from direct contact with end-customers…here is why that relationship must change immediately

An age-old taboo needs to be broken in the security industry. Historically, it has been considered off limits for manufacturers to have a direct relationship with an end-user customer. This has been because the integrator “owns” the relationship.

Unfortunately, these exclusive relationships have resulted in less-than-ideal customer support practices. Inadequate or ill-trained “middleman” technical abilities and existing financial models are no longer supporting customer needs and minimum requirements. As an industry, we need to embrace a fundamental change – a new model or shared customer experience – that will reshape the economics of our industry.

Editor's Note: Mr. Wagner’s assertions in this article are obviously controversial among the security integration community, so we are giving you the chance to question him directly about these concepts in a live webinar format on Dec. 18. See the full details at www.securityinfowatch.com/21111672

Let’s face it, the end-user wants to talk to the factory. We hear it time and time again. Customers want the assurance that they are getting the best technical support possible from the most reliable source  ̶ a fast track from A to Z. They do not want a subpar middleman whose lack of technical expertise causes delays in resolving their problems and costing additional money; they want the frontline expert.

As an industry, we need to come to the realization that, if there is to be a shared customer experience, then there needs to be a shared revenue model that all parties can agree to and benefit from. It should be a model that compensates – at some level – the manufacturer when deployed in hand-holding and technical troubleshooting remotely or onsite on behalf of the integrator.

What is at hand is the need to establish the complete customer care ecosystem for end-user customers. In simple terms, it means bringing the right people into the customer care equation – professionals who are expert in their craft of supporting the platform or system.

By broadening the customer care ecosystem, end-users can negotiate directly with the system manufacturer for the extra layers of support that so many of them not only say they want, but also require. This new model does not eliminate or diminish the integrator or their need to be onsite; the model is designed to extend the client satisfaction initiative with factory support. It simply can no longer happen at no charge.

Talent Crisis

It is inarguable that our industry suffers from a significant lack of talented technicians. It is equally inarguable that when an integrator has a talented, highly-trained field tech, the biggest concern is keeping them on staff and not losing them to a competitor or to the end-user they are looking after. This problem has existed for decades, and our industry has done little to nothing to fix it. Even as the industry has prospered, the number of well-trained technicians has not kept pace.

There are plenty of tech schools pumping out entry-level technicians and network newbies. These minimum skills can get an individual an installer job in our industry; however, these professionals lack the specific industry expertise to address issues relative to access control, managed power or video management. They too frequently learn on the job by calling the tech support line from the customer site – relying on the manufacturer to troubleshoot what they do not know, which is growing substantially.

Training is clearly an option; however, there are issues with this approach. Integrators are reluctant to invest in training their people sufficiently due to the cost. This is not limited to attending classes; it is also the expense of taking tech staff off the street who are needed to service customers. This leads to a significant loss in billable hours.

If they are honest, integrators are essentially saying, “let’s not train our technicians as much…we can lean on the manufacturer’s 800 line.” This approach taxes the patience and goodwill of the end-customer and results in lost time and lower customer satisfaction.

A manufacturer’s 800 line should not serve as a no-charge, over-the-phone training course for an integrator’s technician. There is too much at stake when supporting the end-user client.

Botching the Value of Maintenance Contracts

History shows that most integrators cannot or will not sell maintenance contracts – let alone a collection of services jointly provided with their manufacturer of choice. When they do attempt to sell factory services, there is ample evidence that they practice predatory pricing, thereby ensuring no sale of the manufacturer’s maintenance contract. They also utilize the same pricing model when it comes to training their system users.

The question is: Why?

The fear of losing a client is ultimately the driver of this behavior. A perception exists in the channel that having the factory onsite, directly promoting services to clients, diminishes the integrator’s value; however, client care and client retention are not mutually exclusive – they feed each other in positive ways.

As an industry, we have the opportunity to kick off the next decade with a new shared customer care experience that also implements new economics. End-users will no longer be satisfied with the fractured customer care models that are being deployed today. As an industry, we need to be more proactive in client-centric service offerings.

It is logical that manufacturers should be allowed and welcomed to provide technological expertise that integrators cannot match. While the factory may have greater ability, they are limited on manpower and feet on the ground when most needed. This is the value of a post-installation integrator’s technician. With multiple areas of specialty and expertise, today’s security solutions are continually changing, and it requires continuous training that integrators resist paying for. Our industry’s deployed technologies need a shared model if our shared clientele is to realize the full value of their investment.

As an industry, we need to consider this new approach to implement best practices that will elevate today’s customer experience and the economics that surround it. This must happen before the security industry gets a black mark, when the lack of expertise of integrators’ technicians is further exposed, and the limitations of 800-line support from manufacturers are leveraged beyond the brink. We must look to the future by maximizing the customer experience and leave the past behind. Proper client care hangs in the balance.

Steve Wagner is the President of Open Options. He has also held executive roles with ACRE, Mercury Security, HID Global and Checkpoint Systems during the course of his 35-plus years in the security industry.