SmartHomes with Even Smarter Revenue: How Conexus Unlocked Double Digit Revenue Increases for a Premier Home Security Manufacturer and Distributor

Client: A Canadian mid-market home security product manufacturer and distributor.

Proposal: The client boasted over 20,000 commercial dealers championing its innovative hardware products to their end users. Upon deep research into the brand, Conexus discovered that there was a substantial opportunity to further monetize their existing commercial dealer network in a manner that was both fair and in line with dominant industry practises. After extensive primary and secondary market research, the proposal sent to the client detailed steps on how to upgrade the existing software UX and capabilities using in-house resources, bringing the company in line with its dominant competition while still undercutting their fees through a new revenue model. The proposal came with an updated pricing strategy to increase the quality and consistency of revenue, which was especially important for the client because of their concerns around a seasonal business model.

Results: The proposal was accepted by the client and they are currently working on the software upgrades proposed. They are also close to implementing the pricing strategy laid out in the proposal. Based upon projected numbers, after implementation, revenue is set to increase 11% from existing clients, and the offering of the company to its current and future dealers is much stronger, and better set up for long-term sustainability, as well as revenue growth and consistency.

Additional Notes: A notable challenge for the structuring of this proposal was how to retain the clients existing dealers post new-pricing model despite upgrades in software capabilities, functionality, and the offer being substantially discounted from dominant competition. The Conexus team decided to conduct in depth market research to probe how the market would accept new pricing with the upgraded service. This, along with working with the client and other stakeholders, informed the recommended new pricing strategy and revenue model in a manner that would retain the clients existing commercial dealers most effectively.