How to grow your subscription business by adding a smart smoke security solution
Subscription-based businesses are on the rise. Numerous businesses all over the world that have used the pay-once business model for a long time are now switching over to the subscription business model. This helps to increase their customer database, add new products to the portfolio, experience substantial and sustained growth as well as higher revenues and customer lifetime values (CLVs). Recurring billing offers predictable revenue, increases return on customer acquisition costs, helps you earn more through up- and cross-selling.
Research by Paysafe has found 27% of consumers expect to see their subscription payments to increase into the next year. According to the global research Lost in Transactions, the surge in demand was also partly due to COVID-19. This was because people opted to subscribe for service out of safety concerns. The same survey indicated, that globally, 27% said they would increase their number of subscriptions. These include consumers in the US (36%), Italy (25%), Canada (23%) and the UK (21%). But migrating your business from an up-front to a recurring-revenue model can seem a daunting challenge that may take years to yield benefits. That is why we would like to share our successfully established business model with our partners in different countries.
The growing demand for smoke and CO detectors
With increasing focus on safety across homes, smoke and CO detectors are becoming a growing and No. 1 device in every home. Although fire protection is regulated on the EU level, the problem continues and causes about 5,000 deaths each year. Almost half of the reported fires occurred in homes that had NO smoke alarm device at all.
Today, we have only 3 minutes to escape and save our lives or property from fire, whereas 30 years ago we had 15 to 17 minutes. Why has it changed? The reason: newer homes and the furniture inside them burns faster. 8 times faster.
Fumerex – a life-saving solution to add to your subscription business
FUMEREX, a smart smoke and carbon monoxide alarm system from ELDES – one of our most popular products—and for good reason.
This unique product is the first-ever stand-alone smoke and carbon monoxide alarm system that works directly with the Alarm Receiving Center and is a perfect product to add to your subscription-based business model. If there is a fire or a carbon monoxide leak in your customer’s property, FUMEREX alerts the Alarm Receiving Center and your customer immediately gets a call or a visit to check on their safety. Unlike battery-operated smoke detectors, which studies have shown aren’t always effective, FUMEREX gives families and business owners peace of mind that their loved ones and property are looked after and protected—whether home or away—24 hours a day. This is a great opportunity to grow the B2B business in different areas, for example, utility, security companies, mobile operators, Alarm Receiving Center or insurance.
A proven business model for your business growth
We would like to share with you a story on how FUMEREX has helped save lives in the country of Estonia, where already 4% of households are secured by smart smoke and CO alarm devices.
One of our premier partners—G4S Estonia—uses a white-label version of our FUMEREX under the name NUBLU. As of now, over 20,000 NUBLU smoke and carbon monoxide detectors are in homes and businesses across Estonia. And that number is constantly growing.
Why is NUBLU widely popular in Estonia?
NUBLU was launched around 2 years ago, on the 19th of September. Since that day, there were many stories of successfully saved homes and lives. In most part of cases, the risk was successfully eliminated by property owners, who received the call from G4S Estonia notifying them of the active NUBLU alarm. The second most popular scenario: the Alarm Receiving Center receives notification from NUBLU and sends the security car to check the real situation in the property. We are happy that our fast and reliable solution protected and even saved a lot of lives over the 2 years.
NUBLU smoke and carbon monoxide service filled an empty spot in the Estonian market. Our partner had some myths to buster in the country about the diffusion of carbon monoxide and change the attitude of consumers, who were used to thinking that carbon monoxide was heavier than air and therefore the carbon monoxide detector had to be installed somewhere near the ground.
The main factors why customers choose NUBLU in Estonia:
SAVES LIVES. In the short time NUBLU has been available in the country (two years), it has saved countless lives. G4S Estonia has received numerous reports and messages from appreciative customers on how their NUBLU alerted them of danger. There were even stories in the media about families that had been saved from fires or gas leaks.
STRATEGIC MARKETING CAMPAIGNS. G4S Estonia has done an excellent job getting the word out about the importance of smoke and carbon monoxide safety. Strategic marketing campaigns have helped expand NUBLU’s name and importance in households and businesses. In fact, NUBLU won the prestigious title of Marketing Act of the Year. Today, smoke and carbon monoxide detectors are becoming increasingly common in Estonia because of businesses like G4S Estonia.
“I think the best decision we have made for our subscription-based business model with FUMEREX was choosing a popular and well-known character in Estonia – a firefighting dog, which was created 30 years ago by the Estonian writer Jaan Rannap. The dog was adapted for today and was given a mission to introduce the important topic of fire safety to consumers in a playful, friendly and entertaining way. This helped us to transform the boring technical gadget into a friendly and helpful lifesaver, to whom you could entrust the safety of your home and your life. Our company is doing a lot of educational work about the need for carbon monoxide detectors and smoke detectors in every household. The more people clearly know the importance of those little detectors that can actually save lives, the more people understand why NUBLU is useful for their house”, – commented Tarmo Pärjala, Marketing manager in G4S Eesti.
Let’s grow your business together
As shown by our partnership with G4S Estonia, we love teaming up with brands who want to make a difference in the world. We are happy to consult with and manufacture IoT devices to empower partners to take their business worldwide. At ELDES, our mission is to provide cutting-edge safety and security solutions to homes and businesses as far and wide as possible. In fact, our brand is represented in 70 countries and we do not plan to stop there!
If you’re looking to expand your safety or security business, contact us today to learn more about partnership opportunities. We can help you build a successful and reputable inventory with our state-of-the-art technology. 25% of our teams work in RnD department, which helps us to provide the unique and personalized solution for your specific business needs. We look forward to hearing from you!