ADT 2012 Annual Report Download - page 94

continuously in growing and optimizing our business. This includes investments in technologies to further
enhance the attractiveness of our solutions to current and potential customers, to continue development and
training to enable our direct sales, installation, customer service and field service personnel to more effectively
deliver exceptional service to our customers, to expand our dealer and partner network and to make continued
enhancements to operations efficiency.
We intend to achieve sustained, profitable growth in the markets we serve today, as well as in adjacent
segments, by executing against strategies that leverage our key assets and core competencies.
Strengthen and grow the core residential business and extend our leadership position
We will continue to manage our business by optimizing the key business drivers noted above to maximize
the value from our core business. We intend to grow our customer base through the expansion of our current
channels and the development of new ones, by continuing to improve sales force effectiveness and by
strengthening our strategic marketing and promotional tactics. We will continue to manage the costs associated
with adding new customers by optimizing lead generation and conversion, working collaboratively with our
solution partners to reduce hardware costs and deliver differentiated solutions and leveraging mobility tools to
automate technician scheduling and deployment. We also intend to continue to increase ADT Pulse adoption
rates and thereby increase our average monthly recurring revenue per customer and customer tenure. We
regularly evaluate our pricing strategies to optimize pricing for our installed base and for new customers. We
continue to standardize our product platform to enhance our ability to resolve customer issues remotely, which
we believe will reduce ongoing service costs and increase the ease of supporting our customer base.
We also continue to implement enhancements to every customer touch point. We continue to train and
incent our employees to provide high-quality service through prompt handling of calls and quick and effective
resolution of customer issues. We intend to continue making ongoing improvements to enhance the customer
experience, offer more options for customer self-service, including via the Internet, and create opportunities for
field employees to meet our customers and hear directly how we impact customers’ lives. We believe our
emphasis on customer value drives customer satisfaction and tenure, decreasing customer attrition and improving
our profitability.
Invest in growth platforms, including in segments in which ADT has low market share, as well as in
underpenetrated and new segments
We believe we have significant opportunity to increase our share of the monitored security and premises
automation market for small businesses. We intend to grow our share of small business customers by expanding
our small business field sales force, which currently represents only about one-third of our overall direct field
sales force. We plan to strengthen our small business marketing support to this enhanced sales force by building
a larger, more robust partner network to improve our lead generation capabilities and by assisting in marketing
additional value-added services, including ADT Pulse.
Additionally, we believe monitored security and home/business automation services are underpenetrated in
North American households. Based on internal and external market research studies, we estimate current
monitored electronic security penetration to be approximately 19% of U.S. households, significantly lower than
other home services such as video and Internet that are in 60-85% of households. We intend to increase
penetration of residential security and home automation services through the development of new solutions and
enhanced offerings that attract new customers to enter the market. In addition, through our efficient operating
model and potentially lower technology costs over time, we believe we can significantly reduce the cost of basic
installation and services, opening up the potential for a much larger portion of households to purchase monitored
security and home automation services.
2