ADT 2013 Annual Report Download - page 68

FORM 10-K
service to customers and achieving long customer tenure. Our ability to increase average revenue per customer is
derived from, and largely dependent on, our continued introduction of additional features and services that
increase the value of our offerings to customers.
To support the growth of our customer base and to improve awareness of our brands, we market our
electronic security and home/business automation systems and services through national television
advertisements, Internet advertising, including paid search, yellow pages, direct mail and social media tools. We
continually work to optimize our marketing spend through a lead modeling process whereby we flex and shift our
spending based on lead flow and measured marketing channel effectiveness. We utilize a variety of third-party
referral providers who generate leads and sales referrals for both our direct sales team and our authorized dealers.
Our partner lead generation methods include agreements with affinity organizations such as USAA and AARP,
third-party referral companies and, in some instances, co-branding arrangements.
We are constantly trialing new customer lead methods and channels in an effort to increase our customer
base and drive greater penetration within homes and small businesses without sacrificing customer quality. We
continually explore opportunities to provide ADT-branded solutions through additional third parties, including
telecommunications companies, broadband and cable companies, retailers and public and private utilities.
Sales and Distribution Channels
We utilize a network of complementary distribution channels that includes a mix of direct and indirect. In
fiscal year 2013, we generated almost 60% of our new customers through our internal sales force, including our
phone and field teams, supported by our direct response marketing efforts. We generated our remaining new
customers in fiscal year 2013 through our authorized dealer program and, to a small extent, through agreements
with leading homebuilders and related partners. As opportunities arise, we may also engage in selective bulk
account purchases, which typically involve the purchase of a set of customer accounts from other security service
providers, sometimes including competitors.
Our national sales call centers (inbound and outbound) close sales from prospective customers generated
through national marketing efforts and lead generation channel partners. Our telephone sales associates work to
understand customer needs and then direct customers to the most suitable sales approach. We close a sale over
the phone if appropriate, while balancing the opportunity for up-sales and customer education that occurs when a
sales representative works with the customer in their home or business to fully understand their individual needs.
When the sale is best handled in the customer’s home or business, the sales center associate can schedule a field
sales consultant appointment in real-time.
Our field sales force of approximately 3,900 sales consultants generates sales from residential and small
business customers through company generated leads and leads generated by our field sales force as well as
customer referrals and other lead “self-generation” methods. Our field sales consultants undergo an in-depth
screening process prior to hire. Each sales consultant completes comprehensive centralized training prior to
conducting customer sales presentations and participates in ongoing training in support of new offerings and the
use of our structured model sales call. We utilize a highly structured sales approach, which includes, in addition
to the structured model sales call, weekly monitoring of sales activity and effectiveness metrics and regular
coaching by our sales management teams.
Our extensive dealer network, which consists of approximately 350 authorized dealers operating across the
United States and Canada, extends our reach by aligning us with select independent security sales and installation
companies. These authorized dealers agree to exclusivity with us for security related services. We train and
monitor each dealer to help ensure the dealer’s financial stability, use of sound and ethical business practices and
delivery of reliable and consistent high-quality sales and installation methods. Authorized dealers are required to
adhere to the same high quality standards for sales and installation as company-owned field offices. We provide
dealers with a full range of services designed to assist them in all aspects of their business.
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