ADT 2015 Annual Report Download - page 79

FORM 10-K
To support the growth of our customer base and to improve awareness of our brands, we market our
monitored security and home/business automation systems and services through national television
advertisements, Internet advertising, including national search engine marketing, email, online video, local
search, direct mail and social media. 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 and third-party referral companies.
We constantly consider and evaluate new customer lead methods and channels in an effort to increase our
customer base and drive greater penetration within homes and 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, public and private utilities
and software service providers.
Sales and Distribution Channels
We utilize a network of complementary distribution channels that includes a mix of direct and indirect. In
fiscal year 2015, we generated approximately 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 2015 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 3,600 sales consultants generates sales from residential and 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, daily monitoring of sales activity and effectiveness metrics and regular coaching by
our sales management teams.
Our extensive dealer network, which consists of approximately 450 authorized dealers, including one
authorized premier provider, operating across the United States and Canada, extends our reach by aligning us
with select independent security sales and installation companies. These authorized dealers generally agree to
exclusivity with us for security related services. We 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 businesses.
Typically, our authorized dealers are contractually obligated to offer exclusively to us all qualified security
services accounts they generate, but we are not obligated to accept these accounts. We pay our authorized dealers
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