American Home Shield 2015 Annual Report Download - page 28

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10
more than three million service requests from approximately 1.6 million customers across all 50 states and the District of Columbia.
Additionally, American Home Shield operates and takes service calls 24 hours a day, seven days a week. Furthermore, as a result of
our large contractor network and sophisticated IT systems, approximately 90 percent of the time we successfully assign contractors to
a job within 15 minutes or less.
American Home Shield Competitive Strengths
#1 market position in the industry with 42 percent market share, estimated to be four times the size of the next largest
competitors
Track record of high customer retention
Large and pre-qualified national contractor network
Strong partnerships with leading national residential real estate firms
Core competency around direct-to-consumer marketing and lead generation
Franchise Services Group
ServiceMaster’s Franchise Services Group consists of the ServiceMaster Restore (disaster restoration), ServiceMaster Clean
(janitorial), Merry Maids (residential cleaning), Furniture Medic (furniture repair) and AmeriSpec (home inspection) businesses. Our
businesses in this segment operate principally through franchisees. In 2014 we began converting company-owned Merry Maids
branches to franchises. Approximately half of our revenue in this segment consists of ongoing monthly royalty fees based upon a
percentage of our franchisees’ customer-level revenue. We estimate that the customer-level revenue for this segment was
approximately $2,400 million for the year ended December 31, 2015. We believe that each business holds a leading market position in
its respective category and that our scale and national presence create competitive advantages for us in attracting and retaining
franchisees. We are able to invest in best-in-class systems, training and process development, provide multiple levels of marketing
support and direct new business leads to our franchisees through our relationships with major insurance carriers and national account
customers. The depth of our franchisee support is evidenced by the long average tenure of our franchisees, many of whom have
partnered with ServiceMaster for over 25 years. Our Franchise Services Group serves both residential and commercial customers
across all 50 states and the District of Columbia through approximately 4,400 franchise agreements and approximately 30
company-owned locations with additional locations in 14 other countries.
Franchise Services Group Competitive Strengths
Strong and trusted brands with leading market positions in their respective categories
Attractive value proposition to franchisees
Exceptional focus on customer service evidenced by strong net promoter scores (“NPS”)
Infrastructure and scale supporting our ability to service national accounts
National network and 24/7/365 service availability supports mission-critical nature of the ServiceMaster Restore business
Long-standing and strong relationships with the majority of the top 20 insurance carriers
Sales and Marketing
Terminix
Terminix markets its services to both homeowners and businesses through a national sales team and sales professionals in our
branches and call centers. We generate leads for these sales professionals through advertising campaigns on television, online, in
direct mail and in the yellow pages.
American Home Shield
In our American Home Shield segment, we market our services primarily through the internet, direct mail, television and
radio advertising, print advertisements, marketing partnerships, telemarketing and various social media channels. Additionally, we
market our services through a national sales team and various participants in the residential real estate marketplace, such as real estate
brokerages, as well as some financial institutions and insurance carriers. American Home Shield focuses its marketing efforts on
direct-to-consumer sales.
Franchise Services Group
In our Franchise Services Group segment, we market our services primarily through our franchise network, branch operations
and a national sales team to a combination of business-to-business and business-to-consumer audiences. These services are advertised
on a national and local level and include such media as television, radio, internet, direct mail, print advertisements, sales collateral
materials and yellow page advertisements.
26 2015 Annual Report