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Prepared By: TRG Associates, Inc. 860-395-0548 www.trgassociates.com.

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Presentation on theme: "Prepared By: TRG Associates, Inc. 860-395-0548 www.trgassociates.com."— Presentation transcript:

1 Prepared By: TRG Associates, Inc. 860-395-0548 www.trgassociates.com

2 Gross Attrition The loss of existing customers and their associated recurring monthly revenue (RMR) for contracted services during a particular customer / calendar cycle Net Attrition Gross Attrition plus the add back of “ like customer ” gains thru resigns of the existing locations – - The Home/Business location is your ultimate customer - Price increases for inflation - Price increases for additional services or technology www.trgassociates.com

3 The Short Version The measurement of customer dissatisfaction with or need for the system Why Measure? Attrition measures customer dissatisfaction which, for the most part, is company caused. The Attrition Tracking Process should be managed to identify, focus on, and rectify those causes within each organization. www.trgassociates.com

4 Weighted Ending RMR Attrition Method Step 1: Cancelled RMR for the Reporting Period = Monthly Attrition Sum of Ending RMR for Each Month Step 2: Monthly Attrition (from Step 1)* 12 = Annualized Attrition An Excel Attrition Measurement Template is available on the TRG website with calculation formulas www.trgassociates.com

5  Accounts for and weights RMR acquisitions  Accounts for timing of acquired RMR  Accounts for rapid internal growth and the timing thereof  Similar to many lending/equity institution’s preferred calculation. www.trgassociates.com

6  NE/Mid Atlantic  Southeast  Midwest  Southwest  West  International www.trgassociates.com

7

8 Region201020112012 Northeast$ 34,255,218 $ 38,123,162 $ 48,920,548 Southeast$ 34,551,487 $ 42,678,957 $ 56,796,490 Midwest$ 25,343,869 $ 32,755,145 $ 48,737,682 Southwest$ 14,451,746 $ 20,315,471 $ 32,626,153 West$ 33,359,003 $ 39,705,534 $ 51,831,211 International$ 14,982,984 $ 5,035,296 $ 25,051,727 $ 156,944,307 $ 178,613,564 $ 263,963,811 * Recurring Monthly Revenue

9 Size201020112012 3-50$ 237,446 $ 291,596 $ 316,903 51-100$ 728,794 $ 659,794 $ 912,243 101-200$ 2,637,789 $ 2,578,119 $ 1,492,158 201-500$ 16,257,476 $ 17,103,573 $ 15,310,870 500+ $ 137,082,802 $ 157,980,482 $ 245,931,637 Total $ 156,944,307 $ 178,613,564 $ 263,963,811 www.trgassociates.com *Includes branches of companies reflected by RMR size/Attrition if provided

10 www.trgassociates.com Customer Source201020112012 Dealer$ 49,061,372 $ 49,127,653 $ 59,241,988 Traditional$ 80,388,844 $ 85,279,682 $ 131,256,462 Mass Market$ 27,494,091 $ 44,206,230 $ 73,465,362 Total$ 156,944,307 $ 178,613,564 $ 263,963,811

11 Customer Type201020112012 Residential$ 74,839,754 $ 101,339,459 $ 148,016,396 Commercial$ 82,104,553 $ 77,274,105 $ 115,947,415 Total $ 156,944,307 $ 178,613,564 $ 263,963,811 www.trgassociates.com

12 201020112012 RegionGrossNetGrossNetGrossNet Northeast10.02%7.66%10.34%7.94% 10.69%8.42% Southeast11.46%9.15%11.63%9.47% 11.47%9.24% Midwest10.92%7.89%10.92%9.23% 11.64%9.70% Southwest12.35%9.75%11.98%10.06% 12.13%10.09% West11.58%8.73%11.43%9.16% 11.43%9.06% International11.74%8.83%10.76%9.42% 12.22%9.85% www.trgassociates.com

13 201020112012 Co. SizeGrossNetGrossNetGrossNet 3-507.57%5.04%7.26%4.80% 5.63%3.54% 51-1009.26%6.55%9.69%6.68% 8.41%5.92% 101-2008.67%6.00%9.30%7.10% 9.64%7.58% 201-5009.92%8.02%9.46%7.83% 8.77%6.63% 500+11.41%8.68%11.43%9.02% 11.70%9.50% www.trgassociates.com

14 201020112012 SourceGrossNetGrossNetGrossNet Dealer12.55%10.10% 12.36%9.91%12.08%9.85% Traditional10.66%7.85% 10.70%8.60%11.56%9.40% Mass Market10.33%7.87% 10.84%9.14%10.92%8.69%

15 www.trgassociates.com 201020112012 Customer TypeGrossNetGrossNetGrossNet Residential11.37%8.92% 11.26%9.17%11.29%8.99% Commercial11.03%8.23% 11.10%9.00%11.78%9.69%

16 Excluding TLCIncluding TLC 2011201220112012 501+ RMR Companies$158.0M$245.9M$448.7M$569.2M Net Attrition Company Size9.02%9.50%11.73%11.66% Residential9.17%8.99%11.44%12.02% Commercial9.00%9.69%11.83%10.38% www.trgassociates.com Sources: SDM May 2013 – SDM 100 SEC Filings 10K Public Quarterly Company Reviews

17 www.trgassociates.com

18 Cancellation Reason 2009201020112012 Collection/Non Payment20.9%21.6% 19.1%18.6% Moved38.4%31.3% 33.9%37.0% Poor Service1.9%7.7% 2.0% 2.8% Lost to Competition9.1%7.9% 13.5% 11.4% No Longer Using System14.1%9.4% 7.6% 11.6% Sold/Out of Business7.3%6.3% 6.8% 5.2% Financial Difficulties5.8%9.3% 6.2% 6.3% Property Abandoned/Vacant0.0%0.2% 0.3% 0.2% End of Contract Term0.3%0.4% 0.8% 1.2% Deceased/Rest home0.4%1.2% 0.7% 1.2% PI Rescinded/RMR Reduction0.6%4.7% 9.1% 4.5% Natural Disaster/Military1.2%0.0% www.trgassociates.com

19  Summary results as presented will be available on CSAA Web-Site (www.csaaintl.org)www.csaaintl.org TRG Web-Site (www.trgassociates.com)www.trgassociates.com  Next update for 2013 – May 2014 Posted in June 2014 www.trgassociates.com


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