Wednesday, January 23, 2013

ADT customer and employee complaints


Why are the outside ADT sales teams competing against our biggest competitor, that is to say the ADT’s phone sale team?

The problem is ADT thinks that it is more profitable with the phone sale reps than its outside sales rep.  I say horse manure for the reasons of;
  • 1.           First, customer true expectations from ADT are seldom met, and not recognize by the customer until the security system is needed the most. That is, at the time of a break-in or a live fire.  
  • 2.           Customer and ADT valuable time is lost.
  • 3.           Phone Sales Rep cannot meet the client in person.
  • 4.           Cannot see the existing equipment if any to know what is compatible.
  • 5.           Customer when having an issue has to deal with the phone sale rep if can be   reach in a timely manner,  instead of the local rep that personally knows the installer and can get things done faster locally without all the red tape that the phone sales rep many time will put the customer through.
  • 6.           Installers are giving away free equipment to make things happen. Free to the customer, corresponds to customer expectation for free in the future. Value?
  • 7.            Way too many phone reps do not know what they are selling. 
  • 8.           Plus, they do not know the equipment, the capabilities or the features of the particular system of what they are selling, period.
  • 9.            Monthly revenue is less because the value is not sold to the customer.
  • 10.        20% to 33% sales are lost from the phone sales.
  • 11.        ADT give less than the best, that is to say, an outside sales rep, is equivalent for a greater loss of loyalty from the customer towards ADT; now in the present, while they are being monitor, and later when they move.
  • 12.        In a nut shell, the phone sale reps are selling security systems blindly.
  • 13.        Unfortunately and outwardly, ADT has shown that loyalty is not important to their employees or to their customers.
  • 14.        Finally and lastly, ask any installer or admin personnel at the branch level about the phone sale department. 95% of them would say that it reeks like a used toilet that hasn't been flush for a week or two.
ADT upper and mid-level managers are saying. We have the “Name”; it will keep itself going forward. Unfortunately our “Name” is fading away due to this experiment called “phone selling our customer” has failed at the expense to our customer and to our great “Name.” Just some old common horse sense says the phone sale team is slowly killing the name of ADT. How? By the loss of frustrated customers that unfortunately for us correctly trash us to their friends and family. These customers feel like their valuable time was wasted, that they were just a numeral to us by not understanding their security expectations, requirements, and lastly their confidence with us became not. The fault doesn't lay on these customers, no not by them, but by our own doings. Basically, the customers are saying after a phone sale blowout, “Shit, ADT cost more because the bull-shit they will put you through. Hell! It cost me less in time and equipment cost at company X. There was no pucking to be had from X, it was a real pleasure in doing business with them. Puck your company, pucking values.” Phone sale reps perhaps has good ears to hear, but few knows the many systems that are in the field, nor are they in the field to see and ask for help if needed, nor can they see the body language, or the customer home when selling. Neither, do not live locally, so they do not know the area in whence they sale. These are what give phone sale reps the short stick, their numerous phone blowouts, miseries to our customers, and the reduction in confidence of the value of the name of ADT. Yes I agree, a phone sale team decreases ADT employee expenditures in the short term, but destroying our own name for the haul. Yes, even a phone sale rep admittedly wrote on the internet it is not the best. So, ADT likes not to provide the best to its customers. By giving them less of the very best in the industry is allowing the customers to see not the value that we truly give. Those customers are saying to us, “Sorry Sally, you had your day, perhaps we may do business with you in the future; not. Bye.”


Naren Gursahaney, have you been to Chick-Filet, yet? Their business model is thriving. Reason why, is for their awe-inspiring service that they provide in an industry that is also crowded. I been to several of their stores and never been remotely been let down.  It reminds me the direct opposite of how a restaurant should be not ran as seen in each episode in the TV series “Kitchen Nightmares.” In each episode of the series, the producer has craftily been able to clasp on how idiotism was the path that the owner have chosen to run their restaurant prior in receiving help from Chef Gordon Ramsay, some made it  and some fell off the wayside after the help. I’ll bet Chef Gordon Ramsay would cringe on how we treat our customers that was phone sold. Hurry up, save that sale! Let’s do something! Let’s provide a parade to the customer for deficiency control after the meal. As the customer is still stomaching on it we are now offering bread and water to compose the situation after the fact. This is actually what we are doing at the present time. Tell me, that 20 to 33% doesn't stink. And eventually, yet to come, ADT motto will be, “ADT Gone.”


5 comments:

  1. I recently sat in on a Small Business Marketing teleconference representing one of the many small business sales people in the markets we serve. The 90 minute long call was lead by the marketing director who asserted that ADT was going to be spending more marketing dollars on small business ads for the company. Major points were as follows:

    1) Focus marketing groups performed studies on the buying tendencies of our target market - namely small businesses. These groups, according to the findings of the marketing director, preferred higher cost systems in their businesses as they felt the quality of the system would be greater if the cost of system and associated monitoring were higher. These findings of course suggested that the sales people at the company should be pushing our higher end systems with more options for the discerning deep pocketed small business person who wants to spend a lot of money on things because of a perceived direct correlation between value/quality and cost....

    2) The increased marketing focus of the small business vertical within ADT has a directive of increasing company driven telemarketing leads by 10%. There was a lot more to it than just this one sentence - a lot bluster about tv ads and increased coverage on the radio, internet, and so forth, but the main focus was an increased coverage of the small business solution resulting in 10% more company leads to the sales people. The marketing dollars to be spent in this endeavor were somewhere a little north of $2MM during the Feb-Mar timeframe.

    My thoughts on item #1 above: The crux of this portion of the call was that there is a finding that small business owners perceive value/quality with greater cost. I don't know where these focus groups did their research, but here in the real world, if you have the same 2 products, side by side, performing the same service, using the same components, doing the same thing, the lower priced item will win the hearts of small business people 9 times out of 10. The notion that price equates to quality in the mind of the customer is flawed based on every metric that I have tried and tested as an employee in the field. ADT's own pricing/promotions supporting "better deals" to customers who buy late in the month in an effort to drive business when we are behind support the real truth which is; ADT is overpriced, and everyone, including the customer, knows it.

    Regarding item #2 above. Spending marketing dollars is good, and I'm hopeful that ADT shareholders can reap some kind of reward from the increased marketing about to happen. But lets break this down a little. I get around 8-10 company set appointments a month. The quality of these leads varies greatly, and to my point above, they are almost always based on some price dependent advertised benefit. A 10% increase means MAYBE an extra lead/month for me. With a pull through ratio in the 60-70% range, this is 1 extra closed unit through the Feb-Mar timeframe. Based on how ADT has watered down the commission plan for company based leads..., it’s not a lot of extra money in my pocket. I believe there are around 180 sales teams nation wide with an average of 10 people/team. Back of the napkin numbers, for sure, but assuming each new unit brings about $1000.00 in bottom line profitability to the company, there is about $1.8MM in profit to be had for the company in Feb-Mar from a $2MM marketing effort.

    Anyway, that's ADT top brass for you. My closing comments: I hate harping on ADT, I really do. The fact of the matter is that they over charge for their product, market almost exclusively to new businesses (that have a 75%+ fail rate), experience 14% loss of customers, and then wonder why growth is sluggish. The concept of selling only to the highest bidder, and ignoring the other 85% of the market that is price sensitive is a loser… and trust me, consumers and business owners alike are price sensitive, marketing focus group findings aside.

    ReplyDelete
  2. A humble question, the 5000 thousand plus customers across USA that sign-up with ADT in the months of December and January and canceled in the month of January, would the majority be phone sale reps or the outside sale reps lost sales? I would say at least 85% are phone sale blowout. My personal lost ratio is less than 7% for the year, but who is bragging? Phone sales reps must be bragging, for they have the highest percentage of any teams. Corporate ADT call these, "bird droppings"; for they seem like they don’t know how to stop these droppings. Also, Samuel, these droppings makes an excuse for corporate ADT to flush not their toilets.

    ReplyDelete
  3. Mr. Naren Gursahanety, what does it take to have my ADT weekly mailer list to be mailed? Over the months I prepared my weekly mailer list with my address included and at the very maximum I received back was three. Another rep at same branch and from a different team said he even had it mailed to his friend on several occasions and his friend didn’t receive any flyers from ADT. Pondering,if family and friends of ADT's employees are the best referral base, sorry, just a wayward thought. Those three times that the lists was mailed I set eight appointments and sold six of them. Either our managers didn’t had mail them out, or ADT is being cheap. All I hear from my manager is lame excuses and buzz words on reasoning why the mail is not being sent out. Mr. Gursahanety, believe a true ADT's anonymous IP complaint box or IP suggestion box is needed, so that I do not need to place such complaints like this in the unconcealed world anonymous inbox. Someone posted a complaint on an ADT Chatter Room and got reamed for it. Although, do agree, it is not the place for employees grumbles. So, I guess, going public is?

    ReplyDelete
  4. I am an ADT's Admin employee who oversees installations issues among other responsibilities and I am a happy customer of ADT. Now, it is a major headache and grind to work with any customer that has been sold wrongly whomsoever that sold it. Rescheduling, hearing vexatious words against ADT by upset customers believing that the sale rep has done a switch and bait on them when the installers shows up.
    Overtime, this is what I had enumerated between outside sales and phone sales with my position.

    First, that 99.95 percent of all issues at the time of the contract being sold over the phone or by a local rep is that they not selling using the switch and bait method, this is a good thing. This is against ADT policy and is strictly enforced to include termination of employment immediately to any ADT rep if using this method to obtain a sale.

    What is allowed by ADT management is for the installers to redo bad sales to keep the customer satisfied if at all possible, such as wrong system at the location the system being installed at for numerous of reasons. This procedure is being misconstrued by many customers as being a switch and bait, it's not. Perhaps the phone rep or the outside rep is hoping that the installer will fix their mistakes or their ignorance in actually not knowing what the customer needs are. Now if a phone rep does this, that rep could claim ignorant for reason he didn’t went to the location in person or it showed differently in the system. But, if a outside rep does this at our local sales office that rep will be counsel with a verbal or a written warning, be temporary remove from incoming leads rotation and very likely removal of all leads from off their calendar during that time, and be face with not being paid for that sale.

    Secondly, the issues from outside sale rep would be 20 to 70% for new reps with less than five months with no security experience and 10% or less for older sale reps in tenure.

    Thirdly, the phone sales cancelation rate and issues are 40% or higher every month.

    Lastly, I would not ever be phone sold by ADT, and nor was I.

    ReplyDelete
  5. I am so happy to see this blog successful amongst people, the quality information and the way of explaining is totally perfect.
    adt security reviews bbb

    ReplyDelete