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Attrition Measurement Update Year End 2012 Developing Meaningful Trends

Attrition Measurement Update Year End 2012 Developing Meaningful Trends. Prepared By: TRG Associates, Inc. 860-395-0548 www.trgassociates.com. Defining Attrition. Gross Attrition

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Attrition Measurement Update Year End 2012 Developing Meaningful Trends

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  1. Attrition MeasurementUpdate Year End 2012Developing MeaningfulTrends Prepared By: TRG Associates, Inc. 860-395-0548 www.trgassociates.com www.trgassociates.com

  2. Defining Attrition 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. Defining Attrition 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. Attrition Measurement Methodology 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. Benefits of Weighted Ending RMR Method • 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. The Geography of Attrition • NE/Mid Atlantic • Southeast • Midwest • Southwest • West • International www.trgassociates.com

  7. www.trgassociates.com

  8. Annual TrendDollars of RMR* *Recurring Monthly Revenue www.trgassociates.com

  9. Annual TrendDollars of RMR* *Includes branches of companies reflected by RMR size/Attrition if provided www.trgassociates.com

  10. Annual TrendDollars of RMR www.trgassociates.com

  11. Annual TrendDollars of RMR www.trgassociates.com

  12. Attrition Updatethrough Year End 2012 www.trgassociates.com

  13. Attrition Updatethrough Year End 2012 www.trgassociates.com

  14. Attrition Updatethrough Year End 2012 www.trgassociates.com

  15. Attrition Updatethrough Year End 2012 www.trgassociates.com

  16. Impact on Attrition Measurement with TWO Largest Company Results (TLC) Sources: SDM May 2013 – SDM 100 SEC Filings 10K Public Quarterly Company Reviews www.trgassociates.com

  17. Top Reasons for Attrition www.trgassociates.com

  18. Reason Code Analysis www.trgassociates.com

  19. TRG Maintains Full Confidentiality of Participant’s Figures • Summary results as presented will be available on CSAA Web-Site (www.csaaintl.org) TRG Web-Site (www.trgassociates.com) • Next update for 2013 –May 2014 Posted in June 2014 www.trgassociates.com

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