Value of Interactive Intelligence. Proposal for Company XYZ. Tool and Model independently developed by: Version: Model v2.24, Report v2.

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1 Value of Interactive Intelligence Proposal for Company XYZ Tool and Model independently developed by: Version: Model v2.24, Report v2.3 Disclaimer: NOTICE - THIS INFORMATION IS PROVIDED TO YOU AS A TOOL 'AS IS' WITH THE UNDERSTANDING THAT THERE ARE NO REPRESENTATIONS OR WARRANTIES OF ANY KIND EITHER EXPRESS OR IMPLIED. ALINEAN DISCLAIMS ALL WARRANTIES INCLUDING, BUT NOT LIMITED TO, IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. ALINEAN DOES NOT WARRANT OR MAKE ANY REPRESENTATIONS REGARDING THE USE, VALIDITY, ACCURACY OR RELIABILITY OF THE TOOL OR THE RESULTS OF THE USE OF THE TOOL. IN NO EVENT SHALL ALINEAN BE LIABLE FOR ANY DAMAGES, INCLUDING THOSE ARISING AS A RESULT OF ALINEAN'S NEGLIGENCE. WHETHER THOSE DAMAGES ARE DIRECT, CONSEQUENTIAL, INCIDENTAL, OR SPECIAL, FLOWING FROM YOUR USE OF OR INABILITY TO USE THE TOOL OR INFORMATION PROVIDED HEREWITH OR RESULTS OF THE TOOL'S USE EVEN IF ALINEAN HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THE ULTIMATE RESPONSIBILITY FOR ACHIEVING THE CALCULATED RESULTS REMAINS WITH YOU. THIS TOOL IS NOT FOR USE BY OR FOR INDIVIDUAL/CONSUMER PURPOSES. Copyright Alinean, Inc All rights reserved.

2 Introduction The business value of implementing Interactive Intelligence was investigated for Company XYZ. For the 271 total contact center personnel, at 1 sites, the value of applying Interactive Intelligence was simulated to estimate the potential productivity improvements and incremental revenue / margin potential for Company XYZ. Your team indicated that the opportunities to address in this proposal included: Inbound Voice with CTI Multimedia ( and Web Chat, SMS Routing) Outbound Voice and Blending Workforce Management Self Service via voice and text Analytics Quality Monitoring / Quality Assurance End User Unified Communications (UC) & Conferencing Based on those opportunities Interactive Intelligence recommends solutions in the following benefit areas: Interaction Routing Productivity Benefits End User Unified Communications and Conferencing Analytics Productivity Gains Additional Cost Avoidance Benefits CTI Productivity Benefits Interaction Routing Revenue Benefits Queuing and e-faq Productivity Benefits Analytics Revenue Benefits Benefits of Blending of Inbound and Outbound Agents CTI Revenue Benefits Interaction Dialer Productivity Benefits Interaction Dialer Revenue Benefits Interaction Director Productivity Benefits (Single Site Analysis - No Benefit) Workforce Management Productivity Benefits IVR Productivity Benefits Workforce Management Revenue Benefits IVR Revenue Benefits Retention Revenue Benefits Web Collaboration Productivity Benefits Web Collaboration Revenue Benefits Quality Monitoring Productivity Benefits Customer Retention, Acquisition, and Satisfaction Revenue Benefits Addressing these opportunities, with the proposed ININ solution, Company XYZ is estimated to achieve the following:" With the proposed ININ solution, Company XYZ is estimated to achieve the following: Annual productivity benefits $1,910,903 Annual revenue / margin improvements $0 Total annual benefits $1,910,903 Copyright Alinean, Inc All rights reserved. Page 2

3 Annual Benefits Productivity Benefits Interaction Routing Productivity Benefits $132,638 CTI Productivity Benefits $71,739 Queuing and e-faq Productivity Benefits $130,892 Benefits of Blending of Inbound and Outbound Agents $464,522 Interaction Dialer Productivity Benefits $637,059 Web Collaboration Productivity Benefits $6,323 Additional Cost Avoidance Benefits $220,570 End User Unified Communications and Conferencing $247,158 Total Productivity Benefits $1,910,903 Revenue / Margin Improvements Total Revenue / Margin Benefits $0 Total Annual Productivity and Revenue / Margin Improvements $1,910,903 Over the next 12 months, the expected value that ININ is expected to deliver to Company XYZ: Annual Benefits Copyright Alinean, Inc All rights reserved. Page 3

4 The benefits contribution from each potential capability where ININ can help deliver value to Company XYZ: Annual Benefits Copyright Alinean, Inc All rights reserved. Page 4

5 The mix of benefits contribution from ININ driving potential annual productivity gains, and revenue margin contribution for Company XYZ: Productivity vs. Revenue Benefits Copyright Alinean, Inc All rights reserved. Page 5

6 Productivity Benefit Detail With ININ, the productivity benefits are expected to be $1,910,903 per year, and 100.0% of total benefits, as follows: Productivity Benefits Annual Benefits Interaction Routing Productivity Benefits $132,638 Reduce Queue Time on Simultaneous Queuing $11,377 Reduced Transferred Calls $8,959 Routine Calls to Informational Announcements $67,688 ACD Network Savings from Conditional Delayed Answer $2,808 Supervisor Savings $41,807 Analytics Productivity Gains $0 Analytics Productivity Gains from Pre-consolidated/Summarized Data $0 CTI Productivity Benefits $71,739 CTI Increased Productivity $47,826 Voice and Data Transfer $11,957 Customer Profiling through Intelligent Routing $11,957 Queuing and e-faq Productivity Benefits $130,892 ERMS Increased Productivity $130,892 Benefits of Blending of Inbound and Outbound Agents $464,522 Enable Inbound and Outbound Blended Agents $464,522 Interaction Dialer Productivity Benefits $637,059 Gains from Agents not Spending Time On Non-live Calls $637,059 Interaction Director Productivity Benefits (Single Site Analysis - No Benefit) $0 Pre-Call Network Benefit $0 Pre-Call Labor Benefit $0 Workforce Management Productivity Benefits $0 Savings from Reduced Overstaffing $0 Savings from Reduced Overtime Staffing $0 Savings from Reduction in Hours to Manage Scheduling Tasks $0 Savings from Real Time Adherence $0 Agent Retention Improvements $0 IVR Productivity Benefits $0 Savings from Increased IVR Utilization $0 Savings from Natural Speech Recognition $0 Web Collaboration Productivity Benefits $6,323 Web Productivity Gain from Visual Aid $6,323 Additional Cost Avoidance Benefits $220,570 Cost Avoidance on Current Interactive Solutions $220,570 Quality Monitoring Productivity Benefits $0 Cost Savings with QA/QM $0 End User Unified Communications and Conferencing $247,158 End User UC Productivity and Conferencing Expense Reductions $247,158 Total Productivity Benefits $1,910,903 Copyright Alinean, Inc All rights reserved. Page 6

7 Revenue / Margin Benefits With ININ, the productivity benefits are expected to be $0 per year, and 0.0% of total benefits, as follows: Revenue / Margin Improvements Annual Margin Interaction Routing Revenue Benefits $0 ACD Revenue Benefits - Call Back Messaging $0 Analytics Revenue Benefits $0 Analytics Revenue Gains from Better BI for CTI $0 Analytics Revenue Gains from Targeted Marketing Campaigns $0 CTI Revenue Benefits $0 Reducing Impact of Abandoned Calls $0 Improve Sales Revenue Via Intelligent Routing $0 Improve Up-Sell Revenue Via Intelligent Routing $0 Interaction Dialer Revenue Benefits $0 Gains from Agents not Spending Time On Non-live Calls $0 Workforce Management Revenue Benefits $0 Recovered Abandons due to Better Staffing $0 IVR Revenue Benefits $0 Sales Revenue via IVR $0 Revenue Recapture from Natural Speech Recognition $0 Retention Revenue Benefits $0 Reduced Customer Churn $0 Web Collaboration Revenue Benefits $0 Web Collaboration Revenue Gain from Live Sales Interaction $0 Customer Retention, Acquisition, and Satisfaction Revenue Benefits $0 Reduced Customer Churn $0 Improved Customer Acquisition $0 Increased Revenue per Customer $0 Total Revenue / Margin Benefits $0 Copyright Alinean, Inc All rights reserved. Page 7

8 ROI Analysis The investment in ININ is expected to be: $255,000 initially $735,000 cumulative over three years. 1 Comparing this investment versus the costs, yields the following return on investment (ROI) summary results: ROI Summary Net Present Value (NPV) Savings $4,250,708 Return on Investment (ROI) 712% Payback Period (in months) 3 The cumulative benefits of ININ over the next three years, accounting for growth in opportunities and savings. Cumulative Benefits 1 See Appendix C for Detailed Configuration and Pricing Information Copyright Alinean, Inc All rights reserved. Page 8

9 The comparison of cumulative costs and benefits highlighting the payback period duration (where the lines intersect). Return on Investment Breakeven Timetable Comparing the benefits and investment yields the following project cash flow from the proposed ININ investment: Initial Year 1 Year 2 Year 3 Benefits $0 $1,910,903 $1,987,339 $2,066,832 Cumulative Benefits $0 $1,910,903 $3,898,241 $5,965,074 Investment in Interactive Intelligence $255,000 $400,000 $40,000 $40,000 Cumulative Investment $255,000 $655,000 $695,000 $735,000 Net Benefits ($255,000) $1,510,903 $1,947,339 $2,026,832 Cumulative Net Benefits ($255,000) $1,255,903 $3,203,241 $5,230,074 Copyright Alinean, Inc All rights reserved. Page 9

10 Next Steps Based on the ROI of 712%, $4,250,708 cumulative NPV savings and of 3 month payback period, your investment in ININ is expected to deliver positive business benefits and strong financial payback. About Alinean This tool, model and report were independently developed by the ROI / TCO experts from Alinean, Inc. This software tool and metrics were developed by Alinean, the leading developer of research, methodologies and software tools to measure and quantify the value and return on investment (ROI) from Information Technology (IT) solutions. Since 1994, the Alinean team has been researching the ROI and Total Cost of Ownership (TCO) of IT, and building tools to help quantify and improve the value in IT investments. Alinean's name comes from the Spanish word for "Alignment", highlighting Alinean's mission to be the leading provider of solutions that help IT vendors, consultants and business executives align IT investments with business strategies. With a database of over 20,000 IT organizations, Alinean has the unique capabilities to analyze and compare costs, and predict the impact of best practices and projects on organization financial performance and budget savings. Alinean's team has over a decade of experience in the practical development and application of ROI and TCO methodologies, models and IT value optimization tools including the first industry standard products (TCO Manager and TCO Analyst software) developed by Alinean's predecessor company (Interpose) that was sold to Gartner Group in In response to market demand for "next generation" IT Value solutions, the Alinean team was reunited in Since its 2001 inception, Alinean solutions have been used for more than $32 billion of IT purchase decisions. Current customers are nine of the top ten global IT vendors, leading consultancies and Global 1000 companies. Additional information about Alinean and IT Value optimization resources can be found at Copyright Alinean, Inc All rights reserved. Page 10

11 Appendix A: Questionnaire Interactive Intelligence Customer Interaction Value Analyst Many call centers are not optimized. Using call center solutions from Interactive Intelligence can help improve call center efficiency and effectiveness helping to improve productivity, reduce costs, improve service levels and drive business opportunities. n1 This tool, developed independently by ex-gartner ROI/TCO experts at Alinean, helps to quantify the current opportunities for improved call center management and quantifies the benefits and return on investment (ROI) that can be derived from the Interactive Intelligence call center solutions. Company / Organization Profile What is the name of your company / organization? (* = required) Company XYZ n2 Which best describes your company / organization's business? Financial Services n3 What is the primary location of your call center operations? United States n4 How many non-contact center staff will use business communications features? 10 n5 Current (As Is) Agent Profile How many agents do you have (average over past 12 months)?* Inbound 50 n6 Outbound 200 n7 Total of Inbound and Outbound Agents 250 How many call center locations or sites are there? What percentage of the total agents are remote agents? 1 n8 0.0% n9 How many call center operations staff (supervisors, reporting / scheduling analysts, and quality management) do you have? 21.0 n10 Contact System Annual Support and Maintenance Costs Describe the annual resources expenditures to manage the call center systems and provide user support and administration. Number of in-house IT staff or FTEs assigned Number of outsourced / contract staff 6.0 n n12 Contact Center systems maintenance including IVR, ACD, Call Recording, WFM, and allocated PBX costs to the Contact Center $125,000 n13 Current (As Is) Inbound Profile What are the average number of in-bound contacts handled per day?* What percentage of the total contacts are handled by agents (versus self-service)? Contacts per day handled by inbound agents 4,000 n % n15 3,600 n16 What is the current (As Is) handling profile for inbound contacts?* Contact Handling Percentage of Total Contacts per Day Average Number of Contacts per Day Phone 60% 2,160 n17 30% 1,080 n18 FAX 2% 72 n19 Web chat 8% 288 n20 Copyright Alinean, Inc All rights reserved. Page 11

12 Total 100% 3,600 n21 What is the current "recoverable" idle time per agent (as a percentage of total work time)? 10.0% n22 Current (As Is) Outbound Profile What is the average number of outbound calls per day?* What percentage of the total outbound calls is auto-dialed? What is the current idle time per outbound agent (as a percentage of total work time)? 12,800 n23 0.0% n % n25 Current (As Is) Sales and Customer Profile What is the average number of inbound sales contacts taken per day? What is the average revenue per closed sales call (per transaction)? What is the total number of current customers? What is the average revenue per customer per year? 2,000 n26 $0.00 n27 0 n28 $0.00 n29 Opportunity Profile What are the opportunities to address as part of this proposal? (check all that apply) X Inbound Voice with CTI X Multimedia ( and Web Chat, SMS Routing) X Outbound Voice and Blending Workforce Management Self Service via voice and text Analytics Quality Monitoring / Quality Assurance X End User Unified Communications (UC) & Conferencing Calculate Revenue Benefits Notes: n30 n31 n32 n33 n34 n35 n36 n37 n38 n39 1. Interactive Intelligence Inc. (NASDAQ: ININ) is a global provider of unified IP business communications solutions for contact center, enterprise IP telephony, and business process automation. Interaction Process Automation (IPA) let s you easily create process flows in days rather than months, deploy in minutes, and get a quick and measurable return on that precious IT investment. 2. Specifies the name of your organization. Used to customize the report. 3. Specifies the closest matching industry to your business. Used to scale salary costs to best represent the opportunities for improvement. 4. Specifies the best description of the call center operation locations. Used to scale salaries to best represent the labor costs for call centers. 5. Indicate the number of staff who will be provisioned with Unified Communications (UC) features, above and beyond contact center staff. 6. The total number of inbound agents, averaged over the past 12 months. If inbound and outbound contacts are handled by blended agents, estimate the number of FTEs utilized to handle inbound transactions. 7. The total number of outbound agents, averaged over the past 12 months. If inbound and outbound contacts are handled by blended agents, estimate the number of FTEs utilized to handle outbound transactions. 8. The total number of locations or sites where these agents are located, not including individual SOHO locations without on-site supervision. Default estimated to be one contact center. 9. The percentage of the total agents which are considered remote, not in a central location with local supervisory and technical support. 10. The total number of call center supervisory and operations staff managing and providing operational and administrative (not IT) support for these agents. Estimated to be the higher of one per location, or one for every 12 calling agent resources. Does not include IT Copyright Alinean, Inc All rights reserved. Page 12

13 staff and support, which is tallied below. 11. The total number of in-house IT staff managing the call center staff. Estimated to be one for every 50 call center and supervisory / operations staff. 12. The total number of outsourced IT staff managing the call center staff. All staff estimated to be in-house vs. outsourced by default. 13. The average annual renewal of service cost for the entire system averaged over the next three years to support, maintain the existing call center hardware/software/solutions which are candidate for replacement with a proposed Interactive Intelligence solution. This is estimated at $500 per agent annually. Additionally, consider required upgrades or managed services and support contracts for IT services supporting the call center operations and agents, if these are to be eliminated. 14. For the inbound agents, the number of contacts handled per average day. Calculated by default as 10 calls per hour, with Details driven hours per agent per day. 15. The percentage of inbound contacts that are handled by live agents, versus being automated and not requiring live interaction. 16. The product of the inbound contacts and percentage handled by live agents. 17. The percentage and calculated average number of contacts per month handled by phone. 18. The percentage and calculated average number of contacts per month handled by The percentage and calculated average number of contacts per month handled by FAX. 20. The percentage and calculated average number of contacts per month handled by web chat. 21. The percentage total must equal 100% to proceed to the next tab. 22. Of the total work time per agent, the average time per day (as a percentage of total time) which is not spent handling contacts and that could be reasonably be recouped with aggressive policies, procedures, and tools. 23. The average number of outbound calls per day (averaged over a 12 month period). Set by default to be 8 contacts per agent per hour, with average hours worked per day from the Details. 24. The current percentage of these outbound calls which are auto-dialed / automated. 25. Of the total work time per agent, the average time per day (as a percentage of total time) which is not spent handling contacts / idle time. 26. A subset of the total number of inbound contacts, this value defaults to 50% of the quantity specified above and is used largely in revenue improvement sections of the model. 27. Per agent, the average sales transaction revenue. 28. The total number of active customers (purchase over a twelve month period). 29. The average revenue per customer. Can be derived as the total revenue divided by the total number of customers. Set by default to assume 3 orders per customer per year on average. 30. Selecting individual categories of benefits reflects what will be displayed in the results in the tool. Underlying detailed calculations are always available for review, even if not included in the results. 31. Inherent ACD and universal queuing in an IP contact center application suite quickly routes incoming calls as well as Web text chats, e- mails, and other interaction events. Queuing is multimedia-based, the CIC system distributes all media types using the same skills-based Copyright Alinean, Inc All rights reserved. Page 13

14 routing as for telephone calls. Also open standards software architecture that makes integrating CRM solutions straightforward: complete a basic CRM integration in hours or days, rather than the weeks or months. 32. Unlike traditional call centers that handle only calls, a multimedia contact center provides service across contact channels for , fax and the Internet as well as the phone. Responding to ed inquiries and FAQs in a timely manner can improve overall customer satisfaction. Especially in an eservices/ ecommerce environment, issuing accurate and informative answers to customer s can lead to more sales, while automating the response process can decrease agent staffing requirements and labor costs by off-loading repetitive service tasks including FAQ responses. More and more consumers are using the Internet and companies Web sites to access information and conduct business transactions. To remain competitive, contact centers must also implement cost-effective online customer service processes and actually improve upon the Web media channel in ways that traditional brick & mortar businesses can t. 33. Tools for dedicated outbound campaign management solution for power and preview as well as predictive dialing. Providing a complete system for blended inbound and outbound predictive dialing, Web-based call scripting, multi-site campaign management, comprehensive campaign staging and more. 34. Personnel costs present the single biggest expense in operating today s contact center. With rising labor costs and the demand from customers to constantly provide better service, forecasting and staffing in the contact center environment gain in importance. 35. Consumers have become accustomed to conducting business on their schedules, often before or after normal business hours. Offering them automated self-service options to access information and conduct basic transactions anytime they want therefore is a smart business decision. 36. Analytics provide an easy way for organizations to attain a rich understanding of its customers and enable insight and action across multiple touch-points. 37. The process of reviewing interactions and then evaluating those conversations for strengths and weakness against an agreed definition of what constitutes a great customer interaction is facilitated with QM and QA tools. 38. Unified Communications (UC) is a commonly used term for the integration of disparate communications systems, media, devices and applications. At Interactive Intelligence and in this tool, this includes the integration of fixed and mobile voice, , instant messaging, desktop and advanced business applications, voice over IP (VoIP), presence, video and web conferencing, unified messaging, unified voic , and multi-party conferencing into a single environment offering the user a more complete but simpler experience. 39. According to industry analysts at the Gartner Group, a contact center s soft benefits are difficult to quantify, yet impact customer expectations and perceptions the most. Coupled with a more quantifiable benefit, this component often brings the most return (by way of lower operations costs, quality monitoring, continuous improvement, higher customer retention rates, etc.). For example, by investing in self-service capabilities such as IVR and Web-based eservices, contact centers can achieve the quantifiable benefit of automating more customer transactions and lowering their overall cost per transaction. More so, supporting self-service initiatives helps curb the requirement for long-term contact center growth while maintaining high customer satisfaction levels. Similar quantifiable benefits stem from improved agent and supervisor training via real-time quality monitoring and coaching, interaction recording, agent scoring, and other methods of continuous improvement. With such training and performance processes, agents and supervisors alike are better equipped to answer inquiries, deal with irate customers, etc. which positively affects customer satisfaction, improves workforce morale, and allows a contact center to realize quantifiable benefits by lowering agent attrition. Copyright Alinean, Inc All rights reserved. Page 14

15 Appendix B: Detailed Assumptions and Metrics Detailed Organization / Business Metrics Based on the information you provided on the Questionnaire, default values provided for detailed organization / business metrics. These initial defaults are based on Interactive Intelligence experience and Alinean research estimates These values should be reviewed and personalized as appropriate to match the organizations actual metrics. Caution should be taken in editing these metrics so as to assure credible results. Detailed Contact Metrics What is the call center's number of open days per year? What is the average hours worked per agent per day? What is the average overtime per day (total for all agents in hours)? What is the average overtime pay factor (n.n * base burdened salary) for agents? 260 n1 8.0 n2 100 n3 1.5 n4 What is the network cost of one minute? $0.025 n5 What is the average inbound call talk-time per phone contact (in seconds)? What is the average inbound call handling time per contact (in seconds)? What is the percentage of total s requiring more than one response? 340 n6 180 n7 20.0% n8 What is the total number of transferred phone contacts / calls per day? What is the additional handle time per transferred call (in seconds)? 432 n9 45 n10 What is the average total talk time in seconds of a routine information call? What is the anticipated average ring time (in seconds)? 170 n11 12 n12 What is the total number of phone contacts / calls abandoned per day? What is the percentage of the abandoned calls per day that won't call back? 108 n % n14 Number of minutes per day that one center has available agents while another has queued calls Average number of available agents during the time when one center has available agents while another has queued calls 0.0 n15 0 n16 Workforce Management Assumptions Do you have in workforce management currently in place today? No n17 Indicate the name of your current workforce management product (if any) n18 What is the percentage of time overstaffed? What is the percentage overstaffed (when overstaffing occurs)? 10.0% n19 5.0% n20 What is the average time per day agents are out of adherence in minutes? 30.0 n21 What is the average agent turnover rate? What is the average cost to replace / retrain a lost agent? 10.0% n22 $3,000 n23 IVR Self Service Assumptions IVR Improvements can be modeled as general reductions in Agent handled calls below, or alternatively specific transaction types can be detailed and the savings and/or revenue impact from automating those actions can be included. Populate values for ONE of the OPTIONS BELOW. Option 1 - General IVR Benefit General reduction across all inbound calls automated with IVR Anticipated additional percentage of calls automated via natural speech recognition 20.0% n % n25 Total contact volume automated with IVR 40.0% Option 2 - Descrete New IVR Application Detail Number of annual customer transactions (Txn) potentially automated 0 n26 Copyright Alinean, Inc All rights reserved. Page 15

16 Additional IVR Application Savings Avg Saved % of Txns Application Description Per Txn Impacted Order Status (19% of service calls) $ % n27 Describe $ % Describe $ % Describe $ % Describe $ % Number of annual sales transactions (Txn) potentially automated 0 n28 Additional IVR Application Revenue Avg Rev % of Txns Application Description Per Txn Impacted Order Placement (5% of sales transaction) $ % Describe $ % Describe $ % Describe $ % Describe $ % Do you have in post call survey program in place today? No n29 Indicate the name of your current post call survey product (if any) What do you currently spend annually for your post call survey capabilities? $0 What is the labor cost to conduct post call surveys and compile the results? $0 n30 Which of the following do you currently take advantage of: Immediate/Timely follow up with customers Automated generation of post call survey questionnaire/application Realtime feedback of post call survey results Integrated action plans based on results X X X X Quality Monitoring / Quality Assurance Assumptions Do you have quality monitoring / quality assurance currently in place today? Yes n31 Indicate the name of your current quality monitoring / quality assurance product (if any) What do you currently spend annually for your quality monitoring products? $0 n32 How do your record? How do you score recordings? Automated based on time/quantity Spreadsheet Which of the following do you currently take advantage of: Random quality monitoring and live coaching Agent requested quality monitoring and assistance Quality Assurance training initiatives Automated Keyword spotting Screen Recording Potential Annual Compliance Penalty Risk (HPAA, PCI, Regulatory, etc.) Number of Interactions Likelihood of non-compliance Likely cost/fine of non-compliance per incident $0 n33 505,440 n34 5.0% n35 $0 n36 $0 n37 Likelihood of penalties above 0.0% n38 Detailed Sales Profile Metrics What is the average number of abandoned inbound sales calls per day? What is the average sales call close ratio? 54 n39 Copyright Alinean, Inc All rights reserved. Page 16

17 Average agent sales close ratio Average low end agent sales close ratio (bottom 25%) Average high end agent sales close ratio (top 25%) 25.0% n % n % n42 Average revenue per sales call What is the average revenue per low end sales call (bottom 25%)? What is the average revenue per high end sales call (top 25%)? $0.00 n43 $0.00 n44 $0.00 n45 Detailed Up-Sell Metrics Average agent up-sell percentage Average low end agent up-sell percentage Average high end agent up-sell percentage 6.0% n46 3.0% n47 9.0% n48 Average up-sell revenue Average low end up-sell revenue Average high end up-sell revenue $0.00 n49 $0.00 n50 $0.00 n51 Outbound Calling Metrics What is the current percentage of outbound calls reaching live person today? What is the average handling time per live call (in seconds)? What is the time spent per average non-live call (in seconds)? 10.0% n n53 30 n54 Customer Retention Metrics What is the approximate churn as a percentage of the total customer base per year? What is the approximate growth in number of customers as a percentage of the total customer base per year? What is the average cost to acquire each customer? 3.0% n55 5.0% n56 $0.00 n57 Web Transactions / E-Commerce Metrics What are the average number of visitors per day? What percentage of the visitors per day are lost without purchase? Average number of web visitors per day lost without purchase What is the average revenue per web transaction? 0 n % n59 0 n60 $0.00 n61 Call Center Operations Staff Profiles What are the details for the call center operations staff? Call Center Operations Staff Percentage of Total Staff Time Spent on Indicated Task Average Number of Staff Supervisors 40.0% 8.4 n62 Routing analysts 15.0% 3.2 n63 Reporting analysts 15.0% 3.2 n64 Scheduling analysts 15.0% 3.2 n65 Quality management 15.0% 3.2 n66 Total 100.0% 21.2 What is the total time spent per analyst doing report work (in minutes per day)? 240 n67 Detailed Staff Salary Profiles What is the average unburdened salary per year for call center, operations and support staff? Call Center Staff Average Annual Unburdened Salary Average Hourly Salary Rate Inbound agents $41,480 $19.94 n68 Copyright Alinean, Inc All rights reserved. Page 17

18 Outbound agents $41,480 $19.94 n69 Weighted average for all agents $41,480 $19.94 Supervisors $62,220 $29.91 n70 Quality management staff $62,220 $29.91 n71 Reporting analysts $62,220 $29.91 n72 Scheduling analysts $62,220 $29.91 n73 In-house IT call center support staff $62,220 $29.91 n74 Outsourced / contract support staff $87,108 $41.88 n75 What is the average burden rate (%) to apply to salaries to account for taxes, benefits and overhead? 28.0% n76 End User Productivity and Conferencing Assumptions Which of the following Unified Communications and Communication System productivity features will users take advantage of: Presence X n77 Internal Chat and/or IM Integration X n78 On-Demand Call Recording X n79 Mobility X n80 On-Demand Conferencing X n81 What is the average annual unburdened salary for these end users? $87,108 n82 Third Party Conferencing cost avoidance What percentage of your Third-Party voice conferences involve 120 or fewer parties? 95.0% n83 Average number of participant minutes per year 1,662,000 n84 Annual Spending on Third-Party voice conferencing per participant minute $0.15 n85 Financial Assumptions What is the average annual incremental margin from revenue (excluding cost of goods sold / cost of services and variable SG&A)? 20.0% n86 On average, how much are current call center costs expected to increase each year? 4.0% n87 What is the discount rate to use for NPV calculations? 10.0% n88 Notes: 1. The number of days the call center is in operation per year. 2. The average number of hours worked by an inbound / outbound agent per day. Derive as weighted average across all agents. 3. Of the total hours for all agents, the percentage of overtime per day. Set by default to be 5% of total hours per day for all agents. 4. When overtime is paid, compared to the regular compensation, the factor applied to the pay (multiplied by the burdened salary to calculate the overtime rate). 5. The cost for each minute for network connectivity / telecommunication costs. 6. The average call talk time in minutes per inbound agent handled phone based contact. 7. The average handling time in minutes per inbound agent handled based contact. 8. The percentage of contacts that require additional follow-up / additional contacts in order to close. 9. Of the total number of inbound phone based / agent handled contacts, the percentage which requires a transfer. Set by default to be Copyright Alinean, Inc All rights reserved. Page 18

19 20% of total inbound agent handled phone / call volume. 10. The additional handling time to answer and handle the call requiring a transfer. 11. The average call time for a routine information call. 12. For each phone based call, the anticipated number of seconds of ringing to play before connecting a call to an agent or announcement. 13. Of the total number of inbound agent handled phone calls, the percentage of these calls on average which are abandoned per day. Set by default to 5% of inbound phone handled calls per day. 14. Of the abandoned calls, the percentage of the total that won t call / contact back. 15. The average number of minutes per day that agent workload is not evenly distributed, where one center has available agents while another has queued calls. Set by default to 75 minutes per day if there is more than 1 calling center location indicated in Questionnaire. 16. The total number of agents available to handle additional calls if multi-site balancing could be enabled. Set by default to be 10% of the total number of agents if there is more than 1 calling center location indicated in Questionnaire. 17. An indication as to whether workforce management is in place already, or if there is an opportunity for improvement. Drives potential opportunity for improvement with ININ. 18. An indication as to whether workforce management is in place already, or if there is an opportunity for improvement. Drives potential opportunity for improvement with ININ. 19. The percentage of time that agent staffing is high and utilization is not maximized. Set by default to 40% if no workforce management is currently in place, 10% otherwise. 20. The percentage of agent overstaffing when he issue occurs (percentage of total agents which are not being utilized to capacity). Set by default to 20% if no workforce management is currently in place, 5% otherwise. 21. Of the total agent work time per day, the total number of minutes when agents are out of adherence. 22. The average staff turnover rate for inbound and outbound agents. With high turnover, organization has to recruit, hire and retrain agents. 23. When an agent is lost to attrition / turnover, the cost to replace the agent. Costs include off boarding costs for the lost agent, replacement agent recruiting costs, on boarding costs, formal training and learning time. 24. Improvements can result from better design of existing applications, automation of new applications and functions, and introduction of speech recognition capabilities for greater adoption. The default improvement is set at 20%. 25. Improvements can result from better design of existing applications, automation of new applications and functions, and introduction of speech recognition capabilities for greater adoption. The default improvement is set at 20%. 26. Default value based on total inbound telephone calls per year. 27. Default average saved per call based on derived current cost per contact using inbound Agent burdened salary divided by inbound contact volumes. 28. Default value based on total inbound sales calls per year plus outbound calls per year. 29. An indication as to whether quality monitoring / quality assurance is in place already, or if there is an opportunity for improvement. Drives potential opportunity for improvement with ININ. Copyright Alinean, Inc All rights reserved. Page 19

20 30. An indication as to whether quality monitoring / quality assurance is in place already, or if there is an opportunity for improvement. Drives potential opportunity for improvement with ININ. 31. An indication as to whether quality monitoring / quality assurance is in place already, or if there is an opportunity for improvement. Drives potential opportunity for improvement with ININ. 32. An indication as to whether quality monitoring / quality assurance is in place already, or if there is an opportunity for improvement. Drives potential opportunity for improvement with ININ. 33. Enter a value here, if known. Otherwise, select the '+' to the left to expose a simple estimator that may help to determine this number. The value in this field takes precedence over any calculated values below. 34. Product of number of agent handled calls per day and total open days per year. 35. Enter the likelihood that any of the above interactions would result in non-compliance (not necessarily a penalty, just failure to adhere to rules and guidelines). 36. The typical cost or fine incurred when a non-compliant event results in the same. 37. The estimated potential penalties the organization may be subject to. This number may need to be entered in to the field above. 38. Enter the likelihood that the above costs will occur in any given year. 39. Of the total number of inbound sales contacts, how many inbound sales calls are abandoned on a typical day? Defaults to a number derived from number of daily total abandons under Call Center Profile and the total number of inbound sales contacts. 40. For the average agent, the sales close ratio. Calculated as the percentage of total calls which result in a closed transaction. 41. For lower end performers, bottom quartile, the average close ratio. Calculated as 30% less than average performer by default. 42. For higher end performers, top quartile, the average close ratio. Calculated as 30% more than average performer by default. 43. From above on Questionnaire (not editable here, for reference only). 44. For lower end performers, bottom quartile, the average sales revenue per transaction. Calculated as 50% less than average performer by default. 45. For higher end performers, top quartile, the average sales revenue per transaction. Calculated as double the average performer by default. 46. For the average agent, the up-sell sales close ratio. Calculated as the percentage of total calls which result in a closed transaction. 47. For lower end performers, bottom quartile, the average up-sell close ratio. Calculated as 50% less than average performer by default. 48. For higher end performers, top quartile, the average up-sell close ratio. Calculated as double the average performer by default. 49. Per transaction where an up-sell is achieved, the average up-sell incremental revenue per transaction. 50. For lower end performers, bottom quartile, the average up-sell sales revenue per transaction. Calculated as 50% less than average performer by default. 51. For higher end performers, top quartile, the average up-sell sales revenue per transaction. Calculated as double the average performer by default. Copyright Alinean, Inc All rights reserved. Page 20

21 52. For the outbound agents and calls per day, the average percentage that reach a live person currently. 53. The average handling time in seconds per live call. 54. The average time spent on calls that do not reach a live person, in seconds. 55. Of the total customer base, the percentage of customers lost per year (move from active to inactive). 56. Of the total customer base, the percentage of customers lost per year (move from active to inactive). 57. The average cost for each lost customer, calculated as the business cost to attract and capture a new replacement customer. Set by default to 20% of the value (revenue) per customer per year. 58. The total number of unique visitors to the web site per day. Set by default to be 0.1% of the number of customers in Questionnaire per day. 59. Percentage of visitors per day that leave without purchase. 60. Of the total number of visitors, the average number of web visitors per day that are lost without purchase. 61. The average revenue per successful web transaction. Used to calculate the average benefit of a converted web transaction. Set by default to the revenue per average agent as a starting point. 62. The percentage of time operations center staff spend on supervisory tasks particularly personnel management and career development. Set the total staff in Questionnaire. 63. The percentage of time operations center staff spend on routing activities and analysis. Set the total staff in Questionnaire. 64. The percentage of time operations center staff spend on reporting activities and analysis. Set the total staff in Questionnaire. 65. The percentage of time operations center staff spend on scheduling activities, optimization and analysis. Set the total staff in Questionnaire. 66. The percentage of time operations center staff spend on call quality monitoring, reporting and management. Set the total staff in Questionnaire. 67. Of a typical day, the percentage of time a reporting analyst staff member spends doing report work. Set by default to be 4 hours per reporting analyst per day. 68. The average unburdened salary for inbound agents. 69. The average burdened salary for outbound agents. 70. The average burdened salary for supervisor staff. 71. The average burdened salary for quality management staff. 72. The average burdened salary for reporting analysts. 73. The average burdened salary for scheduling analysts. 74. The average burdened salary for in-house IT call center support staff. Copyright Alinean, Inc All rights reserved. Page 21

22 75. The average burdened salary for outsourced or contract IT support staff. 76. Burdened salary rate is uplift to apply to salaries to account for full cost of each agent and staff member. Includes base salary plus incentive pay, and any uplift for benefits and taxes. 77. Productivity improvement due to real-time awareness of others availability as well as making own availability public. 78. Productivity improvement due to near real-time communications of chat and IM, allowing for staggered, but effective communications. 79. Productivity improvement due to always available call recording and playback capabilities. 80. Productivity improvement due to availability even when not at typical work location. 81. Productivity improvement due to greater use of integrated, on-demand conferencing features. 82. Include the total spend on the voice component spent with third parties. Typically this runs US$0.15 per minute per participant above any web conferencing charges. 83. For each revenue benefit, only the margin contribution should be counted to the financial analysis of benefits. This factor scales the revenue to account for the fact that each incremental revenue contribution has a cost including cost of goods sold, cost of services / sale and any variable general and administrative expenses. Any revenue benefit is scaled by this amount to calculate the total incremental contribution. 84. Default value calculated as the number of contact center agents + supervisors + IT staff) * 200% overhead for management, customers, and business partner participants * 50 work weeks per year * 1 hours (60 minutes) per week average time spent on conference calls. 85. Include the total spend on the voice component spent with third parties. Typically this runs US$0.15 per minute per participant above any web conferencing charges. 86. For each revenue benefit, only the margin contribution should be counted to the financial analysis of benefits. This factor scales the revenue to account for the fact that each incremental revenue contribution has a cost including cost of goods sold, cost of services / sale and any variable general and administrative expenses. Any revenue benefit is scaled by this amount to calculate the total incremental contribution. 87. As the opportunities grow, the potential for benefits grows. Used as the growth factor to scale the proposed benefit increases. 88. Used to calculate the net present value savings of the proposed project. Use weighted average cost of capital by default. Copyright Alinean, Inc All rights reserved. Page 22

23 Appendix C: Investment in ININ The required investment in Interactive Intelligence. To obtain an ROI analysis, you need to provide cost information on the solution. Obtain this quote from your partner or sales representative. Total Licensing Costs Initial Year 1 Year 2 Year 3 Customer Interaction Center (CIC) $200,000 $0 $0 $0 n1 Interaction Recorder $40,000 $0 $0 $0 n2 Interaction Optimizer $0 $0 $0 $0 n3 Interaction Analyzer $0 $0 $0 $0 Interaction Feedback $0 $0 $0 $0 n4 Interaction Dialer $0 $0 $0 $0 n5 Interaction Tracker $0 $0 $0 $0 n6 Interaction Director $5,000 $0 $0 $0 n7 Interaction Web Portal $10,000 $0 $0 $0 e-faq $0 $0 $0 $0 n8 Other $0 $0 $0 $0 n9 Total Licensing Cost $255,000 $0 $0 $0 Total Costs Initial Year 1 Year 2 Year 3 Total Licensing Costs $255,000 $0 $0 $0 Support and Maintenance Contracts $0 $400,000 $40,000 $40,000 Host Server $0 $0 $0 $0 Professional Services $0 $0 $0 $0 IT Labor and Operations / Support $0 $0 $0 $0 IT Training $0 $0 $0 $0 User Training $0 $0 $0 $0 Total Licensing, Support and Implementation Costs $255,000 $400,000 $40,000 $40,000 Copyright Alinean, Inc. All rights reserved Notes: 1. Indicate the initial and on-going costs to license the Customer Interaction Center (CIC) IP contact center application suite. With inherent ACD and universal queuing this product quickly routes incoming calls as well as Web text chats, s, and other interaction events you choose to define. And because queuing is multimedia-based, the CIC system distributes all media types using the same skillsbased routing as for telephone calls. 2. Indicate the initial and on-going costs to license the Interaction Recorder application for Quality Monitoring. 3. Indicate the initial and on-going costs to license the Interaction Optimizer. This Workforce Management (WFM) application integrates to the multi-channel Customer Interaction Center (CIC) IP contact center application suite, and is designed to help small to mid-sized contact centers better meet staffing forecast demands, agent skill requirements and service levels for voice as well as Web, and fax contacts at all times. 4. Indicate the initial and on-going costs to license the Interaction Feedback application. 5. Indicate the initial and on-going costs to license the Interaction Dialer. The Interaction Dialer application gives any organization a dedicated outbound campaign management solution for power and preview as well as predictive dialing. Interaction Dialer also provides a complete system for blended inbound and outbound predictive dialing, Web-based call scripting, multi-site campaign management, comprehensive campaign staging and more. 6. Indicate the initial and on-going costs to license the Interaction Tracker application. 7. Indicate the initial and on-going costs to license the Interaction Director application. This pre-call routing solution is aware of all traffic across all contact channels when integrated with the Customer Interaction Center (CIC). Because the CIC Server is fully aware of , Web and other media traffic at all sites, call routing decisions are based on the overall mix of traffic. Copyright Alinean, Inc All rights reserved. Page 23

24 8. Indicate the initial and on-going costs to license the efaq application. The e-faq software and application server integrates to an organization s database infrastructure and any SMTP/ IMAP compliant server to automate knowledge management and response processes. 9. Indicate the initial and on-going costs to license any other products that are part of this project analysis. Copyright Alinean, Inc All rights reserved. Page 24

25 Appendix D: Benefits from ININ Enable Inbound and Outbound Blended Agents Blending of inbound and outbound agents helps to drive better agent utilization across groups, helping to improve productivity and eliminate wasted idle time. Additionally for the outbound scenario itself workflow savings can save time and increase productivity with simultaneous active campaigns and campaign scheduling tools that eliminate campaign start and stop and agent login and log out. Enable Inbound and Outbound Blended Agents Year 1 Average number of total agents 250 n1 Average agent idle time per day (in minutes) 48.0 n n3 Total annual idle time per year (in person hours) for agents 52,000 n4 Average burdened labor rate for agents (weighted average cost per hour) $25.52 n5 Total agent idle time costs $1,327,206 n6 Idle time savings 35.0% n7 Idle time person hour savings per year 18,200 n8 Total idle time costs $464,522 n9 Reduce Queue Time on Simultaneous Queuing Ability to queue for every resource within the ACD simultaneously (every agent, IVR port, trunk to outside location etc.). Reduce Queue Time on Simultaneous Queuing Year 1 n10 Average number of inbound calls per day 2,160 n11 Percentage of calls handled by agents 90.0% n12 Number of agent handled calls per day 1,944 n n14 Total agent handled calls per year 505,440 n15 Seconds saved per call due to simultaneous queuing 3.0 n16 Annual time savings from simultaneous queuing (in hours) 421 n17 Average burdened labor rate for inbound agents (cost per hour) Total inbound agent productivity improvement $25.52 n18 $10,745 n19 Average annual cost per network minute Annual network cost savings $0.025 n20 $632 n21 Total Queue Time Reduction Benefits $11,377 n22 Reduced Transferred Calls Reduction in transferred calls due to customer prompting and skill mapping: getting the call to the right resource. Reduced Transferred Calls Year 1 n23 Total number of transferred calls per day 432 n24 Additional handle time per transferred call 45 n n26 Total handling time on transferred calls (in hours) 1,404 n27 Average burdened labor rate for inbound agents (cost per hour) $25.52 n28 Total annual lost productivity on transferred calls $35,835 n29 Anticipated percentage reduction in transferred calls (increased first call resolution) Annual person hours saved Total annual productivity savings by reducing transferred calls 25% n n31 $8,959 n32 Copyright Alinean, Inc All rights reserved. Page 25

26 Routine Calls to Informational Announcements Productivity of agents can be improved by moving repetitive calls to be handled by the voice processing system instead of agents. Routine Calls to Informational Announcements Year 1 Average number of inbound calls per day 2,160 n33 Percentage of calls handled by agents 100.0% n34 Number of agent handled calls per day 2,160 n n36 Total agent handled calls per year 561,600 n37 Average length of typical informational call (in seconds) 170 n38 Total person hours spent per year on informational calls 26,520 n39 Average burdened labor rate for inbound agents (cost per hour) $25.52 n40 Total annual lost productivity on routine informational announcements $676,875 n41 Anticipated percentage of calls to be handled by informational announcements Annual time savings from calls handled by informational announcements (in person hours) Total annual lost productivity savings by automating routine informational announcements 10.0% n42 2,652 n43 $67,688 n44 ACD Network Savings from Conditional Delayed Answer Ringing to play before connecting a call to an agent or announcement can be eliminated with ACD, reducing network costs. ACD Network Savings from Conditional Delayed Answer Year 1 Average number of inbound calls per day Anticipated average ring time Total ring time per year (in minutes) Average annual cost per network minute Annual network cost savings 2,160 n45 12 n n47 112,320 n48 $0.025 n49 $2,808 n50 Supervisor Savings Having customized status screens and reports via the I3 ACD help to save supervisor time and improve productivity. Supervisor Savings Year 1 Anticipated time saved per supervisor per day (in minutes per day) 30.0 n n52 Average burdened labor rate for supervisors (cost per hour) $38.28 n53 Supervisors 8.4 n54 Annual supervisor productivity improvements $41,807 n55 ACD Revenue Benefits - Call Back Messaging Abandoned sales calls that can be reached through callback messaging. As folks call in, if no one is available, hang up and don't place their order at a later time. Can request a callback based on rules, capture the number and proactively perform a callback when inbound agents are waiting, to follow-up to help salvage opportunities. ACD Revenue Benefits - Call Back Messaging Year 1 Number of abandoned sales calls per day Average revenue per sales call Average agent sales close ratio Annual lost revenue per year from abandoned sales calls Anticipated percentage of recovered sales abandon calls Recovered sales calls per year Annual recovered revenue Average annual incremental margin from revenue 54 n56 $0.00 n n % n59 $0 n60 5.0% n61 3 n62 $0 n % n64 Copyright Alinean, Inc All rights reserved. Page 26

27 Annual recovered margin $0 n65 Analytics Productivity Gains from Pre-consolidated/Summarized Data Analytics productivity gains from pre-consolidated/summarized data. Analytics Productivity Gains from Pre-consolidated/Summarized Data Year 1 Number of reporting analysts 3.2 n66 Time spent per analyst doing report work (in minutes per day) 240 n n68 Total annual time spent on reporting analysis after Analytics implementation in hours 3,328 n69 Anticipated savings in analytics time 30.0% n70 Total person hour savings 998 n71 Average annual burdened salary rate for reporting analysts $38.28 n72 Total annual savings $38,208 n73 Analytics Revenue Gains from Better BI for CTI Analytics revenue benefit factor from better Business intelligence for CTI. Annual sales revenue from voice channel Annual up-sell revenue web channel Transaction value routing Year 1 Anticipated additional percentage revenue increase from better business data for estimated transaction value routing Annual revenue increase from better business data for estimated transaction value routing $0 n74 $0 n75 1.0% n76 $0 n77 Annual up-sell CTI revenue Annual increase in up-sell revenue from web collaboration Anticipated additional percentage revenue increase from better business data for up-selling Annual revenue increase from better business data for business data for up-selling $0 n78 $0 n79 3.0% n80 $0 n81 Total revenue gains Average incremental margin contribution Total incremental margin contribution $0 n % n83 $0 n84 Analytics Revenue Gains from Targeted Marketing Campaigns Analytics revenue benefit factor better targeted marketing campaigns. Analytics Revenue Gains from Targeted Marketing Campaigns Year 1 Total annual sales revenue from all channels Anticipated percentage revenue gain due to increased marketing effectiveness from better business data Annual revenue gain from increased marketing effectiveness from better business data Average incremental margin contribution Total incremental margin contribution $0 n85 1.0% n86 $0 n % n88 $0 n89 CTI Increased Productivity Screen pop can help to reduce the time needed per call. CTI Increased Productivity Year 1 Average number of calls per day handled by inbound agents Anticipated percentage of calls receiving pops Anticipated time saved per call in seconds Annual time savings from screen pop in hours 2,160 n n % n n93 1,872 n94 Copyright Alinean, Inc All rights reserved. Page 27

28 Average per hour burdened labor rate for inbound agents Annual labor benefit $25.52 n95 $47,779 n96 Call time savings (in hours) Average cost per network minute Annual network cost benefit 1,872 n97 $0.025 n98 $47 n99 Total Annual Benefit $47,826 n100 Voice and Data Transfer Screen pop can help to reduce the time spent on transferred calls. Voice and Data Transfer Year 1 Number of transferred calls per day Anticipated time saved per call in seconds 432 n n n103 Annual time saved from voice and data transfers in hours Average per hour burdened labor rate for inbound agents Annual labor benefit 468 n104 $25.52 n105 $11,945 n106 Call time savings (in hours) Average cost per network minute Annual network cost benefit 468 n107 $0.025 n108 $12 n109 Total Annual Benefit $11,957 n110 Customer Profiling through Intelligent Routing Time savings by routing the call to the correct resource to meet the particular customer's needs. Customer Profiling through Intelligent Routing Year 1 Average number of calls per day handled by inbound agents Anticipated reduction in average handle time due to customer profiling in seconds 2,160 n n n113 Annual time savings from customer profiling (in hours) Average per hour burdened labor rate for inbound agents Annual labor benefit 468 n114 $25.52 n115 $11,945 n116 Call time savings (in hours) Average cost per network minute Annual network cost benefit 468 n117 $0.025 n118 $12 n119 Total Annual Benefit $11,957 n120 Routing calls based on estimated value routing can help to improve call handling and drive higher close ratios and values, routing the more likely / higher value sales to top performers. Reducing Impact of Abandoned Calls Routing calls based on estimated value routing can help to improve call handling and drive higher close ratios and values, routing the more likely / higher value sales to top performers. Number of sales calls abandoned per day As Is Year 1 54 n121 Copyright Alinean, Inc All rights reserved. Page 28

29 Percentage of callers who won't call back Number of sales calls that won't call back Average agent sales close ratio Average revenue per sales call Annual lost revenue from abandon sales calls without estimated transaction value routing 20.0% n n % n124 $0.00 n n126 $0 n127 To Be Year 1 Anticipated percentage of calls profiled Abandon profiled calls who wont call back Abandon un-profiled calls who wont call back Average agent sales close ratio Average revenue per sales call Average sales close ratio per low end sales call (bottom 25%) Average revenue per low end sales call (bottom 25%) Anticipated revenue after implementing estimated transaction value routing Annual revenue retention from selective abandons through estimated transaction value routing Average incremental margin contribution Total incremental margin contribution 75.0% n128 8 n129 3 n % n131 $0.00 n % n133 $0.00 n134 $0 n135 $0 n % n137 $0 n138 Improve Sales Revenue Via Intelligent Routing Use estimated transaction value routing to select agents with the highest close ratio for highest value customers. n139 As Is Year 1 n140 Average number of calls per day handled by inbound agents 2,000 n141 Number of calls abandoned per day 54 n142 Total calls handled and not abandoned 1,946 n143 Average agent sales close ratio 25.0% n144 Average revenue per sales call $0.00 n n146 Annual revenue before estimated transaction value routing $0 n147 To Be Year 1 n148 Total calls handled and not abandoned 1,946 n149 Top performers n150 Percentage of calls routed to top performers 33.0% n151 Calls routed to top performers 642 n152 Top performing agent sales close ratio 32.5% n153 Top performing revenue per sales call $0.00 n154 Annual revenue for top performers $0 n155 Average performers n156 Percentage of calls routed to Average performers 33.0% n157 Calls routed to Average performers 642 n158 Average performing agent sales close ratio 25.0% n159 Average performing revenue per sales call $0.00 n160 Annual revenue for Average performers $0 n161 Bottom performers n162 Percentage of calls routed to Bottom performers 33.0% n163 Calls routed to Bottom performers 642 n164 Bottom performing agent sales close ratio 17.5% n165 Bottom performing revenue per sales call $0.00 n166 Annual revenue for Bottom performers $0 n167 Annual revenue after implementing estimated transaction value routing $0 n168 Annual revenue gain from estimated transaction value routing $0 n169 Average incremental margin contribution 20.0% n170 Total incremental margin contribution $0 n171 Improve Up-Sell Revenue Via Intelligent Routing Copyright Alinean, Inc All rights reserved. Page 29

30 Use estimated transaction value routing to select agents with the up-sell percentage for highest value customers. As Is Year 1 n172 Average number of calls per day handled by inbound agents 2,000 n173 Number of calls abandoned per day 54 n174 Total calls handled and not abandoned 1,946 n175 Average agent up-sell sales ratio 6.0% n176 Average revenue per up-sell $0.00 n n178 Annual up-sell revenue before estimated transaction value routing $0 n179 To Be Year 1 n180 Total calls handled and not abandoned 1,946 n181 Top performers n182 Percentage of calls routed to top performers 33.0% n183 Calls routed to top performers 642 n184 Top performing agent up-sell ratio 9.0% n185 Top performing revenue per up-sell $0.00 n186 Annual up-sell revenue for top performers $0 n187 Average performers n188 Percentage of calls routed to Average performers 33.0% n189 Average agent up-sell ratio 642 n190 Average revenue per up-sell 6.0% n191 Annual up-sell revenue for average performers $0.00 n192 Annual up-sell revenue for Average performers $0 n193 Bottom performers n194 Bottom agent up-sell ratio 33.0% n195 Bottom revenue per up-sell 642 n196 Annual up-sell revenue for Bottom performers 3.0% n197 Annual up-sell revenue for Bottom performers $0.00 n198 Annual revenue for Bottom performers $0 n199 Annual revenue after implementing estimated transaction value routing $0 n200 Annual up-sell revenue gain from estimated transaction value routing $0 n201 Average incremental margin contribution 20.0% n202 Total incremental margin contribution $0 n203 The following section is information only and not included in the benefits total due to the speculative nature of the impact of Intelligent Routing on 1-to-1 marketing. Total revenue gains from estimated transaction value routing Additional revenue increases estimated from 1:1 marketing Total incremental revenue from 1:1 marketing Average incremental margin contribution Total incremental margin contribution $0 n % n205 $0 n % n207 $0 n208 Total revenue gains from estimated transaction value routing Average incremental margin contribution Total incremental margin contribution $0 n % n210 $0 n211 ERMS Increased Productivity With ERMS, s can be automated and suggested responses provided helping to automate responses that are currently handled manually, reduce handling time, reduce repeat responses, and migrate calls to s with automated responses. ERMS Increased Productivity - Automated Handling Time Year 1 Average number of inbound handled s per day Average handling time per (in seconds) Total person hours spent on per year Anticipated percentage of s to be handled by automated response 1,080 n n n214 14,040 n % n216 Copyright Alinean, Inc All rights reserved. Page 30

31 Total handling person hour savings per year Average hourly burdened salary per inbound agent Total annual savings from automated response 3.9 n217 $25.52 n218 $100 n219 ERMS Increased Productivity - Reduction in Handling Time Year 1 Average number of inbound handled s per day 1,080 n220 Average handling time per (in seconds) 180 n n222 Total person hours spent on per year 14,040 Anticipated percentage of calls delivered with suggested response 50.0% Anticipated reduction in handle time due to suggested response in seconds and knowledge base 45 Total handling person hour savings per year 1,755 Average hourly burdened salary per inbound agent $25.52 n223 Total annual savings from suggested response $44,793 ERMS Increased Productivity - Reduction in Repeat Responses Year 1 Average number of inbound handled s per day 1,080 n224 Average number of s requiring repeat responses 20.0% n225 Total number of repeat s 216 n226 Average handling time per (in seconds) 180 n n228 Total person hours spent on per year 2,808 n229 Anticipated reduction in repeat responses 20.0% n230 Total handling person hour savings per year 562 n231 Average hourly burdened salary per inbound agent $25.52 n232 Total annual savings from reducing repeat responses $14,334 n233 ERMS Increased Productivity - Migration of Calls to s with Automated Responses Year 1 Average number of inbound calls handled by inbound agents per day 2,160 n234 Average talk time per call (in seconds) 340 n n236 Total person hours spent on handling calls per year 53,040 n237 Anticipated percentage of calls migrated to and handled by auto response 5.0% n238 Total call talk time savings per year 2,652 n239 Average hourly burdened salary per inbound agent $25.52 n240 Total annual savings from reducing repeat responses $67,688 n241 Total call talk time savings per year (minutes) Average cost per minute of network time Total savings in network time 2,652 n242 $0.025 n243 $3,978 n244 Total annual labor savings from automated / suggested response $130,892 n245 Gains from Agents not Spending Time On Non-live Calls Predictive dialing can improve Agent utilization by ensuring that a live customer is on the phone prior to engaging the agent. Count revenue or productivity from non-live call handling benefits? Both Gains from Agents not Spending Time On Non-live Calls - Productivity Improvements Year 1 Number of outbound calls per day Percentage of calls reaching live person today Total calls not reaching a live person today Average time spent per non-live call in seconds Total person hours per year spent on non-live calls Average hourly burdened salary per outbound agent Total annual labor savings from reducing time spent on non-live calls 72 n % n n n n250 0 n251 $25.52 n252 $11 n253 Gains from Agents not Spending Time On Non-live Calls - Productivity Improvements Year 1 Copyright Alinean, Inc All rights reserved. Page 31

32 Number of outbound calls per day Percentage of calls reaching live person today Total calls not reaching a live person today Average time spent per non-live call in seconds Total person hours per year spent on non-live calls Average hourly burdened salary per outbound agent Total annual labor savings from reducing time spent on non-live calls 12,800 n % n255 11,520 n n n258 24,960 n259 $25.52 n260 $637,059 n261 Gains from Agents not Spending Time On Non-live Calls - Revenue Improvements Year 1 Time recovered from non-live call handling (person hours per year) Average time per live sales call Number of additional calls per year Average sales close ratio per call Annual increase in closed sales calls Average annual revenue per call Annual revenue increase from reducing lost productivity on non-live calls Average incremental margin contribution Total incremental margin contribution 24,960 n n ,914 n % n265 80,229 n266 $0.00 n267 $0 n % n269 $0 n270 Blended Agent Additional Revenue from Non-Live Call Handling Savings Year 1 Idle time savings from blending inbound and outbound agents Average time per live sales call Number of additional calls per year Average sales close ratio per call Annual increase in closed sales calls Average annual revenue per call Annual revenue increase from reducing lost productivity on non-live calls Average incremental margin contribution Total incremental margin contribution 18,200 n n ,000 n % n274 58,500 n275 $0.00 n276 $0 n % n278 $0 n279 Realized Benefits - Both $637,059 n280 Pre-Call Network Benefit Network benefits from reduced queue times and reduced transferred calls, particularly between multi-site call centers. Pre-Call Network Benefit Queue Time Savings Year 1 Average number of inbound calls per day Anticipated reduction in queue time in seconds Total minutes saved from reduced queue time Average annual cost per network minute Annual network cost savings 2,160 n n n ,400 n284 $0.025 n285 $3,510 n286 Pre-Call Network Benefit Transferred Call Savings Year 1 Total number of transferred calls per day Additional handle time per transferred call Total handling time on transferred calls (in minutes) Anticipated percentage reduction in transferred calls (increased first call resolution) Annual minutes saved Average annual cost per network minute Annual network cost savings 432 n n n289 84,240 n % n291 25,272 n292 $0.025 n293 $632 n294 Cost for Pre-Call Routing (offsetting potential savings) Year 1 Average number of inbound calls per day Anticipated percentage of calls routed through call by call pre call routing Anticipated Pre call dip charge per call 2,160 n % n296 $0.01 n n298 Copyright Alinean, Inc All rights reserved. Page 32

33 Total $5,616 n299 Average number of inbound calls per day Anticipated percentage of calls routed through call by call pre call prompting Anticipated Pre call prompting charge per call Total 2,160 n % n301 $0.05 n n303 $8,424 n304 Total $14,040 n305 Total Realized Benefits (savings - costs) ($9,898) n306 Pre-Call Labor Benefit Labor Benefit from improved agent utilization and reduced transfers. Pre-Call Labor Benefit - Improved Utilization Year 1 Number of minutes per day that one center has available agents while another has queued calls Average number of available agents during the time when one center has available agents while another has queued calls Total annual labor benefit in hours Average burdened labor rate for inbound agents (cost per hour) Total annual improved utilization agent labor benefit 0 n307 0 n n309 0 n310 $25.52 n311 $0 n312 Pre-Call Labor Benefit - Reduced Transferred Call Labor Savings Year 1 Total number of transferred calls per day Additional handle time per transferred call Total handling time on transferred calls (in hours) Average burdened labor rate for inbound agents (cost per hour) Total annual lost productivity on transferred calls 432 n n n315 1,404 n316 $25.52 n317 $35,835 n318 Anticipated percentage reduction in transferred calls (increased first call resolution) Annual person hours saved Total annual productivity savings by reducing transferred calls 30.0% n n320 $10,750 n321 Pre-Call Labor Benefit - Reporting Analyst Labor Savings Year 1 Average minutes per analyst/per day spent on routing changes 300 n322 Anticipated minutes per day/per analyst spent making routing changes after ACR 30 n323 Saving per day (in minutes) 270 n324 Average number of call center/routing analysts 3 n n326 Annual person hours saved 3,744 n327 Average burdened labor rate for reporting analysts (cost per hour) $38.28 n328 Total annual reporting analyst labor savings $143,338 n329 Total realized benefits $154,088 n330 Savings from Reduced Overstaffing To reduce the likelihood of overstaffing, peaks and valleys in volume are used to create a staffing model. Savings from Reduced Overstaffing Year 1 Percentage overstaffed (when overstaffing occurs) Percentage of time overstaffed Total overstaffing Average number of agents (inbound and outbound) Average number of hours worked per agent per day 10% n331 5% n % n n n335 Copyright Alinean, Inc All rights reserved. Page 33

34 Annual overstaffed hours Anticipated percentage improvements in overstaffing due to intra-day time management Annual hours saved Average burdened labor rate for all agents (cost per hour) Annual labor benefit 260 n336 2,600 n % n n339 $25.52 n340 $13,272 n341 Savings from Reduced Overtime Staffing More effectively determination of intra-day fluctuations in volume can avoid unnecessary overtime costs. Savings from Reduced Overtime Staffing Year 1 Average overtime per day (total for all agents in hours) 100 n342 Overtime pay factor (n.n * base burdened salary) 1.5 n343 Average burdened labor rate for agents (cost per hour) $25.52 n n345 Total annual overtime costs $995,405 n346 Anticipated percentage reduction in overtime 30.0% n347 Annual labor benefit $298,621 n348 Savings from Reduction in Hours to Manage Scheduling Tasks A workforce management application can eliminate complex spreadsheets and reduce the time and labor needed to schedule. Savings from Reduction in Hours to Manage Scheduling Tasks Year 1 Number of scheduling analysts 3 n349 Average annual burdened labor for scheduling analysts (cost per year) $79,642 n350 Current annual costs of scheduling analysts $254,853 n351 Anticipated percentage of analysts saved with WFM 20.0% n352 Number of analysts after implementing WFM 2.6 n353 Annual costs of scheduling analysts after WFM $203,882 n354 Savings after WFM $50,971 Anticipated percentage of analysts saved with WFM multi-site addition Number of analysts with WFM Annual costs of scheduling analysts after WFM multi-site addition Savings after WFM multi-site 20.0% n n356 $163,106 n357 $40,776 n358 Annual labor benefit $91,747 n359 Savings from Real Time Adherence Readily viewable performance statistics allow supervisors to drive agents toward better adherence to schedules Savings from Real Time Adherence Year 1 Current out of adherence minutes per agent per day 30.0 n n361 Average number of agents (inbound and outbound) 250 n362 Total annual hours out of adherence 32,500.0 n363 Average burdened labor rate for all agents (cost per hour) $25.52 n364 Total cost of out of adherence time $829,504 n365 Anticipated percentage reduction to out of adherence 25.0% n366 Anticipated annual out of adherence time after improvements 8,125 n367 Annual labor benefit $207,376 n368 Agent Retention Improvements Copyright Alinean, Inc All rights reserved. Page 34

35 Better workforce management can lead to agent retention improvements that avoid the costs of replacement / training new agents. Agent Retention Improvements Current Benefits with ININ Solution Proposed (To Be) Number of agents n369 Agent turnover rate 10.0% 20.0% 8.0% n370 Average number of lost agents per year n371 Average cost per lost agent $3,000 $3,000 n372 Total cost from turnover $75,000 $15,000 $60,000 Recovered Abandons due to Better Staffing Appropriate scheduling can avoid understaffing, which results in higher abandon rates, inferior levels of service and lost revenue. Recovered Abandons due to Better Staffing Year 1 Average abandon calls per day Anticipated percentage of recovered sales abandon calls Average revenue per sales call Average agent sales close ratio Annual recovered revenue Average annual incremental margin from revenue Annual recovered margin 108 n % n374 $0.00 n % n n377 $0 n % n379 $0 n380 Savings from Increased IVR Utilization Repetitive low-value calls can offloaded from agents who would normally be tasked with handling such calls. Furthermore, additional transactions can be driving with IVR applications that avoid costs of handling the transaction. Savings from Increased IVR Utilization Year 1 Average number of inbound calls per day 2,160 n381 Average percentage of calls automated today 10.0% n382 Average number of calls per day that are currently automated 216 Anticipated improvement in percentage of calls automated with IVR 20.0% n383 Total daily decrease in calls handled by agents via IVR 432 n n385 Total annual decrease in calls handled by agents 112,320 n386 Average total call length (in seconds) 340 n387 Total annual labor savings in hours 10,608 n388 Average burdened labor rate for inbound agents (cost per hour) $25.52 n389 Annual labor benefit with IVR $270,750 n390 Additional IVR Application Savings Transactions Avg Saved % of Transactions Application Description Per Year Per Call Impacted Total Order Status (19% of service calls) 0 $ % $0 n391 Describe 0 $ % $0 n392 Describe 0 $ % $0 n393 Describe 0 $ % $0 n394 Describe 0 $ % $0 n395 Annual benefit from new IVR applications $0 Current spend on post call survey capabilities $0 Labor cost to conduct post call surveys and compile the results $0 Cost reduction with automated IVR based post call surveys 100.0% Total Savings with automated Post Call Surveys $0 Copyright Alinean, Inc All rights reserved. Page 35

36 Sales Revenue via IVR Callers who might otherwise abandon their call or phone a competitor may be more likely to complete purchases using automated self-service. Furthermore, specific applications can be developed for an IVR that can drive sales. Recovery of Lost Sales Calls via IVR Year 1 Average abandon sales calls per day Percentage of abandoned calls which could be handled by IVR Average abandon calls per day that can be automated Anticipated percentage of recovered sales abandon calls Average revenue per sales call Average agent sales close ratio Annual recovered revenue with IVR Average annual incremental margin from revenue Annual recovered margin 54 n % n n % n399 $0.00 n % n n402 $0 n % n404 $0 n405 Additional IVR Application Revenue Sales Txns Avg Rev % of Txns Application Description Per Year Per Txn Impacted Total Revenue Order Placement (5% of sales transaction) 0 $ % $0 n406 Describe 0 $ % $0 n407 Describe 0 $ % $0 n408 Describe 0 $ % $0 n409 Describe 0 $ % $0 n410 Annual revenue from new IVR applications Average annual incremental margin from revenue Annual net margin from new IVR applications $0 n % n412 $0 n413 Savings from Natural Speech Recognition Well-designed speech-enabled IVR applications encourage customers to use self-service automation and reduce call length. Savings from Natural Speech Recognition Year 1 Average number of inbound calls per day 2,160 n414 Anticipated additional percentage of calls automated via natural speech recognition 10.0% n415 Total daily decrease in calls handled by agents 216 n n417 Total annual decrease in calls handled by agents 56,160 n418 Average total call length (in seconds) 340 n419 Total annual labor savings in hours 5,304 n420 Average burdened labor rate for inbound agents (cost per hour) $25.52 n421 Annual labor benefit $135,375 n422 Network Time Savings from Natural Speech Recognition Year 1 Anticipated reduction in IVR handle time in seconds per call 10.0 n423 Total Annual network reduction in minutes 28,080 n424 Average cost per minute of network time $0.025 n425 Total savings in network time $42,120 n426 Total Annual Speech Recognition Benefit $177,495 n427 Revenue Recapture from Natural Speech Recognition Callers who might otherwise abandon may be more likely to complete purchases using natural speech recognition. Average abandon calls per day Additional Revenue Recovery from Reducing Abandoned Calls Year n428 Copyright Alinean, Inc All rights reserved. Page 36

37 Percentage of abandoned calls which could be handled by IVR Average abandon calls per day that can be automated Anticipated percentage of recovered sales abandon calls via natural speech recognition Average revenue per sales call Average agent sales close ratio Annual recovered revenue with IVR Average annual incremental margin from revenue Annual recovered margin 50.0% n n % n431 $0.00 n % n n434 $0 n % n436 $0 n437 Reduced Customer Churn Improving the customer experience with more efficient interaction management and reporting tools can reduce poorly-handled contacts or interactions that result in the loss of a valued customer. Anticipated improvement in churn rate 10.0% n438 Reduced Customer Churn - Revenue Loss Recovery Year 1 Current number of customers Current churn rate Approximate number of customers that churn per year Average revenue lost per customer turnover Average annual lost revenue from customer churn 0 n % n440 0 n441 $0.00 n442 $0 n443 Reduction in churn rate Number of retained customers due to decreased churn Average revenue lost per customer turnover Average annual recaptured lost revenue from reducing customer churn Average annual incremental margin from revenue Annual recovered margin 0.3% n444 0 n445 $0.00 n446 $0 n % n448 $0 n449 Reduced Customer Churn - Marketing Loss Recovery Year 1 Current number of customers Current churn rate Approximate number of customers that churn per year Average cost to acquire each customer Average annual additional marketing costs from customer churn 0 n % n451 0 n452 $0.00 n453 $0 n454 Reduction in churn rate Number of retained customers due to decreased churn Average cost to acquire each customer Average annual lost marketing spending recapture from reducing customer churn 0.3% n455 0 n456 $0.00 n457 $0 n458 Average annual revenue and marketing loss recapture from reducing customer churn $0 n459 Web Productivity Gain from Visual Aid Visually sharing online information with a caller leads to faster call resolution and a superior, well-rounded customer experience. Web Productivity Gain from Visual Aid - Labor Benefits Year 1 Average number of calls per day handled by inbound agents Anticipated percentage of voice calls aided by Web Anticipated reduction in handle time from visual interaction (in seconds) Annual time savings from visual interaction in hours Average burdened labor rate for inbound agents (cost per hour) Annual labor benefit 2,160 n n % n n n464 $25.52 n465 $5,972 n466 Web Productivity Gain from Visual Aid - Network Benefits Year 1 Annual time savings from visual interaction in hours 234 n467 Copyright Alinean, Inc All rights reserved. Page 37

38 Average cost per minute of network time Total savings in network time 2.5% n n469 Total 6,323 n470 Web Collaboration Revenue Gain from Live Sales Interaction Contact centers can essentially recognize the same sales close ratio during Web interactions that they experience with voice interactions. Web Collaboration Revenue Gain from Live Sales Interaction Year 1 Number of web hits per day lost without purchase Anticipated percentage of lost web hits retained through the use of Web Interaction Number of Web visitors and transactions retained Average revenue per successful web transaction Average daily revenue improvement Annual revenue increase from retention of lost web hits 0 n % n472 0 n473 $0.00 n474 $0 n475 $0 n476 Increase in sales from up-sell / cross-sell improvements Additional incremental revenue Average daily revenue improvement from improved up-sell Annual revenue increase from retention of lost web hits - up-sell $0.00 n477 $0 n478 $0 n479 $0 n480 Annual revenue increase from retention of lost web hits Average annual incremental margin from revenue Annual recovered margin $0 n481 $0 n482 $0 n483 Cost Avoidance on Current Interactive Solutions With a new customer interaction solution, current calling solutions may be replaced, avoiding the annual / upgrade hardware and software costs in these legacy solutions, as well as reducing labor management and support labor and costs. Cost Avoidance on Current Interactive Solutions Year 1 Current spending on legacy calling center solutions $125,000 n484 Savings with proposed ININ solution 100% n485 Total cost avoidance $125,000 n486 IT Staff and Support Productivity Improvements Current Benefits with ININ Solution Proposed (To Be) In-house IT staff % 5 n487 Average annual burdened salary $79,642 $79,642 n488 Total $477,850 $95,570 $382,280 n489 Outsourced IT staff % 0.0 n490 Average annual burdened fee $111,498 $111,498 n491 Total $0 $0 $0 n492 Total $477,850 $95,570 $382,280 n493 Cost Savings with QA/QM Leveraging more effective approaches to Quality Assurance and Quality Monitoring can Improving the agent productivity and ensure regulatory rules are complied with. Currently spend annually for quality monitoring products $0 Cost reduction with Interactive Intelligence Call recording 100.0% Total Savings with automated Post Call Surveys $0 Copyright Alinean, Inc All rights reserved. Page 38

39 Reduce Call Handling times with QA/QM Year 1 Average number of inbound calls handled by inbound agents per day 2,160 n494 Average talk time per call (in seconds) 340 n n496 Total person hours spent on handling calls per year 53,040 n497 Reduction in call handling through QA/QM from: Interactive Intelligence CIC integrated QM general improvement 0.0% n498 Random quality monitoring and live coaching 0.0% Agent requested quality monitoring and assistance 0.0% Quality Assurance training initiatives 0.0% Automated Keyword spotting 0.0% Screen Recording 0.0% Total call talk time savings per year 0 n499 Average hourly burdened salary per inbound agent $25.52 n500 Total annual savings from reducing call handling times $0 n501 Reduce Network time with QA/QM Year 1 Total call talk time savings per year (minutes) Average cost per minute of network time Total savings in network time 0 n502 $0.025 n503 $0 n504 Reduce Compliance Penalties with QA/QM Year 1 Potential Annual Compliance Penalty Risk (HPAA, PCI, Regulatory, etc.) $0 Likelihood of penalties above 0% n505 Reduction in likelihood of penalties 50% n506 Total savings from compliance penalty reductions $0 n507 Reduced Customer Churn Improving the customer experience with more efficient interaction management and reporting tools can reduce poorly-handled contacts or interactions that result in the loss of a valued customer. Improvement in Churn Rate from: Customer Interaction Center 0.0% n508 Quality Assurance / Quality Monitoring (QA / QM) Interactive Intelligence CIC integrated QM general improvement Random quality monitoring and live coaching Agent requested quality monitoring and assistance Quality Assurance training initiatives Automated Keyword spotting Screen Recording Improvement in churn rate from QA / QM Post Call Surveys Immediate/Timely follow up with customers Automated generation of post call survey questionnaire/application Realtime feedback of post call survey results Integrated action plans based on results Improvement in churn rate from Post Call Surveys 0.0% n % n % n % n % n % n % n515 n % n % n % n % n % n521 Anticipated improvement in churn rate 0.0% n522 Reduced Customer Churn - Revenue Loss Recovery Year 1 Current number of customers Current churn rate Approximate number of customers that churn per year Average revenue lost per customer turnover Average annual lost revenue from customer churn 0 n % n524 0 n525 $0.00 n526 $0 n527 Copyright Alinean, Inc All rights reserved. Page 39

40 Reduction in churn rate Number of retained customers due to decreased churn Average revenue lost per customer turnover Average annual recaptured lost revenue from reducing customer churn Average annual incremental margin from revenue Annual recovered margin 0.0% n528 0 n529 $0.00 n530 $0 n % n532 $0 n533 Reduced Customer Churn - Marketing Loss Recovery Year 1 Current number of customers Current churn rate Approximate number of customers that churn per year Average cost to acquire each customer Average annual additional marketing costs from customer churn 0 n % n535 0 n536 $0.00 n537 $0 n538 Reduction in churn rate Number of retained customers due to decreased churn Average cost to acquire each customer Average annual lost marketing spending recapture from reducing customer churn 0.0% n539 0 n540 $0.00 n541 $0 n542 Average annual revenue and marketing loss recapture from reducing customer churn $0 n543 Improved Customer Acquisition Improving the customer experience with more efficient interaction management and reporting tools can result in positive customer satisfaction and market awareness leading to an increase in the number of customers. Improved Customer Acquisition from: Customer Interaction Center 0.0% n544 Quality Assurance / Quality Monitoring (QA / QM) Interactive Intelligence CIC integrated QM general improvement Random quality monitoring and live coaching Agent requested quality monitoring and assistance Quality Assurance training initiatives Automated Keyword spotting Screen Recording Improved Customer Acquisition from QA / QM 0.0% n % n % n % n % n % n % n551 Post Call Surveys Immediate/Timely follow up with customers Automated generation of post call survey questionnaire/application Realtime feedback of post call survey results Integrated action plans based on results Improved Customer Acquisition from Post Call Surveys n % n % n % n % n % n557 Anticipated improvement in customer growth rate 0.0% n558 Improved Customer Acquisition - Increased Revenue Year 1 Current number of customers Current customer growth rate Approximate number of customers that are new per year Average annual revenue per customer Average annual revenue from new customers 0 n % n560 0 n561 $0.00 n562 $0 n563 New customer growth rate Number of new customers due to improved customer satisfaction and market awareness Average annual revenue per customer Average annual revenue from increasing new customers Average annual incremental margin from revenue Annual increased margin 0.0% n564 0 n565 $0.00 n566 $0 n % n568 $0 n569 Copyright Alinean, Inc All rights reserved. Page 40

41 Increased Revenue per Customer Improving the customer experience with more efficient interaction management and reporting tools can result in positive customer satisfaction and increasing the revenue per customer Increased Revenue per Customer from: Customer Interaction Center 0.0% n570 Quality Assurance / Quality Monitoring (QA / QM) Interactive Intelligence CIC integrated QM general improvement Random quality monitoring and live coaching Agent requested quality monitoring and assistance Quality Assurance training initiatives Automated Keyword spotting Screen Recording Improvement in churn rate from QA / QM 0.0% n % n % n % n % n % n % n577 Post Call Surveys Immediate/Timely follow up with customers Automated generation of post call survey questionnaire/application Realtime feedback of post call survey results Integrated action plans based on results Improvement in churn rate from Post Call Surveys n % n % n % n % n % n583 Anticipated improvement in customer spending 0.0% n584 Improved Customer Acquisition - Cross Selling Year 1 Current number of customers Average annual revenue per customer Average annual revenue from all customers Proposed Improvement Current number of customers Increased annual revenue per customer Average annual revenue from all customers Average annual revenue from increasing customer spending Average annual incremental margin from revenue Annual increased margin 0 n585 $0.00 n586 $0 n587 0 n588 $0.00 n589 $0 n590 $0 n % n592 $0 n593 End User UC Productivity and Conferencing Expense Reductions Individually, technologies such as VoIP, SIP, messaging, and presence can deliver huge benefits internally to companies by improving their operation costs. When brought together as a Unified Communications solution companies can experience significant improvements in internal user productivity. Improve End User Productivity with Unified Communications Year 1 Number of non-contact center users who will take advantage of UC features 10 n594 Projected benefit from: Presence 0.5% n595 Projected benefit from: Internal Chat and/or IM Integration 0.5% n596 Projected benefit from: On-Demand Call Recording 0.5% n597 Projected benefit from: Mobility 0.5% n598 Projected benefit from: On-Demand Conferencing 0.5% n599 Total potential productivity savings 2.5% n600 Average workhours per year per end user 1,880 n601 Average workhours saved per year per user 47 n602 Average hourly burdened salary per end user $72.36 n603 Total annual savings from unified communications $34,007 n604 Interaction Conference provides lower conferencing by avoiding outsourced conferencing vendors who typically charge on a perminute per use. Anticipated reduction in Third Party Conferencing Costs 90.0% n605 Copyright Alinean, Inc All rights reserved. Page 41

42 Conferencing - Third Party Expense Reduction Year 1 What percentage of your Third-Party voice conferences involve 120 or fewer parties? 95% n606 Reduction in Third-Party voice conference costs 86% n607 Average number of participant minutes per year 1,662,000 n608 Annual Spending on Third-Party voice conferencing per participant minute $0.15 n609 Annual conferencing savings $213,152 n610 Notes: 1. From Questionnaire. 2. Calculated from Questionnaire and Assumptions as the weighted average of the idle time for inbound and outbound agents, and the average work time per agent per day. 3. From Assumptions. 4. Average number of total agents X Average agent idle time per day (in minutes) / 60 X. 5. From Assumptions. 6. Total annual idle time per year (in person hours) for agents X Average burdened labor rate for agents. 7. Blending inbound agents with outbound tasks can help to reduce overall idle time with true blending, the ability to slow down or stop outbound dialing based on the number of incoming calls across multiple queues. Features such as call staging, an improved and patented dialing algorithm, and list management (skills based dialing enables larger lists; account vs. phone number completion; phone number & time of day strategies; alternate contact strategies , SMS; etc.) reduce idle time associated with outbound dialing and campaigns. 8. Idle time savings X Total annual idle time per year. 9. Idle time savings X Total agent idle time costs. 10. Ability to queue for every resource within the ACD simultaneously (Every agent, IVR port, trunk to outside location etc.). 11. Number of inbound phone contacts / calls per day from Questionnaire. 12. From Questionnaire. 13. Product of number of calls per day and percentage handled by agents. 14. From Assumptions. 15. Product of number of agent handled calls per day and total open days per year. 16. Estimated time saved per call by the ability to queue for every resource within the ACD simultaneously (Every agent, IVR port, trunk to outside location etc.). 17. Seconds saved per call due to simultaneous queuing X X Average calls per day X Percentage of calls handled by agents / 60 Seconds per minute / 60 minutes per hour. 18. From Assumptions. 19. Annual time savings from simultaneous queuing in hours X Agent hourly burdened salary. 20. From Assumptions. Copyright Alinean, Inc All rights reserved. Page 42

43 21. Annual time savings from simultaneous queuing in hours X 60 minutes X Network cost of one minute. 22. Annual labor benefit + Annual network cost benefit. 23. Reduction in transferred calls due to customer prompting and skill mapping: getting the call to the right resource. 24. From Assumptions. 25. From Assumptions. 26. From Assumptions. 27. Product of number of transferred calls per day, handling time per transferred calls (converted to minutes) and number of open days per year). 28. From Assumptions. 29. Annual lost productivity calculated as the hours of transferred calls per year and labor rate for agents. 30. Percentage reduction in transferred calls due to customer prompting and skill mapping: getting the call to the right resource. 31. Product of number of hours for transferred call handling and estimated reduction in number of transferred calls. 32. Product of number of person hours saved and burdened labor rate. 33. Number of inbound phone contacts / calls per day from Questionnaire. 34. From Questionnaire, inverse of how many are handled automatically today. 35. Product of number of calls per day and percentage handled by agents. 36. From Assumptions. 37. Product of number of agent handled calls per day and total open days per year. 38. From Assumptions. 39. Product of agent handled calls per year and average seconds per call (converted to person hours). 40. From Assumptions. 41. Annual lost productivity calculated as the hours of transferred calls per year and labor rate for agents. 42. Percentage of repetitive calls that can be handled by the voice processing system instead of agents. 43. Average agent handled calls per day X Average call length / 60 seconds per minute / 60 minutes per hour X Anticipated percentage of calls to be handled by informational announcements. 44. Annual lost productivity savings calculated as the hours of information calls per year saved and the hourly labor rate for agents. Copyright Alinean, Inc All rights reserved. Page 43

44 45. Number of inbound phone contacts / calls per day from Questionnaire. 46. From Assumptions. Anticipated number of seconds of ringing to play before connecting a call to an agent or announcement. 47. From Assumptions. 48. Anticipated average ring time X Average calls per day X / 60 seconds per minute. 49. From Assumptions. 50. Annual ring time in minutes X Network cost of one minute. 51. Time saved by having customized status screens and reports via the I3 ACD helps to save Supervisor time and improve productivity. 52. From Assumptions. 53. From Assumptions. 54. From Assumptions. 55. Anticipated time saved per supervisor per day X Average number of supervisors X / 60 minutes per hour X Supervisor hourly burdened salary. 56. From Assumptions. 57. From Questionnaire. 58. From Assumptions. 59. From Assumptions. 60. Number of abandoned sales calls per day X Average revenue per sales call X Number of days open per year X Average agent sales close ratio. 61. Percentage of abandoned sales calls that can be reached through callback messaging. Default is set to 5%. 62. Anticipated percentage of recovered sales abandon calls X Number of abandon sales calls per day. 63. X Average revenue per sales call X Number of recovered sales abandon calls X Average agent sales close ratio. 64. From Assumptions. The percentage of the additional revenue above to be considered. 65. The margin on additional revenue from call back messaging. 66. From Assumptions. 67. From Assumptions. 68. From Assumptions. 69. Number of reporting analysts X Time spent per analyst doing reporting work X Number of days open per year / Minutes per Copyright Alinean, Inc All rights reserved. Page 44

45 hour. 70. Projected reduction in labor due to pre-consolidation, summarization of data. Default is set to 30%. 71. Annual hours spent reporting X percent savings. 72. From Assumptions. 73. Person hour savings X burdened salary rate. 74. From Questionnaire and Assumptions, total number of (inbound calls - number of calls abandoned) * average close rate * average revenue per sale*open days per year. Can be edited here. 75. From Questionnaire and Assumptions, calculated as the total number of visitors X conversion rate X average revenue per transaction X operating days per year. 76. Anticipated additional percentage revenue increase from better business data for estimated transaction value routing X Total annual sales revenue from all live channels including voice and web channels. 77. Anticipated additional percentage revenue increase from better business data for estimated transaction value routing X Total annual sales revenue from all live channels including voice and web channels. 78. From Improve Up-Sell Revenue Via Intelligent Routing, annual up-sell revenue after implementing intelligent routing. 79. From Web Collaboration Benefits, Revenue increase. 80. Anticipated additional percentage revenue increase from better business data for up-selling all live channels including voice and web channels when intelligent routing is also used. 81. Anticipated additional percentage revenue increase from better business data for up-selling with intelligent routing X Total annual sales revenue from all live channels. 82. Revenue from estimated transaction value routing and up-selling benefits of analytics. 83. From Assumptions. The percentage of the additional revenue above to be considered. 84. The margin on additional revenue from analytics. 85. From Questionnaire, product of total number of customers and average annual revenue per customer per year. 86. Anticipated improvement in marketing activities resulting from use of Analytics tools. 87. Anticipated percentage revenue gain due to increased marketing effectiveness from better business data X Total annual sales revenue from all channels. 88. From Assumptions. The percentage of the additional revenue above to be considered. 89. The margin on additional revenue from analytics. 90. Number of inbound phone contacts / Calls per day from Questionnaire. 91. From Details. Copyright Alinean, Inc All rights reserved. Page 45

46 92. If calls are popped based on ANI use the anticipated ANI delivery % If based on caller entered digits, what % of accurate database lookups is anticipated. 93. Seconds saved by implementing screen pop (I.e. the estimated number of seconds it would have taken an agent to retrieve data manually). Set in Benefit - CTI Increased Productivity. Go to Benefits Summary and click on benefit to review and edit. 94. Average calls per day X Percentage of calls handled by agents X X Anticipated time saved per call in seconds X Anticipated calls receiving screen pops / 60 minutes per second / 60 minutes per hour. 95. From Assumptions. 96. Annual time savings from screen pop in hours X Agent hourly burdened salary. 97. Time savings from above. 98. From Details. 99. Annual time savings from screen pop in hours X 60 seconds X Network cost of one minute Annual labor benefit + Annual network cost benefit From Assumptions From Assumptions Seconds saved by implementing screen pop (I.e. the estimated number of seconds it would have taken an agent to retrieve data manually). Set in Benefit - CTI Increased Productivity. Go to Benefits Summary and click on benefit to review and edit Number of transferred calls per day X X Anticipate time saved per call in seconds / 60 seconds per minute / 60 minutes per hour From Assumptions Annual time savings from screen pop in hours X Agent hourly burdened salary Time savings from above From Assumptions Annual time savings from screen pop in hours X 60 seconds X Network cost of one minute Annual labor benefit + Annual network cost benefit Number of inbound phone contacts / Calls per day from Questionnaire From Assumptions Time saved by routing the call to the correct resource to meet the particular customer's needs Anticipated reduction in average handle time due to customer profiling in seconds X Average number of calls per day X Percentage of calls handled by agents X / 60 seconds per minute / 60 minutes per hour From Assumptions. Copyright Alinean, Inc All rights reserved. Page 46

47 116. Annual time savings from screen pop in hours X Agent hourly burdened salary Time savings from above 118. From Assumptions Annual time savings from screen pop in hours X 60 seconds X Network cost of one minute Annual labor benefit + Annual network cost benefit From Assumptions From Assumptions Product of number of calls X Percentage of callers that won't call back From Assumptions From Questionnaire From Assumptions Number of abandon sales calls per day X Percentage of callers who won't call back X Average agent sales close ration X Average revenue per sales call X Percentage of abandoned calls profiled to identify low-end sales opportunities Number of previously abandoned calls that profiling can help drive toward revenue Number of previously abandoned calls that remain unprofiled and continue to reflect lost revenue From Assumptions From Questionnaire From Assumptions From Questionnaire For unprofiled, and profiled, using low performer success for profiled, calculated as Number of abandon sales calls per day X Percentage of callers who won't call back X Average agent sales close ration X Average revenue per sales call X Number of open days per year Anticipated percentage revenue increase from estimated transaction value routing X Lost revenue from abandons Percentage of the recovered revenue above to be applied to this analysis The margin on additional revenue from reducing impact of abandoned calls For customers with the highest estimated value, using estimated transaction value routing also enables the selection of agents with the highest close ratio. Without estimated transaction value routing, calls are sent to agents regardless of close ratio. Copyright Alinean, Inc All rights reserved. Page 47

48 140. Without estimated transaction value routing, calls are sent to agents regardless of close ratio Number of inbound sales phone contacts / Calls per day from Questionnaire From Assumptions Inbound call volume less abandoned call volume From Assumptions From Questionnaire From Assumptions Number of sales calls per day handled and not abandoned X Average agent close ratio X Average revenue per sale X Number of open days per year For customers with the highest estimated value, using estimated transaction value routing also enables the selection of agents with the highest close ratio Inbound call volume less abandoned call volume For customers with the highest estimated value, using estimated transaction value routing also enables the selection of agents with the highest close ratio Estimate the number of high value customer transactions that can successfully steered to the best performing sales agents Total call handled X Percentage routed to top performers From Assumptions From Questionnaire Call routed to top performers X Top performer close ratio X Top performer revenue per sale X For customers with typical or unknown value, no use of estimated transaction value routing Estimate the number of customer transactions that are either of average or unknown value to be steered to the average performing sales agents Total call handled X Percentage routed to average performers From Assumptions From Questionnaire Call routed to average performers X Average performer close ratio X Average performer revenue per sale X Number of open days per year For customers with the lowest estimated value, using estimated transaction value routing also enables the selection of agents with the lowest close ratio. Copyright Alinean, Inc All rights reserved. Page 48

49 163. Estimate the number of customer transactions that are either of low value to be steered to the lower performing sales agents Total call handled X Percentage routed to bottom performers From Assumptions From Assumptions Call routed to bottom performers X Bottom performer close ratio X Bottom performer revenue per sale X Number of open days per year Total Revenue after segmenting for value and routing appropriately Anticipated revenue increase from estimated transaction value routing over routing without intelligent routing Percentage of the additional revenue above to be applied to this analysis The margin on additional revenue to be applied to this analysis Without estimated transaction value routing, calls are sent to agents regardless of up-sell capabilities Number of inbound sales contacts per day from Questionnaire From Assumptions Inbound call volume less abandoned call volume From Assumptions From Questionnaire From Assumptions Number of sales calls per day handled and not abandoned X Average agent close ratio X Average revenue per sale X Number of open days per year For customers with the highest estimated value, using estimated transaction value routing also enables the selection of agents with the highest up-sell percentage Inbound call volume less abandoned call volume For customers with the highest estimated value, using estimated transaction value routing also enables the selection of agents with the highest up-sell percentage Estimate the number of high value customer transactions that can successfully steered to the best performing sales agents Total call handled X Percentage routed to top performers From Assumptions From Questionnaire. Copyright Alinean, Inc All rights reserved. Page 49

50 187. Call routed to top performers X Top performer up-sell percentage X Top performer up-sell revenue per sale X Number of open days per year For customers with the unknown or average value, using estimated transaction value routing also enables the selection of agents with an average up-sell percentage Estimate the number of unknown or average value customer transactions that can successfully steered to lower performing sales agents Total call handled X Percentage routed to average performers From Assumptions From Questionnaire Call routed to average performers X Average performer up-sell percentage X Average performer up-sell revenue per sale X For customers with the lowest estimated value, using estimated transaction value routing also enables the selection of agents with the lowest up-sell percentage Estimate the number of low value customer transactions that can successfully steered to lower performing sales agents Total call handled X Percentage routed to low performers From Assumptions From Questionnaire Call routed to low performers X Low performer up-sell percentage X Low performer up-sell revenue per sale X Number of open days per year Total Revenue after segmenting for value and routing appropriately Anticipated up-sell revenue increase from estimated transaction value routing over routing without intelligent routing Percentage of the additional revenue above to be applied to this analysis The margin on additional revenue to be applied to this analysis Summary of three categories of potential CTI revenue benefits before margin percentage application Projected percentage increase in revenue derived from 1-to-1 marketing driving sales. Defaults to 1% Calculated additional 1-to-1 marketing benefit revenue impact From Assumptions. The percentage of the additional revenue above to be considered The margin on additional revenue from 1-to-1 marketing Summary of three categories of potential CTI revenue benefits plus the additional 1-to-1 marketing addition. Copyright Alinean, Inc All rights reserved. Page 50

51 210. From Assumptions. The percentage of the additional revenue above to be considered The margin on all CTI revenue additional revenue. Informational only, not included in total benefits calculation From Questionnaire From Assumptions From Assumptions Number of inbound s X Time average handling time (seconds) X Open days per year / Seconds per hour Estimate the amount of transactions fully automated by ERMS. Defaults to 5% Average number of inbound s X Percentage automatically handled X Average handling time per From Assumptions Annualized savings from automated hour savings X Average hour burdened rate From Questionnaire From Details From Details From Details From Questionnaire From Assumptions Inbound handled s X Percentage categorized as repeats From Assumptions From Assumptions Number of repeat s X Average handling time / Number of seconds per hour Improvement percentage from ERMS suggested responses and knowledge base Person hours spent on repeat s X Percent reduction in repeat responses From Assumptions Annualized savings from repeat response hour saving X Average hour burdened rate Number of inbound phone contacts / Calls per day from Questionnaire From Assumptions. Copyright Alinean, Inc All rights reserved. Page 51

52 236. From Assumptions Number of inbound handled calls X Average talk time X Operating days / seconds per hour Proactive communications with customers can steer transactions to effective auto-response systems. Defaults to 5%. Note, this does not include agent handled contacts Person hours spent talking X Percentage migrated to auto response From Assumptions Annualized savings from talktime hour savings per year X Average hour burdened rate Person hours spent talking X 60 minutes per hour From Assumptions Call talk time minute saving per year X Cost per minute of voice network time ERMS Productivity Benefits of Auto handling + Reduction in handling time + Reduction in repeat responses + Migration of voice calls to auto handled + Voice call reduction network cost reduction From Questionnaire From Assumptions Number of outbound calls per day X Percentage of calls NOT reaching a live person From Assumptions From Assumptions Number of calls not reaching a live person X Duration of non-live calls X Operating days / seconds per hour From Assumptions Annualized savings from non-live call hour savings per year X Average hour burdened rate From Questionnaire 255. From Assumptions Number of outbound calls per day X Percentage of calls NOT reaching a live person From Assumptions From Assumptions Number of calls not reaching a live person X Duration of non-live calls X Operating days / seconds per hour. Copyright Alinean, Inc All rights reserved. Page 52

53 260. From Assumptions Annualized savings from non-live call hour savings per year X Average hour burdened rate Number of calls not reaching a live person X Duration of non-live calls X Operating days / seconds per hour From Assumptions Time recovered from non-live calls / Average time per sales call X seconds per hour From Assumptions Number of additional sales calls per year X Average sales close ratio per call From Questionnaire 268. Annual increase in closed sales calls X Average revenue per sales call From Assumptions. The percentage of the additional revenue above to be considered The margin on additional revenue from recovering non-live call productivity From Enable Inbound and Outbound Blended Agents benefit From Assumptions Time recovered from non-live calls / Average time per sales call X seconds per hour From Assumptions Number of additional sales calls per year X Average sales close ratio per call From Questionnaire Annual increase in closed sales calls X Average revenue per sales call From Assumptions. The percentage of the additional revenue above to be considered The margin on additional revenue from recovering non-live call productivity Uses switch above to determine what to include in the calculation Number of inbound phone contacts / Calls per day from Questionnaire Indicate the likely reduction in queue time from improved routing to available agents across the network From Assumptions Average number of calls per day enterprise wide X Anticipated reduction in queue time in seconds / 60 seconds per minute X. Copyright Alinean, Inc All rights reserved. Page 53

54 285. From Assumptions Total minutes saved from reduced queue time X Average annual cost per network minute From Assumptions From Assumptions From Assumptions Number of transferred calls per day X Handling time per transferred calls (converted to minutes) X Percentage reduction in transferred calls due to customer prompting and skill mapping: getting the call to the right resource Product of number of minutes for transferred call handling and estimated reduction in number of transferred calls From Assumptions Annual time savings from reduction of transferred calls in hours X 60 minutes X Network cost of one minute Number of inbound phone contacts / Calls per day from Questionnaire Subset of all inbound calls inspected for network routing. Default set to 100% Network routing charge per call. Defaults to $0.01 per call From Assumptions Average number of inbound calls per day X Anticipated percentage of pre-routed calls X Pre-routing per call charge X Operating days From Questionnaire Subset of all inbound calls prompted for network routing. Default set to 50% Network prompting charge per call. Defaults to $0.05 per call From Assumptions Average number of inbound calls per day X Anticipated percentage of pre-routed calls with prompting X Pre-routing prompting per call charge X Operating days Sum of pre-call routing charges + Pre-call prompting charges Projected pre-call queuing and transfer benefits less pre-call routing costs From Assumptions From Assumptions From Assumptions. Copyright Alinean, Inc All rights reserved. Page 54

55 310. Number of minutes per day that one center has available agents while another has queued calls X Average number of available agents during the time when one center has available agents while another has queued calls X / 60. Reflects the total recoverable hours from load balancing across centers From Assumptions Total annual labor benefit in hours X Agent hourly burdened salary From Assumptions From Assumptions From Assumptions Number of transferred calls per day X Handling time per transferred calls (converted to minutes) X From Assumptions Annual lost productivity calculated as the hours of transferred calls per year and labor rate for agents Percentage reduction in transferred calls due to pre-call routing Number of hours for transferred call handling X Estimated reduction in number of transferred calls Number of person hours saved X Burdened labor rate Typical time spent by a dedicated analyst performing routing job functions % of original time estimated Difference in time before - time after From Assumptions From Assumptions Number of hours for reporting analyst time X Estimated reduction in reporting time From Assumptions Annual person hours saved X Burdened labor rate Sum of improved agent utilization + Reduced transferred call labor + Routing analyst labor savings From Assumptions From Assumptions Percentage Overstaffed (When Overstaffing Occurs) X Percentage of Time Overstaffed From Questionnaire. Copyright Alinean, Inc All rights reserved. Page 55

56 335. From Assumptions From Assumptions Total overstaffing X Average number of agents X X Open hours per day Accounting for peaks and valleys in demand can provide for better staffing models, improving utilization. Improvements defaults to 20% Anticipated percentage improvements in overstaffing due to intra-day time management X Annual overstaffed hours From Assumptions Annual hours saved X Agent hourly burdened salary From Assumptions From Assumptions From Assumptions From Assumptions Overtime pay hours per day X Overtime pay factor X Burdened labor rate for agents X Better scheduling and planning tools can result in reductions in overtime staffing. Default is set to 30% Anticipated percentage reduction in overtime X (Overtime pay factor) X Agent hourly burdened salary X Average overtime per day (total for all agents in hours) X From Assumptions From Assumptions Average scheduling manager/analyst annual burdened salary X Average number of analysts today Automated scheduling tools reduce the labor requirement for schedules by at least 20% (default value) Product of number of analysts and percentage with WFM Product of number of analysts after WFM and average annual salary Automated scheduling tools that balance schedules across available sites further reduce scheduler labor requirements. Default is set to 20% Product of number of analysts and percentage with WFM Product of number of analysts after WFM multi-site and average annual salary The additional benefit of WFM multi-site. Copyright Alinean, Inc All rights reserved. Page 56

57 359. Anticipated percentage reduction in overtime X (Overtime pay factor) X Agent hourly burdened salary X Average overtime per day (total for all agents in hours) X From Assumptions From Assumptions From Questionnaire Average out of adherence minutes per day X Work days per year X Average number of agents / 60 minutes per hour From Assumptions Total annual out of adherence hours X Hourly burden agent salary Projected improvement in adherence. Default is set to 25% Anticipated percentage reduction in out of adherence X Total annual out of adherence hours Total annual out of adherence cost today- (anticipated total annual out of adherence hours x hourly burdened agent salary) From Questionnaire. Total Inbound and Outbound Agents Improved WFM introduces greater fairness and flexibility for best performing agents and improves retention. Default improvement set at 20% Number of agents X Agent turnover rate From Assumptions, average costs to replace a lost agent From Assumptions Avoiding understaffing can ensure that fewer abandons occur. Improvement defaults to 5% From Questionnaire From Assumptions From Assumptions Anticipated percentage of recovered sales abandon calls X Revenue per sales call X Number of abandon sales calls per day X X Average agent sales close ratio From Assumptions. The percentage of the additional revenue above to be considered The margin on additional revenue from recovering abandons due to better staffing Number of inbound phone contacts / Calls per day from Questionnaire From Questionnaire, calculated as inverse of calls handled by agents. Copyright Alinean, Inc All rights reserved. Page 57

58 383. Improvements can result from better design of existing applications, automation of new applications and functions, and introduction of speech recognition capabilities for greater adoption. The default improvement is set at 20% (Anticipated percentage of calls automated - Percentage of calls that are automated today) X Average calls per day From Assumptions (Anticipated percentage of calls automated - Percentage of calls that are automated today) X Average calls per day X Number of open days per year From Assumptions Total annual decrease in calls handled by agents X Average total call length (sec) / 60 seconds per minute / 60 minutes per hour From Assumptions Total annual labor savings in hours X Agent hourly burdened salary Enter a description and volume for the IVR application to be developed. Average Saved per call is derived from Agent hourly rate above time average call length Enter a description and volume for the IVR application to be developed. Average Saved per call is derived from Agent hourly rate above time average call length Enter a description and volume for the IVR application to be developed. Average Saved per call is derived from Agent hourly rate above time average call length Enter a description and volume for the IVR application to be developed. Average Saved per call is derived from Agent hourly rate above time average call length Enter a description and volume for the IVR application to be developed. Average Saved per call is derived from Agent hourly rate above time average call length From Assumptions By using an IVR, a business s customers can place orders 24 hours a day, 7 days a week without agent assistance Average abandon sales calls per day X Percentage of abandoned calls that could be handled by IVR Of the previous abandoned calls handled by the IVR, the percentage that become sales (recovered) From Questionnaire From Assumptions From Assumptions Anticipated percentage of recovered sales abandon calls X Revenue per sales call X Number of abandon sales calls per day X X Average agent sales close ratio From Assumptions. The percentage of the additional revenue above to be considered The margin on additional revenue from recovering lost sales calls via IVR. Copyright Alinean, Inc All rights reserved. Page 58

59 406. Enter a description and volume for the IVR application to be developed. Average Saved per call is derived from Agent hourly rate above time average call length Enter a description and volume for the IVR application to be developed. Average Saved per call is derived from Agent hourly rate above time average call length Enter a description and volume for the IVR application to be developed. Average Saved per call is derived from Agent hourly rate above time average call length Enter a description and volume for the IVR application to be developed. Average Saved per call is derived from Agent hourly rate above time average call length Enter a description and volume for the IVR application to be developed. Average Saved per call is derived from Agent hourly rate above time average call length Anticipated percentage of recovered sales abandon calls X Revenue per sales call X Number of abandon sales calls per day X X Average agent sales close ratio From Assumptions. The percentage of the additional revenue above to be considered The margin on additional revenue from IVR automated business transactions Number of inbound phone contacts / Calls per day from Questionnaire Speech can often increase the number of calls available for automation by 10% or more. Default is set to 10% above current automation rates, but not more than 80% (Anticipated percentage of calls automated - Percentage of calls that are automated today) X Average calls per day From Assumptions Daily decrease in agent handled calls per day X From Assumptions Total annual decrease in calls handled by agents X Average total call length (sec) / seconds per hour From Assumptions Total annual labor savings in hours X Agent hourly burdened salary Well designed speech recognition can reduce the duration IVR handled calls over agent handled or touch tone handled calls. Anticipated duration reduction over all IVR handled calls defaults to 10 seconds per call (Anticipated target percentage of calls automated + Anticipated percentage of calls automated) X Average calls per day X X Anticipated reduction in IVR handle time in seconds / 60 seconds per minute From Assumptions Total annual network reduction minutes X Average cost per minute of network time Annual labor benefit + Savings in network time from natural language speech recognition. Copyright Alinean, Inc All rights reserved. Page 59

60 428. From Assumptions By using a speech-enabled IVR, a business s customers can place orders 24 hours a day, 7 days a week without agent assistance Average abandon sales calls per day X Percentage of abandoned calls that could be handled by IVR Of the previous abandoned calls handled by the IVR, the percentage that become sales (recovered) From Questionnaire From Assumptions From Assumptions Anticipated percentage of recovered sales abandon calls X Revenue per sales call X Number of abandon sales calls per day X X Average agent sales close ratio From Assumptions. The percentage of the additional revenue above to be considered The margin on additional revenue from recovering lost sales calls via Natural Language Speech in the IVR Default assumption is to reduce defecting customers by 10% From Questionnaire From Assumptions Number of current customers X Approx. churn % of customer base per year From Questionnaire Average number of customers churned per year X Average revenue lost per customer Anticipated improvement X Current churn rate Reduction in churn rate X Current number of customers From Questionnaire. A lost customer takes their annual spend with them Average number of customers churned per year X Average revenue lost per customer From Assumptions Revenue X Margin From Questionnaire From Assumptions Number of current customers X Approx. churn % of customer base per year. Copyright Alinean, Inc All rights reserved. Page 60

61 453. From Assumptions. Cost to replace lost customers Average number of customers churned per year X Average marketing costs per customer Anticipated improvement X Current churn rate Reduction in churn rate X Current number of customers From Assumptions Average number of customers churned per year X Average marketing costs to recapture customer Average number of customers churned per year X Average marketing costs to recapture customer Number of inbound phone contacts / Calls per day from Questionnaire From Assumptions Only a subset of calls will lend themselves to using web interaction support. Default is set to 5% Visually sharing documents such as a product summary or linked files for brochures, technical data sheets, can improve voice calls Average Voice calls per day X Percentage of calls handled by agents X X Anticipated percentage of voice calls aided by Web Interaction X Anticipated reduction in handle time from visual interaction / 60 seconds per minute / 60 minutes per hour From Assumptions Annual time savings from visual interaction in hours X Agent hourly burdened salary Annual time savings from visual interaction in hours X 60 minutes per hour From Assumptions Annual time savings from visual interaction in hours X Network cost of 1 minute X 60 minutes per hour Annual labor benefit + Savings in network time from web productivity From Assumptions. Average web hits per day X Percentage of web hits lost without purchase Estimated benefits of implementing the ININ solution Anticipated percentage of lost web hits retained through the use of Web Interaction X Number of web hits per day lost without purchase From Assumptions Number of web visitors and transaction retained X Average revenue per successful web transaction Anticipated percentage of lost web hits retained through the use of Web Interaction X Number of web hits per day lost without purchase X Average revenue per successful web hit X Number of Operating Days per Year (Assumptions). Copyright Alinean, Inc All rights reserved. Page 61

62 477. Because web agents are equipped with visual online aids such as photos and product datasheets, it s quite possible that the Web sales close ratio will be better than voice sales close ratios. Moreover by enabling agents to push other product pages that might interest the customer, agents can effectively cross-sell products and services, raising the Web up-sell ratio even higher than voice. Default estimated benefit reflects a 10% improvement over average revenue per successful web transaction Product of current transaction price X Up-sell / cross-sell improvement Additional incremental revenue per sale X Number of web visitors and transactions retained per day Average daily revenue improvement X Operating days Anticipated percentage of lost web hits retained through the use of Web Interaction X Number of web hits per day lost without purchase X Average revenue per successful web hit X 365 days per year From Assumptions Revenue X Margin The average annual spending over the next three years to support, maintain the existing call center solution which is a candidate for replacement with the proposed ININ solution. This is estimated at $500 per agent annually. From Questionnaire! 485. Estimated maintenance cost reduction (increase) with the proposed solution. If maintenance is expected to be reduced to 30% of the previous amount, enter 70% (the amount of savings) here. Do not include maintenance costs for the new solution as these are included under the investment tab The amount to be saved on an annual basis by migrating to a new solution IT staff levels from Questionnaire. Enter the projected reduction (increase) of in-house IT staff with the new solution From Assumptions IT staff costs currently, projected savings, and projected staffing costs Outsourced IT staff levels from Questionnaire. Enter the projected reduction (increase) of in-house IT staff with the new solution From Assumptions Outsourced IT staff costs currently, projected savings, and projected staffing costs Total benefits (costs) from reduction (increase) in in-house IT staff, outsourced IT staff, and managed services contracts Number of inbound phone contacts / calls per day from Questionnaire 495. From Assumptions From Assumptions Number of inbound handled calls X Average talk time X Operating days / seconds per hour 498. Agent productivity base improvement based on the maturity of current recording and scoring solutions with a maximum of 20% improvement Person hours spent talking X Percentage migrated to auto response. Copyright Alinean, Inc All rights reserved. Page 62

63 500. From Assumptions Annualized savings from talktime hour savings per year X Average hour burdened rate Person hours spent talking X 60 minutes per hour From Assumptions Call talk time minute saving per year X Cost per minute of voice network time Person hours spent talking X 60 minutes per hour Person hours spent talking X 60 minutes per hour Call talk time minute saving per year X Cost per minute of voice network time Default assumption is to reduce defecting customers by 5% from reduced queue times, better routing to skilled agents, and overall customer service efficiencies Quality Assurance and Quality monitoring in general improve each agents ability to deal with unhappy customers. The default improvement assumed with the implementation of quality monitoring is derived from the degree of automation already in place Proactive communications with customers can steer transactions to effective auto-response systems. Defaults to 5%. Note, this does not include agent handled contacts Proactive communications with customers can steer transactions to effective auto-response systems. Defaults to 5%. Note, this does not include agent handled contacts Proactive communications with customers can steer transactions to effective auto-response systems. Defaults to 5%. Note, this does not include agent handled contacts Proactive communications with customers can steer transactions to effective auto-response systems. Defaults to 5%. Note, this does not include agent handled contacts Proactive communications with customers can steer transactions to effective auto-response systems. Defaults to 5%. Note, this does not include agent handled contacts Default assumption is to reduce defecting customers by 10% Selections on the assumptions tab relative to post call surveys result in default improvement percentages below Proactive communications with customers can steer transactions to effective auto-response systems. Defaults to 5%. Note, this does not include agent handled contacts Proactive communications with customers can steer transactions to effective auto-response systems. Defaults to 5%. Note, this does not include agent handled contacts Proactive communications with customers can steer transactions to effective auto-response systems. Defaults to 5%. Note, this does not include agent handled contacts Proactive communications with customers can steer transactions to effective auto-response systems. Defaults to 5%. Note, this does not include agent handled contacts. Copyright Alinean, Inc All rights reserved. Page 63

64 521. Sum of the Post Call Survey impact above Sum of the customer churn impacts of CIC, QA/QM, and Post Call Survey total above From Questionnaire From Assumptions Number of current customers X Approx. churn % of customer base per year From Questionnaire Average number of customers churned per year X Average revenue lost per customer Anticipated improvement X Current churn rate Reduction in churn rate X Current number of customers From Questionnaire. A lost customer takes their annual spend with them Average number of customers churned per year X Average revenue lost per customer From Assumptions Revenue X Margin From Questionnaire From Assumptions Number of current customers X Approx. churn % of customer base per year From Assumptions. Cost to replace lost customers Average number of customers churned per year X Average marketing costs per customer Anticipated improvement X Current churn rate Reduction in churn rate X Current number of customers From Assumptions Average number of customers churned per year X Average marketing costs to recapture customer Average number of customers churned per year X Average marketing costs to recapture customer Default assumption is to reduce defecting customers by 1% from reduced queue times, better routing to skilled agents, and overall customer service efficiencies Quality Assurance and Quality monitoring in general improve each agents ability to deal with unhappy customers. The default improvement assumed with the implementation of quality monitoring is derived from the degree of automation already in place. Copyright Alinean, Inc All rights reserved. Page 64

65 546. Proactive communications with customers can steer transactions to effective auto-response systems. Defaults to 5%. Note, this does not include agent handled contacts Proactive communications with customers can steer transactions to effective auto-response systems. Defaults to 5%. Note, this does not include agent handled contacts Proactive communications with customers can steer transactions to effective auto-response systems. Defaults to 5%. Note, this does not include agent handled contacts Proactive communications with customers can steer transactions to effective auto-response systems. Defaults to 5%. Note, this does not include agent handled contacts Proactive communications with customers can steer transactions to effective auto-response systems. Defaults to 5%. Note, this does not include agent handled contacts Default assumption is to reduce defecting customers by 10% Selections on the assumptions tab relative to post call surveys result in default improvement percentages below Proactive communications with customers can steer transactions to effective auto-response systems. Defaults to 5%. Note, this does not include agent handled contacts Proactive communications with customers can steer transactions to effective auto-response systems. Defaults to 5%. Note, this does not include agent handled contacts Proactive communications with customers can steer transactions to effective auto-response systems. Defaults to 5%. Note, this does not include agent handled contacts Proactive communications with customers can steer transactions to effective auto-response systems. Defaults to 5%. Note, this does not include agent handled contacts Sum of the Post Call Survey impact above Default assumption is to reduce defecting customers by 10% From Questionnaire From Assumptions Number of current customers X Approx. churn % of customer base per year From Questionnaire Average number of customers churned per year X Average revenue lost per customer Anticipated improvement X Current churn rate Reduction in churn rate X Current number of customers From Questionnaire. A lost customer takes their annual spend with them Average number of customers churned per year X Average revenue lost per customer. Copyright Alinean, Inc All rights reserved. Page 65

66 568. From Assumptions Revenue X Margin Default assumption is to reduce defecting customers by 1% from reduced queue times, better routing to skilled agents, and overall customer service efficiencies Quality Assurance and Quality monitoring in general improve each agents ability to deal with unhappy customers. The default improvement assumed with the implementation of quality monitoring is derived from the degree of automation already in place Proactive communications with customers can steer transactions to effective auto-response systems. Defaults to 5%. Note, this does not include agent handled contacts Proactive communications with customers can steer transactions to effective auto-response systems. Defaults to 5%. Note, this does not include agent handled contacts Proactive communications with customers can steer transactions to effective auto-response systems. Defaults to 5%. Note, this does not include agent handled contacts Proactive communications with customers can steer transactions to effective auto-response systems. Defaults to 5%. Note, this does not include agent handled contacts Proactive communications with customers can steer transactions to effective auto-response systems. Defaults to 5%. Note, this does not include agent handled contacts Default assumption is to reduce defecting customers by 10% Selections on the assumptions tab relative to post call surveys result in default improvement percentages below Proactive communications with customers can steer transactions to effective auto-response systems. Defaults to 5%. Note, this does not include agent handled contacts Proactive communications with customers can steer transactions to effective auto-response systems. Defaults to 5%. Note, this does not include agent handled contacts Proactive communications with customers can steer transactions to effective auto-response systems. Defaults to 5%. Note, this does not include agent handled contacts Proactive communications with customers can steer transactions to effective auto-response systems. Defaults to 5%. Note, this does not include agent handled contacts Sum of the Post Call Survey impact above The sum of the improvements from CIC, QA/QM, and Post Call Surveys From Questionnaire From Questionnaire Average number of customers churned per year X Average revenue lost per customer Anticipated improvement X Current churn rate Reduction in churn rate X Current number of customers. Copyright Alinean, Inc All rights reserved. Page 66

67 590. From Questionnaire. A lost customer takes their annual spend with them Average number of customers churned per year X Average revenue lost per customer From Assumptions Revenue X Margin Indicate the number of staff that will take advantage of UC features and must be provisioned with those features Productivity improvement due to real-time awareness of others availability as well as making own availability public Productivity improvement due to near real-time communications of chat and IM, allowing for staggered, but effective communications Productivity improvement due to always available call recording and playback capabilities Productivity improvement due to availability even when not at typical work location Productivity improvement due to greater use of integrated, on-demand conferencing features Person hours spent talking X Percentage migrated to auto response From Assumptions From Assumptions From Assumptions Annualized savings from talktime hour savings per year X Average hour burdened rate Default assumption is to reduce third party conferencing costs by 90%. While 100% of these costs can conceivably be eliminated, modifying user habits to embrace a different method to set up and access conferences can be difficult From Questionnaire Percentage of voice conferences that can be handled by Interactive Intelligence CPE solution (Media Server) From Assumptions Number of current customers X Approx. churn % of customer base per year Revenue X Margin. Copyright Alinean, Inc All rights reserved. Page 67

68 Appendix E: Supporting Product Information Copyright Alinean, Inc All rights reserved. Page 68