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