2. Both Sides of Outsourcing – Meet & Talk with a Successful Outsource Client & Provider NCOF – April, 2011 Timothy J. Holody, COO/General Manager Seta Corp (Palm Beach Jewelry) [email_address] Darcy Tudor, Executive VP Marketing Alternatives, Inc [email_address]

12. What are we going to cover today? How did we outsource?

15. CUSTOMER CARE OPERATIONS Volume Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 1 Phone Order AOV $194.96 $167.01 $165.73 $156.87 $166.81 $156.38 $186.37 $173.55 $172.98 $155.33 $161.82 $158.79 2 Total # Calls 27,398 20,173 21,227 18,420 19,702 15,087 24,125 18,476 16,963 15,218 19,005 18,488 3 Total # Phone Orders 8,748 5,284 6,197 5,232 6,310 3,986 8,667 5,793 5,300 4,757 6,672 5,353 4 Call:Order Ratio 3.13 3.82 3.43 3.52 3.12 3.78 2.78 3.19 3.20 3.20 2.85 3.45 5 Chats Handled 557 438 298 340 294 236 508 580 568 642 710 816 6 E-mails Handled 1,744 1,804 1,925 1,910 1,636 1,524 1,614 1,889 1,528 1,642 1,706 2,083 7 Web Calls Handled 3,582 3,641 3,500 3,468 3,251 3,083 3,117 2,926 2,951 3,171 2,924 4,167 8 # web orders 7,230 7,331 7,463 7,055 7,063 6,117 7,281 6,391 5,795 6,254 7,535 7,822 9 Web calls/order ratio 0.50 0.50 0.47 0.49 0.46 0.50 0.43 0.46 0.51 0.51 0.39 0.53 10 Upsell % of AOV 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0%

16. CUSTOMER CARE OPERATIONS Considerations 1 Phone Service Level 95% of all calls should be answered. Max of 5% abandons. 2 % Calls Handled on 1st Call We estimate that 95% of calls can be handled by the 1st line rep. Only 5% need to be escalated. 3 Systems All orders will be entered onto the Seta AS400 system. All inquiries will be handled within our system. 4 E-mail Ave Resp Time (hours) All e-mails should receive an immediate acknowledgment to the customer. Specific customer answers must be provided within 4 hours. 5 Chat Response Time (seconds) All chats must be responded within 30 seconds. 6 Hours of Operation 7 days/week, 8am - 11pm, 364 days per year. Only closed on Xmas day 7 Phone Numbers All phone numbers shall remain under the ownership of Seta 8 Pricing Please feel free to quote in whatever pricing format with which you are most comfortable. We will do our own internal pricing pro formas for comparing various providers.

22. What are we going to cover today? Who did we outsource to (and why)?

33. Date Phone orders % of orders with upsell # Attempts AOV Upsell $ Upsell $ per Attempt Upsell % of AOV Q1 2008 9,703 97.06% 9,418 $137.01 $127,444 $13.53 9.9% Q2 2008 9,377 99.41% 9,322 $133.58 $101,219 $10.86 8.1% Q3 2008 9,113 99.97% 9,110 $141.35 $134,092 $14.72 10.4% Q4 2008 9,539 99.97% 9,536 $145.03 $149,604 $15.69 10.8% Q1 2009 9,435 99.96% 9,431 $137.21 $145,378 $15.41 11.2% Q2 2009 9,168 99.97% 9,165 $135.39 $136,321 $14.87 11.0% Q3 2009 8,065 99.93% 8,059 $133.53 $111,301 $13.81 10.3% Q4 2009 10,283 99.86% 10,269 $130.26 $165,836 $16.15 12.4% Q1 2010 10,686 99.36% 10,618 $122.77 $156,561 $14.74 12.0% Q2 2010 8,376 99.79% 8,358 $128.36 $150,994 $18.07 14.1% Q3 2010 7,259 99.85% 7,248 $126.99 $108,072 $14.91 11.7% Q4 2010 9,055 99.92% 9,048 $121.81 $178,474 $19.73 16.2% Jan/Feb 2011 5,510 99.91% 5,505 $123.08 $90,672 $16.47 13.4%

37. PBJ AGENT BONUS JANUARY 2011 Agent Name Upsell per order # of orders Total Bonus Quality Score Total Calls Monitored LIMP SALLY $29.73 36 $36.00 95.00% 4 GRIGG SARA $26.10 179 $179.00 95.70% 9 KINSER TIA $24.18 174 $174.00 95.60% 10 EDWARDS TIFFANY $21.90 21 $21.00 96.60% 10 PLUMMER WILLIAM $19.87 129 $129.00 94.00% 11 TOLLE ANGELA $16.91 152 $152.00 97.60% 10 JONES RANDI $15.64 57 $57.00 99.00% 10 LEVAULT TIM $15.44 89 $89.00 95.70% 9 TOBERMAN KARI $15.03 125 $125.00 95.60% 10 BILBY DODIE $14.45 120 $120.00 97.60% 10 TOTALS 1082 $1,082

39. PBJ AGENT BONUS JANUARY 2011 Agent Name Upsell per order # of orders Total Bonus Quality Score Total Calls Monitored LIMP SALLY $29.73 36 $36.00 95.00% 4 GRIGG SARA $26.10 179 $179.00 95.70% 9 KINSER TIA $24.18 174 $174.00 95.60% 10 EDWARDS TIFFANY $21.90 21 $21.00 96.60% 10 PLUMMER WILLIAM $19.87 129 $129.00 94.00% 11 TOLLE ANGELA $16.91 152 $152.00 97.60% 10 JONES RANDI $15.64 57 $57.00 99.00% 10 LEVAULT TIM $15.44 89 $89.00 95.70% 9 TOBERMAN KARI $15.03 125 $125.00 95.60% 10 BILBY DODIE $14.45 120 $120.00 97.60% 10 TOTALS 1082 $1,082