Active Listening System Overview

1. Active Listening System Overview March 10, 2014

2. Allegiance Overview Allegiance enables enterprises to collect actionable, real-time feedback from customers, employees, and partners providing decision makers with immediate and measurable information for an accountable response. The Allegiance Active Listening System combines: • Customer Loyalty • Employee Retention • Partner Relations • Ethics Hotline • Informative Surveys • Mystery Shopping In a single, integrated, 100% Internet-architected product suite

3. Allegiance at a Glance • Headquarters: Salt Lake City, Utah • 700+ companies; 3 million+ employees & students • Customers/partners throughout North America & Europe • Proven experience across multiple industries • Privately held, strong financial position • Outstanding customer references

4. The Problem: Employee Retention • Average employee turnover is 20-50% per year • Average cost of a lost employee is equal to 150% of their annual salary • One complaint represents the feelings of seventeen others with the same concern Source: Bain & Co., Forum Corporation

5. The Problem: Customer Loyalty • Average company loses 15 to 20% of their customer base each year • 40% of customer complaints reported that they received ‘Nothing’ in response to complaining about their most serious problem • 85% of online consumers and 55% of offline consumers will take their business elsewhere if they have a bad customer experience Source: Customer Care Measurement and Consulting, A.T. Kearney Consulting

6. Market Demanding Better Solutions “Your customers can and should be a dynamic source of ongoing innovation and inspiration for your organization. If you don’t have infrastructures or apps that make it easy for them, you should.” Michael Schrage CIO Magazine “If people are not valued for their worth, productivity, creativity, or other contribution, they will leave to work for a place that does value them. …employee retention is key to customer retention. When employee turnover increases, a company’s customer defection rate will likely rise.” “The High Price of Turnover” Rick Villegas

7. Customer Feedback Employee Feedback Partner Relations Informative Surveys Mystery Shopping Ethics Reporting Active Listening System Platform Active Listening System DeliversIntegrated, Comprehensive Solution Enterprise Feedback Management • Make more informed company decisions • Obtain recommendations to address concerns • Decrease ethical violations

8. ALS Feedback Control Center CEO GC HR COO ALS CFO CMO Existing Solutions Fall Short Communication Break-down

9. Active Listening System @ Work Customers www Compliment Employees Complaint Scenario One: Open Response Your Company Action Action Action Suggestion Partners Allegiance Hosted Service

10. Active Listening System @ Work Customers Response www Employees Response Scenario Two: Triggered Event Your Company Survey Survey Survey Response Partners Allegiance Hosted Service

11. Executive Dashboards

12. Management Console

13. Feedback Detail

14. Analytics and Recommendation

15. The Allegiance Advantage • Gather critical feedback in real-time • Consolidate from all ‘touch points’ • Delegate to accountable person • Real-time tracking, trending, and reporting for informed decision making • Truly anonymous third-party system • Faster resolve of issues and concerns • Improved service quality & customer/employee loyalty • Quick return on investment

16. $ Acquisition + Retention = Maximum Growth Acquisition – Defection = Plateau Time Customer Loyalty Impacts Profit • A 5% increase in customer retention can increase profits by as much as 100% • ALS has increased customer feedback from 6% to 20% on average Source: Harvard Business Review, ALS Usage Report

17. Employee Retention ROI Alone is Huge • Based on industry research, a hypothetical case study: • Headcount: 1000 employees • Average compensation: $36,000 / yr. • Average cost of lost employee: 1 x annual wage • Average turnover rate: 20% / yr. • Aggregate waste equals $7.2 million per year • 10% reduction in annual turnover equals a savings of $720,000 (equal to a reduction from 20% to 18%) • Mountain America CU reduced turnover by 38% with Allegiance

18. Allegiance @ Work in Finance Zions Bank Selects Allegiance to Deliver Suite of Enterprise Feedback Tools • Banking, Credit, and Cash Management • $50 Billion in Assets, 450 Branches • Consolidation of all feedback • Reduced response times more than 10X • Increased Customer Satisfaction & Profit “With our implementation of the Allegiance feedback system Zions Bank has moved toward a business philosophy that consistently places the customer and employee front and center.”

19. Allegiance @ Work in Healthcare Robert Wood Johnson Hospital Increases Response Efficiency and Overall Service Quality • Leading Academic Medical Center • Treating 15,000+ Patients Annually • Ability to Quickly Respond to Patient Issues • Reduced Service Cycles, Improved Response • 2004 Baldrige Presidential Award Winner “The excellent functionality of the Allegiance system and the team supporting it enables RWJUH to significantly enhance patient satisfaction and employee productivity in handling patients and service opportunities.”

20. Implementation • You need to assign a ‘Dedicated Feedback Manager’ We do the rest… • Web-based model – limited I.T. burden • Rapid deployment – up and running in a few weeks • Flexible customization – meeting your specific needs • Comprehensive training – ensuring maximum return • Ongoing support and system consulting – best practices

21. Conclusion • Gauge current attitudes of customers, employees, partners and others • Improve workplace culture and keep employees longer • Build loyalty with customers, partners and employees • Make informed company decisions based on hard data • Decrease ethical violations that may be occurring internally • Increase your profitability by quickly responding to input

22. Questions