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From  Incuba,on  To  Reality  Business  Model  Innova/on  Within  An  Enterprise  

Mary  Ransom  SVP,  Consumer  Products  Borderfree  

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Agenda  

1.   Borderfree  Introduc/on  2.   Building  &  Launching  BoxHop  3.   What  Comes  Next  

4.   QA  

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Introduc,on  to  Borderfree  Who  we  are  &  What  we  do  

•  Privately  held;  190  employees  in  NYC  (HQ),  Tel  Aviv  (R&D),  Toronto,  Shanghai  

•  Our  soIware  and  services  plaKorm  extends  retailers’  online  capabiliOes  globally  

•  Sell  to100+  countries  and  transact  in  60+  currencies  

•  International Checkout •  Fraud/Risk Management •  Customer Care Support

Commerce

•  Carrier Management •  Export Compliance •  Omni-channel Support

Logistics

•  Marketing Strategies •  Partnership Sourcing •  Global Marketplaces

Marketing

•  Consumer Insights •  Merchandising Strategies •  Global Shopping Trends

Insights

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Introduc,on  to  Borderfree  Our  Customers:  Retailers  &  Shoppers  

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Evolving  from  B2B  to  B2C  The  Business  Case  for  BoxHop  

•  Shipping  Costs  too  Much!  •  Want  to  order  from  U.S.  sites  •  Want  to  place  orders  from  non-­‐

Borderfree  merchants  

Provide  internaOonal  consumers  with  a  US  shipping  address  to  buy  directly  from  US  retailers  

CUSTOMER  FEEDBACK  

BUSINESS  IMPLICATION  

•  Need  to  lower  our  cost  basis  •  Need  a  new  B2C  revenue  model  •  Need  a  new  plaKorm  to  support  

new  business  &  expand  TAM  

RESULT:  BOXHOP  IS  BORN  

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The  9  Keys  To  Subscrip,on  Success  How  They  Shaped  BoxHop  

$

PRICE ACQUIRE BILL COLLECT

NURTURE ACCOUNT MEASURE ITERATE SCALE

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Pricing  &  Packaging  New  Services  &  Revenue  Streams  

$

REVENUE  &  RISK  DIVERSIFICATION  

•  Borderfree  Profit  Streams:  •  Merchant  Service  Fees  •  Consumer  FX  Fees  

•  BoxHop  Profit  Streams:  •  Subscrip/on  Fees  •  Shipping  Fees  

•  Usage  based  

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Customer  Acquisi,on  Partnerships  &  Promos  

Partnerships  drive  value  for  all:  •  Merchant:  sales  &  loyalty  •  Consumer:  valuable  discount  •  BoxHop:  ‘FREE’  subscribers!  •  Borderfree:  Consumer  Profiles  

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Recurring  Billing  Storing  &  Accessing  Consumer  Profiles  

•  Borderfree  Consumer  Profiles    

•  BoxHop  as  a  Shipping  OpOon  

 •  100%  TransacOonal  •  No  SubscripOon  Fees  •  No  Consumer  or  Payment  

Profiles      

•  SubscripOon  &  TransacOonal  •  Upgrades,  add-­‐ons,  renewals  •  All  Users  have  Payment  Profiles  

Future = Hybrid

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Consumer  Collec,ons  The  ‘Cash’  in  Cash  Flow  

Preven/ng  Failed  Payments  •  Account  creaOon  requires  a  valid  CC  •  Email  30  days  before  card  expires  •  Payments  updated  in  customer  portal  

Managing  Failed  Payments  •  AutomaOc  retry  logic  configured  •  Email(s)  triggered  to  consumers  •  Parcels  held  pending  payment  •  Late  penalty  fees  assessed  

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Rela,onship  Management  Visibility  &  Self-­‐Service  

•  Zuora  +  Salesforce  =  full  customer  account  visibility  and  easy  administraOon  for  customer  care  

 •  Customer  portal  allows  easy  profile,  

payment  &  subscripOon  updates  •  Payment  details  hosted  by  

Zuora  •  FAQs  &  web-­‐to-­‐case  support  

powered  by  Force.com  

•  OperaOonal  issues  trigger  case  creaOon  &  email  communicaOons  

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Finance  &  Accoun,ng  Keeping  the  Bean  –  Counters  Calm  

PROJECT  REQUIREMENTS:  •  Manage  Revenue  RecogniOon  •  Refunds  Administered  in  

Salesforce  •  Easy  CyberSource  IntegraOon  •  Connects  to  our  Intacct  GL  •  Financial  Controls  SaOsfy  

Auditors  •  PCI  Level  1  Compliance  •  MulO-­‐Currency  Pricing  (P2)  •  Supports  MulOple  Gateways  

(P2)  

BUSINESS  GOAL:  SaOsfy  Finance  without  hindering  innovaOon,  ceding  control  or  delaying  launch  

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Measure  &  Analyze  Consumers,  OperaOons,  Trends…  

Basket  A[ributes          

•  MERCHANTS  •  PRODUCTS    •  BRANDS  •  DIMENSIONS  •  WEIGHT  

Opera/ons          

•  BILLINGS  •  COLLECTIONS  •  PRODUCTIVITY  •  ERROR  RATES  •  OPEN  CASES  

Subscribers          

•  GROWTH  •  USAGE  •  SPEND  •  CHURN  •  RENEWAL  

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Systems  &  Scale  SoluOon  Approach  –  Key  Drivers  

•  Speed  to  Market  –  launch  and  stabilize  before  holiday  season  

•  Outsource  Ini/al  Build  –  partnered  with  Slalom  ConsulOng  to  architect  &  build  the  MMP  

•  Enterprise-­‐level  Compliance  –  PCI,  accounOng/audit,  customer  screening,  import/export  restricOons    

•  Nimble  but  Scalable  &  Configurable  Pla^orm  

•  Low  Organiza/onal  Burden  –  ability  to  migrate  and  manage  the  plaKorm  in-­‐house  with  limited  dedicated  labor  post-­‐launch  

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Systems  &  Scale  (cont’d)  Primary  SoluOon  Components  

•  Core  plaKorm  and  data  repository  for  customer  and  parcel  management,  order  workflow  &  customer  care  

•  Hosted  checkout;  subscripOon  billing  &  collecOons;  A/R  sub  ledger  

•  Development  plaKorm  supporOng  the  Customer  portal  

•  Duty  and  tax  calculaOon;  import/export  restricOons  management;  shipping  carrier  rates  and  rules  

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Systems  &  Scale  (cont’d)  Business  Process  Flow  

Business  Flows  

Customer  Registers  &  Orders  Goods  

Parcels  Received  &  Stored  

Customer  Configures  Order  

Order  Processed  &  Shipped  

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Future  Enhancements  What  Comes  Next  

CUSTOMER  EXPERIENCE  

•  Loyalty  program  •  Translated  interfaces  •  Mobile  checkout  &  

tracking  •  DDP  shipping  opOon  •  InternaOonal  returns  

support  

MARKETING  &  GROWTH  

•  Consolidated  merchant  reporOng  

•  IntegraOon  into  the  Borderfree  checkout  

•  AddiOonal  payment  gateways  

•  FX  support  

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Q&A  

Thank  You!