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2013

2013 North American SSL Certificate

Product Leadership Award

2014

2014 Global Document e-Delivery

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Background and Company Performance

Industry Challenges

Client billing and paper statements are still a necessity in today’s consumer-focused industry. By law, banks, healthcare companies, insurance companies, utility companies, and many other types of service providers are required to provide periodic statements to their account holders or customers. However, sending paper mail is expensive - at an average total cost of 60-70 US cents per document. Additionally, this is a static form of communication, with very limited ability to engage a customer - for example, by way of paper inserts regarding new features or ongoing promotions. Frost & Sullivan notes that security for paper documents is also limited at best, with identity theft frequently occurring when documents are sent to street side mailboxes.

Digital mailboxes were conceptualized close to a decade ago and obviously disrupted traditional forms of client communication through the power of the Internet. As originally conceived, mailbox service providers would create single digital addresses that all service providers would use to deliver documents in electronic form. These documents were designed to be encrypted for security, interactive and dynamic to promote customer engagement, and cost-efficient by lowering the average delivery cost of document to under twenty cents. However, in practice, the concept never truly took off – despite heavy investment by vendors - due to impractical levels of fragmentation and lack of a clear value proposition. Northern European countries - such as Denmark - took the leap of mandating a single digital mailbox service run under the aegis of their traditional postal service and thus have seen rapid uptake. However, in the rest of the world, particularly in free market economies like Australia and the United States, Frost & Sullivan points out that market acceptance has simply not been achieved.

Paperless statements, where documents are made available on a secure, company-labeled portal for authenticated download and viewing by consumers, are the most common compromise today between paper delivery and true electronic communication. This typically works by notifying a user via email that a new statement or secure message is available; the user must then log in to the secure portal to access their information. Research shows that the United States lags most developed countries, even in the uptake of paperless statements. Moreover, few consumers actually download secure statements, and even fewer actually interact with them. As a result, companies still miss out on the opportunity for rich interaction with their customers.

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© Frost & Sullivan 3 “We Accelerate Growth” experience of digital mail with the convenience and transparency of electronic mail attachments, Trustifi provides a win-win value proposition that has been received quite favorably in trials and has resulted in a number of significant partnerships for the company.

New Product Attributes and Customer Impact of Trustifi

Match To Needs

Companies report to Frost & Sullivan how they are constantly looking for ways to meet their compliance obligations, while also reducing paper mail costs. Furthermore, they are seeking ways to actively engage with their customers through these periodical instruments. Trustifi’s uses a patented postmarking capability which can prove that the service provider delivered a document to a client within a given window of time. This core feature is paired with a seamless user experience and advanced analytics to accelerate paperless adoption rates, while also improving customer engagement through strategic and personalized landing pages and audiovisual content.

The need for digital mailboxes was made clear to most companies and customers for some time now. The problem has been that no one has been able to converge around a single solution; as such, no single option has garnered critical mass. Where close to 4 in 5 customers state a preference to get bills and statements through their personal email, only 1 in 10 prefer going to a service provider portal for electronic statements. Yet delivering sensitive statements through insecure email has not been feasible. There is thus a clear gap between what customers are seeking in a comfortable and transparent user experience, and what can be delivered within the guidelines of regulations and the common sense protocols of security. By bridging needs and reality through their innovative product and well-designed business process, Frost & Sullivan is of the opinion that Trustifi is truly breaking down barriers to entry for document e-delivery, while setting the stage for the eventual emergence of a de-facto digital mailbox standard.

Positioning

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© Frost & Sullivan 4 “We Accelerate Growth” Trustifi is nicely positioned as an electronic communication solution with low barrier to entry and high potential for customer acceptance, with the dual benefits of reduced document delivery costs and improved customer engagement. While its mechanism is ultimately a push process, as opposed to the pull process that has dominated industry acceptance to date, the company is slowly - but surely - winning over mindshare through the strength of its value proposition.

Design

Trustifi’s platform pushes out documents, including notices or bills, to a consumer’s existing inbox in regular email. Having opted-in to electronic delivery, the consumer can open the document directly from their email account as they would any other attachment. Protection options for sensitive documents include persistent/static passwords or one-time passwords delivered via second channels, such as an SMS to a mobile phone.

One key hurdle corporate billers need to overcome, particularly in the USA, is to drive paperless adoption rates upwards. Currently, less than half of consumers choose to receive statements electronically, with adoption levels in the USA more or less static over the last five years. To raise these levels, Trustifi offers a feature called iConsent. An iConsent campaign is typically run several times a year for a client base. During this push, statements are sent to all consumers via email. Trustifi offers a couple of iConsent options. An email with a brief summary of the attached PDF document is sent and presented with a clickable tab offering the consumer the option to go paperless and at the same time uncover the password required to decrypt the secured PDF. Another iConsent option provides a semi-transparent or blurry view of the document that is presented to the consumer when they open the attachment, along with a superimposed interface offering the option to choose to go paperless. If the consumer accepts, the statement comes into focus. If they do not, they are simply reminded that they may choose electronic delivery at any future time, and the view disappears.

Through this simple trial-based user experience, Trustifi has seen notable success in converting traditional customers to e-delivery in early deployments. Early results indicate this push strategy has the potential to accelerate paperless adoption rates by 10-15% per year.

Customer Purchase Experience

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© Frost & Sullivan 5 “We Accelerate Growth” and add smart interactive capabilities to it. The company archives all statements for the statutory seven years. While the company is yet quite small in terms of headcount, the platform is agile and flexible enough to handle millions of documents per day. Notably, the company is working from a business development angle to forge partnerships with major document printing service providers, which is expected to set up a strong path toward growth and expansion.

Another important feature that Trustifi offers is rich interactivity with the electronic communication. The currently prevalent approach is to send a consumer an email saying a bill is available for viewing at a specific location. This method has proven weak in convincing customers to switch to paperless billing (as discussed above). Moreover, as a large percentage of consumers do not visit the portal to view the message or spend very limited time looking for information, important engagement opportunities are lost.

In contrast, Trustifi allows for rich, personalized, multimedia-enabled documents to be delivered to the consumer, including videos, tips, specials, and engaging content to increase the stickiness of consumer engagement. In effect, the PDF document can be used as a personalized URL for a given customer. As a result, view times and click-through rates are higher. Coupled with the rich analytics capabilities discussed earlier, this platform has the potential to significantly intensify customer interactivity with their service provider.

Customer Ownership Experience

Trustifi’s strength is ultimately in the seamless experience it provides to end consumers. Documents arrive in regular email and are simple to open up and access – no special plugin is required, owing to the company’s use of standardized, PDF HTML and JavaScript technology. The opt-in process may be unfamiliar but nonetheless intuitive, and ongoing usage has shown to be both pleasing and engaging.

For a fee, consumers can also choose to aggregate additional accounts into their Trustifi mailbox, whether or not a given service provider is signed up with Trustifi. So long as the consumer provides Trustifi with their account login credentials, the company will automatically pull down recent statements and provide these in a single consolidated location. This eventually sets up the potential for a de-facto standard digital mailbox service to emerge, although it is likely to take several years for such a scenario to mature.

Price Performance Value

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© Frost & Sullivan 6 “We Accelerate Growth” estimated at USD 0.65, resulting in annual expense of over USD 30M. Considering 6 iConsent campaigns per year (essentially one every other month), and assuming Trustifi is able to convert 10% additional audience every year, 5-year savings can surpass USD20M, and ROI on the solution can theoretically be recovered in less than a year. This is purely bottom line savings, with additional top line benefits expected through personalized documents with rich content and improved interactivity.

Conclusion

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Significance of New Product Innovation

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Key Benchmarking Criteria

For the New Product Innovation Leadership Award, Frost & Sullivan analysts independently evaluated two key factors — New Product Attributes and Customer Impact — according to the criteria identified below.

New Product Attributes

Criterion 1: Match to Needs Criterion 2: Reliability Criterion 3: Quality

Criterion 4: Positioning Criterion 5: Design Customer Impact

Criterion 1: Price/Performance Value Criterion 2: Customer Purchase Experience Criterion 3: Customer Ownership Experience Criterion 4: Customer Service Experience Criterion 5: Brand Equity

Best Practice Award Analysis for Trustifi Corporation

Decision Support Scorecard

To support its evaluation of best practices across multiple business performance categories, Frost & Sullivan employs a customized Decision Support Scorecard. This tool allows our research and consulting teams to objectively analyze performance, according to the key benchmarking criteria listed in the previous section, and to assign ratings on that basis. The tool follows a 10-point scale that allows for nuances in performance evaluation; ratings guidelines are illustrated below.

RATINGS GUIDELINES

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interests of all organizations reviewed, we have chosen to refer to the other key players in as Company 2 and Company 3.

DECISION SUPPORT SCORECARD FOR NEW PRODUCT INNOVATION LEADERSHIP AWARD (ILLUSTRATIVE)

Measurement of 1–10 (1 = poor; 10 = excellent)

New Product Innovation New Product Attributes Customer Impact Average Rating

Trustifi 9.0 10.0 9.5

Competitor 2 7.0 5.0 6.0

Competitor 3 6.0 6.0 6.0

New Product Attributes

Criterion 1: Match to Needs

Requirement: Customer needs directly influence and inspire the product’s design and positioning

Criterion 2: Reliability

Requirement: The product consistently meets or exceeds customer expectations for consistent performance during its entire life cycle

Criterion 3: Quality

Requirement: Product offers best-in-class quality, with a full complement of features and functionality

Criterion 4: Positioning

Requirement: The product serves a unique, unmet need that competitors cannot easily replicate

Criterion 5: Design

Requirement: The product features an innovative design, enhancing both visual appeal and ease of use

Customer Impact

Criterion 1: Price/Performance Value

Requirement: Products or services offer the best value for the price, compared to similar offerings in the market

Criterion 2: Customer Purchase Experience

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Requirement: Customers are proud to own the company’s product or service, and have a positive experience throughout the life of the product or service

Criterion 4: Customer Service Experience

Requirement: Customer service is accessible, fast, stress-free, and of high quality Criterion 5: Brand Equity

Requirement: Customers have a positive view of the brand and exhibit high brand loyalty

Decision Support Matrix

Once all companies have been evaluated according to the Decision Support Scorecard, analysts can then position the candidates on the matrix shown below, enabling them to visualize which companies are truly breakthrough and which ones are not yet operating at best-in-class levels.

DECISION SUPPORT MATRIX FOR NEW PRODUCT INNOVATION AWARD (ILLUSTRATIVE)

High Low Low High C u s t o m e r I m p a c t

New Product Attributes

Trustifi

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The Intersection between 360-Degree Research and Best

Practices Awards

Research Methodology

Frost & Sullivan’s 360-degree research methodology represents the analytical rigor of our research process. It offers a 360-degree-view of industry challenges, trends, and issues by integrating all 7 of Frost & Sullivan's research methodologies. Too often, companies make important growth decisions based on a narrow understanding of their environment, leading to errors of both omission and commission. Successful growth strategies are founded on a thorough understanding of market, technical, economic, financial, customer, best practices, and demographic analyses. The integration of these research disciplines into the 360-degree research methodology provides an evaluation

platform for benchmarking industry players and for identifying those performing at best-in-class levels.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages almost 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 31 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com.