TASK ORDER Number: Kandela01

Transcription

1 Date: September 2, 2015 Project Description: Service Establishment Concierge Participating SCPPA Member(s): City of Burbank Consultant: Kandela, LLC SCPPA Contract No.: KAND Consultant, SCPPA and the participating Member(s) ( Participants ) identified above agree that Consultant shall provide the Services specified herein pursuant to the terms and conditions of the Master Professional Services Agreement ( Agreement ) between SCPPA and Consultant dated June 1, 2015, except as specifically modified herein. Scope of Services I. Consultant Responsibilities In providing its moving concierge service to Members customers, Consultant will be responsible for: 1. Utilizing best efforts to provide a true moving concierge service to Members customers a. Providing customers with a dedicated personal Concierge as a single point of contact b. Constant concierge availability by phone/ during regular business hours c. Meeting Consultant s Average Speed to Answer (ASA) standard, which is to answer 80% of calls within 20 seconds during regular business hours d. Subsequent customer calls, messages, and s will promptly be returned within one business day e. Clustering service installations around customers schedules whenever possible 2. Offering customers the most comprehensive range of home service categories, including: TV, Internet, Phone, Security, Home Automation, Moving Companies, Packing & Unpacking Services, Packing Supplies, Storage, Furniture Rental, Change of Address, Magazine Subscriptions, Insurance (Homeowner s, Renter s, and Auto), Home Warranty, Hardwood & Carpet Cleaning, Maid Services, and Contractors. 3. Offering customers a selection of service provider options within each category of service, when available 4. Providing a consultative concierge experience with no obligation for customers to participate or order services through Consultant 5. Billing and collecting all amounts due from service providers with respect to all services sold 6. Making quarterly rev share payments to Members of twenty percent (20%) of all revenue generated by arranging home services for customers referred by Member during the term of this Agreement, and for 30 days following the termination of this Agreement Page 1

2 a. Continuing to pay Members rev share on all future orders that customers place with Consultant ( referral for life ) during the term of this Agreement, and for 30 days following the termination of this Agreement 7. Providing monthly reporting (or at intervals in time to be determined by participating Members and agreed to by all parties), that will provide program performance information including, but not limited to: a. Number of initial customer contact calls; b. Number of these initial calls led to customers using Consultant s service; c. Number of services that were ordered by each customer; d. Speed to Answer (ASA) initial customer call connection; e. Access to any and all customer feedback and comments; f. Revenue generated and collected by Consultant 8. Performing regular customer satisfaction surveys and sharing survey results with Members 9. Providing scripting and training to Members call center associates 10. Providing regular feedback to Members via periodic calls and meetings 11. Creating an exceptional customer experience that reflects positively on Members II. Members Responsibilities Participating Members will be responsible for supplying Consultant with qualified referrals to assist in the arranging of home services, by: 1. Offering Consultant s services to customers that are activating, transferring or canceling service, or are otherwise in the process of moving and, if customers are interested, transferring calls to Consultant 2. Complying with program telephony requirements; specifically, the ability for Members call center associates to transfer calls to Consultant call center. a. There are no data-integration or other IT requirements to the program. 3. Members will not be required to provide Consultant with any customer-specific information, including but not limited to: telephone numbers; addresses; account numbers; consumption/usage data; bank account or credit card information. Dissemination of any information of this nature would have to be provided by the customer directly and will not be the responsibility of the participating Member Utilities. 4. Making Members call center associates available for brief training sessions 5. Providing Consultant with periodic reporting on percentage of eligible calls transferred 6. Assigning Member liaison team responsible for promoting program within participating Member to work with Consultant to ensure success of the program and be available for periodic update calls and meetings Page 2

3 Payments and Schedule Kandela does not charge any fees for our service. It is a completely free service for our end-user clients and it is a revenue-generator for our referral partners. As part of our program, Kandela will pay participating SCPPA Member Utilities a revenue share of twenty percent (20%) of all revenues generated and actually received by Kandela from the arranging of services to customers introduced by the Member Utility. Revenue share payments will be made on a quarterly basis and will be accompanied by supporting reports that will include detailed referral conversion statistics and resulting revenue metrics. Revenue Share Illustration (per 43,000 customers) One of the key components to the revenue opportunity is the percentage of eligible calls that are transferred to Kandela. We expect to quickly achieve a 45%-50% transfer rate on eligible opportunities, and 60%+ over time. As illustrated below, if starting out with about 750 monthly active movers, we project annual revenue share to Burbank Water and Power of nearly $52,000 at a 45% transfer rate, $63,000 at a 55% transfer rate, and $75,000 at a 65% transfer 45% TRANSFER RATE: PER YEAR PER 45% TRANSFER RATE: PER MONTH PER YEAR Total Customers (residential) 43,000 Movers 21% 750 9,000 Transfers to Kandela 45% 338 4,050 Converted to client 40% 135 1,620 Monetized services ,050 Gross revenue (orders) $ , ,000 Cancelled orders $ -20% (5,400) (64,800) Net revenue $ 80% 21, ,200 Rev share to BWP $ 20% 4,320 51,840 Representative(s) of Participating Member(s) CHARLES PECK Manager Customer Service Operations, Burbank Water and Power Page 3

4 Amendment(s) to the Agreement None [SIGNATURE PAGE FOLLOWS] Page 4

5 IN WITNESS WHEREOF, the parties have signed this Task Order as of the date first written above. SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY BILL D. CARNAHAN Executive Director and; KANDELA, LLC DAVID FIEDLER Chief Executive Officer and; CITY OF BURBANK RON DAVIS General Manager, Burbank Water & Power Check here if Participant has indicated acknowledgement and agreement by letter addressed to SCPPA. Page 5