Page 1 CONFIDENTIAL & PROPRIETARY © 2008 Goodmail Systems, Inc You Can’t Bore People Into Buying Why Courage and Creativity Are Good Strategies March 18, 2010 Peter C. Horan Chairman Goodmail Systems, Inc.

Page 2 CONFIDENTIAL & PROPRIETARY © 2008 Goodmail Systems, Inc Thank you for your sponsorship

Page 3 CONFIDENTIAL & PROPRIETARY © 2008 Goodmail Systems, Inc My Five Revolutions I have been “in the streets” in the early days of five major technology revolutions  Home video games  PCs  Cell Phones  Windows computing  Internet

Page 4 CONFIDENTIAL & PROPRIETARY © 2008 Goodmail Systems, Inc “If I’d asked people what they wanted--they would have told me faster horses” -- Henry Ford, inventor and industrialist

Page 5 CONFIDENTIAL & PROPRIETARY © 2008 Goodmail Systems, Inc An Oxymoron? Corporate Courage  It’s almost impossible to research the future  Focus groups can’t define your strategy and products for you  Better at describing problems than solutions  If research can “prove” the future it will have become the present…and it will be too late  The future belongs to companies with the courage to “take a leap in the dark”

Page 6 CONFIDENTIAL & PROPRIETARY © 2008 Goodmail Systems, Inc Example 1: iPod  In 2001 there were already 30 mp3 players  There was even an industry leader, the Creative Labs Rio  There were standards  Everyone was focused on incremental improvements  Conventional wisdom said that the world didn’t need another mp3 player  Apple offered things the consumers needed but hadn’t asked for: style; better interface; excitement

Page 7 CONFIDENTIAL & PROPRIETARY © 2008 Goodmail Systems, Inc Example 2: Quicken  When Quicken launched, there were already 40 personal finance packages  No one asked for another one  There were the usual feature wars  Intuit realized that consumers were still frustrated and unhappy  They reinvented the category by using the ordinary checkbook as the metaphor  Results: One of the few consumer software companies that didn’t get crushed by Microsoft

Page 8 CONFIDENTIAL & PROPRIETARY © 2008 Goodmail Systems, Inc Five Success Factors 1.Make the Edge your new center 2.Embrace consumers as advocates 3.Learn how to make good decisions faster 4.Make powerful mobile apps a top priority 5.Test and measure– but only the right things

Page 9 CONFIDENTIAL & PROPRIETARY © 2008 Goodmail Systems, Inc Lever 1: The Edge of the Network is Your New Center In five years you may not even have a meaningful.com site Instead, you will have multiple points of presence in the world drawing on IP technology Push content, commerce and functionality to the edge of the network Design programs from the edge of the network in—not from your office out

Page 10 CONFIDENTIAL & PROPRIETARY © 2008 Goodmail Systems, Inc

Page 11 CONFIDENTIAL & PROPRIETARY © 2008 Goodmail Systems, Inc Lever 2: Embrace Customers As Advocates  The ultimate edge of the network  The volume and velocity of “word of mouth” is growing exponentially  Consumers trust peers as much or more than “experts”  Brands are built by passionate advocates who “sell” their friends  Brands are crushed by detractors

Page 12 CONFIDENTIAL & PROPRIETARY © 2008 Goodmail Systems, Inc Look Who’s Talking

Page 13 CONFIDENTIAL & PROPRIETARY © 2008 Goodmail Systems, Inc Lever 3: Good Decisions Faster  “Do things quickly but never hurry”  Actively monitor conversations on the social web about your products  Join the conversation as a participant not a broadcaster

Page 14 CONFIDENTIAL & PROPRIETARY © 2008 Goodmail Systems, Inc Getting It Right  Google launched the Buzz feature and immediately triggered complaints  Actively monitored the conversations and responded  Quickly turned the tide

Page 15 CONFIDENTIAL & PROPRIETARY © 2008 Goodmail Systems, Inc  The best day to invest in mobile is yesterday  Don’t allow mindless, derivative apps  Demand functionality, personalization and location-based programming  How do you speak to your customers if you know their identity, location, interests and time of day?  New Lucky Magazine app Lever 4: Make Mobile Apps A Top Priority

Page 16 CONFIDENTIAL & PROPRIETARY © 2008 Goodmail Systems, Inc  You are what you measure  Compensation measurement. Measurement drives behavior  Most corporate measurement strategies reward:  Conservatism  “Fighting the last war”  Efficiency at the expense of effectiveness  It’s all about the data going forward  Design measurement plans that reward activities that build your future business Lever 5: Test and Measure The Right Things

Page 17 CONFIDENTIAL & PROPRIETARY © 2008 Goodmail Systems, Inc “If you don't like change, you're going to like irrelevance even less. ” -- General Eric Shinseki, Chief of Staff, U. S. Army