Juno 2012 Annual Report Download - page 19

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Table of Contents
the successful operation of our billing systems and various third-party processors' systems. In addition, our ability to offer new pay services or
alternative payment plans is dependent on our ability to customize our billing systems.

We believe reliable customer service and technical support are important to retaining our customers. Our businesses generally offer a variety of
online and offline tools designed to provide solutions and answers to frequently asked questions. These tools are also designed to assist our members
and customers in verifying and updating their account information. In addition, we offer traditional email support and certain of our services provide live
telephone support as well.
Our customer relationship management and support infrastructure includes employees at our facilities in Woodland Hills, California; Hyderabad,
India; Fort Lee, New Jersey; Seattle, Washington; San Francisco, California; Downers Grove, Illinois; Centerbrook, Connecticut; Medford, Oregon;
and Sleaford, England. We also outsource to third parties substantially all of our telephone customer support and some of our email customer support
for our Content & Media and Communications services, and a portion of our customer support for FTD. We monitor the effectiveness of our customer
support functions and measure performance metrics such as average hold time and first call resolution and abandonment rates. Communications with
our customers are logged and categorized to enable us to recognize and act on trends. Our internal quality assurance teams monitor the performance of
our customer support vendors and provide feedback to improve the vendors' skills and establish consistency throughout our customer support
functions.

Each of our services, including our floral network services, our online nostalgia services, our online loyalty marketing service, and our Internet
access services operates on a separate and distinct technology platform. Each of our services is generally provided through a combination of internally-
developed and third-party software, industry standard hardware and outsourced network services. We maintain the web properties that power these
services. We have internally-developed order processing, order transmission, message processing and customer service systems which provide
communication to our floral network members and third-party suppliers. We also have developed software to enhance the functionality of certain
components of our services, including connectivity, web services, billing, email, customer support, logistics and fulfillment for floral products, data
analysis, customer loyalty applications, and targeted advertising. We maintain data centers in multiple locations in the U.S. and Europe. In many cases,
we have redundant systems to provide high levels of service availability and connectivity. We host the majority of our data center services in
outsourced, third-party co-location facilities and we outsource all of our bandwidth and managed modem services.
We license from third parties a number of our software applications and components, including applications for our billing, customer support,
advertising, and database systems, our client and server applications, and portions of our dial-up Internet access accelerator services. These licenses
generally have terms ranging from several years to perpetual.

We are subject to a number of international, federal, state, and local laws and regulations, including, without limitation, those relating to taxation,
bulk email or "spam," advertising, user privacy and data protection, consumer protection, antitrust, and unclaimed property. In addition, proposed laws
and regulations relating to some or all of the foregoing, as well as to other areas affecting our businesses, are continuously debated and considered for
adoption in the U.S. and other countries, and such laws and regulations could be adopted in the future. For additional information, see "Risk Factors,"
which appears in Item 1A of this Annual Report on Form 10-K.
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