Our Migration Story: Trials, Tips, and Triumphs

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In the past year, Charles & Colvard has made great strides in the implementation of its email marketing program. The Bronto team and its products have been integral components to that success. From the initial days of examining the existing database to transitioning to a sales-focused program and adding a welcome series, Charles & Colvard has encountered successes and challenges along the way.

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Our Migration Story: Trials, Tips & Triumphs “I never made a mistake in my life. I thought I did once, but I was wrong.”

Charles M. Schulz

Our Story “I think I've discovered the secret of life - you just hang around until you get used to it.” Charles M. Schulz

Who are we

Moissanite.com, a subsidiary of Charles & Colvard, is the exclusive worldwide marketer and distributor of created moissanite jewels, with proprietary patents for the manufacturing process as well as the use of the jewels themselves.

Moissanite.com offers extensive collections of:

§  Forever Brilliant® Moissanite

gemstones

§  Charles & Colvard Created

Moissanite® gemstone

§  Moissanite fine jewelry Moissanite.com is part of the Charles & Colvard, Ltd. family of companies.

What we do

THE WORLD’S MOST BRILLIANT GEM™ §  Outshines any other gem §  2.4X dispersion of diamond §  More brilliant than diamond

Carat for carat, no gem adds more beauty.

What is Moissanite

Description Baseline Metric

Dispersion Luster Hardness (Mohs Scale)

Charles & Colvard Created Moissanite®

2.65-2.69 0.104 20.4% 9.25

Diamond 2.42 0.044 17.2 10 Ruby 1.77 0.18 7.7% 9 Sapphire 1.77 0.18 7.7% 9 Emerald 1.58 0.014 5.1% 7.5

What We Had In Place

Site Redesign 2012

Our Objectives

Store Experience §  Create a timeless online showroom – Strikingly beautiful photography,

contrast rich and ageless experience. §  Stunning Elegance - Old-world artisan skill meets modern technology to

create bold, beautiful jewelry with a look & feel that stands out versus traditional jewelry.

§  Infuse subtle color and shadows into product images to create depth, utilize

bold colors to highlight calls to action, and large all-caps typography to emphasis the boldness of Moissanite.

Our Road Map

Where Are We Going?

The Bronto Way “There's a difference between a philosophy and a bumper sticker.” Charles M. Schulz

What We Had In Place

History of Communication • Major seasonal events/holidays • Special offers

Holiday 2011

The Bronto Plan

Capitalize on all major holidays • Valentine’s Day • Mother’s Day • Winter Holidays

The Bronto Plan

Communicate with consumers between major holidays

The Bronto Plan

Implement Welcome Series • Six initial emails for consumers new to the database • Additional discounts • Shopping reminder • Preference management

Our Progress

Results Q4-2012 Q1-Jan

Store 20% ECR 345% Trans 441% Rev 20% AOV

20% ECR 345% Trans 441% Rev 20% AOV

SEO 56.40% YOY 20.35% Q3/Q4

274% REV YOY 35% Traffic 50% Rank Increase

PPC 170% CTR 217% CTR

CTR 0.28% > 2.18% (678%) CR 0.70% > 0.87% (24%) ROAS 1.42 > 1.63 (15%)

SMO 138% Fans 15% Followers 186,431 Reach

446% Fans 2,221 Reach 4,925% Contests

EMM 500% Sends 3,700% REV

256% REV (Val) 22.40% AOR 3.73% CTR

Our Roadmap “My life has no purpose, no direction, no aim, no meaning, and yet I'm happy. I can't figure it out. What am I doing right?” Charles M. Schulz

Where Are We Going Next?

What Now

Messaging Strategy •  Deeper Segmentation

o  Sociodemographic o  Gender o  Cadence

•  Grow email list o  Contests o  Social Engagement o  Digital Media Campaigns

•  Smarter Measures o  Guest Preferences o  Social Drivers o  Engagement Triggers

What Are Our Plans

Complete Lifecycle Guest Experience

§  Core Messaging Services o  Welcome Series - Q1 o  Cart Management - Q2* o  Order Management - Q2* o  Coupon Integration - Q3 o  Product Suggestions - Q3 o  Post Purchase - Q3 o  Lifecycle Optimization - Q4

§  Additional Experience o  Managed Preference Forms o  Survey / Review Forms o  Deeper Social Profile Integration

§  Facebook Sign-up §  Facebook weekly contest §  YouTube & Lover.ly,

*In-Progress

The Bronto Plan

Assist consumers with cart management (reminders, additional discounts, etc.) • Thanks for visiting Moissanite.com • We noticed that you left items in your shopping cart on your last visit. • We wanted to send you a quick reminder that the item(s) in your cart will soon be removed.

The Bronto Plan

Develop a series of order transactional emails Scheduled for 2013-Q2 • Order Confirmation • Shipping Confirmation • Delivery Confirmation • Shopping Survey & Review

Our thoughts “If I were given the opportunity to present a gift to the next generation, it would be the ability for each individual to learn to laugh at himself.” Charles M. Schulz

Pitfalls We Experienced

New Technology – High Expectations §  Fast Rapids and Hidden Eddies §  Hacking with a Butter Knife §  Grandmother Test

Hope for the Best – Plan for the Worst

§  Creative Services §  Merchandising §  Operations

Too Smart for Your Own Good

§  Research, Research, Research §  The Devil's in the Details §  No When to Say When

Thanks “I love mankind; it's people I can't stand.” Charles M. Schulz

Our Marketing Team §  Moissanite.com §  Bronto §  Clean Design §  Gorilla Group §  Holly Brown Creative Services §  WPromote

Q&A

Who §  are your partners? §  internally can assist you? §  is an untapped resource?

What §  is your 1%? §  are your short term goals? (this quarter) §  are your long term goals? (this year)

Where §  are the resources? §  do you plan to focus?

How §  to accomplish your goals? §  is your plan going to impact the bottom line?

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