Gain complete customer insights for more meaningful engagements and effective services

© 2015 IBM Corporation

Gain complete customer insights for more meaningful engagements and effective servicesElizabeth MagillProgram Director, Customer Analytics Marketing

IBM Commerce

Agenda

• The need for a holistic understanding of customer

• Customer Analytics enables you to….

• Why IBM

1

The empowered consumer is fundamentally changing business

2

92%of consumers research

online and seek opinions via earned media before

a purchase

They are always connected…. have easy access to information…

high expectations…

70%of consumers have

stopped doing business with a brand following a

poor customer experience

and are fickle.

5 minutesthe response time users expect from a company

once they have contacted it via social

media

84%of smartphone users

check an app as soon as they wake up

Success in today’s world means meeting and exceeding customer’s expectations

Engaging empowered customers is challenging …

Having an integrated view of the customer is critical to achieving

desired goals

Acquire profitable customers growth

Reduce fraud and settle disputes

Serve and delight

customers

Optimize the customer journey

Deliver a superior customer

experience

… because of the complexity of many modes and the blurring of channels

WWW

A new way to view customers

4

Understanding Customers Holistically Requires Combining Digital, Behavioral, Sentimental & Predictive Analytics

5

Digital Analytics

Quantitative Insights

• Web site and mobile traffic

data

• Customers in purchase

funnel

• Completed transactions

• Conversion metrics Behavior Analytics

Qualitative Insights

• Surface Customer struggle

• Session replays to

understand customer

journey

• Identify impacted customers

Social Media

Analytics

Sentiment Insights

• Prevailing sentiments

• Affinities and correlations

• Share of voice

• Relevant relationships

• Potential risks

Predictive Customer Intel.

Anticipated

Preference Insights

• Automated, optimized

real-time decisions

• Next best offer

• Reduce churn, improve

lifetime value

Google

Publish data Subscribe to data

with over 160 certified partners

Google

IBM connects diverse data from

across ecosystem

IBM recognizes a fragmented ecosystem of customer engagement technology

Agenda



• Why IBM

7

And with the right Customer Analytics solution, you can…..

Acquire the Right Customers

Customer analytics enables you to identify key messages and targets

Digital Analytics

Social Analytics

Identify top sites, topics, sentiment,

demographics, segmentation &

affinities

Social Analytics Output by channel matrix for targeted marketing

Paid Search Display Ads Content for Social Email marketing

Evolving TopicsTopic ideas for keywords list

Topic ideas for messaging and

promo

Topic ideas for developing viral

content

Email messaging topics

DemographicsGoogle Adwords

targetingDisplay targeting

Social ads and content relevancy

Targeting

Influencer Scoringand Sentiment

--Identifying topics and

websites based on sentiments

Banking on positive/negative

trends

Provocative email messaging

AffinityKeywords list

expansionAdditional messaging

ideasParticipating in conversation

Messaging ideas

GeographicAdwords Targeting Regional targeting Regional targeting Regional targeting

Behavioural Analytics --

Identifying influencers

Identifying influencers and

topicsMessaging ideas

Ads

Determine which channels and ads drove desired visitor behavior

ad

ad

Multi channel marketing and

targeting

FreshDirect – Serving up personalized content to capture

incremental sales and nurture customer loyalty

Incentivizes incremental purchases and drives

sales

"The IBM solution enables us to communicate with

customers in a more personalized, relevant manner."—Dave Gerridge,

Senior Director of Marketing Operations

Enables fine-grained customer segmentation

for more relevant, personalized

marketing

Nurtures loyalty and encourages repeat

business

Solution components

Challenge: To drive incremental sales, FreshDirect wanted to offer its

customers relevant product promotions – but it lacked the ability to

segment its customer base.

Solution: FreshDirect uses IBM ExperienceOne solutions to gain a

holistic view of customer interactions across every channel to

understand individual preferences, deploy tailored promotions, and

capture sales.

Software

•IBM® ExperienceOne

IBM Campaign

IBM Digital Analytics

UVP12397-USEN-00


13


Deliver Superior Customer Experience

In Digital Channels• Identify and resolve application problems• Understand the true causes of abandonment• Raise awareness of customer struggle• Improve site usability and customer satisfaction

In Mobile Channels• Measure and analyze mobile user behavior• Improve mobile application usability• Optimize mobile engagement channels

Lots of data, not enough answers

14

Only 26% of

companies have a well-developed strategy in place for improving customer experience.*

58% of companies

have limited or no

understanding of which

usability issues affect

conversion*

91% of companies

have limited or no

understanding of why

people leave their site

without converting*

* Econsultancy - 2013

IBM Tealeaf provides Real-time Awareness

that Eliminates Further Struggle and Makes

Customers Successful

Customer Behavior Analytics: unprecedented visibility into online and mobile customer experiences

16

•Deep analytics of

customer interactions

•Capture and replay of

every customer

interactions for both web

and mobile

•Comprehensive user

intent analytics

• Integration with CRM,

VOC, Analytics

•Preserve customer

interactions

Customer Behavior Analytics

Providing insight, visibility and answers to customer

experience challenges and optimization

All actions

All interactions

All customer experience obstacles

Customers of IBM Tealeaf solutions typically realize risk-adjusted payback in less than eight months

Typical three-year risk-adjusted results

249% ROI

7.3 months payback period

SOURCE: Forrester Consulting, The Total Economic Impact™ Of The Tealeaf Customer Behavior Analysis Suite, Norman

Forbush, November 2013. Report commissioned by Tealeaf.

Note: Benefits found in this study were risk-adjusted and were achieved over a three-year period.

Scenario 1:

• Some customers were placing and paying for orders online, but were never received or

fulfilled by wehkamp.nl

• With IBM Tealeaf, wehkamp.nl identified that all the customers experiencing the problem

were selecting the same external payment system.

• Re-created orders without further inconveniences to shoppers.

Scenario 2:

• wehkamp.nl also saw a significant drop in conversion rates for certain products.

• By replaying sessions using IBM Tealeaf, wehkamp.nl identified iPad users dropped

orders when banner ads blocked their rotated views, thus causing low conversion rates for

certain products

• Able to resolve issues experienced by iPad users, thereby increasing conversion rates by

60 percent overnight.

60%Increase in conversation

overnight

ImprovedCustomer experience

Improved conversion rates by 60 percent for Apple iPad users


19



Optimize the Customer Journey

• Understand customers across time and devices

• Maximize customer profitability through up-sell and cross-sell

• Minimize churn with optimized engagement and offers

• Increase customer loyalty and repeat purchases

Session 1

Sunday Monday Tuesday Wednesday Thursday Friday

Session 2 Session 3

Session 5

Search

prices and

options

Refine

search

Select flight and

save Itinerary

Book Flight!

“Let’s go

to Disney

World”

Price

compare on

other sites

Finalize flight

preferences

Discuss one

more time -

then sleep on it

Confirm that

price

is best

Session 4

Review flight,

and hotels, but

don’t purchase

Talks with

family about

options and

schedules

Multichannel Sales Cycle is a Default for most Industries

Booking a trip to Disney

is a multistep process

• 6 days

• 5 sessions

• 1 conversion

Trip to Disney milestones

1. Price review

2. Search

3. Compare

4. Select flight

5. Book flight

Lifecycle Report

• Single view of buyer

journey across multiple

events

• Quickly identify non

buyers for retargeting

• Shorten length and

duration of purchase

Develop Lifecycle Reports to Map the Buyer Journey

Retarget Buyers with Promotional Email

• IBM® Cognos® Business Intelligence

• IBM Digital Analytics Lifecycle

• IBM SPSS® Modeler

• IBM SPSS Statistics

Carbonite strengthens customer relationships, optimize buyer journey and drives revenue

USD4 millionsaved through a 1 percent

reduction in customer churn

Solution components

Challenge:

• Carbonite lacked a clear view of the end-to-end sales cycle, preventing it

from evaluating the efficacy of its marketing strategy.

• Needed to measure marketing and sales performance against key

milestones so that it could understand where to invest its marketing

efforts to identify, nurture and convert new opportunities.

The solution:

• Digital analytics and fractional attribution modeling to track and analyze

customer interactions with its marketing media

• Carbonite can determine which efforts are producing results, make subtle

or substantial refinements to steer visitors toward conversion more

effectively.

USD1 millionincrease in sales revenue

driven by improved fractional

attribution

800% ROIon the analytics solution

“How we deliver actionable insights to business users

was science fiction 10 years ago—now it’s a fact.”—Matthew DiAntonio, vice president of business analytics


24




Serve and Delight Customers

• Drive the adoption of self-service

• Improve first call resolution and reduce call handle times

• Minimize churn with optimized engagement and offers

70% of consumers first interact online before interacting with a contact center

error

confirmation

clarification

questions

struggle

usabilitydesire live assist

SOURCE: Navigate The Future of Customer Service” Forrester

Research, Inc., February 01, 2013

IBM Tealeaf reduces call center operational costs with visibility into customers’ digital interactions

Provides the call center

agent with direct access to

replays of real customer

sessions from mobile

devices, tablets or web chats

Alerts agents of customer

struggles or drop-offs for

proactive engagement

Identifies common struggles

and provides feedback to the

business for website or

mobile improvements

Helps call center agents

understand where customers are

coming from and what problems

they have experienced before

talking with them

Drives revenue and increases

brand loyalty with exceptional

web experiences that include

native social and mobile

capabilities

Offers call center visibility of

purchase information, from sell

to fulfill, across channels

Risk-adjusted payback typically in less than four months

Typical three-year risk-adjusted results

407% ROI

3.9 months payback period

SOURCE: Forrester Consulting, The Total Economic Impact™ Of The Tealeaf Customer Service Optimization Suite,

Norman Forbush, Dec 2013. Report commissioned by Tealeaf.

Note: Benefits found in this study were risk-adjusted and were achieved over a three-year period.

Reduction in tier 2 escalations

50%

Reduction in average handle time

10%

Business outcomes:

• Improved agent efficiency by reducing average

handle time and tier 2 escalations

• Reduced call volume by setting a workflow in

place to lower overall site issues

• Increased agent effectiveness and customer

satisfaction

• Reduced customer turnover and received

greater wallet share by strengthening customer

engagement

• Drove business growth and cost savings by

delivering engaging and personalized digital

services and information whenever and

however customers connect


29




Serve and Delight Customers

Reduce Fraud and Customer Disputes• Detect and prevent

digital fraud

• Manage online customer disputes

• Preserved records for legal, audit, fraud, or compliance

needs enabling more accurate resolution of longer term

customer disputes

• Archived data for ongoing analysis of potential fraud and

online security violations

IBM Tealeaf helps businesses to resolve fraud

and customer disputes with….

$1.2MSaved annually

Problem: Because dispute investigations are typically costly,

company’s policy was to automatically pay out any claim under $50.

Solution: Once IBM Tealeaf solutions were deployed, brokerage

was able to easily retrieve and replay complete online customer

sessions as needed to resolve disputes.

Impact: IBM Tealeaf solutions enabled firm to reduce automatic

payouts by 80%, saving $1.2M annually.

Online Brokerage Firm reduces dispute payouts by $1.2M annually

Agenda



• Why IBM

32

Comprehensive solutions that provide unified views and

analytics across modes and channels

of customer interactions to deliver

holistic view of customer behaviors

and preferences

Analytics tied to

engagement solutionsensure that you can take action on

the insights you uncover

Combination of quantitative

and qualitative analyticsenable organizations to identify the why

behind trends to quickly resolve issues

and seize opportunities

Why IBM?

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