Customer Analytics Strategy and Application

The Vision and Strategy for
Understanding Your Customer

Agenda
• Understand Your
Customer
• Introducing cxLifecycle
• Tealeaf 9.0
• Dell: Using Tealeaf to
Help Customers
• Questions
2 © 2014 IBM Corporation
John Dawes
VP, Product Management,
Customer Analytics, IBM
Sameer Khan
Sr. Manager, Customer
Analytics, IBM
Jim Parker
Director, Digital Tools
Dell

The empowered consumer is fundamentally
changing business
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 minutes
the 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 expectations

Smart companies are differentiating with
personalized customer engagement
VT Living predicts a
50% increase in
demand for the Oxley
Pump based on social
trends, likes and
purchasing habits
Katy surfs VT Living’s site
and reads product reviews
on a pair of shoes
Katy gets an email from VT
Living featuring Anne
Hathaway wearing the shoes
at the Oscars
Katy is in window shopping
outside VT Living and gets a
tweet. “We have the Oxley
Pump in your size. Why not
try it on? Tweet us back and
we’ll be ready for you.”
As Katy is buying the shoe, the
sales person shows her a picture
of the perfect pants to wear with
the shoes using her iPhone. She
confirms they have her size and
directs Katy to the right
department at VT Living
VT Living sends Katy a link
that enables her to share
on Facebook that she
bought Anne Hathaway’s
fierce new shoes.
Katie
tweets
back,
“Yes!!”

Customer engagement requires a systematic
understanding of individuals in context, and at scale
Is my product delivering value
to the customer?
Does the customer need
help now?
Is the customer in market
now?
What is the right product for
this customer?
How does the customer
perceive my brand?
Does the customer have
enough information to make a
decision?
Will the customer act if we
make an offer now?
What price should I
charge?
Is the customer using my product
effectively?
Is the customer willing to
advocate for my brand?
What is the potential of this
customer?
How should I differentiate my
treatment of this brand advocate?

Lots of data, not enough answers
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
The departmental analytic approaches of the past are
insufficient for the needs of today

Understanding customers holistically requires
digital, behavioral, sentimental & predictive analytics
• Social Media Insights
• Prevailing sentiments
• Affinities and correlations
• Share of voice
• Relevant relationships
• Potential risks
Mapping Attitudes & Opinions
• Future Buying Insight
• Predicts outcomes and behavior
using all data
• Integrates predictive intelligence at
the point of impact to drive
optimized interactions
• Reduces churn, improves CLTV
Anticipating Customer Actions
• Qualitative Insight
• Surface customer struggle on digital
channels
• Session replays to understand actual
customer journey
• Identify impacted customers
• Quantitative Insight
• Web site and mobile traffic data
• Customers in purchase funnel
• Completed transactions
• Conversion metrics
Measuring Results Understanding Behavior

Understand Your Customer is a key component to
IBM’s New Customer Engagement portfolio
Social Media Analytics
Predictive Customer
Intelligence
Measuring Results
Digital Analytics
Understanding Behavior
Customer Behavior
Analytics
Orders
Transactions
Payment history
Usage history
Attributes
Characteristics
Self-declared info
Geographic
demographics
Opinions
Preferences
Needs & Desires
Email
Chat
Call center notes
Web clickstreams
In-person
Mobile
Direct
Online
Call
Center
Point of
sale
Understand Your
Customers
Engagement
Solutions
• Curate Meaningful
Customer Interactions
• Deliver Exceptional
Experiences Across All
Channels
• Personalize The Store
Experience
• Reinvent And Automate
Complex B2B Sales
Processes
• Ignite And Grow
Customer Relationships
• Convert Digital Prospects
To Loyal Customers
• Maximize Sales, Profit
And Shopper Loyalty
• Serve And Delight Your
Customers Deliver
• Empowering Digital
Experiences
Kiosk

Lack of holistic customer understanding creates
challenges for many common business goals
Acquire high value customers
efficiently
• High cost to acquire customers caused
by lack of insight into which messages
and tactics bring in most valuable
customers
Engage customers to drive loyalty
and profitability
• Low conversion with messages that
don’t resonate
• Inability to foster customer journey
across time and channels
Drive loyalty and retention
• Customer struggles cause dissatisfaction
and churn
• Lack of coordination across channels
creates unsatisfactory experience
9

IBM balances ease of use with rich capability to help
business understand their customers
Hard
things
Possible
Hard
things
Easier
Simple
things
Quickly
Hard Things Possible
• Enable real time recommendations with PCI
based on customer interaction data from
Tealeaf or DA
• Understand causes of churn and other rich
analytics based on data from customer
interactions from Tealeaf, DA or behavioral
data from SMA
Integration
with
Services
Hard Things Easier
• Behavioral targeting from PCI delivered by
Interact or Campaign
• Campaign and Interact driven by behavioral
analytics from Tealeaf
Pre-built
Integration
Simple Things Quickly
• Drill down from DA into Tealeaf
• Analyze Tealeaf segments in DA
• Create Campaigns from DA segments
• Product Recommendations based on data
from DA
Out of the
box
integration

Google
with over 140 certified partners
Google
IBM is delivering an open framework for data
syndication to simplify development of a contextual
view of the customer

Holistic customer understanding has profound
business impacts
• Higher Customer Satisfaction
– Reduced customer struggle & friction
– Better Net Promoter Scores
– Reduced churn; higher customer loyalty
• Increased Revenue
– Better conversion/adoption
– Higher lifetime customer value
– Increased share of wallet
– More repeat customers/buyers
• More Effective Customer Acquisition
– Better targeting based on intents/interests
• Reduced Operational Costs
– Higher call avoidance/deflection
– Faster site maintenance, problem resolution
Customer
WWW

IBM is uniquely positioned to meet customer needs
• Market leading products with
unmatched breadth of
capability
• Growing list of integrations
across key customer use
cases
• Uniquely combining customer
understanding with omni-
channel engagement and
optimization capabilities
• Open framework with broad
partner ecosystem

Agenda
• Understand Your Customer
• Tealeaf 9.0
• Dell: Using Tealeaf to Help Customers
• Questions

Introducing IBM Tealeaf cxLifecycle
• Measure the customer journey
across buying cycles
• Improve and shorten
conversion and sales cycles
• Drill down customer journey
milestones to discover factors
influencing progression
• Uncover and quantify
conversion impacting trends or
anomalies
• Perform extensive visitor level
analysis of issues identified
through session replays
IBM Tealeaf cxLifecyle is the latest offering designed to provide extensive visitor and segment
level analysis to improve conversion cycles, shorten sales cycle and understand the customer
journey across multiple buying cycles.

Lifecycle
Analytics
SHORTENING LENGHTY
DIGITAL SALES CYCLE
Ad-hoc
Analytics
EXTENSIVE QUALITATIVE AND
QUANTITIAVE ANALYSIS
Conversion
Analytics
QUANTIFY CONVERSION
STRUGGLE AT VISITOR LEVEL
Use Cases
“Your most unhappy customers are your greatest
source of learning”
– Bill Gates

Meet Jennifer...
New “One Customer” project:
• Provide one-to-one customer
experience
• Improve customer loyalty
• Install base revenue growth
© 2014 IBM Corporation17
Jennifer Wu
Digital Experience Leader
MoonAir

Business Class Upgrade Marketing Campaign
• Customer logs on to the mobile
app, mobile site and website
• Receives
upgrade offer
message
• Successfully upgrades to
Comfort or Business class
• Higher revenue for the
airliner and satisfied
customers
$
 + $

Use Case #1: Lifecycle Analytics
WHAT IS IMPACTING THE
BUYING CYCLE
PROGRESSION?

A strategic view of customer loyalty progression
Upgrades

Drill down to understand influencing factors
Upgrades

Use Case 2: Ad-Hoc Analytics
IDENTIFY IMPACTED USER
GROUP WITH ADVANCED
SEGMENTATION
Designing the Soft Side of Customer Service, MIT Sloan http://bit.ly/oYEQIX

Dive deeper with flexible ad hoc reporting and
session replay

Jennifer Opens the Segment in Tealeaf …

She looks at a session to see why the abandonment
is so high…

User logs onto the mobile web site…

Welcome to the
next level of
comfort!Click here for your
new automated
check-in tools!
Upgrade
The “New Status” welcome message displaces the
“Upgrade” promotion message
Here’s the issue: This upgrade
promotion should be at the top of
the screen!
Our template has opted for the
smaller layout and pushed it to
the bottom of the app screen.
CALAIR Mobile
Customers never see the upgrade
and move to the check-in security
page.

The Upgrade promotion is firing, but it’s being
displaced by Loyalty message

Jennifer needs to know how wide-spread the problem
is…

The number of users impacted, is significant! 1,794!

Use Case 3: Conversion Analytics
STITCH CONVERSION
STRUGGLES TO QUANTIFY
IMPACT

Imports segment for Conversion Analysis

Quantify Conversion Struggle at Visitor level

© 1999-2008 Tealeaf Technology, Inc. All rights
reserved. Confidential and Proprietary.34
Without Stitching Conversion Struggles
5 Sessions… 4 Abandonments… 1 Conversion
Session 1
Sunday Monday Tuesday Wednesday Thursday Friday
Session 2 Session 3
Session 5
•Search
•Prices
•Options
•Search
•Refine
•Select Flight
•Save Itinerary
•Book Flight!
“Let’s go to
Disney
World”
Price
comparisons
on other
sites
Talk about
options and
schedules
Finalize
flight
preferences
Discuss one
more time -
then sleep
on it
Confirm that
price is best
Session 4
Abandonment
And an unknown # of human beings!
•Review flight,
hotels, but no
purchase
Conversion
Abandonment Abandonment Abandonment
DAYEVENING

© 1999-2008 Tealeaf Technology, Inc. All rights
reserved. Confidential and Proprietary.35
Conversion Analysis by visitor puts struggle in
context
5 steps ... 0 Abandonments ... 1 Conversion
Session 1
Sunday Monday Tuesday Wednesday Thursday Friday
Session 2 Session 3
Session 5
•Search
•Prices
•Options
•Search
•Refine
•Select Flight
•Save Itinerary
•Book Flight!
“Let’s go to
Disney
World”
Price
comparisons
on other
sites
DAYEVENING
Talk about
options and
schedules
Finalize
flight
preferences
Discuss one
more time -
then sleep
on it
Confirm that
price is best
Session 4
•Review flight,
hotels, but no
purchase
One unique visitor with a 5 day sales cycle
Step Step Step Step
Conversion

Take Home Points
• Web Analytics only tells you what and how; cxLifecycle gives your
full circle lifecycle analytics
• Perform extensive ad-hoc visitor level analytics on customer
experience sessions
• Quantify long term revenue impact across multiple channels and
devices

Agenda
• Tealeaf 9.0
• Questions

Tealeaf 9.0 Highlights
Combine qualitative
and quantitative
analysis for
360°customer insight
Deeper insight into
customer behavior on
mobile
Deliver customer
experience analytics in
the Cloud
Deepen customer
insights with actionable
visualizations
Mobile
Cloud
Insight
Integration

Native Application Replay

RWD Replay
•UI Events appear for changes, resize and scroll.
•Screen size is displayed.
•Replay view adjusts to match user’s experience.

From Packet
Forwarder
Tealeaf CX
Capture
Customer Environment
Web Servers
Application Servers
Databases
Tealeaf CX
Datastore
Reverse
Proxy
Server
Tealeaf Environment
Consumer
Cloud Enablement – v9.0
Customer and Tealeaf Deployed in SAME Public Cloud
›Customer or partner must manage
reverse proxy server (in the cloud)
› Customer or partner must manage
Tealeaf (in the cloud)
› Tealeaf can capture traffic from a
virtual network and forward traffic
to Passive Capture
› All of Tealeaf can run in public cloud
(including Passive Capture)
Tealeaf managed by the customer

CxOverstat – What’s Next – 9.0 Visual Preview

Metrics:
View which
links users
interact with
across multiple
metrics
View various
interaction
metrics for
each link
Customize:
Adjust the number of elements to
display and choose to look at top
or bottom elements.
Filter:
Filter view to only display links
with certain dimensions
Link Analytics (9.0)
45

Product Maturity
• Support native double byte web encodings
(GB2312 – China, Shift JIS – Japan, etc)
• Correct processing of multilingual data:
Searching/filtering/collating
• UI translation in other languages: Chinese,
Japanese, Korean
• Culturally correct UI & Overhaul time zone usage
• Translation of Docs
• Continued enhancements to BBR: performance,
parity and maturity
• Responsive Design Replay
• Serviceability enhancements (redbooks) and pro-
active alerting to system issues
• Scalability and reliability improvements
Globalization
IBM Tealeaf CX
Mobile & Replay
IBM Tealeaf CX
and cxImpact

Summary
Integrated Solutions Deepen Core Capabilities
Accelerate customer
journey with lifecycle
analytics for IBM Tealeaf
customers
Combine qualitative and
quantitative analysis for
360°customer insight
Deeper insight into
customer behavior on
mobile
Deliver customer
experience analytics in the
Cloud
Tealeaf 9.0
cxLifecycle
Deepen customer
insights with actionable
visualizations
Understand Your Customer
Social Media Analytics
Predictive Customer
Intelligence
Measuring Results
Digital Analytics
Understanding Behavior
Customer Behavior
Analytics
New Offering
47

Agenda
• Tealeaf 9.0
• Questions

Using Tealeaf to
Help Customers
Jim Parker, Director, Digital Tools

50
It’s all about integrations…..
• Subject Matter Experts hired for each tool
• Data integrated across tools
• Ensure we are using the right tool for the job
Analytics Experience
Voice Target

51
Digital Tool data spans customer
lifecycle….
• Users access our tools directly or extract the info to be combined with other data sources.
Marketing
Third
Party Data
eComm
Personalization
eSupport
Adobe
Tealeaf
iPerceptions,
OpinionLab
Complete Customer View = (RAD) Retention, Acquisition, Dev
1500 Tool Users:
Premier Help, Sales,
Quality, Analytics,
Reporting, Site Dev.
Digital Tools:

52
Help customers at each touch point….
• Business Customer issue at checkout, abandons
– Extract Tealeaf + SFDC + Scrub for Opt-in  Fix web issue, contact
customer
• Customer OpinionLab Feedback
– OpinionLab + Tealeaf events + Session data + Support Calls  Analyst
• Site Performance
– Tealeaf Threshold Alert  Tableau to drill down
• Site Error
– Tealeaf Watchdog Alert  Top events exceeding standard deviation
• Business Optimization
– iPerceptions survey responses + Tealeaf events + Session data 
Analyst

53
Lessons Learned
• If you already have a good site, ROI takes longer than
expected – Benefits in unexpected areas
• Users stick with tools they know. Training key to
helping them expand – Wiki, workshops
• Hiring top talent is key to broad adoption – Best of
vendor tool functionality + customization
• Integrations drive exponential value – Root cause to
solve customer problems are complex
• It is a continuous journey – Constantly enhancing all
tools. We’re not done yet.

Agenda
• Tealeaf 9.0
• Questions

© IBM Corporation 2014. All Rights Reserved.
IBM, the IBM logo, ibm.com are trademarks or registered trademarks of
International Business Machines Corp., registered in many jurisdictions worldwide.
Other product and service names might be trademarks of IBM or other companies.
A current list of IBM trademarks is available on the Web at “Copyright and
trademark information” at www.ibm.com/legal/copytrade.shtml.
© 2014 IBM Corporation
Copyright and Trademarks
55

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Thank you for joining us!
56

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 Schedule an Executive One-on-One
(Grand Ballroom of Marriott)
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(Solution Center)
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of TCC)
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Testing (Room 9 of TCC)
Find out more…
Check Summit Conference Connect
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and more.
57

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