experience your customers - ibm

Experience Your Customers

Presentation for

Agenda

2

Introductions

Customer Experience Management & Tealeaf

Product Demonstration

Tealeaf Usage and Focus Trends

Integration Level of Effort and Timeline

Q&A / Next Steps

© 2012 IBM Corporation

12+ Years Defining Customer Experience Management 450+ Customers | Strength in Financial Services

Retail

1/3 of all Internet Retailers > $100M

7 of Top 10

Over 40 P&C Insurance Companies

Insurance

10 of 12 Most Booked Travel

Portals 50% US Airlines

Travel

All Major U.S. Carriers

Telco / Cable Financial Services

8 of 10 Largest U.S. Banks

3

http://www.bluefly.com/

http://www.neimanmarcus.com/

http://images.google.com/imgres?imgurl=http://www.hhh.umn.edu/centers/stpp/events/innovation2008/images/best-buy-logo.jpg&imgrefurl=http://www.hhh.umn.edu/centers/stpp/events/innovation2008/index.html&usg=__bQ7m8GLjmzcSrSZyT0DYyla5aUE=&h=262&w=399&sz=19&hl=en&start=2&um=1&tbnid=LYdjWW0V8GPSqM:&tbnh=81&tbnw=124&prev=/images?q=best+buy&hl=en&rlz=1W1GGIT_en&sa=N&um=1

http://www.unitrindirect.com/

http://www.esurance.com/

http://www.tui.com.uk/

http://www.comcast.com/

http://www.directv.com/

http://www.rogers.com/

With Tealeaf, it’s exponentially easier to understand customer behavior and uncover usability and site issues that can lead to, in all seriousness, millions of dollars in savings.

Matt Cardwell, Director of Web Site Marketing – Quicken Loans


30% of Fortune 100

companies rely on

Tealeaf

Bad customer experiences are more dangerous than ever

6


Business Team

Business Trends

Funnel Reports

7/23/2005,0:06:31,192.168.1.207,-,10.10.20.47,80,GET,/store/,-,302,405,460,10,Mozilla/4.0+(compatible;+MSIE+6.0;+Windows+NT+5.1),-,,-

7/23/2005,0:06:32,192.168.1.207,-,10.10.20.47,80,GET,/store/Default.asp,-,200,13631,461,1122,Mozilla/4.0+(compatible;+MSIE+6.0;+Windows+NT+5.1),-,,-

1 2 3 4

#550356 $54.72 <id56043>

#864021 $89.12 <id23856>

#756053 $129.12 <id85476>

#173460 $12.00 <id87953>

#783452 $7.32 <id87342>

IT Team

Server Logs

Performance Metrics

Transaction Logs

The Gap No Visibility into Why Customers Succeed or Fail

But why did customers succeed or fail

on our site?

Customer Service

Customer Calls

Customer Emails

To: Customer Service

Your site lost my shopping cart .

Customer Surveys

[+]


Customer Service

Customer Calls

Customer Emails

To: Customer Service

Your site lost my shopping cart .

Customer Surveys

[+]

Business Team

Business Trends

Funnel Reports

7/23/2005,0:06:31,192.168.1.207,-,10.10.20.47,80,GET,/store/,-,302,405,460,10,Mozilla/4.0+(compatible;+MSIE+6.0;+Windows+NT+5.1),-,,-

7/23/2005,0:06:32,192.168.1.207,-,10.10.20.47,80,GET,/store/Default.asp,-,200,13631,461,1122,Mozilla/4.0+(compatible;+MSIE+6.0;+Windows+NT+5.1),-,,-

1 2 3 4

#550356 $54.72 <id56043>

#864021 $89.12 <id23856>

#756053 $129.12 <id85476>

#173460 $12.00 <id87953>

#783452 $7.32 <id87342>

IT Team

Server Logs

Performance Metrics

Transaction Logs

Filling the Gap ~ Understanding “Why?” Requires Visibility into the Actual Customer Experience

Review Cart

Submit Order

Your shopping cart is empty

Empty Cart?

Tealeaf

Web & Mobile Channels Reduce People to Data

See Your Digital Channels Through the Eyes of

Your Customers


Tealeaf. See Your Digital Channel Through the Eyes of Your Customer. Every Customer. Every Interaction. Every Time.

10

All actions

All interactions

All customer experience obstacles


Immediate Awareness to Eliminate Further Struggle and Make More Customers Successful

© 2012 IBM Corporation 12

Demonstration

© 2012 IBM Corporation 13

Benefits and ROI


Across the Enterprise

Issue Identification & Resolution

Dispute & Fraud Investigation

Customer Service Optimization

Advanced Analytics

Site Usability Monitoring

Conversion Rate Optimization

Tealeaf: Value Across the Enterprise


Typical Benefits (as described by Forrester)

1%+ improvement in customer retention rates from better site experience. 2

60%+ reduction in support costs associated with problem reproduction and resolution.

3

3.5%+ increase in site conversion rates. 1

10%+ reduction in support costs associated with better prioritization of site projects and project avoidance.

5

0.5%+ improvement in average order value from better customer experience.

4

15


Summary of Tealeaf Key Features

Enables rapid identification, diagnosis, and resolution of site obstacles & customer struggle 2 Provides the ability to quantify the business impact of any given issue for more effective resource prioritization 3

Real-time visibility into the actual customer experience 1

Seamless integrations with other digital optimization & CRM systems 5 Facilitates usability optimization efforts 4

16

Enables targeted marketing (i.e. order recovery) and personalized content delivery based on customer actions 6


Three-Year Risk Adjusted Results

ROI: 512%

Payback Period: 2.6 months

Total Net Present Value: $7,633,214

Source: A commissioned study by Forrester Consulting, “The Total Economic Impact of Tealeaf’s Customer Behavior Analysis Suite.” July 2010

Benefits Quantified in Study

Increased Conversion Rate 3.5%

Increased Average Order Value 0.5%

Improved Retention Rate 1%

Reduced Problem Resolution Time 60%

Reduced Incidents (Project Avoidance) 10%

Reduced Disputed/Fraudulent Chargebacks 0.05%

Results calculated from interviews with 4 cross-vertical customers & market research.

Summary: 3-Year ROI

$(1,000,000)

$-

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

Initial Year 1 Year 2 Year 3

Reduction in chargeback transactions

Reduction in IT costs for project avoidance

Reduction in IT costs for problem resolution

Incremental revenue from improved retention rate

Incremental revenue from increased order value

Incremental revenue from increased conversion

Total yearly costs for Tealeaf

Note: Benefits found in this study were not risk adjusted and were achieved over a three year period.

Total Economic Impact of Tealeaf’s CBA Suite Risk Adjusted Payback in Under 3 Months


Refuse to compromise: Extend your insight into the mobile web*

http://mobileweb.com

* Requires CX Mobile & cxOverleaf


cxOverleaf complement your existing Tealeaf products by providing a more complete view of the customer

CUSTOMER INTENT (Usability Analytics)

CUSTOMER ACTION (Transaction Analytics)


Quantify & Respond to Experiences That Matter

20

Conversion Rate: 51%

Conversion rate – control group:

Conversion rate – study group: -

Control Group

Total no. of sessions where user proceeds to purchase page

No. of sessions where user completes purchase:

Conversion Rate: 0%

Study Group

Total no. of sessions where user gets error message

No. of sessions where user purchases despite error message:

42

0 9,227

18,046

51%

0%

51%

51% of the 42 users affected in study group should have converted = 21 users

Annualized opportunity cost: $4,599,000

Average booking value:

Number of daily impacted users:

$600

X21

OPPORTUNITY IMPACT

Daily impact: $12,600


eTailer Tealeaf Usage and Focus Trends


› A focus on Site Conversion • CEM is interdisciplinary, but ultimately a business function

• Moving from fixing bugs to removing obstacles

• Leveraging the experiences of people rather than merely focusing on app and business performance.

• Detecting struggle, tight integrations with VOC, and the call center

• Strong executive sponsorship to implement change

• Hard business cases to justify incremental improvements.

• Key customer examples (that we can mention):

– Zappos.com

– Dell.com

– Abercriombie & Fitch.com

– Ebay/PayPal

– Expeida, Inc. (travel)

Trends in eTailToday


› Key Deployment Areas of Focus: • Client-side is where the biggest opportunity lies

• The affect of AJAX on the customer experience is poorly understood.

• Forms are a black hole were user experience goes to die.

• The majority of obstacles found with Tealeaf on eTail business are in poor form design and data validation.

• Integration with Akamai for true end to end visibility • Most large scale Tealeaf eTail customers are integrating Tealeaf with Akamai to

understand the top of the funnel product selection challenges in the a cached environment.

• Mobile CEM is a must • Different connection types, battery life, multiple gesture possibilities all but

make typical click analytics obsolete.

• Incorporating Usability into the CEM Practice (NEW)

• Reducing the number of clicks before add-to-basket

• Rapidly validate and replicate A/B Test success

• Deep form-field analysis

• Key customer examples (that we can mention): L.L. Bean, Crate & Barrel, Motorcycle Superstore

Trends in eTail are Using Tealeaf Today


Integration Level of Effort and On-going Resources for

Managing Tealeaf


Tealeaf Architecture – On Premise Software

SPAN port, Mirror port

Or Tap

Tealeaf CX Capture

• Decrypt • Privacy • Assemble

Firewall

Switch, Router, Load Balancer,

Firewalls

Existing Customer Environment Web Servers

Application Servers Databases

Tealeaf CX Datastore

• Inspect • Event • Correlate

• Index • Archive

Tealeaf CX Extended • Rich Internet Apps • Heavy JavaScript

Tealeaf CX Mobile • Mobile Sites • Mobile Apps

Internet

Tealeaf Modules cxImpact cxView cxReveal cxMobile cxOverstat (UX)

cxConnect Data cxConnect WA cxConnect VOC


Integration Activities, Timelines, and Realities

NetOps Application Team

UI Capture for Client-side and

Akamai integration

• Front-end developer

drops include and assists configuration (2 to 3 hours total over 1 to 2 weeks)

• Tealeaf PS configures replay (12 to 24 days)

• Regression test code base before deployment.

Training

On-site classroom training on your data

and your system

• Tealeaf offers training

tailored to the different function groups: general users, power users, system admins, and developers (10 to 15 days depending on products purchased as scope of audience)

Average deployment 30 to 40 days elapsed from when hardware arrives

Rack and stack

• Acquire hardware (2 to

6 six weeks)

• Implement span or tap configuration (5 days elapsed)

• Complete Tealeaf networking (open ports, configure Tealelaf VLAN (5 days in parallel with above)

• Install Tealeaf (Tealeaf PS; 3 to 5 day)

Getting the hardware can be the longest pole

Most of the work is on the Tealeaf

PS side

Focus and an executive readout are crucial


Tealeaf Maturity Model

Level 1

Level 2

Proactive Monitoring

& Awareness

• Observe customer

behavior on a regular basis

• Determine KPIs that impact customer experience

• Investigate changes in conversion rate

• Empower Contact Center with shadow browsing to increase first call resolution

Level 3

Advanced Site Optimization

• Prioritize site

optimization initiatives based on business impact

• Conduct customer recovery or re-marketing efforts

• Integrate CEM into online experience ecosystem (i.e. VoC, WA, BI)

Customer Experience Management (CEM) Maturity

Reactive Problem Resolution

• Investigate reported

issues and determine impact

• Monitor and respond to known issues

• Establish baseline for monitoring data

• Conduct fraud forensics


Tealeaf Maturity Model

Optimize the full potential of your Tealeaf investment with current resources

Analytics

Site Conversion

Initial Customer Service Roll Out

Analytics

Site Conversion

QA

Development

Advanced Customer Service Rollout

Analytics

Site Conversion

QA

Development

Customer Service

Product Managers

SEO Managers

Executive Team

Sample evolution of Tealeaf Users Across the Enterprise


Level 1

Suggested Resources:

System Administrator (part-time) – Skillset: Windows and Linux system

administration – Tealeaf Responsibilities:

• System implementation and maintenance

• Ongoing system audits and upgrades • User access controls

VOC Investigation

Advanced Business Impact Analysis

Measuring CE KPIs

Monitoring Site Processes

Monitoring Known Issues

Customer Experience Investigation

Tealeaf Assessment

› Power User (part-time) • Skillset: Analytics, User Experience,

• Common Existing Roles: Business Analyst, User Experience Analyst, Application Support

• Tealeaf Responsibilities: – Session replay analysis

– Events, alerts, reports creation

– Communicate findings

– Drive “Movie Nights”

– Provide recommendations/follow-on actions based on issues discovered in Tealeaf

– Internal evangelist


Level 2


System Administrator (part-time)

Centralized Power User

VOC Investigation


Measuring CE KPIs




Tealeaf Assessment

› Distributed Power Users (part-time) • Common functions:

eCommerce/eBusiness, Marketing, User Experience, QA, Application Support, Application Development, Contact Center

• Tealeaf Responsibilities: – Proactive CEM practices: uncover

obstacles causing abandonment, define KPIs that affect online customer experience

– Distribute data via dashboards and scorecards to executives and interested parties


Level 3


System Administrator (part-time)

Centralized Power User

Distributed Power Users

VOC Investigation


Measuring CE KPIs




Tealeaf Assessment

› Site Conversion Team • Tealeaf Responsibilities:

– Reactive and proactive analysis

– Analyze data across different toolsets: Tealeaf, Web Analytics, Voice of Customer, etc.

– Perform business impact analysis to drive and prioritize site initiatives

– Customer recovery


2013 – 2014 Product Roadmap Goals


Why are there low conversions from the home page?

IBM Digital Analytics

Qualitative (“Why”)

IBM Tealeaf 1 2

Quantitative (“What”)

View Individual Customer Experiences to Understand Why

Drill Down to Understand

WHY

EMM integration: Drill down to Tealeaf from Digital Analytics


Search for all customers that struggled from the home page

IBM Digital Analytics IBM Tealeaf 1 2

Identify impact on conversion rates or discovery trends & anomalies

Enables rich new ad-hoc analysis: segment by any attribute of the experience without tags

EMM integration: Ad-hoc search segments analytics


Identify customers that have added an item to their cart, but then removed it before the end of their visit

Take real time action by determining the best personalized message based on cross channel and Tealeaf input

Unica Interact IBM Tealeaf

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blank

WEB SITE

http://www.voluptatem.quia

OFFER prod rec

1 2

EMM integration: Real-time experience targeting


Identify customers given an invalid coupon code

Pass segment data to Campaign to recover lost users with an email apology and a better coupon code

Unica Campaign and Marketing Center

IBM Tealeaf

SHIPPP10

1 2

EMM integration: Campaigns to Tealeaf identified segments


Select etail Customers

http://www.harryanddavid.com/

http://www.abercrombie.com/

http://www.electronicsboutique.com/

http://www.neimanmarcus.com/

http://www.finestationery.com/

http://www.levenger.com/

http://www.crutchfield.com/

http://www.woodcraft.com/

http://www.next.co.uk/

http://www.art.com/

http://www.roomstogo.com/

http://www.snapon.com/

http://www.musiciansfriend.com/

http://www.1800contacts.com/

http://www1.macys.com/index.ognc

http://www.smithandnoble.com/sn/home_page.jsp?lob=1

http://www.hanoverdirect.com/

http://www.chicos.com/

http://www.become.com/

http://www.marketamerica.com/corporate/

http://www.dabs.com/

http://images.google.com/imgres?imgurl=http://www.hhh.umn.edu/centers/stpp/events/innovation2008/images/best-buy-logo.jpg&imgrefurl=http://www.hhh.umn.edu/centers/stpp/events/innovation2008/index.html&usg=__bQ7m8GLjmzcSrSZyT0DYyla5aUE=&h=262&w=399&sz=19&hl=en&start=2&um=1&tbnid=LYdjWW0V8GPSqM:&tbnh=81&tbnw=124&prev=/images?q=best+buy&hl=en&rlz=1W1GGIT_en&sa=N&um=1


Leading Apparel Retailer Conversion Rate Uplift by 8%; Annualized Revenue Savings of $1M+

Noticed spike in abandonment at step 4 of checkout process.

Credit Card Authorization Error

Uncovered confusing messaging and incorrect page refresh users didn’t realize needed to re-enter shipping state.

Compared conversion rates of successful checkout (80%) vs. encountered error but succeeded (72%) over 3 day period; # of impacted users/day x average cart value = $3,012/day opportunity cost.

Problem

Solution

Tealeaf Impact


Teen Apparel Retailer Conversion Rate Uplift by 20%; Annualized Revenue Savings of $2.4M+

Users experienced login failures during checkout that led to high abandonment rates.

Identified usability issue where invalid login error was at bottom of page, making error recognition difficult.

Compared conversion rates of successful checkout (62%) vs. encountered error but succeeded (42%) for one day; # of impacted users/day x average cart value = $6,650/day opportunity cost.

Invalid Login Error

Problem

Solution

Tealeaf Impact


Bluefly.com Discovery of International Checkout Problem Saves $1.1M/Year

International customers used “guest checkout” feature for purchases but conversion was lower than anticipated.

Watching customer sessions uncovered previously unknown error that had been in place for over one year.

Recouped nearly 10 international orders per day amounting to $1.1M in annualized revenue.

Problem

Solution

Tealeaf Impact


Art.com Visibility into One Coupon Activation Problem Saves +$9M/Year

Coupon not properly activated before promotion to top customers. “Invalid coupon” message caused many to abandon purchases.

Real-time alerts signaled drop in checkout conversion. Drilled-down into affected customer sessions and identified 300 “lost” customers.

Halted loss of $9M+ in annualized revenue from the mistake.

Problem

Solution

Tealeaf Impact

experience your customers - ibm

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