MASTERING CODE HALOSUsing Digital Insights to Drive Customer Experiences

A JOINT PLAYBOOK BY Salesforce &

Innovators recognize that every interaction with every person and every thing now creates a trail of data — and

they’ve mastered the ability to harness it. Every click, browse, download, share, transaction and device transmission

enables them to understand, and subsequently monetize, relationships in ways never before possible.

2

WINNING IN AN ERA OF

MASS PERSONALIZATION

Businesses of all types and sizes must be adept in today’s always-on, multichannel world where prospects and customers demand highly- personalized and relevant relationships.

3

to understand, and subsequently monetize, relation-ships in ways never before possible.

We call this collec-tion of data a “Code Halo.™” Code Halos, and the data at their core, are perpetually growing in richness and, along the way, generating unprec-edented opportunities for every industry.

Visit a Disney resort, and you’ll experience the MagicBand,™ or buy insurance from Flo and you’ll encounter Snapshot.™ You may have a Nest, or a Hive, or ridden in a Hailo cab in London. Industrial companies like GE, Bosch and Philips are instrumenting their machinery to generate data and build Code Halos around their products, which allow engineers, maintenance staff, finance executives and customers to see and interact with “smart things” in entirely new ways.

From marketing to sales and service — mass personalization is no longer an option. It is a matter of business survival.

All around us, companies from A (Amazon) to almost Z (Uber) are embracing this new expectation by leveraging data-driven insights to deliver 1-to-1 personalization along each step of the customer journey. In the process, they’re doing more than disrupting industries. They are redefining success in the digital age.

These innovators recognize that every interaction with every person and every thing now creates a trail of data — and they’ve mastered the abil-ity to harness it. Every click, browse, download, share, transaction and device transmission enables them

For many businesses, other examples are much, much closer. Billions of customers now gather on social networks, providing infinite insights into their interests and needs. And of course, the proliferation of mobile devices now places a supercomputer in the pocket of nearly every consumer, making it possible to connect truly relevant journeys across time-tested channels like e-mail, mobile, social, ads and the Web.

It’s no wonder 90% percent of the world’s data has been created in the last two years.

Code Halos contain the code that marketing, sales and service can use to

enhance their understanding of prospects and customers and deliver

personalized, 1-to-1 experiences.

4

Yet according to McKinsey, only 18% of companies believe they possess the skills to gather and use data effectively, and only 19% are confident that their data- gathering processes contribute to sales effectiveness.

Rectifying the problem requires a reconsideration of the relationship from the customer’s perspective — they don’t think in terms of depart-ments or lifecycles. The boundaries have blurred because always- connected customers don’t care whether it’s a service, marketing or

sales interaction. They just want their needs met quickly and consistently — regardless of what channel or device they choose.

Because CMOs now have greater responsibility for driving the cus-tomer relationship than ever before, marketing — in partnership with sales, service and IT — is ideally positioned to spearhead the data transformation. Nowhere in the organization is there greater opportunity to deliver personalized experiences to specific audiences at exact points in time.

Think of the possibilities. With every interaction, customers add to their Code Halos and provide insights into their wants, interests and lifestyles. By combining all available data sources into individual contact records that are living, breathing and constantly evolving, marketers can

fill the customer engagement tank with the fuel to power highly relevant 1-to-1 communications.

Pairing customer data like demo-graphics, history and preferences with real-time triggers like behaviors, location and even anticipated needs makes it possible for marketers to detect and respond to terabytes of information — and connect discrete interactions on each individual cus-tomer’s terms.

That is the true power of harnessing Code Halos.

MARKETING CAN LEAD THE

DATA TRANSFORMATION

A unified data strategy across your enterprise is key to harnessing the promise of Code Halos at each step of the customer journey.

5

For over 35 years, Room &

Board has created modern

furnishings designed to

be practical, timeless and

comfortable. In 2009,

the company’s leadership

turned to Marketing Cloud

to help create digital

experiences reflective of

how customers were using

the Web alongside its retail

stores and call centers. As

a first step, the company

began uploading all of its

customer sales history and

data to the cloud without

knowing exactly how the

information would be used.

Today, Room & Board uses

all that information to

power product recommen-

dations for customers

using Marketing Cloud’s

predictive intelligence.

The goal is to replicate

the personal experience

of in-store design associ-

ates, who work with

customers to help them

understand how a look

comes together in a room,

and which missing pieces

might help to complete

a showroom-perfect

in-store experience for

online customers. Years of

data about which pieces

of furniture go together,

which styles complement

one another and which

products customers tend

to view and purchase in

groups informs recommen-

dations made on the

website and in personalized

e-mail campaigns.

The results? In the first

year alone, the company

saw a 2,900% return on

investment. Customers

who engage with Room &

Board’s recommendations

place Web orders with 40%

higher average values than

those who don’t. When

customers view those

recommendations before

coming into the store, the

average order value shoots

up 60%.

ROOM & BOARD

case study

RE

TAIL

6

Customers have assumed control of researching their options, seeking trusted opinions, resolving issues and deciding which brands have the privi-

lege of communicating with them.

Marketing Cloud makes it possible for marketers to join customers as they move fluidly between channels and devices, and deliver seamless, personalized experiences each step of the way. It equips marketers to gather implicit and explicit individual customer insights at scale, then automatically engage in meaningful, two-way conversations across channels.

E-mail: E-mail is the engine that drives online

commerce. Marketing Cloud offers hundreds of features to help marketers execute on every possible communication, from basic e-mail marketing to sophisticated predictive intelligence decisioning.

Mobile: With 1-to-1 personalized messages across

SMS/MMS, in-app messaging, group messaging and connected devices, Marketing Cloud keeps brands in touch with customers’ ever-changing context, from smartphone to tablet to laptop.

Social: Target mobile prospects and customers —

as well as lookalikes — on networks like Facebook, Twitter and LinkedIn, and listen and respond to conversa-tions on owned social channels and across the social Web.

Ads: Digital ad spend continues its meteoric rise.

Marketing Cloud unlocks CRM data to securely and powerfully reach customers, target lookalikes and optimize advertising within the customer journey.

Web: Marketing Cloud’s Web marketing tools make

it easy to create beautiful, dynamic Web pages and personalized content, and then track every action customers take, in real time, to make the insights actionable.

IoT: Harness the power of the Internet of Things, and

turn the data generated by every customer, partner, device and sensor into meaningful action. You can process massive quantities of data, build business rules with simple, intuitive tools and engage proactively with customers in real time.

ON THEIR JOURNEYSENGAGE CUSTOMERS

Thanks largely to the influence of social networks, search engines, connected

products and ubiquitous mobile devices, customers are on journeys of

their own designs.

7

As a company on a mission

to improve the health

of America, Life Time

understands the journey

toward positive health and

fitness is personal, and that

each of its members has

particular objectives. To

that end, the company was

focused on obtaining new,

unique insights in order to

deliver tailored experiences

that would truly benefit

members across its 119

facilities in the U.S. and

Canada.

Using Marketing Cloud,

Life Time can now create

a complete view of each

member by gathering data

from every touchpoint he

or she has with the brand,

and then leverage that data

to provide an experience

that is unique. For example,

if a member comes in with

her two children, she may

receive a push notification

providing a 10% discount

for a LifeSpa service while

her children attend Kids

Academy, Life Time’s onsite

child program. Another

member who is training for

a triathlon might receive a

reminder on her mobile app

to track her workout for the

day to ensure she is getting

the right training mix to

prepare for her big race.

Each of these members

has a unique journey and

needs different informa-

tion to achieve their goals.

Marketing Cloud’s Journey

Builder enables Life Time

to retrieve the right data

and organize it the right

way to have multichannel,

personalized engagements

with its members.

A recent study by Nucleus

Research found that Life

Time improved its e-mail

open rate by 80% over

a two-year period and

reduced its number of

unsubscribers by 15%. It

also increased the open

rate of new membership

and service offer e-mails

by 40%. In addition,

the wellness company

effectively scaled its e-mail

output and increased the

efficiency of its marketing

department while reducing

the amount of time and

money spent on managing

marketing technology.

LIFE TIME

case study

8 HE

ALT

H

Gain Organizational Alignment Success starts with C-level commitment, then continues with buy-in from stakeholders across the organization. For the initiative to be a priority, every department must have clear, qualitative KPIs tied to customer experience. Development might focus on more rapid product releases. Service goals may include faster problem resolution. Sales objectives might focus on improved referral rates. Marketing may target improved campaign performance. Collectively, they benefit the bottom line of the entire organization.

Objectively Analyze Your Current Customer Experience Great data drives great experiences. Ask customers for a true assess-ment of how they perceive their relationships with your brand across touchpoints. To avoid finger-pointing, ensure that these assessments and discussions are built around data. Quantitative figures like net promoter scores, engagement rates across channels and survey results are data-driven starting points for analysis.

Map the Customer Journey Journey maps tell the complete story of customers’ end-to-end experiences across channels and departments. Effective journey maps do much more than identify pro-cesses and handoffs. They illustrate what users are thinking and how they are feeling during moments that matter. If that sounds overwhelming, it’s OK to tackle just certain segments of the story. Why not begin with some of the disconnects identified in your customer experience analysis?

Unify Your Collective Knowledge A CRM system for collecting customer data is the key to creating a single customer relationship. Cloud solutions for sales, marketing, service and IoT make it possible to integrate and synch data throughout the organization. Grant access and the ability to contribute to all customer touchpoints.

Listen and Engage in Real Time Listen to your data, and use your journey map as a guide. As data changes and grows, automate com-munications across channels to drive the next level of engagement. This is the true power of Code Halos — the ability to detect and understand the ever-evolving relationship with each customer, and proactively deliver personalized, relevant and consis-tent messages across channels and devices.

KEY STEPS FOR LEVERAGING

CODE HALOSLeveraging Code Halo thinking takes more than sharing data; it requires an enterprise-wide commitment and deep understanding of how, when and why each interaction with every customer occurs.

9

The world’s largest marine

insurer offers ship owners,

operators, shipyards,

contractors and oil

companies a one-stop-shop

for insurance products

and services. In 2014,

this company turned to

Cognizant to digitally

transform customer

experience functions using

Salesforce’s Community

Cloud, Marketing Cloud

and Sales Cloud.

With Marketing Cloud, the

company’s marketing team

applies Code Halo thinking

to serve up targeted and

timely content to a wide

array of insurance brokers,

employees (agents) and

customers. The approach

empowers users to manage

their content subscription

and channel preferen

ces, and deliver a curated

user experience — at scale

— to clearly differentiate

the company from its

competitors. Moreover,

the initiative enhances

operational efficiency by

offering customer service

reps and client/brokers

a single version of truth

that contains secure cloud

access to portfolios, claims

and reports.

Over time, this digital

transformation program

is expected to reduce

customer support costs

by 12% to 15%, boost

revenues by 15% and

improve customer data

quality by a whopping

40% to 50%. The drivers:

Increased partner and

customer collaboration,

coordinated and stream-

lined access to business

insights across internal

and external functions,

and uniquely targeted

marketing content that

ensures high-impact

messaging consistency

across the insurer’s

extended enterprise.

MARINE INSURER

case study

INS

UR

AN

CE

10

ABOUT COGNIZANT

Cognizant (NASDAQ: CTSH) is a leading provider of information technology, consulting, and busi-ness process outsourcing services, dedicated to helping the world’s leading companies build stronger businesses. Headquartered in Teaneck, New Jersey (U.S.), Cognizant combines a passion for client satisfaction, technology innovation, deep industry and business process exper-tise, and a global, collaborative workforce that embodies the future of work. With over 100 development and delivery centers worldwide and approximately 221,700 employees as of December 31, 2015, Cognizant is a member of the NASDAQ-100, the S&P 500, the Forbes Global 2000 and the Fortune 500 and is ranked among the top performing and fastest growing companies in the world. Visit us online at cognizant.com or follow us on Twitter: Cognizant.

ABOUT SALESFORCE

Salesforce is the world’s #1 CRM company. Our industry-leading Customer Success Platform has become the world’s leading enterprise cloud ecosystem. Industries and companies of all sizes can connect to their customers in a whole new way using the latest innovations in cloud, social, mobile and data science technologies with the Customer Success Platform.

Build and manage your 1-to-1 customer journeys with the world’s most powerful digital marketing platform, Marketing Cloud.

For Industry Analyst Reports on our products from Gartner, Forrester, IDC, Nucleus and OVUM, please click here.

REACH FURTHERAre you ready to harness the power of Code Halos? Connect with Cognizant and Salesforce for a unified data strategy across your enterprise.

11

Note: Code Halo™ is a registered trademark of Cognizant Technology Solutions.The company names presented in the case studies throughout this e-book are the property of their respective trademark owners.