Introduction to IBM Interact for partners

1. Introduction to IBM Interact for partners Alan Bunce, IBM product marketing

2. Building a “Smarter Planet” is a central IBM objective www.ibm.com/smarterplanet

3. “Smarter Marketing” fits well with this goal marketing www.ibm.com/smarterplanet www.ibm.com/smartermarketing

4. Smarter Marketing software solutions are focused on user roles SOLUTION USERS NEED Digital Marketing Optimization Digital marketers Attract and convert visitors to Web sites and other digital properties IBM INTERACT FITS HERE Cross-channel Marketing Optimization Customer relationship marketers Engage customers in one-to-one dialogues across communication channels Customer Experience Management E-business & e-commerce leaders Eliminate obstacles in customers’ digital experiences that block conversion or other goals Price, Promotion, and Product Mix Optimization Merchandising & sales planners Make the best possible price, promotion and product mix decisions Marketing Performance Optimization Marketing leaders & planners Improve marketing operations and make better marketing plans

5. Smarter Marketing software solutions are focused on user roles SOLUTION EXAMPLE FEATURES Digital Marketing Optimization • Web/Digital analytics • Product & content recommendations • Search marketing bid management • Email targeting • Display ad targeting • Web personalization IBM INTERACT FITS HERE Cross-channel Marketing Optimization • Outbound campaign management • Real-time interaction management • Email design & delivery • Campaign planning • Contact optimization • Event detection • Distributed marketing • Lead routing & monitoring Customer Experience Management • Customer session replay • Problem identification & resolution • Customer behavior analytics • Customer experience dashboard • Usability analytics • Customer service rep interface • Customer session archive Price, Promotion, and Product Mix Optimization • Assortment optimization • Deal management • Lifecycle price management • Promotion management • Shopper insights • Strategic marketing planning • Trade optimization Marketing Performance Optimization • Program planning • Budget & expense management • Cross-channel interaction history • Response attribution • Reporting & calendars • Project & approval workflow • Marketing asset management

6. Introducing IBM Interact • IBM Interact is • REAL-TIME INTERACTION MANAGEMENT • software • Determines, in real-time, the best personalized message for each live customer interaction, especially “inbound” contacts • Can plug into any customer touch-point: Web site, call center, kiosk, point-of-sale, etc. • Personalization based on historical data and new information gained during the interaction • Connects and coordinates inbound marketing with outbound campaigns • Designed for easy usage and management (“so easy a marketer can do it”) • Can scale to meets the most rigorous performance requirements: 100,000s of concurrent sessions, response times < 0.1 sec

7. hold time… ? Interact enables “inbound marketing” http://www.voluptatem.quia Inbound marketing: the presentation of personalized marketing messages during “inbound interactions” – when the customer or prospect chooses to contact you HOME PAGE blank perspiciatis unde omnis iste natus error sit voluptatem accusantium doloremque laudantium, totam rem aperiam, eaque ipsa quae ab illo inventore veritatis et quasi architecto beatae vitae dicta sunt explicabo. Nemo enim ipsam voluptatem quia voluptas sit aspernatur aut odit aut fugit, sed quia consequuntur magni dolores eos qui ratione voluptatem sequi nesciunt. Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit, sed quia non numquam eius modi tempora incidunt ut labore et dolore magnam aliquam quaerat http://www.voluptatem.quia/maliquam.html DETAILS ! perspiciatis unde omnis iste natus error sit voluptatem accusantium doloremque laudantium, totam rem aperiam, eaque ipsa quae ab illo inventore veritatis et quasi architecto beatae vitae dicta sunt explicabo. Nemo enim ipsam voluptatem quia voluptas sit aspernatur aut odit aut perspiciatis unde omnis iste natus error sit voluptatem accusantium doloremque laudantium, totam rem aperiam, eaque ipsa quae ab illo inventore veritatis et quasi architecto beatae vitae dicta sunt explicabo. Nemo enim ipsam voluptatem quia voluptas sit aspernatur aut odit aut perspiciatis unde omnis iste natus fugit, sed quia consequuntur magni dolores eos qui ratione voluptatem sequi nesciunt. Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit, sed quia non numquam eius modi tempora incidunt ut labore et dolore magnam aliquam quaerat OFFER blank OFFER WWW ! [authentication] “Greetings” reason for call resolution ? OFFER OFFER CALL CENTER Turns every customer touch-point into a channel for the kind of personalized marketing messages previously only delivered through outbound campaigns

8. How Interact works – basic http://www.voluptatem.quia WELCOME blank perspiciatis unde omnis iste natus error sit voluptatem accusantium doloremque laudantium, totam rem aperiam, eaque ipsa quae ab illo inventore veritatis et quasi architecto beatae vitae dicta sunt explicabo. Nemo enim ipsam voluptatem quia voluptas sit aspernatur aut odit aut fugit, sed quia consequuntur magni dolores eos qui ratione voluptatem sequi nesciunt. Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit, sed quia non numquam eius modi tempora incidunt ut labore et dolore magnam aliquam quaerat profile data context IBM INTERACT real-time decision • blends segmentation, rules & algorithms • coordinates with outbound/batch OFFER offer(s)

9. How marketers are using IBM Interact Marketers use IBM Interact to: Increase conversions on Web sites Help call center agentsretain and cross-sell/up-sell Help in-store/in-branch personnel engage customers on the spot Present offers on ATMs during withdrawals & deposits Use point-of-sale offers to get customers back to the store sooner Present offers on in-store kiosksto influence that day’s purchase Personalized confirmation emails Send messages to mobile devicesbased on location Deliver personalized messages in Facebook apps

10. Interact success stories where IBM & partners worked together Winner, Smarter Commerce Global Summit “Market” Award, 2013 Finalist, Marketing Success Award, Unica customer conference, 2010 Presenter, Smarter Commerce Global Summit, 2013

11. Real-time marketing is on the rise, especially for marketing leaders Survey question: In which of the following channels is your company delivering or planning to deliver targeted/personalized messages in real-time? Adjusting real-time offers based on context 2.6x Source: The State of Marketing: Annual Survey of Marketers, 2011 conducted by IBM – click here to obtain a copy.

12. How Interact works – detailed Can use common: http://www.voluptatem.quia segment definitions WELCOME offers Data from real-time service calls blank interaction history IBM Interact IBM Campaign perspiciatis unde omnis iste natus error sit voluptatem accusantium doloremque laudantium, totam rem aperiam, eaque ipsa quae ab illo inventore veritatis et quasi architecto beatae vitae dicta sunt explicabo. Nemo enim ipsam voluptatem quia voluptas sit aspernatur aut odit aut fugit, sed quia consequuntur magni dolores eos qui ratione voluptatem sequi nesciunt. Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit, sed quia non numquam eius modi tempora incidunt ut labore et dolore magnam aliquam quaerat REAL-TIME LOGIC Uses combination of segmentation, rules and event pattern recognition PRE-CALCULATED DECISIONS Builds white lists and black lists Customer profile candidate offers & scores ADD/REMOVE OFFERS Adjust list of offers using white/black lists and suppression rules Real-time context …and factored into future batch campaigns. white lists, black lists OFFER final offer(s) ARBITRATION Self-learning algorithm or external model adjusts scores Records offer presentation and response or non-response revised offer list and scores Offers can be: global segment-level Can be factored into self-learning for future scoring… individual-level

13. New feature from the last release: IBM Interact can recognize event patterns Real-time decisions Factoring in patterns over time: • person visits iPad page after visiting Kindle Fire and Samsung Galaxy pages earlier in the week • person visits iPad page • vs. • person calls about mortgage rates • today’s call about mortgage rates is the third this month • vs. customer profile patterns over time current context Value: better real-time decisions with better response rates

14. Advantages to IBM Interact’s approach to real-time decisions Role-based UI includes intuitive interface for marketers Stepwise approach increases control over the process Offer flexibility allows for multiple audience levels Blend of algorithms & manually-built logic gets best results Inbound/outbound integration builds customer dialogs

15. Benefits of using IBM Interact More targeted marketing opportunities by turning customer touch-points into marketing channels Better response/conversion rates from: • Presenting offers when customers are ready to listen • Increasing relevance of offers by considering context Improved customer experience by: • Increasing the value of inbound interactions • Connecting inbound & outbound to create dialogues over time

16. Results from real IBM Interact users 4x response ratefrom Web site offers selected in real-time, not pre-calculated Cross-sell success rate increasedfrom under 10% to more than 40%in call centers and retail shops 250% increase in clicks per day, 400% increase in revenue per impression from Web and transactional email personalization 5% increase in sales volume from Web personalization 200% increase in sales attributed to offers printed on receipts at point-of-sale More personalized offers delivered in a weekduring inbound interactions than previously in a year with only outbound campaigns, with higher response rates

17. What does a company need in order to be prepared to use IBM Interact? • Vision – for how to transform the customer experience at every live touchpoint • Skills – real-time marketing skills, tech- and data-saavy power users, IT support • Organizational alignment – channels owners on-board with marketing • Help from experts – like our IBM partners!

18. Resources & call to action • Many of these slides, and more information on IBM Interact, are in the Interact sales kit on ParterWorld. • The Interact sales kit is part of the larger IBM Cross-channel Marketing Optimization sales kit on PartnerWorld. • Call to action: please reach out to your IBM partner relationship to learn more about IBM Interact and the rest of the IBM Smarter Marketing solutions!

19. RTIM customers IBM serves have a range of needs – this is not a “one size fits all” market PRIMARY USE CASES Carts & content: e-commerce managers who want shoppers to put more in their carts; content owners who want visitors to read more Digital personalization: digital marketers who want to personalize Web site and mobile experiences inbound Cross-channel marketing: marketing leaders who want to coordinate targeted marketing across all customer touchpoints digital traditional outbound Cross-functional customer experience management: cross-functional corporate teams which want to consider more than just marketing actions during customer interactions

20. Each use case extends the type of “action” and the type of communication channels in play cross-functional cross-functional customer experience ACTIONS marketing cross-channel marketing digital personalization carts & content digital cross-channel CHANNELS

21. IBM products and solutions support each real-time scenario, building on and adding to each other (Interact + SPSS Modeler, CDS) + IBM SPSS Decision Management + IBM Information Management + IBM NBA Optimizer cross-functional cross-functional customer experience ACTIONS IBM Interact + IBM SPSS Modeler + IBM SPSS Collaboration & Deployment Services (CDS) marketing cross-channel marketing digital personalization carts & content digital cross-channel CHANNELS IBM Digital Recommendations IBM Marketing Center

22. Moving across the spectrum also represents as shift from packaged, purpose-built applications to more of a solution approach tailored solution (Interact + SPSS Modeler, CDS) + IBM SPSS Decision Management + IBM Information Management + IBM NBA Optimizer cross-functional Often now branded as “IBM Next Best Action Signature Solution” cross-functional customer experience ACTIONS IBM Interact + IBM SPSS Modeler + IBM SPSS Collaboration & Deployment Services (CDS) marketing cross-channel marketing digital personalization packaged application carts & content digital cross-channel CHANNELS IBM Digital Recommendations IBM Marketing Center

24. What Is IBM Contact Optimization? CONTACT OPTIMIZATIONsoftware: • Determines the optimal contact strategy for each customer • Uses powerful, integrated algorithms • Balances business objectives and constraints with customer preferences and history • Achieves maximum overall marketing ROI while satisfying the need of individual product lines and businesses

25. EVENT-BASED MARKETING software: Monitors customers’ granular transaction data and identifies meaningful behavioral changes Alerts lead management or campaign management systems Can work with overwhelmingly large volumes of data without requiring heavy additional IT investment Comes with a library of trigger definitions and tools to define and build new triggers What Is IBM Opportunity Detection?

26. IBM Marketing Center: Cloud-based solution for digital marketers - combines web analytics data with real-time marketing in single app • Deliver marketing communications designed for each customer as an individual • Primarily use web analytics data as input, upload offline data to enhance online profiles • With a few clicks go from analytical insight to campaign management • Email marketing • Site personalization • List targeting • Automate A/B testing • Automate marketing tracking & analytics • Use campaign management for orchestration, scheduling, prioritization, avoid contact fatigue • IBM Digital Analytics customers: no retagging needed • New customers: Can use as a standalone after adding IBM tags Primarily uses digital analytics data as input. Enables upload of offline data as needed.