1

SDL CXM Vision: What’s Next for Customer Experience

Mark Lancaster | Chief Executive Officer

2

Why Are We Here?

Forrester Research, Inc. Winning The Customer Experience Game, May 8, 2013

2013 revenue for

Top 5 Forrester

CX companies

17%

2%

2013 revenue for

Bottom 5 Forrester

CX companies

Customer

experience leaders

demonstrate

a measurable

gain in returns

$975

Million

Average annual

revenue impact of

good CX across

7 industries

3

Why Are We Here?

Forrester Research, Inc. Winning The Customer Experience Game, May 8, 2013

2013 revenue for

Top 5 Forrester

CX companies

17%

2%

2013 revenue for

Bottom 5 Forrester

CX companies

Customer

experience leaders

demonstrate

a measurable

gain in returns

$975

Million

Average annual

revenue impact of

good CX across

7 industries Five-Year Stock Performance

4

50% of consumers

give a brand only

one week to respond

to a question before

they stop doing

business with them

13 %

of dissatisfied

customers tell

more than 20

people

The cost of

getting it wrong 89% of

consumers began

doing business

with a competitor

following a poor

customer

experience

5

Video Consumption Rapidly Increasing

Over 75 billion videos viewed in 2013

020406080

100120

20

05

2006

2007

20

08

2009

2010

20

11

2012

2013

100 hours of video/minute

were uploaded in 2013

6

Customer Acquisition Requires Multiple Channels

0%

5%

10%

15%

20%

25%

30%

2009 2010 2011 2012 2013

% o

f C

us

tom

er

Ac

qu

ire

d

eCommerce Customer Acquisition Channel Comparison

Channel

Customer Lifetime

Value (as compared

to average)

Paid Search 36.9%

Email 11.8%

Referral 54.2%

Google 13.4%

Banner Ads 26.1%

Affiliate 7.5%

Facebook 1.3%

Twitter -23.4%

Source: Custora

7

Mobile Devices & Internet of Things Increase Access to Content

Total devices

connected to the

Internet of Things

to double to 22+

Billion by 2020

Variety and volume

of connected

devices

accelerating

0

5

10

15

20

Nu

mb

er

Of

Devic

es In

Use (

In B

illio

ns)

Wearables

Connected/Smart TVs

Tablets

Internet

of Things

Smartphones

Personal computers

Global Internet Device Installed Base Forecast

Source: Gartner, IDC, Strategy Analytics, Machina Research, company filings, BII estimates

8

Social Buzz Drives Conversion

3.68%

4.43%

3.90%

4.26% 4.12%

2.14% 1.79% 1.79%

1.69%

2.23% 2.11%

2.98%

2.40% 2.46%

2.33%

0.87% 0.68% 0.60%

0.54% 0.74%

0.37% 0.56%

0.49% 0.61% 0.73%

3.31% 3.03% 3.07%

2.90%

3.84%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

4.50%

5.00%

Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013

Source: Monetate

eCommerce Conversion Rates By Traffic Source

Email Search Social

Social media trumps search and email for

eCommerce conversion rates

9

Business Has Changed

Marketing owned customer Business shared customer

Fragmented, frustrating experiences Multi-touch experiences

Analytics to report KPIs Analytics that drive understanding

One size fits all approach Personalized for individual context

Silo’ed communication channels Orchestrated customer journeys

Online support to reduce costs Online support that drives autonomy

From To

10

SDL has Changed to Align with the Market

2013 internal investment

We are laser-focused on CXM

2014 investment in

customer delivery

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Top CEO Investment Priorities

20%

20%

20%

22%

23%

24%

27%

32%

34%

34%

38%

mCommerce

Product cost analytics

Enhanced business

Supply chain

Enterprise mobility

Big data and data science

Cloud business

Business analytics

eCommerce

CXM

Digital marketing

Which 5 technology-enabled

capabilities will be the most

important areas of investment

to improve your business

over the next 5 years?

N=410 CEOs and Sr. Business Executives

Insights and Analytics

Context for Channels

Organizational alignment Requirements

for the

New CX

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Our View: Top 5 Customer Experience Requirements

Data-Driven Interactions

Context Versus Channel

Mobile

Cloud

Digital Marketing 1

2

3

4

5

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The foundation of

every experience

Content

& Context

PRE-PURCHASE

Consider

Research

Evaluate

PURCHASE

POST-PURCHASE

Engage

Advocate

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Companies that want to be successful in the

age of the customer need to offer

contextualized experiences —

that meet customer needs, feel personal, and

deliver in the moment.

Forrester Research, Inc., November 2013

16

Likes to discover new music

49 years old Paid subscriber to Spotify and Pandora

Travels to music venues, flies British Air

4G coverage

Uses an Android device

Customer Experience Knows:

• Mobile consumers and needs

• Relevance, context

• Data insights to serve needs in 1-2 clicks

• No channel boundaries

Sitting in Bryant Park, NYC

Waiting for a concert to start

SDL’s Vision

Deliver seamless, data-driven experiences at

each point of the customer journey –

across channels, devices and languages.

18 18

19

SDL Innovation Investment

20

Analytics to

proactively inform

marketing and

product decisions

Making Sense of

Consumer Conversations

21

Targeted

campaign

interactions for

today’s

customer

Delivering Intelligent

Digital Campaigns

22

Individual

Environment

Journey

Powering Hyper-Relevant

Experiences

Profiles & behaviors

drive real-time

contextual delivery &

higher conversions

23

Language is Key …

20 languages are

required to reach

80% of online

population

70% of internet

traffic comes from

non-English native

countries

72% spend all or

most of their time

on websites in own

language

@

Pope makes Twitter debut

in 8 languages

Coca-Cola Superbowl advert sung in

9 languages

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• Complete cloud translation solution

• On-demand and subscription based

access to all translation options

• Seamless integration with SDL CXC

and enterprise applications

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Making ―Global‖ More

Accessible

Local language

experiences for

every customer

interaction

2Username 3

Community

Social Media

Targeting

Online Campaigns

Mailings

38

Workflow Tasks

Welcome

UsernameDomain\username

9

Customer Engagement

User Preferences

Audience

Web Sites

Web Content

Content Management

Multimedia Content

245

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Complexity Into Simplicity

Account Management, KPIs & Reporting, Industry best-practice

REST API’s

Translation

Management

Translation

Memory

Machine

Translation

Terminology

Management

Productivity

Tools

Translation

Services

Open

APIs

27

Right Translation Method, Right Price, Right Time Q

ua

lity

Volume Human Translation Machine Translation

28

Web & Marketing Global Campaigns

Newsletters

Advertising

Qu

ali

ty

Volume

Blogs

User Forums

FAQ

Reviews

Chat

Content

Websites

Human Translation Machine Translation

29

Documentation & Support International Customer Service

Email

Support

Qu

ali

ty

Volume

Wikis

User Forums

FAQ

Chat

Knowledge

Base

Alerts/

Notifications

Content

Help

User

Guides

Documentation

Human Translation Machine Translation

Takeaways to Build Customer

Experience

• Structure and align your

organization to deliver CXC -

from Exec to delivery

• Prioritize customer analytics and

customer intelligence - particularly

social and unstructured data

• Focus on mobile and video/images

• Integrate language into your

technology

31

Technology that Enables You to Achieve Your

Business Goals

Solution driven

Scalable

Data level integration

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