© 2015 IBM Corporation

Want to Understand Why Your Applications Succeed or Fail?

Karen HeProduct Marketing Manager IBM Tealeaf

MobileModern workforce expects constantlyupdated software toconnect to enterprise systems

Intelligent/Connected SystemsSoftware component in smart products driving increased value and differentiation

Big DataInsights on new products by more efficiently interpreting massive quantities of data

CloudDemand for apps requires fast, scalable environments for dev and test, as well as production

Instrumented ProductsIndustry requirements demand faster response to regulationsand standards, with traceability and quality

Social BusinessBroader set of stakeholders collaborates to deliver continuous innovationand value

Software Delivery Is at the Heart of Today’s Top Technology Trends

Software Delivery

Organizations that effectively leverage software delivery outperform their competitors... Yet few are able to deliver it effectively

86%

of companies believe software delivery is important or critical

25%

leverage software delivery effectively today

But only…

Source: “The Software Edge: How effective software development drives competitive advantage,” IBM Institute of Business Value, March 2013

69%

outperformthose who don’t

of those wholeverage software

delivery today

4

Companies’ Vision

5

Companies’ Reality

6

Systems of Record

Systems of Interaction

Continuousclient experience

Partner valuechain

Cloud-basedServices

Systems of Engagement

Inefficient software delivery impacts the entire business

of customers experience

production delays

>45%

of outsourcedprojects fail to meet

objectives

>50%

of budgets devoted to maintenance and

operations

>70%

to deliver even minor application changes to

customers

4-6 weeks

DEVELOPMENT/TEST

Speed mismatch between faster moving front office and slower moving back office systems, delaying time to obtain feedback

SUPPLIERS

Delivery in the context of agile

OPERATIONS

Rapid app releases impact system stability and compliance

LINE-OF-BUSINESSTakes too long to introduce or make changes to mobile apps and services

CRM HR

DB ERP

Turn digital behavioral data into actionable digital analytics by building a comprehensive understanding of individuals across channels

Companies need insight into the full customer profile and journey to more effectively understand and optimize the digital presence of their brands.

8

What – Web Analytics Why – IBM Tealeaf

The Gap – No Visibility into Why Customers Succeed or Fail

9

• Server Logs• Performance Metrics• APM

• Funnel Reports• Business Trends• WA

• Email, Surveys• Phone Calls• CRM

The Gap – IBM Tealeaf capturesEvery Interaction, Every Customer, Every Time

10©2015 IBM Corporation

• Server Logs• Performance Metrics• APM

• Funnel Reports• Business Trends• WA

• Email, Surveys• Phone Calls• CRM

IBM Tealeaf

ActionsInteractions

Issues

Web

IBM TealeafReal-time customer experience management

Visibility. Insight. Answers.

Real-time experience

capture

Customer and revenue

recovery

Experience replay

Revenue impact

analysis

Automatic struggle detection

Mobile

With IBM Customer Analytics you can:

1) Quickly discover a web or mobile issue High numbers of customer abandoning in a

particular part

2) Quickly isolate the source of the problem This problem needs to be resolved quickly to

minimize revenue losses.

Drill down to the root cause of the problem and monetize issue in dollar amount

By identifying the source of the problem, we eliminate the need for bridge calls, which reduces cost and time per incident.

3) Recover lost customers Prioritize by monetizing issue in dollar amount

Effectively retarget impacted customers

Critical application issues are very costly and detrimental to brand loyalty

Tealeaf CX Mobile

Industry-leading customer experience management solutions to mobile websites, native applications, and hybrid apps including support for HTML5.

Capture and high-fidelity replay of mobile gestures* for mobile web sessions on iOS and Android-based devices help optimize users’ experiences on mobile web applications .

Analyze mobile user behaviors and quantify business impact of user struggles with IBM Tealeaf integrated solutions

Add-on Heatmap, Link Analytics, Form Analytics, and Attention Map analytics for mobile-web applications**

* Mobile gestures such as zoom in/out, pinch in/out, scroll left/right and orientation change** Requires Tealeaf cxOverstat add-on

Visibility into the customer mobile experience to improve conversions and grow revenue

Mobile Analytics

Native Apps Mobile Web

HTML5Hybrid Apps

Tablets

A mobile enterprise needs…

Enterprise capability for continuous software delivery that enables organizations to seize market opportunities and reduce time-to-customer feedback

Acceleratesoftware delivery –

for faster time to value

Balance speed, cost, quality and risk –

for increased capacity to innovate

Reduce time to customer feedback – for improved customer

experience

ContinuousCustomer

Feedback & Optimization

Collaborative Development

Continuous Release and Deployment

ContinuousMonitoring

ContinuousBusiness Planning

ContinuousTesting

Operate Develop/ Test

Deploy

Steer

DevOps Continuous Feedback

Our DevOps POV is resonating with clients and they are delivering measurable business outcomes with DevOps

Deliver a compelling, personalized conversation across digital channels with deep insight into each customer’s interests and lifetime interactions

62% of customers find recommendations on websites useful.

With more options than ever before, today’s consumers respond best to one-to-one marketing.

Customers of IBM Tealeaf solutions typically realize risk-adjusted payback in less than three months

SOURCE: Forrester Consulting, The Total Economic Impact™ Of The Tealeaf Customer Behavior Analysis Suite, Norman Forbush, August 2010. Report commissioned by Tealeaf.

Note: Benefits found in this study were risk-adjusted and were achieved over a three-year period.

Typical three-year risk-adjusted results

249% ROI

7.3 months payback period

USD 7,633,214 total net present value

Clients of IBM Tealeaf solutions typically realize risk-adjusted payback in less than eight monthsBenefits quantified in study

3.5%Increased conversion

rate

1%Increase in retention

rate

0.05%Reduced disputed or

fraudulent chargebacks

20%Additional percentage

of critical items addressed

Reduced IT cost – problem discovery

80%

SOURCE: Forrester Consulting, The Total Economic Impact™ Of The Tealeaf Customer Behavior Analysis Suite, Norman Forbush, August 2010. Report commissioned by Tealeaf.

Note: Benefits found in this study were risk-adjusted and were achieved over a three-year period.

Optimize the customer’s online experience

Marketing

eCommerce

Service

• Remove obstacles that cause users to abandon purchase/forms processes• Maximize purchase/conversion events through mobile devices• Enable eCommerce pros to “see” their stores through customers’ eyes

• Resolve customer issues during their first online service experience• Reduce call handling time once a customer contacts a service agent• Minimize poor customer service experiences which can lead to

escalations and negative reviews

•Ensure all user experiences enhance conversions•Ensure mobile interactions reinforce brand image and business objectives•Understand and eliminate poor user experiences

Many industries use IBM Tealeaf for transactional and self service sites

44 of the Internet Retailer Top 100; 7 of the top 10 online retailers

8 of 10 of the Top Bank Holding Companies

9 of the 12 Largest P&C Insurance Companies in North America

10 of 12 of the most booked travel portals

50% of the top US airline carriers

All Major North American Wireless Providers

American Eagle Outfitters – Improving the online customer experience with deep insight into customer behavior

20 percent increasein mobile traffic achieved by providing intuitive pathways for touch-based devices

"IBM Tealeaf solutions have enabled us to take the customer experience to the next level."—Joe Megibow, JOBTITLE at American Eagle Outfitters, Inc.

1,000s of dollarsrecovered by identifying and retargeting customers affected by a shopping-cart issue

Boosting satisfactionby eliminating account reset errors

The transformation: American Eagle Outfitters faced the challenge of delivering smooth, seamless shopping experiences on every digital channel – but customer feedback alone made it difficult to identify experience improvements. Today, the company can refine its digital channels based on real-world customer behavior, helping it to boost satisfaction and nurture loyalty.

Herbalife extends customer experience optimization to its fastest growing segment—mobile

Challenges: To maintain strong growth while delivering world-class customer experience online, including mobile channels, Herbalife needed a solution that would allow it to solve customer struggles quickly and efficiently.

Solution: Deployed IBM Tealeaf customer experience management (including Tealeaf CX Mobile) solutions to provide comprehensive insight into customer online behaviors, including the mobile channel.

Benefits: •Uncovered 20 to 30 significant issues affecting 1 to 15 percent of its users•Uncovered and fixed a cookie issue that affected USD38.5 million to USD123.2 million in orders from booking over the year•Improved Herbalife’s ability to be strategic and proactive in adapting the site to customers’ ever-changing needs

“I thanked my CFO for letting us buy Tealeaf; this is the single best IT investment we ever made. Most tools when we buy them we are lucky if we get 30 percent of the ROI we anticipated; in the first year we got 100 percent of the ROI and more.” —Chris Morris, senior VP of distribution, Herbalife

20 – 30significant issues uncovered

USD38.5 – USD123.2million orders fixed

Wehkamp.nl

Problem: Orders were not reported to the company, but payments were deducted from user accounts; they were not properly tracked by users of certain web browsers. Conversion rates dropped significantly with certain products.

Solution:By replaying sessions using IBM Tealeaf solutions, the Wehkamp.nl identified an application issue in the external payment system and resolved the discrepancy via a segmentation analysis of users of that browser. In addition, JavaScript errors were found that had skewed reports. IBM Tealeaf CX Mobile and Tealeaf segmentation showed that iPad users dropped orders when banner ads blocked their rotated views.

Solution impact:Re-created orders without further inconveniences to shoppers. Increased web analytics accuracy to more than 99 percent, improving marketing campaign effectiveness. Increased conversion rates by 60 percent overnight for those iPad users.

99%

Web analytics accuracy

60%

Increase in conversation overnight

Increased web analytics accuracy to more than 99 percent and improved conversion rates by 60 percent for Apple iPad users

High-Level Architecture

SPAN port,Mirror portOr Tap

IBM Tealeaf CX Capture

• Decrypt• Privacy• Assemble

Firewall

Switch, Router,

Load Balancer,Firewalls

Existing Customer Environment

Web ServersApplication Servers

Databases

IBM Tealeaf CX Datastore

• Inspect• Event• Correlate

• Index• Archive

IBM Tealeaf cxImpactIBM Tealeaf cxViewIBM Tealeaf cxOverstat

IBM Tealeaf cxReveal

IBM Tealeaf CX Mobile

IBM Tealeaf cxConnect DAIBM Tealeaf cxConnect WAIBM Tealeaf cxConnect VOC

Internet

IBM Tealeaf CX• Rich Internet Apps• Flash/Flex

IBM Tealeaf CX Mobile• Mobile Sites• Mobile Apps

Notices and DisclaimersCopyright © 2015 by International Business Machines Corporation (IBM). No part of this document may be reproduced or transmitted in any form without written permission from IBM.

U.S. Government Users Restricted Rights - Use, duplication or disclosure restricted by GSA ADP Schedule Contract with IBM.

Information in these presentations (including information relating to products that have not yet been announced by IBM) has been reviewed for accuracy as of the date of initial publication and could include unintentional technical or typographical errors. IBM shall have no responsibility to update this information. THIS DOCUMENT IS DISTRIBUTED "AS IS" WITHOUT ANY WARRANTY, EITHER EXPRESS OR IMPLIED. IN NO EVENT SHALL IBM BE LIABLE FOR ANY DAMAGE ARISING FROM THE USE OF THIS INFORMATION, INCLUDING BUT NOT LIMITED TO, LOSS OF DATA, BUSINESS INTERRUPTION, LOSS OF PROFIT OR LOSS OF OPPORTUNITY. IBM products and services are warranted according to the terms and conditions of the agreements under which they are provided.

Any statements regarding IBM's future direction, intent or product plans are subject to change or withdrawal without notice.

Performance data contained herein was generally obtained in a controlled, isolated environments. Customer examples are presented as illustrations of how those customers have used IBM products and the results they may have achieved. Actual performance, cost, savings or other results in other operating environments may vary.

References in this document to IBM products, programs, or services does not imply that IBM intends to make such products, programs or services available in all countries in which IBM operates or does business.

Workshops, sessions and associated materials may have been prepared by independent session speakers, and do not necessarily reflect the views of IBM. All materials and discussions are provided for informational purposes only, and are neither intended to, nor shall constitute legal or other guidance or advice to any individual participant or their specific situation.

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Notices and Disclaimers (con’t)

Information concerning non-IBM products was obtained from the suppliers of those products, their published announcements or other publicly available sources. IBM has not tested those products in connection with this publication and cannot confirm the accuracy of performance, compatibility or any other claims related to non-IBM products. Questions on the capabilities of non-IBM products should be addressed to the suppliers of those products. IBM does not warrant the quality of any third-party products, or the ability of any such third-party products to interoperate with IBM’s products. IBM EXPRESSLY DISCLAIMS ALL WARRANTIES, EXPRESSED OR IMPLIED, INCLUDING BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

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