Akin Arikan Alan Bunce Product Marketing EMM Overview

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Objectives of this call • Provide high-level talking points about the new release to help discussions with customers • Highlight that this release fits into the larger context of IBM’s momentum in serving marketers • Understand which features are differentiators, which bring us to parity with competitors • Identify where to find more detailed information about the release © 2013 IBM Corporation Internal Use Only

Intro comments about the Q 1 2013 release • Two new releases coming in Q 1 2013 (target: January 15): – Digital Marketing Optimization [products formerly named Coremetrics] – Cross-channel Marketing Optimization [products formerly named Unica] • But we are launching/announcing them together as the “IBM Enterprise Marketing Management Q 1 2013 release” – similar to what we did in spring 2012 • Launching/announcing together reinforces the message that IBM is not just acquiring software businesses but bringing them together • For this type of release, we always pick one or more “themes” for the release and highlight key features that support each theme • This release reinforces but does not change our overall positioning © 2013 IBM Corporation Internal Use Only 3

Key themes for the Q 1 2013 EMM release Why? Increasingly important to turn every live interaction with a customer into a marketing opportunity. Why? Speed of today's marketing environment requires marketers to get their work done in the most efficient manner, using an intuitive UI. © 2013 IBM Corporation Advanced real-time decision-making capabilities New user interface Easy and privacysensitive collection and sharing of digital behavior data Ability to analyze marketing results to guide future efforts Internal Use Only Why? Marketers must balance the importance of collecting and using this data with the increasing complexity of privacy concerns around the world. Why? Today’s marketers are operating in an era of greater accountability than ever before. 4

Supporting features Advanced real-time decision-making capabilities Features supporting this theme: 1. IBM Interact’s real-time decision making can now recognize event patterns formed over time 2. IBM Product Recommendations (formerly Coremetrics Intelligent Offer) can now do cross-channel session correlation and “significant purchase” recommendations © 2013 IBM Corporation Internal Use Only 5

Key feature: IBM Interact can now recognize event patterns real-time decisions Factoring in patterns over time: person visits i. Pad page vs. after visiting Kindle Fire and Samsung Galaxy pages earlier in the week person calls about vs. mortgage rates customer patterns profile current over time context today’s call about mortgage rates is the third this month Value: better real-time decisions with better response rates © 2013 IBM Corporation Internal Use Only

IBM Digital Recommendations Family (i. e. Product Rec’s + Content Rec’s) Two offerings built from the same industry leading technology § What is it: – Crowd-sourced, i. e. self-learning recommendations engines for both products and content – Add-ons to IBM Digital Analytics and IBM Marketing Center – IBM Product Rec’s is the most widely deployed cross-sell engine – great case studies! § Highlight of what’s new: – IBM Product Recs’ can now do cross-channel session correlation and “significant purchase” recommendations • make rec’s relevant to user’s activity in previous sessions • make rec’s relevant to an item the site identifies as “significant” – For identified users sessions can be correlated even if separate browsers or devices, were used – IBM Content Recs' now offers category based content recommendations for page & elements providing recommendations based on whole categories of popular content topics, or on article types such as blog posts § Value to customers – Make more money, automatically, – Despite proliferation of devices and many sessions between transactions – Deliver improved self-service of site content – Increase visitor engagement & stickiness § Value to Sellers – Enhancement to a differentiating capability – Helps you cross-sell to existing clients too 7 Proven in both B 2 C and © 2013 IBM B 2 B deployments Corporation

Supporting features Easy and privacysensitive collection and sharing of digital behavior data Features supporting this theme: 1. IBM Digital Analytics offers IP masking and can track without cookies 2. IBM Digital Data Exchange has an expanded set of certified partners 3. IBM Interact can collect contextual data from IBM Digital Data Exchange tags 4. IBM Digital Analytics can now provide users with more control over data exports to warehouses © 2013 IBM Corporation Internal Use Only 8

Key feature: IBM Digital Analytics offers IP masking and can track without cookies § What is it: – Enhancement to Digital Analytics to help customers in countries with more restrictive privacy regulations, e. g. countries that require an opt-in to all cookies § Highlights of what’s new: – Ability to track without setting web analytics tracking cookies – by using a fingerprint of IP address, browser type, etc. to map clicks to sessions – Ability to mask IP address of site visitors in our data while still being able to generate geo reporting (i. e. see screenshot) § Value to customers – Can still track and optimize web site or mobile activity and generate reports even if they are unable to use cookies as a tracking mechanism. – Generate geo location reporting while complying with local laws about masking IP addresses § Value to Sellers – Continue to sell IBM Digital Analytics in countries that have more restrictive regulations © 2013 IBM Corporation Internal Use Only

Key feature: IBM Digital Data Exchange has an expanded set of certified solutions and partners § What is it: – Tag management solution - helps deploy IBM and 3 d party data collection tags via UI – Included as part of IBM Digital Analytics § Highlights of what’s new: – Now 12 certified IBM and partner solutions for which tags can be deployed “out of box” – Existing certifications: IBM Digital Analytics, Chango, See. Why, Foresee, Click. Tale, – New: – IBM Interact – to collect contextual information about a person’s Web visit – Tealeaf – to collect client-side information e. g. form interactions – New partners: • Accenture Interactive – MVT • 33 Across – Social media • Aggregate Knowledge – digital media mix analytics • Reevoo – Social Commerce • Evidon – Privacy § Value to customers – Remove burden on IT for tagging – When partner or IBM change tags, certifications will we updated § Value to Sellers: Certifications = Differentiator © 2013 IBM Corporation Internal Use Only

Key feature: IBM Interact can collect contextual data from IBM Digital Data Exchange tags Value: shorter time-to-value for Interact, easier overall tag management © 2013 IBM Corporation Internal Use Only

Key feature: IBM Digital Analytics can now provide users with more control over data exports to warehouses § What is it: – New Digital Data Feed replaces the legacy Coremetrics Standard Data Export, i. e. SDE – Granular data feed from IBM Digital Analytics via FTP – Add-on to IBM Digital Analytics § Highlights of what’s new: – Productized, enhanced export vs. the legacy SDE – Provides additional data elements (e. g. mobile device data, attributes, event, geo, etc. data) – Now allows clients to self-manage export jobs (configure exports & set specific FTP target). – Replaces SDE for new customers. – Existing SDE customers are entitled to DDF, can activate it via UI, use in parallel to SDE and migrate over time (for details see appendix in this deck) – Pricing: Via relate CC available in Passport Advantage – same price as the legacy SDE § Value to customers – More complete data set for use on-premises – Serve your own data export needs more completely, without requiring services from IBM § Value to Sellers – Reduces need for the very common SDE customization requests, i. e. “Custom Data Export” which required custom scoping, etc. © 2013 IBM Corporation Internal Use Only

Supporting features Features supporting this theme: New user interface 1. IBM Campaign has new flowcharts 2. IBM Marketing Operations has a new “project health” report 3. IBM Marketing Platform* has improved dashboards (more standard dashboards, more configuration options) *IBM Marketing Platform is not a product sold separately, rather it is the technical infrastructure that many IBM EMM products run on © 2013 IBM Corporation Internal Use Only 13

Key feature: new flowcharts in IBM Campaign Value: easier, more intuitive campaign development, easier

Key feature: IBM Marketing Operations has a new “project health” report Drill Down Provides Insight Into Project Status How healthy are my marketing projects? Value: quicker to determine health of projects, better overall project management © 2013 IBM Corporation Internal Use Only

Key feature: IBM Marketing Operations has a new “project health” report Value: quicker to

Key feature: more standard dashboards, more configuration options New option © 2013 IBM Corporation Internal Use Only Value: faster and easier to create dashboards, which put critical information at users’ fingertips

Key feature: more dashboard options including better display of graphical Digital Analytics reports Value: faster and easier to create dashboards, which put critical information at users’ fingertips © 2013 IBM Corporation Internal Use Only

Supporting features Ability to analyze marketing results to guide future efforts Features supporting this theme: 1. Interaction History* and Attribution Modeler* can incorporate data from outside EMM systems 2. IBM e. Message now supports A/B testing *Interaction History and Attribution Modeler are not a products sold separately, rather they are features of the IBM Marketing Platform. The IBM Marketing Platform is not a product, rather it is the technical infrastructure that many IBM EMM products run on © 2013 IBM Corporation Internal Use Only 19

Key feature: Interaction History and Attribution Modeler can Client incorporate data from outside EMM systems Digital Analytics e. Message Wee ily Da E. g: Interaction History kly Mail list data, email ids, response data, Campaign and offer codes, timestamp, audience identity Campaign, Interact E. g: Weekly Data-driven cross-channel insights Statistically apportioned attribution scores, crosschannel last touch, first touch and equal credit scores Attribution Modeler a. D New! ily E. g. Daily Non-IBM Products © 2013 IBM Corporation Site promotion impressions and clicks, third-party clicks, orders, conversion events, cost, timestamp, audience Identity Firewall Stimuli, responses, channels, offers, audience identity and timestamp, Staging Area Internal Use Only Value: more complete history, more helpful attribution results

Key feature: IBM e. Message now supports A/B testing test group A full target list automatic send of “winner” B success criteria defined © 2013 IBM Corporation Value: easier A/B testing, better email marketing results Internal Use Only

Competitive comparison: differentiation or parity? Differentiation or parity? Feature THEMES: © 2013 IBM Corporation parity Additional partners for Digital Data Exchange (DDX) DIFFERENTIATOR Session context through DDX tags in Interact DIFFERENTIATOR parity Project health status UI in Marketing Operations parity Improved dashboard in Marketing Platform using results parity New flowchart UI in Campaign UI Cross-channel session correlation and significant purchases in Product Recommendations More data export control in Digital Analytics data collection & sharing DIFFERENTIATOR Cookie-less tracking and IP masking in Digital Analytics real-time Event patterns in Interact (DIFFERENTIATOR) Outside data can be put into Interaction History DIFFERENTIATOR A/B testing in e. Message parity Internal Use Only

Enablement and entitlement for new features Digital Marketing Optimization features: Automatic Enablement [no action required] Additional MSF Additional Services fee IBM Product Recommendations enhancements NO, request cross-session correlation via a Support ticket NO for existing customers NO IBM Content Recommendations enhancements YES NO NO IBM Digital Analytics, enhanced privacy features YES NO NO NO, but existing SDE customers are automatically entitled and can activate and configure the new feed via UI YES except for existing SDE clients NO, except for optional assistance with migrating existing feeds YES NO NO Product IBM Digital Analytics, Digital Data Feed (new) IBM Digital Data Exchange, enhancements Cross-channel Marketing Optimization features – no additional charge for: • Event patterns in Interact • New flowchart UI in Campaign • Project health status report in Marketing Operations • Improved dashboards • Outside data in Interaction History • A/B testing in e. Message © 2013 IBM Corporation Internal Use Only

Worth noting: the larger context of IBM momentum • Release launch activities: – Jan 15: software generally available (GA) – Jan 15: emails sent to customers – Jan 13 -16: release news will be part of IBM’s National Retail Federation (NRF) presence – Feb 21: customer webcast with overview of release • National Retail Federation (NRF) announcements will include other indicators of IBM’s momentum in the marketing technology space, such as: – – Benchmark results Recent customer wins Recent CMO/CIO conferences IBM Marketing Center/IBM Websphere Commerce product collaboration work © 2013 IBM Corporation Internal Use Only

New collaboration: Websphere Commerce Precision Marketing and Marketing Center § What is WC Precision Marketing – Automated, dynamic merchandising and marketing based on individual preferences and shopping intentions; often referred to as behavioral or targeted marketing – via site and email channels § Highlights of what’s new – WC customers now have additional flexibility in how Precision Marketing can be implemented, i. e. using native WC Precision Marketing and/or IBM Marketing Center – WC sellers now get incremental incentive and training for Marketing Center + Digital Analytics § Value to WC customers for deploying Precision Marketing via Marketing Center – Increased choice of best of breed capabilities (whether native WC and/or via Marketing Center) – Reinforce website personalization with personalized email marketing – Benefit from a cloud based deployment and payment model – Get started quickly with pre-configured tags --- based on integrations honed over years – Grow solution with your needs, e. g. IBM Digital Analytics, IBM Product Recommendations, IBM Cross-Channel Marketing Optimization Solution © 2013 IBM Corporation Internal Use Only

How to position Marketing Center with WC Precision Marketing? • Do not get into a feature/function discussion – See appendix in this deck for details • Do approach as Best-of-Breed Precision Marketing Capabilities to offer your customer a choice (whether native to WC and/or via Marketing Center) • Do discuss value add - IBM Marketing Center adds value to Web. Sphere Commerce by: – Enhancing email and site personalization – Simplifying execution and not burdening IT – Helping keep costs under control – Minimizing performance impacts – Improving time-to-value © 2013 IBM Corporation Internal Use Only

For more information • For IBMers: recordings of deep dive technical training recordings on Crosschannel Marketing Optimization products are here. • Deep dive technical training on Digital Marketing Optimization products is scheduled for week of Jan 14 th • Recording of deep dive training on Websphere Commerce Precision Marketing and IBM Marketing Center is available (link TBD) • “Software Announcement” on ibm. com: – Preview for IBMers here. – Final version will be posted here on January 15 (click link then search on “US 213 -008”). © 2013 IBM Corporation Internal Use Only

Fundamental Five: EMM Q 1 2013 Release 1 This release features hot topics, especially real-time – you should be pushing IBM Interact, ask for help* if needed 2 IBM’s Marketing performance optimization vision is differentiating – use it, ask for help** if needed 3 The privacy enhancements make it possible to sell IBM Digital Analytics throughout Europe – attack! ask for help*** if needed 4 This release shows IBM’s ongoing commitment to integrate products from acquired companies (Unica + Coremetrics) 5 Marketing Center and Websphere Commerce synergy is important (although not technically part of the release) © 2013 IBM Corporation Internal Use Only *Alan Bunce/Waltham/IBM@IBMUS **David Panek/Chicago/IBM@IBMUS ***Akin Arikan/San Francisco/IBM@IBMUS 28

Appendix © 2013 IBM Corporation Internal Use Only © 2012 IBM Corporation 29

Precision Marketing Center Websphere Commerce Precision Marketing: Native vs. with Marketing Center – What are the key differences? Capability Native WC Precision Marketing Center Search Marketing & Merchandising Advanced internal search marketing and rules based & wisdom of crowd product recommendation Wisdom of crowd recommendations via Product Recommendations Promotions Advanced promotion arbitration and redemption logic Message only Product Recommendations Advanced rules based & wisdom of the crowd (via Product Recommendations ) product recommendations Wisdom of the crowd product recommendations via Product Recommendations Segmentation Rules based on customer attributes & historical behavioral data Advanced segmentation - Visual editor; historical web behavior, real-time, off-line and customer profile data Limited to WSC site interactions; No native reports – requires Digital Analytics Advanced analytics - capture behavior data across heterogeneous digital properties; Out-of-box marketing campaign reports/analytics; single interface with Digital Analytics Campaign Management Rules based, Numerical campaign arbitration/priority Advanced digital campaign management - design, execute, manage & track email/site campaigns (in flight, contact fatigue & prioritization) with a powerful WYSIWYG editor Email Marketing & List Targeting Can send segmentation list to ESP – requires customization. No formal list targeting Advanced email marketing and list export - build, target & personalize email messages w post campaign analytics; Built in provisioning for ESPs; Create/export target lists with other channels Limited to a single E -Spot in a single experiment Testing across multiple versions of email or site communications and across multiple zones/splits Event Based Marketing Triggers response based on event (e. g. purchase, come in from a specific local, etc. ) Trigger response based on in session behavior, e-mail limited to prior days information Presentation Model Via E-Spots, requires IT to build, name and add to store page; Must cache page or fragments of a page. Not able to cache dynamic content; Supports Commerce presentation platform only Advanced personalization across any relevant zone/element; no need to manually code, improves performance - no page cashing needed to push dynamic content; Supports multiple presentation platforms Drag and Drop forms WYSIWYG editor design email, website…. On Premise - may require additional processing power/license PVU’s to leverage PM Time-to-value; license cost flexibility - Saa. S based; no extra bandwidth required; Improved performance IT required to upgrade No IT involvement Scalability (manage load / usage spikes) Planning/analysis of system resources involve IT Additional processing power & license PVU’s may be required, time delays Improved scalability and PVU efficiency- easily handle spikes and bandwidth, cost adjusts to usage, no time delays, no IT requirements Integrations with Digital Marketing Optimization Solutions ( e. g. Product Recommendations & Digital Analytics) Single interface w/ Digital Marketing Optimization solutions Analytics Digital, Cross. Channel Marketing A/B Testing Site Personalization Content Editor Licensing Deployment Upgrades © 2013 IBM Corporation Internal Use Only

Advantages of the new Digital Analytics, Digital Data Feed over the existing Coremetrics Standard Data Export (SDE) – as reason for existing clients to migrate More Data Flexibilit y • • • Conversion Events Elements Explore Attribute Geographic Data Mobile Data • Self administered • Configuration of which data files to receive • Enterprise Analytics universal export file option Cost Savings • Above functionality included in current SDE license • Extended migration period: 6 month window • No Charge migration period: two solutions enabled Opportu nity • Map legacy extra & custom data to Explore Attributes • SDE to DDF Migration assistance (services fee) © 2013 IBM Corporation Internal Use Only

Appendix: Digital Analytics, Digital Data Feed: Enablement and migration for existing Coremetrics Standard Data Export clients Current Standard Data Export Clients: • Receive automatic entitlement to the new Export – Digital Data Feed solution module upon Ariel II e. GA – Jan 24, 2013 • No change to the client’s existing MSF • Legacy SDE jobs will be deprecated eventually, but definitely not before Aug 2013 (Summer 2013 - Edison e. GA) • Goal – successful migration of all Client SDE jobs to DDF by the Summer 2013 – Edison e. GA) New Clients: • SDE (CRD deployed SDE spec jobs) no longer supported, Digital Data Feed REPLACES the SDE solution moving forward. • Same PA part # and rate table used for SDE now applies to DDF (i. e. , SDE is being renamed “Digital Data Feed” in PA) © 2013 IBM Corporation Internal Use Only

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