Tealeaf Overview Paul Shackleton Channel Sales Leader

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Tealeaf Overview Paul Shackleton Channel Sales Leader - Europe

Tealeaf History Brief Summary Ø Founded 1999 - HQ San Francisco Ø Market Segment = Customer Experience Management (CEM) Ø IBM acquired Q 3 2012 -> fully integrated Apr 2013 Ø Joined IBM Partner. World - April 2013 Ø Part of the IBM Software Industry Solution Group Ø Ø Integrated into Enterprise Marketing Management (EMM) Tealeaf Authorisation required for resale Ø 1 x Sales Master (DMO), 2 x Technical Mastery (Tealeaf) © 2012 IBM Corporation

IBM Smarter Commerce Market Buy Adaptive procurement and optimized supply chain Service Anticipates behavior and delivers flawless customer service 3 Buy Market Service www. ibm. com/smartercommerce © 2012 IBM Corporation Sell Targeted and personalized marketing across channels Sell Seamless cross channel customer experience

Tealeaf – plays in 3 key elements of Smarter Commerce • Increase website conversions • Mobile device experience • Improved customer engagement • Improve website usability Market • Sell • Service Buy Market Service • Replay offending customer interactions. • Immediately address customer concerns • Detect root cause analysis • Improve site security 4 Sell • Reduce abandoned shopping carts • Maximize purchases over mobile devices • Better customer service increase sales • Detect fraudulent activity © 2012 IBM Corporation

What is Tealeaf? “Tealeaf is like having CCTV across our whole website, but with Google laid over the top to search the tapes. And with their new proactive early warning capability, it’s like we’ve got a nightwatchman permanently monitoring everything, just waiting to alert us to any strange goings on…” 5 © 2013 IBM Corporation - Confidential

Tealeaf – Addressing Customer Pains CUSTOMER EXPERIENCE MANAGEMENT • Understand customer “Struggle” on your website Ø • Improve customer satisfaction Ø • Increased sales revenue and better retention rates Serve customers more efficiently Ø • Page errors, check out issues, menu navigation, site usability…. . Reduce traffic to call centre and shadow browse issues Reduce your online IT and support costs Ø Ø • Identify the business impact of issues to your website Redirect support resource to focus on key problems Reduce your company exposure to fraud Ø Improve security with 100% replay © 2013 IBM Corporation - Confidential

Tealeaf providing the insights… Quantitative (“What”) Qualitative 1 2 IBM Digital Analytics (“Why”) IBM Tealeaf View Individual Customer Experiences to Understand Why 90+% of customers have both web analytics and Tealeaf Why are there low conversions from the home page? Drill Down to Understand WHY

Tealeaf gives you 100% insight! Oryou go toit be helpful to see the If. Or would befootballto understand would it a better game, would you simply watch the scoreboard? the view of the entire game? skills and experience of each player? © 2012 IBM Corporation

Why do customers ‘struggle’ ? TECHNICAL ERRORS – unexpected error messages, endless loops, slow page loads, 400 / 500 errors PATH CONFUSION – customers do not understand how to navigate the site INFORMATION CONFUSION – information on the page is confusing CONTENT FRAGMENTATION – information is scattered on the site making it hard for the 92 : 1 customer to achieve their goal Ratio of marketing spend by PROCESS FEARS – if customers are unsure of the impact of a process, or whether they companies to attract customers to can complete it, they will abandon (loan applications, key account settings) website versus retain 10 © 2012 IBM Corporation

The Gap No Visibility into Why Customers Succeed or Fail ? IT Server Logs Business Why Did Customers Succeed or Fail Performance Metrics Emails Surveys Calls 11 Customer Service © 2012 IBM Corporation Funnel Reports Business Trends

Filling the Gap: Requires Visibility Into the Actual Customer Experience IT Business Server Logs Funnel Reports Performance Metrics Emails Business Trends Surveys Calls Tealeaf Captures Every Customer, Every Interaction, Every Time Customer Service 12 Customer © 2012 IBM Corporation

Targeting key business contacts e. Commerce / Online, Mobile, Marketing, Call Center & IT Revenue Growth • “How can I ensure that the additional investment into re-vamping our website is justified? ” • “How can I ensure that I meet the goals of increasing online revenues? ” • “Why is my mobile revenue lower than my website revenue? ” Time • “How can I quickly diagnose and resolve site obstacles that are preventing my site from meeting its online goals? ” • “How can I quantify the business impact of any given issues so I know which ones to address first? ” Customer • “How can I get my mobile apps to market more quickly? “ • “How can I obtain visibility into the actual customer experience so I know if they are able to perform self-service successfully or find the information they need quickly? ” • “How can I make sure my customers return to my site and buy more? ” • My Net Promoter Score is dropping off; what do I need to do to improve them? ” 14 © 2012 IBM Corporation

Customer Case Study: Sky. BET Negative reviews for i. Phone App Problem Solution Using Tealeaf CX Mobile, identified that several hundred customers a day were unable to register due to a HTTP 500 Error, and were able to quickly resolve the issue. Tealeaf Impact 16 Sky Bet decided to invest in developing a new mobile specific website and mobile applications. The i. Phone App received many negative reviews, but they didn’t know why. Quickly identified the root cause of an error that risked revenue, and were able to email customers who experienced issues through data Tealeaf captured earlier in the impacted sessions. © 2012 IBM Corporation

Customer case study: Esurance Recovers Over $2 Million Annually From One Issue Problem Solution Uncovered specific problem with VIN form field. Users who added spaces or hyphens were denied entry and put in endless loop. Tealeaf Impact 17 Heard complaints about online application problems but wondered how many other customers left silently without a trace. Recovered 2000+ lost policies or nearly $2 M in annualized revenue. © 2012 IBM Corporation

Customer case study: Expedia Increases Low Conversion Rate from Home Page Problem Solution Tealeaf Impact 18 Low conversion rate on home page when customers tried to rent a car as compared to when booking after purchasing a flight. Reviewing abandoned sessions showed customers defaulting pick-up and drop-off times to 12 AM (midnight) and were being shown “No Matching Cars” Changing the pick-up and drop-off to 10 AM enabled hundreds of users per day to not see reduced inventories or uncompetitive pricing © 2012 IBM Corporation

Sample evolution of Tealeaf Users Across the Enterprise #3: Advanced Site #2: Proactive Optimization Monitoring #1: Reactive Problem Resolution Putting new processes in place for CEM Institutionalizing CEM across the enterprise (multi -channel) Improving Existing Processes Tealeaf Maturity Model © 2012 IBM Corporation

29% of the Fortune 100 Rely on Tealeaf 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 US 10 of 12 of the most booked travel portals 50% of the top US airline carriers All Major North American Wireless Providers Target Industries: 20 Retail, Travel, Finance, Insurance, Telco… any organisation with high dependency on the web © 2012 IBM Corporation

Value Proposition for Business Partners • New market category has emerged – Customer Experience Management (due to $87 B a year being lost on bad customer on line experiences) • Tealeaf is market defining technology with NO direct competition • Solution provides a great opportunity to sell into LOB as well as IT • Natural fit with existing web analytics, ecommerce, security, mobile, marketing offerings • Immediate ROI for customers – excellent market share in Finance, Retail, Travel Insurance and Gaming sectors • Tealeaf fully integrated into IBM SWG and Partner. World so all IBM benefits apply • Growing services ratios – no competition from Tealeaf for services offerings • Mobile is hot and growing rapidly. Tealeaf now part of IBM Mobile. First offering © 2012 IBM Corporation

Business Partner - Services Opportunity Example of typical Tealeaf engagement once authorised: Proof Of Concept 10 days (Capturing sample data and identify issues for customer) Tealeaf Pilot 20 -30 days (Optional stage, larger enterprises may want pilot but not typical for many clients) Implementation / Delivery 30 -50 days (Deployment and roll out of solution) Professional Services & Support (Ongoing consultancy and analytics) © 2012 IBM Corporation Annual / As required per client

Tealeaf Partner Maturity Model Tealeaf Practice, Implementation Capability, Readiness Plan, POC Repeat Wins 5 (Complex), Pilot 4 Custom Demo, POC (Simple), TEI Capability You will be able to prepare a winning 3 proposal that You will be able Simple Tech Selling, highlights the write a winning unique benefits of business case to Demo Capability, POT your solution, quantify the Able to defend addresses the benefits and to 2 differentiate Tealeaf prepare a specific expected Sales Skills 1 Able to associated the features of the Tealeaf solution and how they address the desired outcomes. Able to identify Tealeaf opportunities to deliver a basic demo and Po. T. and articulate the customer pains and pre-defined outcomes that can be addressed. against overlapping technologies and articulate Tealeaf’s unique benefits. Can create a customer demo, and execute a simple Po. C. Ability to use the TEI tool and generate a projected ROI. © 2012 IBM Corporation comprehensive implementation plan customer objectives and outcomes and defensible against competition. You are able to deliver implementation and managed services as well as deliver staff augmentation.

Tealeaf CX Architecture Existing Customer Environment Switch, Router, Load Balancer, Firewalls Web Servers Application Servers Databases SPAN port, Mirror port Or Tap Tealeaf monitoring • Rich Internet Apps • Mobile Sites • Mobile Apps Tealeaf CX • Alerts • Dashboards • Reports • Analysis Firewall 24 Tealeaf Capture • Decrypt • Privacy • Assemble Tealeaf Datastore • Inspect • Index • • Archive Event • Correlate © 2012 IBM Corporation Tealeaf Connect • Data Analytics • Web Analytics • Voice of Customer • Multivariate Testing

Tealeaf Pricing Policy Pricing: 1. Identify Tealeaf products required (CX, CX Mobile, View, Impact…. . ) 2. Identify named user seats (CX, CX Reveal) 3. Calculate Resource Value Units (RVU) based on web page interactions Note: As with most on-premise software, Tealeaf charges an up-front license fee and an annual maintenance fee (first year maintenance is included) 26 © 2012 IBM Corporation

Tealeaf Portfolio is in Passport Advantage New Name New Charge Metric(s) IBM Tealeaf CX RVU (based on MMI) AND Authorized User IBM Tealeaf cx. Impact RVU (based on MMI) IBM Tealeaf cx. View RVU (based on MMI) IBM Tealeaf cx. Overstat RVU (based on MMI) IBM Tealeaf cx. Reveal RVU (based on MMI) AND Authorized User IBM Tealeaf cx. Connect for Data Analysis RVU (based on MMI) IBM Tealeaf cx. Connect for Web Analytics RVU (based on MMI) IBM Tealeaf cx. Connect for Voice of Customer RVU (based on MMI) IBM Tealeaf CX Mobile RVU (based on MMI) * MMI = Million Monthly Interactions Prerequisites: The following are Software dependencies that must be located on the same deployment • IBM Tealeaf CX is a prerequisite product for all other Tealeaf products • IBM Tealeaf cx. Impact is a prerequisite for IBM Tealeaf cx. View and IBM Tealeaf cx. Overstat Configuration: • For IBM Tealeaf CX and IBM Tealeaf cx. Reveal, customer must purchase BOTH RVU licenses AND Authorized User licenses 27 © 2012 IBM Corporation

Tealeaf Pricing Structure Interaction (or Page Count) is defined in the license as: – A digital interaction with an application that consists of a request and response pair ("Hit") over http or https (such as HTML or XML) captured by the Program and does not include Hits generated by the Program's Capture SDKs unless those Hits contain mobile application screen view changes. Million Monthly Interactions (MMI) is defined in the license as: – The number of Interactions for any month is the total number of Interactions captured by the Program in that month. Licensee must obtain sufficient entitlements to cover the highest average number of Monthly Interactions in any consecutive three (3) month period. MMI then converted into IBM pricing metric of RVUs (Resource Value Units) © 2012 IBM Corporation

Tealeaf as a Service (Taa. S) Model - EXAMPLE Tealeaf Platform Host (Paa. S – BP, MSP) Solution Delivery (VAR, Agency) CEM Solution (Customer) Commitments: • Tealeaf Certified (Pre and Post Sales) • Hosts & manages Tealeaf solution and web capture • Commits to x. SP contract 1 • Support Provider for Agency / BP Note 1 = may vary by BP / Agency 29 IBM Confidential Commitments: • Tealeaf Sales / Demo skilled • Runs customer evaluation ‘ pilot / Proof of Concept • Provides customer solution (CEM, Commerce etc. . ) • Commits to x. SP contract 1 Commitments: • Rents solution offering © 2011 IBM Corporation

Tealeaf Training and Certifications • Digital Marketing Optimization Mastery (M 663): • Digital Marketing Optimization Sales Mastery (M 663) online training materials: • Virtual Sales Enablement Training Available in Partner. World • IBM Tealeaf Technical Mastery Test Technical sales mastery (N 34) • Self-paced, online Technical Mastery Training • Tealeaf Business Partner's Sales Kit on IBM Partner. World website: • Demo training (with completion of the sales mastery) • Access to Sandbox environment and Tealeaf Community Portal (with completion of tech mastery) • Virtual Customer Training (for fee) © 2012 IBM Corporation