liveperson solutions brief identify your highest value ... solutions brief_7_0.pdfoptimize the...

2014

LIVEPERSON SOLUTIONS BRIEF Identify Your Highest Value Visitors for Real-Time Engagement and Increased Sales

© 2014 LivePerson, Inc. 2

LIVEPERSON SOLUTIONS BRIEF Predictive Intelligent Targeting

Predictive Intelligent Targeting technology in LivePerson’s LiveEngage digital engagement platform helps organizations

maximize the ROI of their live chat programs by selecting the very best candidates for proactive digital engagement. The

solution uses targeting algorithms—that include visitor behavioral patterns, interaction records, outcome data, and

other variables—to maximize revenue per interaction, as well as an agent utilization engine to minimize cost per

interaction. Machine learning continuously improves the targeting model while eliminating the cost, hassle, and reduced

accuracy of managing and updating rules manually.

Why is intelligent targeting important?Online selling is in a period of rapid and sometimes unpredictable change. Consumers now have 24×7 access to a vast amount of information

via multiple channels, including social media, mobile apps, search engines, and text messaging. As buyers become more tech savvy, they expect

immediate, accurate, and personalized answers to their questions. Businesses that engage online visitors personally—with the right message at

the right time—differentiate themselves with a more compelling customer experience.

Manually defined targeting rules are still very powerful, but at best, they represent the optimal targeting scenario for a moment of time in

the past. In addition, keeping the rules reasonably up to date requires significant manual analysis and maintenance by your staff. Predictive

Intelligent Targeting, on the other hand, uses machine learning to identify recurring themes that result in conversions over time, and adapt in

real time as trends evolve.

Who can benefit from Predictive Intelligent Targeting?Predictive Intelligent Targeting can benefit any new or existing LivePerson customer that meets these criteria:

• Utilizes, or plans to utilize, LivePerson live chat to boost online

sales or generate sales leads

• Has a clear business goal in one of the following areas:

» Total or incremental sales

» Total or incremental revenue

» Lead generation

» Is able to define a “success event” that occurs entirely within an

online visitor session (a sales transaction, registration as a lead in

the CRM system, user completion of a form or application, etc.)

• Achieves at least 200 success events per month for

ongoing analysis

Fig. 1 Intelligent Targeting With Manual Rules Versus Predictive Intelligent Targeting

TARGET

Quality & Quantity

ALL VISITORS

» Dynamic targeting based on agent availability

» Optimized daily by automated machine learning

» Prioritized visitor scoring updated in real time

Target Features

TARGET (Hot Leads)

Quality & Quantity

ALL VISITORS

» Agents idle if target too narrow

» Optimization technically and analytically intensive

» No prioritization or real-time updates

Target (Hot Leads) Features

TARGET

Quality & Quantity

ALL VISITORS




Target Features

TARGET (Hot Leads)

Quality & Quantity

ALL VISITORS






Why migrate from rules-based targeting?If you are already using rules-based targeting through the LiveEngage platform, migrating to

Predictive Intelligent Targeting will improve your bottom-line results while reducing staff time.

The following are some of the primary areas of business impact:

• Lower maintenance costs: Redeploy resources

from maintaining and updating targeting rules

to more strategic priorities.

• More precise prioritization of leads:

Rather than having two categories of visitors

(“hot leads” and others), each user is scored

according to a variety of detailed criteria,

resulting in the best leads being engaged first.

• Automatic adaption to seasonal and

permanent changes: The algorithm makes

adjustments for changes to the website,

staffing patterns, and sales goals.

• Full staff utilization: Target the maximum

number of visitors that your agents can handle,

minimizing idle time.

Why use Predictive Intelligent Targeting with your new live chat deployment?If you are planning a new sales deployment of the LiveEngage platform, using Predictive Intelligent

Targeting from the beginning will reduce deployment costs and improve results. In addition to the above

benefits, the following are some additional areas of business impact:

• Lower setup costs: Setup time is up to 80

percent shorter with Predictive Intelligent

Targeting than with manual rules.

• Less staff time for setup: Your team members

will not need to research and write targeting

rules for your launch.

• Fast start: Predictive Intelligent Targeting

starts working after analyzing only 200

site conversions.

Real-Life Examples Reducing the effects

of seasonality

A leading U.S. software

provider was able to

increase conversions

during the low season—

and throughout the

year—by deploying

Predictive Intelligent

Targeting. The company

experienced a 22 percent

increase in annual

conversions, beating the

previous results achieved

for the high season only.

Eliminating complexity

A global bank based in

the Asia-Pacific region had

more than 300 targeting

rules for live chat across

more than 350 Web pages.

Maintaining those rules

required 20 staff hours

per week. After deploying


Targeting, conversions

increased by 19 percent

as the quality and quantity

of live chat conversations

improved. And the staff

time that previously

managed the rules

was redeployed.




Real-Life Examples Increasing

e-commerce sales

A major U.S. technology

retailer conducted A/B

testing to compare

manual rules with


Targeting for its live chat

program. The result was a

40 percent conversion

lift and a 19 percent

revenue increase for

customers engaged

through Predictive

Intelligent Targeting.

Launching live chat

quickly and effectively

A global Software-as-a-

Service provider launched

a new sales deployment

of live chat powered by


Targeting. As a result,

inside sales representatives

improved their average

sales per day by 33

percent, with

no maintenance of

rules required.

How does Predictive Intelligent Targeting work?LivePerson’s Predictive Intelligent Targeting solution uses Big Data analytics to assign a score to each

eligible website visitor within 10 seconds of arrival. The scoring engine uses a state-of-the-art Visitor Intent

model to identify which customers are likely to convert via self service versus those who need live chat

assistance. The model also prioritizes those who are most likely to accept a proactive chat invitation. Agents

engage with users for whom a live chat engagement is most likely to make a difference, according

to availability.

Through machine learning, the scoring engine continually adjusts and improves the targeting model,

incorporating both user-defined events (UDEs) and raw data. No manual adjustments are needed—even if

your company modifies staffing levels, makes changes to a website, launches new products, or discontinues

old ones. Predictive Intelligent Targeting quickly learns the impact of all such changes and makes

adjustments on the fly.

To precisely manage agent capacity and the scope of your engagements with customers, LivePerson’s agent

utilization engine works with Predictive Intelligent Targeting to assign specific percentages of live chat

conversations to different lines of business, visitor segments, or engagement methods. These settings can be

adjusted based on what is happening in your business, such as product launches or marketing campaigns, to

optimize the customer experience and achieve maximum revenue.

In addition, Predictive Intelligent Targeting is highly flexible and customizable, allowing you to tweak or

guide algorithms to meet your business needs by creating exclusions (e.g., don’t invite visitors based on

certain countries to which you don’t ship) or even focusing on new product introductions or

specific brands.

Intent to Convert via Self Serve

Intent to Accept Chat Intent to Convert via Chat Assisted

Individual visitors who are most likely to convert with chat assistance.

ISP

Visitor Pro�le

Referral

Purchase Patterns

Browser

Self-Serve Patterns

Business Speci�c Events

Chat History

Navigation Patterns

Geo

Search KeyWords

Fig. 2 Predictive Intelligent Targeting Visitor Intent Model



Additional Benefits Optimize the size of

your agent team


Targeting includes an

ROI-driven staffing tool

that helps organizations

determine the number

of agents required for

each hour to achieve a

particular result.

Configure live chat for

the best results

Opportunities analysis

using Predictive

Intelligent Targeting

leverages transaction

and conversation data

to help determine how

many customers should be

engaged in order to hit the

“sweet spot” between cost

and revenue targets.

What does the deployment process look like?Since the LiveEngage platform resides in the cloud and no rules need to be created, deployment is an

easy process. Your LivePerson Customer Success value manager can help you determine your precise

business goals—total or incremental revenue, or total or incremental sales—and identify who is eligible for

a proactive chat invitation.

Eligibility rules for proactive chat can be modified according to your company’s needs, including

parameters unique to your industry, geography, or company focus. Eligibility criteria can be adjusted as

your business needs change, but you will never need to manually change your targeting rules.

LivePerson’s Pay for Performance Managed Services are another resource that will help you get the most

out of your investment in live chat and Predictive Intelligent Targeting. Leveraging the industry’s most

experienced chat program managers for end-to-end program management will help you achieve the best

results. And the risk is taken out of the Pay for Performance engagement: fees for the service are based on

achievement of agreed-upon performance goals.

Fig. 3 Predictive Intelligent Targeting opportunities analysis helps determine engagement and staffing levels for

optimal results. This example pinpoints the precise percentage of visitors required for a particular customer to

achieve 100 percent ROI.

TARGET

Quality & Quantity

ALL VISITORS




Target Features

TARGET (Hot Leads)

Quality & Quantity

ALL VISITORS







More Real-Life Examples E-commerce

A North American

e -commerce retailer

deployed Predictive

Intelligent Targeting and

more than doubled the

staff hours devoted to live

chat. Agents are conducting

29 percent more

conversations per hour,

and the company realized

an amazing 200 percent

lift in gross chat revenue

per labor hour.

Telecommunications

A European telco deployed


Targeting and increased

live chat staff hours by 25

percent. The result was a 28

percent improvement in

chat acceptance rates and

a 23 percent increase in

gross chat conversions.

B2B sales

A European distributor

of electronic components

migrated to Predictive

Intelligent Targeting

while keeping the same

staffing on live chat. Chat

conversations per labor

hour increased by 68

percent, while incremental

chat revenue per labor

hour rose by an

astounding 108 percent.

What results can I expect?Every organization that migrates from rules-based targeting to Predictive Intelligent Targeting will see a

dramatic reduction in staff time to manage targeting rules—90 percent on average. Most organizations

will also see significant improvements in conversions and revenue per chat hour. Specific improvements will

depend on the organization, and particularly what it does with staff resources before and after the transition.

The following averages are based on the aggregate feedback of dozens of LivePerson customers:

• Agents fully utilized before transition; same labor hours after transition: Companies that

already keep their agents busy will find that their conversations are more productive with Predictive

Intelligent Targeting because the algorithms target the customers who are most likely to convert with

live chat assistance. On average, organizations see a 20 to 25 percent lift in conversions per

chat hour.

• Agents underutilized before transition; same labor hours after transition: If agents have

significant idle time or a lower than desired concurrency rate, Predictive Intelligent Targeting can fill

their queues with well-qualified leads. Organizations report an average 15 percent increase in live

chat engagements per labor hour—with some organizations seeing as much as a 70

percent improvement.

• Added labor hours after transition: Opportunities analysis sometimes shows that the best strategy

is to expand the capacity of proactive chat to optimize ROI. Organizations using this strategy can

increase incremental sales by an average of 20 to 25 percent.

About LivePersonLivePerson, Inc. (NASDAQ: LPSN) offers a cloud-based platform that enables businesses to proactively connect in real-time with their customers via chat, voice, and content delivery at the right time, through the right channel, including websites, social media, and mobile devices. This “intelligent engagement” is driven by real-time behavioral analytics, producing connections based on a true understanding of business objectives and customer needs. LivePerson is headquartered in New York City with offices in San Francisco, Atlanta, Tel Aviv, London, Amsterdam, and Melbourne.

Contact LivePerson, Inc. T: 212.991.1794

475 Tenth Ave F: 212.609.4233

5th Floor [email protected]

New York, NY 10018 www.liveperson.com

Key Business Benefits of Predictive Intelligent Targeting:

20% to 25%

15%

20% to 25%

Lift in conversions per chat hour

Increase in live chat engagements per

labor day

Increase in incremental sales

Conversions

Chat Engagements

Incremental Sales

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