soundbite presentation-for-neccf-08june2010

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Alan BerreyVP, Emerging Solutions

Aligning Your Contact Center With Consumer Communication Preferences

Win an iPod

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Enter to winan iPod nano

Text DEMOPAYto 77053

Text DEMOPAY to 77053

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Agenda

• Principles of Communication

• Mobile Industry Statistics and Trends

• A bit about SoundBite Communications

• Align with Consumer Preferences

• Contact Center Text Messaging

• Summary

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Principles of Effective Communication

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Elements of Communication

There are sixessential elements ofall communication:

1. Message

2. Sender

3. Receiver

4. Encoding

5. Decoding

6. Channel

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Wiio’s Laws of Communication

Communication is difficult:

1. If communication can fail, it will.

2. If a message can be understood in different ways, it will be understood in just that way which does the most harm.

3. There is always somebody who knows better than you what you meant by your message.

4. The more communication there is, the more difficult it is for communication to succeed.

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Professor Osmo A. WiioFinnish Educator


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Mobile Industry Statistics and Trends

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Paradigm Shift: Towards Mobile Communications

50

100

150

Text Messages(billions per month)

‘00

100

200

300

Telephones(millions)

‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09

Source: CTIA and FCC

Landlines Mobile Numbers Text Messages


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Transition from Landline to Mobile

2006

0%

25%

50%

75%

Based upon actual contact data from SoundBite Communications.

2007 2008 2009

78%

22%

32%

68%

37%

63%54%

46%

SoundBite has experienced a strong transition

from landlines to mobile phones.

Landlines Mobile


Universities Embrace Text

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• Students at Georgia State are encouraged to text their questions to the professor during class.

• Questions scroll on a large screen projector.

• Caroline Tagg received her PhD in Text Messaging from University of Birmingham in 2009.

• Texters use the informality of speech communications in a written format.


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Children own phones, not books

• Survey of 17,000 children ages seven to 16

• 85.5% own a mobile phone

• 72.6% own a book

• Even among the youngest, 7-11, 79% had mobiles and 73% had books

Sources:Article: Telegraph, 26 May 2010

Image: Ian Jones

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Children 'more likely to own a mobile phone than a book'


May 26, 2010

Company Overview

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Introduction to SoundBite Communications

Proactive Customer Communications Market Leader• Intelligent platform enables clients to

design, execute, measure and optimize customer communications

• Multi-channel: voice, text, email

• Software-as-a-Service (SaaS)

• Solutions span clients’ customer lifecycle

Over 200 clients• ~50 Fortune 500 B2C companies

Strong financial position• $36M cash

• No debt

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Company Facts• Founded: 2000

• Headquarters: Bedford, MA

• NASDAQ Ticker: SDBT

• 2009 Revenue: $40.2M

• 2009 Messages: ~2B

Key Strengths

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Clients andClients andMarket PositionMarket Position

InnovationInnovation ExpertiseExpertise FinancialFinancialTechnologyTechnology

• Proactive Customer Communications (PCC) Market leader

• 200+clients, including ~50 Fortune 500 B2Cs

• Valued set of business partners

• Emerging global position

• Proactive Customer Communications (PCC) Market leader

• 200+clients, including ~50 Fortune 500 B2Cs

• Valued set of business partners

• Emerging global position

• ~2B messages annually

• 10 Years providing PCC

• ~200 R&D man years

• Domain expertise: verticals, channels, and customer lifecycle applications

• ~2B messages annually

• 10 Years providing PCC

• ~200 R&D man years

• Domain expertise: verticals, channels, and customer lifecycle applications

• Flexible, on-demand platform

• Extensive patent portfolio

• Intelligent, interactive, multi-channel communications

• SAS70 Type II & PCI Level 1 compliant

• Flexible, on-demand platform

• Extensive patent portfolio

• Intelligent, interactive, multi-channel communications

• SAS70 Type II & PCI Level 1 compliant

• Publicly traded (NASDAQ: SDBT)

• $40M+ TTM revenue establishes SDBT as a market leader

• Strong cash position

• No debt

• Publicly traded (NASDAQ: SDBT)

• $40M+ TTM revenue establishes SDBT as a market leader

• Strong cash position

• No debt

• Free-to-end-user text messaging

• Preference Management Solution

• Contact Center Text Messaging Solution

• Multi-channel blending and escalation

• Free-to-end-user text messaging

• Preference Management Solution

• Contact Center Text Messaging Solution

• Multi-channel blending and escalation


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7 of the top 10 global issuing

banks

7 of the top 10 U.S. telecom & media providers

5 of the top 20 U.S. retailers

12 of the top 20 U.S. utility providers

~90 collections firms

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SoundBite Users

More than 200 clients actively use SoundBite’s Proactive Customer Communications offering

Financial Services

Telecom& Media Retail

Energy & Utilities

Collection Agencies


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SoundBite Partners

Our business partners help satisfy the growing demand for SoundBite’s

Proactive Customer Communications offering


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Aligning with Consumer Preferences

Reactive Communications

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Paradigm #1: Communicate Proactively

Proactive Communications

“Interactive multichannel communications provide several benefits… to build strong customer relationships while also reducing costs.”

Source: “Proactive Outbound Notification Saves Money”, Forrester Research, January 2009


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Paradigm #1: Breaking Through the Noise

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direct mailtext messaging

voiceemail

social media

To get desired results, communications must be proactive and...

Relevant Personal Timely Engaging

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• Text me payment reminders

• I prefer monthly e-Mail statements

• I opt-in to receive marketing calls on my mobile phone

• e-Mail my loyalty balances to me

Knew the stated preferences of all your customers

Paradigm #2: Obtain Preferences

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Paradigm #2: Stated and Observed Preferences

2121

Stated Preferences:• I opt-in to receive marketing calls

on my mobile phone• e-Mail my loyalty balances to me

Observed Behavior:• Sue is most responsive to promos sent via text

Could combine stated preferences with observed behavior

Paradigm #3: Escalate and Blend Channels

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“Urgent Message regarding you BankBlue card…Please call us at 800-… ”

“Click here or call 1-800…”

@@@

“There has been suspicious activity on your BankBlue card ending in 8656…”

“….Press 1 to speak with an agent…”

“ALERT: There is suspicious activity on your BankBlue card …Call 800-”

ESCALATION BASED ON PREFERENCE & OUTCOME

Voice Message to Landline Phone

Voice Message to Mobile Phone

Text Message (SMS) to Mobile Phone

Answering Machine Message

Email

1st Outreach 1st Outreach1st Outreach 4th Outreach 5th Outreach

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Paradigm #3: Escalate and Blend Channels

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“Press 3 to receive an e-bill balance-

due alert…”

e-bill Center

Enter Online ID to view and pay bill:

Online Billing AlertOnline Billing AlertOnline Billing AlertOnline Billing AlertAccount Number: ********23Amount due: $795.62View and pay billView and pay billView and pay billView and pay bill

“Press 1 to hear your balance due now…”

“Your account balance is $795.62. To speak with a

representative, press 1…”

“Press 2 to receive a text message…”

Free msg: Balance due: $795.62 To pay, send reply code “PAY” or call 1-800-123-1234

Your e-payment of $795.62 has been credited to your account. Thanks!

SoundBite Proactive Customer Communications Solutions

Proactive Customer CareWelcome � Enrollments

Notifications � Reminders �Surveys

Proactive Collections & Risk Management

Early Stage Collections � Late Stage Collections� Fraud Monitoring

Proactive PaymentsPayment Reminders � Self-Service Payments � Expedited Payments

Proactive MarketingLoyalty � Promotions � Activations

Message Opt-in � Replenishment � Customer Win Back

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Marketing: Large Retailer Generates Millions in Revenue

Situation• Specialty retailer seeks to drive store sales through

unredeemed merchandise credits and non-purchased reserved merchandise

Strategy• Leverage SoundBite’s voice messaging to landline

and SMS to mobile phones to remind over 3.5MM consumers of unused credits and reserved merchandise

Results• Campaign generated over $11MM in sales

• $1.9MM in merchandise credit was redeemed

• Low opt-out rate (2.7%) confirmed consumers desire to be communicated with regarding merchandise credit

Voice &Text messaging

campaign generates$11MM in sales

Multi-channel campaign drives high redemption rates


Customer Care: Top Wireless Provider Lowers Inbound Calls

Situation• Average new user calls customer care almost 10 times in

the first 60 days, with each call costing $5-$10.00

• Needed to reduce the number of inbound “start-up” period calls

Strategy• 2 proactive outbound calls to help reduce inbound traffic

• 1st call explains features of the service plan

• 2nd call explains how to read their first billing statement and outlines the billing process

Results• Welcome calls lowered the number of inbounds volume

• Significant cost savings

• Positive initial subscriber experience

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Enhancing subscriber experience while lowering cost s

Inbound calls dramatically reduced

and customer experience enhanced


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Payments: Interactive Text Messaging Increases Collections

Situation• Wireless provider uses 1-way text alerts for

collecting on delinquent accounts

• Goal to increase auto-pay and self-cure rates while reducing agent costs

Strategy• Leverage SoundBite’s Contact Center Text

Messaging Solution for payment and past-due reminders

• Interactive Text Messaging enables subscribers to reply HELP or OPTIONS for more information

Results• 55% lift in same-day payments

• 46% lift in same-day cure rates over BAU

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Increasing payments while dramatically lowering cos ts

Contact Center Text Messaging more than

doubles same-day payments


Collections: Top 5 US Bank Generates Collections Revenue

Multi-channel strategy dramatically increases reven ue

Situation• Top 5 US bank wanted to raise collections results by

adding text messaging to automated voice messaging

Strategy• Leverage SoundBite Collections Solution to

implement multi-channel communications to drive incremental collections.

• 3 groups created: Control, Voice, Voice plus text message

Results• 117% improvement over Voice-only• Among text-enabled recipients, text messaging

boosted results by 470% over Voice-only

Increase in Collections

Voice-Only Voice + Text

$575,989

$1,252,875

$ C

olle

cted

$1.25MM in incremental collections

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Contact Center Text Messaging

SoundBite Contact Center Text Messaging Solution

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Business Opportunities• Empower contact center agents to

support customers via text messaging channel

• Adopt a cost-effective channel while providing a positive customer experience

SoundBite Value• Offering text for customer support

improves customer satisfaction

• Agents can handle multiple customer conversations

• Enables customer self-service resulting in cost-efficiencies

• Further expands the multi-channel experience in the Contact Center

Contact Center Text Messaging Solution

Dialog Engine enables automated interactive text messaging

Agents respond to text messages via Agent Text Portal

Enhanced keyword search

Standard and FTEU rate text

Contact Center reporting

Optimization Solution

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Payments: Fully Automated Bank Payment

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PAY

PAYMIN

CONFIRM

Your Bank National account is almost due.(acct# ending 3333) For payment options reply PAY. Questions reply HELP or call 888-000-0000.To end alerts reply STOP

Bank National: Balance $723.44.Minimum pmt $42.18.You can pay from debit acct#_7372. Pay entire balance or make minimum payment. Reply PAYALL, or PAYMIN

Bank National: Please confirm you want to make a payment of $42.18 using debit acct#_7372. To confirm and make payment reply CONFIRM. To cancel reply CANCEL

Bank National: Thank you, your payment of $42.18 has been processed. Confirmation #88128. For more text message options reply MENU

Dialog EngineCustomer


Customer Care: Agent Support for Telecom


Agent TextPortal

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MENU

Free Msg: Welcome to TeleWireless! Did you know customer support can be reached by text message? For options, or to send a text msg to a live agent, reply MENU

TeleWireless: You can get info about your phone, service, billing, and more. Reply PHONE, SERV,or BILL. Or to send text to an agent reply AGENT plus your question

AGENT how do I change my payment due date to the 15th of each month

TeleWireless has received your message. An agent will reply shortly. For more text options reply MORE

This is Jen from TeleWireless, I am happy to change your payment due date …


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Marketing: Agent Support for Retailer


Agent Text

Portal

A printed marketing piece says, “Sign up for our Loyalty program! Text LOYALTY to 77053”

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LOYALTY

ALERT

ORDER

Welcome to Loyalty Rewards Plus. To check your balance at any time reply BALANCE. To sign up for new product alerts reply ALERT

New product is available next Friday. 20% off for early orders. For more info reply MORE, To order now reply ORDER. To opt out reply STOP

Thanks for ordering New Product. To complete your order we need …”


Collections & Risk: Agent Support for Collection Agency


Agent TextPortal

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A letter is sent to a delinquent debtor requesting that she call an agency to resolve an outstanding obligation.“Please call 888-000-0000 or send Text MYCODE to 77053

MYCODE

YES

Agency: Thank you for texting us. It is important that we communicate with John Brown. Are you John Brown? Please reply YES or NO

Thank you for contacting us. Our records show …”


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Summary and Recommendations

Summary

• Communications are difficult and becoming more difficult with time.

• Industry trends and consumer behaviors point toward mobile technology as the primary communication source.

• Aligning a contact center with consumer preferences:

– Communicate proactively

– Obtain stated and observed preferences

– Escalate and blend communications channels

• Begin a text messaging strategy today.

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Thank you!

Questions? Alan BerreyVP, Emerging [email protected]) +1 (248) 882-8020

soundbite presentation-for-neccf-08june2010

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