Interactive Mobile Messaging
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1 Using Text Messaging to Increase Response Rates December 15, 2010 Agenda Industry Trends and Consumer Expectations SoundBite Introduction Interactive Mobile Messaging Case Studies Question and Answer 2 1
2 Industry Trends and Consumer Expectations U.S. Paradigm Shift Continues Telephones (millions) Text Messages (billions per month) F 11F 12F 13F 14F Landlines Mobile Numbers Text Messages Source: CTIA FCC and Portio 4 2
3 More Consumers Cut the Cord Mobile-only Households in the U.S. 30% 25% 20% 15% Mar Jun Sept Dec Mar Jun Sept Dec Mar Jun Sept Dec Mar Jun Source: Citi Investment Research Analysis 10% 5 U.S. Mobile Usage Minutes of Usage by Age Text Messages by Age Q Q Source: The Nielson Company 6 3
4 More about TEENS and Mobile Devices Text during class: 82% Can text blindfolded: 50% Boys Volume (/mo) 3000 Girls Volume (/mo) 4000 Source: Mobile Marketing Watch 7 Global Mobile Handset Shipments 2,000 Feature Phones Smart Phones 1,500 1, millions F 2011F 2012F 2013F 2014F 2015F F = Forecast Source: Portio Research, Nov
5 U.S. Smartphone Operating Systems 40% 35% 30% 25% 20% 15% 10% Acquired SmartPhone within 6 Months Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Android OS RIM Blackberry OS Apple iphone OS Source: The Nielsen Company, Oct 5, 2010 Windows Phone 7 Launched Nov 2010 Nokia sells 250,000 Smart phones / day 9 SoundBite s Product Roadmap Beyond Text Mobile Applications Mobile Browsers Fragmented user platforms Time and cost of design and implementation Approval Process Download and installation OS specific requirements Maintenance Ubiquity, build once-run anywhere Speed to market entry Enhanced functionality of html5, encryption, multimedia, etc. Support of key SoundBite tasks such as payments 10 5
6 Current Legal State - Calls and Text Messages to Cell Phones The Telephone Consumer Protection Act (TCPA) prohibits placing prerecorded or autodialed calls to cell phones without the prior express consent of the called party. The rule applies to all prerecorded or autodialed calls, not just telemarketing calls. The definition of autodialed calls includes text messages The rule does not apply to cell phone companies calling or texting their own customers, so long as there is no charge for the call or message. When a called party has given his or her cell phone number as a contact number (as part of an application or by other means), the FCC considers that prior express consent to be called at that number. The FCC ruling was made in the context of collections calls Logically applies to other calls, as well, such as service calls or fraud calls, etc. 11 SoundBite Introduction 6
7 Breaking Through the Noise direct mail social media text messaging voice To get desired results, communications must be proactive and... Relevant Personal Timely Engaging 13 Paradigm Shift: Towards Proactive Communications Reactive Communications 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
8 Proactive Communications and the Customer Lifecycle Marketing Collections & Risk Management Proactive Customer Communications (PCC) Customer Care Payments Building trusted, lifelong and profitable customer relationships 15 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, 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 Company Facts Founded: 2000 Headquarters: Bedford, MA NASDAQ Ticker: SDBT 2009 Revenue: $40.2M 2009 Messages: ~2B 16 8
9 SoundBite Users Financial Services Telecom & Media Retail Energy & Utilities Collection Agencies 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 More than 200 clients actively use SoundBite s Proactive Customer Communications offering 17 SoundBite Proactive Customer Communications Offering Customer Lifecycle Solutions Proactive Marketing Optimization Solutions Mobile Proactive Collections & Risk Mgmt Engage Proactive Customer Care Preference Management Contact Center Analytics Proactive Payments 18 9
10 SoundBite Engage Platform Clients Functional / Business Unit Business Applications Client Data Contact Center SoundBite Engage Platform Client Web FTP Automation Web Services API Agent Portal Security and Compliance Contact and Preference Management Enterprise Management Campaign Strategy Manager Dialog Engine Campaign and Contact Center Management Voice Text Predictive Analytics and Reporting Web Consumers 19 Professional Services Measure & Optimize Production Roll-outout Strategy Design Client Engagement Process Test Develop Solution Results-driven: clients goals drive continuous optimization Highly tuned process: drives design, execution, measurement and optimization of Proactive Customer Communications Deep domain expertise spans verticals, channels and customer lifecycle solutions Flexibility: client-centric approach creates innovative solutions 20 10
11 Ovum Research Rates SoundBite #1 Rated #1 in End-user sentiment Vendor strategy Reliability and scalability Product quality Portfolio depth Ease of integration Financial stability 21 Interactive Mobile Messaging 11
12 Interactive Mobile Messaging SoundBite s Interactive Mobile Messaging (IMM) enables interactive voice, text, and communications over the mobile device. It is the combination of our solutions, services and features used in a mobile communications strategy. IMM leverages two features unique to SoundBite Multi-Channel Communications Platform SoundBite Dialog Engine SoundBite Agent Text Portal Consumer Dialog Engine Agent Text Portal 23 SoundBite Text Messaging Features Automated Opt-in and Opt-out programs Right Party Verification and Authentication Dedicated and shared short codes Channel Escalation and Blending Scheduled and Real-time reporting Free-to-end-user Text Messaging (82+% of US mobile phones) Telephone Number Verification Service 24 12
13 Banking Example: Fully Automated Payment Customer Your Bank National account is almost due.(acct# ending 3333) For payment options reply PAY. Questions reply HELP or call To end alerts reply STOP Dialog Engine PAY Bank National: Balance $ Minimum pmt $42.18.You can pay from debit acct#_7372. Pay entire balance or make minimum payment. Reply PAYALL, or PAYMIN 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 CONFIRM Bank National: Thank you, your payment of $42.18 has been processed. Confirmation # For more text message options reply MENU 25 Banking Example 2: Agent Support Customer Free Msg: Welcome to First National! 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 Dialog Engine M EN U First Nat l:you can get info about your acct, 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 First Nat l has received your message. An agent will reply shortly. For more text options reply MORE This is Jen from First Nat l, I am happy to change your payment due date Agent Text Portal 26 13
14 Agent Text Portal 27 Retail Example: Agent Support Customer A printed marketing piece says, Sign up for our Loyalty program! Text LOYALTY to Dialog Engine LOYALTY Welcome to Loyalty Rewards Plus. To check your balance at any time reply BALANCE. To sign up for new product alerts reply ALERT ALERT New product is available next Friday. 20% off for early orders. For more info reply MORE, To order now reply ORDER. To optout reply STOP ORDER Thanks for ordering New Product. To complete your order we need Agent Text Portal 28 14
15 Multi-Channel Blending in Loyalty Congrats: 1000 loyalty points is Gold Status! For options reply MORE. To see your acct go to To speak with an agent reply CALLME. Text: MORE http: link Text: Callme Redeem your loyalty points in a store on online at Welcome Loyalty Member! You have 1000 points. To upgrade now Thank you for your order. Your service has been upgraded! SoundBite Engage Hello, thanks for sending the text message, how can I help you? 29 Benefits of Interactive Mobile Messaging Consumer Benefits Use their preferred channel Time and location of choice Convenience and productivity Control of conversation Corporate Benefits Increase Revenue Decrease Costs Increased customer loyalty Service Improvements 30 15
16 Case Studies Case Study: Major US Mobile Carrier Started text messaging internally in 2003 Obtained clear business benefits: Increase contact rates Increase cures rates Increase awareness of text messaging Internally developed Free-to-end-user (FTEU) billing Limitations: no age 32 16
17 Case Study: Major US Mobile Carrier (Cont.) Consideration for IMM Call to Action: Make it clear that you support interactive text messaging Automated Dialog Capability: Support flexible conversations with consumers Agent Visibility and Involvement: Allow the agents to see the text messages and participate Scheduling: Use text messaging to balance agent work load 33 Case Study: Major US Mobile Carrier (Results) The Results from switching from one-way alerts to IMM: Realized a significant increase in payments Contact center operations saw an increase in agent productivity Subscribers experienced higher satisfaction Good will from multi-lingual support 34 17
18 Summary and Recommendations Summary & Recommendations Industry trends and consumer expectations necessitate the adoption of Interactive Mobile Messaging Interactive Mobile Messaging is better than one-way text message alerts: Better customer experience and increased loyalty Increased revenue, decreased cost, accelerated results Holistic communications strategies that embrace voice, text messaging, , and mobile web are the trends of the future 36 18
19 Additional Case Studies 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 Contact Center Text Messaging more than doubles same-day payments 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 Increasing payments while dramatically lowering costs 38 19
20 Top 10 Global Bank Improves Collections Overall the performance has been extremely strong and much surpassed the initial business case Client Executive $2.5M/year in FTE saving Situation One of the world s largest Financial Services institutions sought improved card collections performance Strategy Selected SoundBite - first deploying voice messaging then text messaging and messaging across multiple segments of inventory Results Estimated savings of 90 FTE (~$2.5M/year) 2-10% improvement in cure rate Initial US deployment expanding to UK and other European locations Multi-channel messaging combines to optimize collections 39 Top 20 Retailer Increases Reward Redemptions Increase in Redemption Rate Over Control Group 50% 40% 30% 20% 10% 0% Voice Voice + $100M projected incremental revenue Situation 50% of retailer s rewards not being redeemed by their 25M loyalty program members despite reminders Partner brought SoundBite into opportunity Strategy Reminder message prior to rewards expiration Compare multi-channel strategy against single-channel and control group receiving no reminders Results 3 times higher redemption rate Projected over $100M in incremental revenue and $20M in incremental margin over a 1yr program Multi-channel strategy significantly increases revenue 40 20
21 Hospitality Brand Leverages Opt-In to Preserve Revenue High opt-in preserves revenue stream from 4M members Situation Leading vacation exchange relies on marketing to its 4M members for its revenue stream FTC now requires customer opt-in for various forms customer communications Strategy Leverage SoundBite s Preference Management Solution to establish, manage and honor the preferences of its entire member base Capture opt-in leveraging SoundBite s multi-channel communications platform Results Over 95% of verified members opted-in for future communications with average of $0.67 cost-per-opt-in ~30% of opt-ins obtained via inbound channels driven by answering machine messages and s Preference Management dramatically increases opt-ins 41 Thank you! Questions? Alan Berrey VP, Emerging Solutions aberrey@soundbite.com Mobile For a text message demo, Text SoundBite to For a blended voice and text demo, Call Follow SoundBiteComm 21
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