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

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1 LIVEPERSON SOLUTIONS BRIEF Identify Your Highest Value Visitors for Real-Time Engagement and Increased Sales 2014

2 LIVEPERSON SOLUTIONS BRIEF Targeting 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 Targeting? 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 Target at least (Hot Leads) 200 success Featuresevents per month for ongoing» Agents analysis idle if target too narrow» Optimization technically and analytically intensive» No prioritization or real-time updates TARGET (Hot Leads) TARGET (Hot Leads) TARGET Target (Hot Leads) Features» Agents idle if target too narrow» Optimization technically and analytically intensive» No prioritization or real-time updates Target Features» Dynamic targeting based on agent availability» Optimized daily by automated machine learning» Prioritized visitor scoring updated in real time Fig. 1 Intelligent Targeting With Manual Rules Versus Targeting TARGET 2014 LivePerson, Inc. 2

3 LIVEPERSON SOLUTIONS BRIEF Targeting 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 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. Why migrate from rules-based targeting? If you are already using rules-based targeting through the LiveEngage platform, migrating to 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 Targeting with your new live chat deployment? If you are planning a new sales deployment of the LiveEngage platform, using 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 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: Targeting starts working after analyzing only 200 site conversions LivePerson, Inc. 3

4 LIVEPERSON SOLUTIONS BRIEF Targeting 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 Targeting work? LivePerson s 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. 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 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, 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. Search KeyWords ISP Chat History Visitor Profile Geo Business Specific Events Referral Browser Navigation Patterns Purchase Patterns Self-Serve Patterns 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. Fig. 2 Targeting Visitor Intent Model 2014 LivePerson, Inc. 4

5 LIVEPERSON SOLUTIONS BRIEF Targeting 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 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. TARGET (Hot Leads) Target (Hot Leads) Features» Agents idle if target too narrow» Optimization technically and analytically intensive» No prioritization or real-time updates Fig. 3 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 2014 LivePerson, Inc. 5

6 LIVEPERSON SOLUTIONS BRIEF Targeting 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. What results can I expect? Every organization that migrates from rules-based targeting to 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, 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. 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. 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. Key Business Benefits of Targeting: Conversions Chat Engagements Incremental Sales About LivePerson 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 LivePerson, 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: Tenth Ave F: th Floor New York, NY LivePerson, Inc. 6

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