Slide 1. Avaya Customer Experience Management Overview 2C00070O Avaya Inc. All rights reserved.

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1 Slide 1 2C00070O Avaya Customer Experience Management Overview Welcome to the Avaya Customer Experience Management Overview course. This course examines some of the trends in the customer service industry; it also provides a high-level overview of Avaya Customer Experience Management (CEM), the Framework of which CEM is comprised, including the underlying concepts such as Customer Lifetime Value (CLV). We estimate that it will take you 1 hour and 13 minutes to complete this course.

2 Slide 2 Course Objectives At the end of this course, you should be able to: Describe the key trends in customer service and sales Summarize Customer Experience Management and how it helps organizations to provide an exceptional customer experience Explain the basics of the Avaya Customer Experience Framework and the Customer Lifetime Value (CLV) Identify the associated products, applications, and solutions within the layers of the CEM Framework During this course we will look at the key trends in the Customer Experience Management market and the drivers behind them. We ll explore what Customer Experience Management is and how it helps organizations to provide an exceptional customer experience. We ll also examine the Customer Lifetime Value and how Customer Experience Management are linked. We ll explore the Avaya Customer Experience Management Framework and the layers within that make up that framework. Finally, we will review the applications, products, and solutions that are associated with the layers of the CEM Framework.

3 Slide 3 Module One: Industry Trends Increasing Economic Pressures Changing Patterns of Customer Service Increasing Customer Expectations Increasing Competitive Pressures Module Duration: 10 minutes This module will explore the Customer Experience Management industry trends found in the contact center marketplace.

4 Slide 4 PROPERTIES Allow user to leave interaction: Show Next Slide Button: Completion Button Label: After viewing all the steps Don't show Next Slide Introduction The contact center industry is continually changing reacting to transformations in the global business atmosphere. These transformations that are occurring in the worldwide landscape are in part due to things like new technologies, consumer behavior, increased competition, and economic anxieties. Some of the reactions to the global transformations are seen in the contact center industry in the form of trends. These trends include increasing economic pressures, changing patterns of customer service, increasing customer expectations, and increasing competitive pressures. Increasing Economic Pressures: Organizations are challenged to spend less and generate more revenue. The economy over the past decade has been less than optimal, yet there s still tremendous pressure to maintain top line revenue and margins. With revenue opportunities coming and going faster than ever before, this adds additional economic pressure for every company. (Source: Corporate Avaya presentation) Contact centers are not immune, more so organizations are looking to contact centers to find ways to generate additional revenue without adding cost to the operation. Contact centers find that one of the best ways to maintain their top line revenue and margins is by retaining their existing customers and growing their wallet share. Contact centers also need to become more competitive and differentiate themselves from the pack. Globalization and other factors are forcing organizations to look at how to become more competitive and how to differentiate themselves in a competitive environment. Customer service provides a good area to differentiate an organization.

5 As part of this, we re starting to see the role of a customer experience officer being introduced into organizations as a way of increasing focus on Customer Experience Management and ensuring it s aligned with the overall organizations objectives, processes, people, and functions. Examples of economic turmoil: Overall global IT spending growth in 2012 in current U.S. dollars has been revised down from 3.7% last quarter to 2.5% Gartner Gartner issued a report IT spend has been reduced over 30%- enterprises need to do more with less Business strategies call for revenue growth, new connections with customers (to retain and attract) and reduced costs (Source: Gartner Amplifying the Enterprise: The 2012 CIO Agenda, Jan 2012) Innovation is in fourth place as a priority. Changing Patterns of Customer Service: Demographics are changing: This economic recovery will be shaped by the values of tech-loving Gen Y, and to a lesser degree, affluent members of Gen X. As the historic, post-world War II Baby Boom generation moves into retirement, its demographic followers-often referred to in the media as Generations X and Y4 -are becoming the major forces in the economy. Much has and will continue to be written about this generational shift. You just have to look at the trend in devices or the consumerization of IT, where devices like Smartphones and tablets, are rapidly becoming devices for the masses. Gen-Ys were the early adopters but these are main-stream now, embraced by all demographics and age groups. Beyond communications, we now use these devices for work, study, and entertainment. The ubiquity of Smartphones and tablets enable seamless communication via voice, video, and chat. Widespread Internet connectivity drives behaviors such as impromptu social media posts, persistent access, and instantaneous responses to text chats. New media will shape new expectations in customer service. Consumers increasingly use any channel of choice and may use multiple channels in any one interaction. Bring your own device or BYOD introduces a wide array of unauthorized, unsecured devices into the workplace. Social media, video, IM, Smartphones, and tablets have erased the line between business and personal communication tools. According to the Yankee Group the tablet market will reach $45 billion and the Smartphone application revenue will triple to $26.5 billion by Organizations need to connect with customers using their preferred media, including mobile applications, social media, video, web chat, SMS, phone, , and fax, and provide a seamless service across them all. Enterprises must thus start to evolve their customer experience strategy to one where Multichannel is right at its core and where they can exploit new media to deliver intuitive and richer customer experiences. If not, they risk alienating their customers and losing their relevance over time. According to The Autonomous Customer 2013 a report commissioned by BT Global Services and Avaya and carried out by Davies Hickman Partners ( 82% of consumers surveyed said that they would like it if organizations always offered different channels to meet their needs. Also they found that 38% use web chat to communication with organizations. Customers want to use more channels and organizations need to consider how they adopt Omni-channel strategies. Increasing Customer Expectations: For the purposes of understanding the impact on communication behaviors and service expectations, several aspects stand out: High expectations - The post-baby Boom generations grew up surrounded by media-oriented technology while enjoying relentless improvements in computing functionality and performance. Given this experience, they expect instantaneous service and are puzzled when it is not available anywhere, anytime, through any medium. Going viral - Not only is their tolerance for failure limited, they have no hesitation to go public with their dissatisfaction: including posting messages, photos, videos, and more online-an experience that many major brands have experienced first-hand, not always to their liking. You only need perform an Internet search on poor customer service to find the evidence. With social media, the importance of each customer experience rises because every customer has the potential to share a good or bad experience with the hundreds and sometimes thousands of people in their social network. In The Autonomous Customer 2013, 55% of respondents say they have interacted with a company using social media.

6 Preferred modes of interaction-none - They are media agnostic, using the phone, , Web chat, IM, and social media interchangeably. This makes them far less dependent on traditional phone communication compared to Baby Boomers. Having grown up (especially younger members of these generations) with the Internet, , IM, gaming, Facebook, etc., they are comfortable, and may even prefer, collaborating online versus face-to-face. They are also looking for more personalized service when they do require it with an expectation that organizations will know who they are and have the ability to link all previous interactions together to better serve them. Finding from The Autonomous Customer 2013, only 17% say organizations make it easy to switch between different channels. Instant gratification - Customers often expect instantaneous responses and fast resolution to problems. Their expectation is that the problem will be resolved at the click of a mouse. Personalization - Customers expect organizations to know who they are and to link all previous interactions together to better serve them. Empowerment and knowledge - A growing percentage doesn t even consider contacting a call center, but reaches out to peers via social media or doing some form of self-service. As such they tend to be more self-sufficient and knowledgeable on a particular subject and may only reach out to the organization if they can t find the answer elsewhere. In addition, their types of queries tend to be more advanced, complex, and require highly qualified agents to support them. According to The Autonomous Customer 2013, 80% use online reviews to check product quality, and 82% of respondents agreed that they buy more from companies who make it easier to do business with them. Increasing Competitive Pressures: With the increase of competition, organizations have to make themselves standout from their competitors. Globalization and e-commerce have prompted organizations to find innovative ways to differentiate themselves in a competitive environment. While improving customer service is one area of differentiation, the challenge involves doing so in a way that drives revenue and growth without adding costs. For example, online retailers such as Amazon.com use automated systems that alert customers when a product has shipped and make product recommendations based on past purchases. Does the organization have a plan or strategy to differentiate themselves? If consumers are faced with a choice of a hundred other companies offering the same goods and services, what is it that makes your organization special? What can create a differentiation in the consumer s eyes? How about making the organization stand out by offering an outstanding customer experience? Contact centers also need to find ways to improve the customer experience but at the same time do it in such a fashion that they drive revenue and growth without adding costs. Also contact centers need to manage the end-to-end customer experience, from every customer touch point all the way through, driving a consistent customer experience regardless of the communication mode or channel. Contact centers also need to analyze the interaction and make changes to processes to better serve customers. So what are some of the things contact centers are doing to make that experience a differentiator? We ll look at some of these strategies and solutions during the next few sections.

7 Slide 5 Module Two: Customer Experience Management Defining Customer Experience Management Why it is important How it links to Customer Lifetime Value Module Duration: 5 minutes This module will examine Customer Experience Management, what it is, and why it matters. It will also explain how it links to Customer Lifetime Value.

8 Slide 6 Defining Customer Experience Customer Experience Sum of all experiences, from awareness, discovery, attraction, interaction, purchase, use, cultivation, and advocacy, that a customer has with a supplier of goods or services, over the duration of their relationship with that supplier. (Wikipedia, 2013) So what is Customer Experience? Wikipedia defines the customer experience as the sum of all experiences, from awareness, discovery, attraction, interaction, purchase, use, cultivation, and advocacy, that a customer has with a supplier of goods or services, over the duration of their relationship with that supplier. Source: Wikipedia, 2013

9 Slide 7 Why Customer Experience is Important 1. American Express study, CapGemini study, Avaya and BT, The Autonomous Customer, Avaya, Consumer Preference ebook, 2011 Customers Expect More 20% of Facebook users expect a reply in 60 minutes when they post on a company s page 2 60% of companies don t respond to customers via social media, even when asked a direct question! 2 9 of 10 consumers want support while online 60% 20% 79% 51% 51% of consumers trust the advice of unknown others on forums and review sites over an organization s official website 3 79% of customers think they know more about the issue than the agent 4 But they Don t Think Organizations are Meeting those Expectations However, Those Organizations that Do See the Rewards 70% of consumers are willing to SPEND MORE with a company that provides good customer service 1 82% BUY MORE from companies that make it easy to do business 46% of consumers regard customer loyalty as a thing of the past 3 70% 46% So why is the customer experience important? Here are some results from several studies that tell us why excellent customer experience is vital. 20% of Facebook users expect a reply in 60 minutes when they post on a company s page. 2 (Source: CapGemini study, 2011) 60% of companies don t respond to customers via social media, even when asked a direct question! 2 (Source: CapGemini study, 2011) 51% of consumers trust the advice of unknown others on forums and review sites over an organization s official website. 3 (Source: Avaya and BT, The Autonomous Customer, January 2011) 79% of customers think they know more about the issue than the agent. 4 (Source: Avaya, Consumer Preference ebook, 2011) 46% of consumers regard customer loyalty as a thing of the past. 3 (Source: Avaya and BT, The Autonomous Customer, January 2011) Research shows that customer service is second only to value for money when building brand value. (Source: CPE). In order to deliver good personalized service, organizations really need to understand their customers, why they buy, what they buy, why and when they are making contact with the organization. Customers that receive good customer service will be prepared to spend more with an organization. But if the organization doesn t understand its customers, why would they buy more from them? To deliver perfect service, it s essential to not only to know the customer, but also to know the organization. Because essentially the organization needs to ensure it aligns all its internal skills in the back and front office, with the customers dynamically changing needs. As you can see the stakes have never been higher for the contact center. But the rewards for excellent customer experience are significant. 70% of consumers are willing to spend more money with a company that provides good customer service (up from 58% in 2010). 1 (Source: Echo, 2012 Global Customer Service Barometer, 2012, Prepared on behalf of American Express study March 2012)

10 Accenture's latest annual Global Customer Satisfaction Survey provides compelling evidence of how vital the service experience is when it comes to shaping consumer buying decisions, long-term loyalty, and the manner in which consumers recommend or do not recommend companies, products, and services. (Source: Accenture.com, The new rules for customer service: Findings from the Accenture Global Customer Satisfaction Survey ) The challenge for the contact center is how to equip agents with the right information, training, and skills to meet these very demanding, very knowledgeable customers.

11 Slide 8 Achieving Excellent Customer Experience... By Focusing on Customer Experience Management Avaya defines Customer Experience Management (CEM) as the discipline of managing and treating customer relationships as assets, with the goal of moving satisfied customers to loyal customers, and loyal customers to advocates of the brand. Organizations focused on CEM drive sales through competitive differentiation, customer retention, and overall brand advocacy. So how do you achieve an excellent customer experience? Well by focusing on Customer Experience Management of course. At Avaya we have defined Customer Experience Management or CEM as the discipline of managing and treating customer relationships as assets, with the goal of moving satisfied customers to loyal customers, and loyal customers to advocates of the brand. Organizations focused on CEM drive sales through competitive differentiation, customer retention, and overall brand advocacy.

12 Slide 9 CEM Delivers Customer Lifetime Value CEM drives Customer Lifetime Value for an organization, because it helps to: Improve revenue per customer over life of relationship because customers more satisfied with service received Reduce cost of acquiring and supporting customer over life of relationship through efficiency, effectiveness, and productivity Improve duration of relationship by driving loyalty and brand advocacy CEM delivers Customer Lifetime Value. So what is Customer Lifetime Value or CLV? CLV involves optimizing each customer interaction and conversation, creating an engaged customer relationship which drives repeat purchases, retained customers, customer referrals, price premiums, and reduced support costs. CLV is calculated by taking the customer revenue minus the support costs, then multiplying the average length of the relationship, minus the acquisition costs to arrive at the Customer Lifetime Value. So how does CEM link to CLV? CEM drives Customer Lifetime Value for an organization, because it helps to: Improve revenue per customer over the life of the relationship because customers are more satisfied with the service received. Reduce the cost of acquiring and supporting the customer over the life of relationship through efficiency, effectiveness, and productivity. Improve the duration of relationship by driving customer loyalty and brand advocacy.

13 Slide 10 CEM Delivers Customer Lifetime Value (cont.) Customer Lifetime Value (CLV): Optimizing each interaction and conversation, creating an engaged customer relationship which drives repeat purchases, retained customers, customer referrals, price premiums, and reduced support costs Customer Lifetime Value [(Customer Revenue - Support Costs) x Average Length of Relationship] - Acquisition Costs = Customer Lifetime Value CEM delivers Customer Lifetime Value. So what is Customer Lifetime Value or CLV? CLV involves optimizing each customer interaction and conversation, creating an engaged customer relationship which drives repeat purchases, retained customers, customer referrals, price premiums, and reduced support costs. CLV is calculated by taking the customer revenue minus the support costs, then multiplying the average length of the relationship, minus the acquisition costs to arrive at the Customer Lifetime Value. So how does CEM link to CLV? CEM drives Customer Lifetime Value for an organization, because it helps to: Improve revenue per customer over the life of the relationship because customers are more satisfied with the service received. Reduce the cost of acquiring and supporting the customer over the life of relationship through efficiency, effectiveness, and productivity. Improve the duration of relationship by driving customer loyalty and brand advocacy.

14 Slide 11 Companies Need Proven Business Impact Customer Experience Management Drives Customer Lifetime Value For The Customers Anytime, anywhere, any channel More personalized experience Reduced waiting and transfers Improved first contact resolution For The Business Differentiated brand Better Net Promoter Score Lower costs, increased revenue, improved profitability Flexible, scalable, reliable For The Employees Positive, productive work environment Right information and resources to work effectively Opportunities to collaborate Flexibility and empowerment Customer Satisfaction and Advocacy Customer Lifetime Value Staff Retention and Effectiveness [(Customer Revenue -Support Costs) x Average Length of Relationship] - Acquisition Costs = Customer Lifetime Value Earlier we looked at the trends in customer service, and we looked at Customer Experience Management and what that means to an organization, we also looked at how it links to the Customer Lifetime Value. So it s clear that CEM is important, and it is important to the groups that interact with the contact center both externally and internally.

15 Slide 12 Module Three: How Avaya Customer Experience Management Solutions Can Help Avaya Customer Experience Framework Avaya Customer Experience Management Applications, Products, and Solutions Module Duration: 50 minutes Now let s look at how Avaya Customer Experience Management solutions can help organizations manage and grow their businesses, while providing the stellar customer experiences that consumers expect. While at the same time provide the thriving positive, productive work environment that contact center employees long for.

16 Slide 13 PROPERTIES Allow user to leave interaction: Show Next Slide Button: Completion Button Label: After viewing all the steps Show upon completion Next Slide The future of customer experience over the next three to five years is going to focus on three core principles. Click each principle to learn more. Right Media, Right Time: Monitoring, anticipating, and dynamically managing the customer experience, bringing in the right resource, to address the right need, at the right time, irrespective of the channel the customer is using. The predominant method of interaction continues to be voice interactions. But new channels are coming; these include access methods like web self-service, different media such as SMS, and new devices for example Smartphones. End customers expect to be able to reach businesses when, how, and where they want. Key global results from the Avaya Contact Center Consumer Preference Study, found that 40% of global consumers prefer alternate methods of contact, including web chat, self-service, and text messaging to phone-based customer service. And importantly, end customers expect to have a consistent experience across the different touch points with businesses including the business knowing what happened in different interactions across channels independent of whether they occurred inside or outside of the contact center. They also want to be able to move from one to another without having to repeat information. Enterprise-wide Engagement: Organizations can create an enterprise-wide engagement by putting the customer at the heart of the business, and tightly aligning the right resources, functions, and processes into resolving their particular issue quickly and first time around. Collaboration with customers and within the organization ensures that the customer service and experience the organization wants to deliver is tightly aligned and enabled by the resources and processes within the organization. Everyone in the organization is a customer service agent in some way. The conversation isn t really just about the contact center for customer service anymore. It s really about: Bringing all relevant functions, people, and resources into the customer service realm in order to drive the best possible customer service available, for example access to experts anywhere. Making customer service and the contact center more relevant in the business, for instance, when something goes wrong like faulty products, the contact center is often the first place to know about it. This requires good reporting and analytics to track and share the information.

17 Linking the customer service process into other business processes, for example making social media a part of brand awareness, so all of a sudden the contact center becomes relevant there; or Applying customer service processes and systems in non-contact center environments, like in the case of proactive notification in Hospitals to support patient discharge by automating the approval process across all medical staff involved in authorizing a patient s discharge. Actionable Insight: Knowing customers preferences, understanding their situation, knowing their value, and using all of this insight to ensure the organization can match them with the most appropriate resource to address their requirements. This information is used to deliver a service that is unique, personalized, and enduring. But how can this type of customer driven experience be enabled? Actionable insight requires much more than just measuring what has happened in the contact center, and looking at historical information retrospectively to make decisions that are often outdated before they are even implemented. Actionable insight is really enabled through closed-loop performance management, which is an end-to-end process that starts way before the interaction starts. It s really about providing the right customer experience, at the right cost, at the right time, through the right channel. Summary: Overall organizations and businesses need to plan for how to evolve and integrate their communications, information, and processes to be able to dynamically adapt in real-time to proactively manage the end customers experience expectations. The challenge is that with every new channel and service added to increase differentiation and stimulate growth also increases the risk of dissatisfying the customer. But the opportunity and rewards are huge for organizations who realize that today, the Customer Experience is their brand and that this drives the Customer Lifetime Value.

18 Slide 14 Avaya s Unique Approach The Contextually Aware, Persistent Customer Experience Application of All Relevant Context including Information, Resources and Processes Customer Sees One Company Predict, Anticipate, and Respond Holistic, Personalized Customer Experience Company Sees One Customer Connecting All Interactions as a Seamless Experience Let s take a look at Avaya s unique approach to Customer Experience Management. PERSISTENT CONVERSATION A conversation is any interaction between the customer and organization, regardless of: The media channel or channels used in the interaction and the resources used to serve Whether the interaction was initiated by the organization or the customer Whether the interaction was automated or agent assisted With the Persistent Conversation all interactions with a customer are connected together with the purpose of trying to: Understand the customer and their specific requirements, better serve the customer, better and continuously improve their experience with the organization. A key enabler of Persistent Conversations is awareness. Details on how Persistent Conversations can add value to a customer experience can be highlighted in the following example: A customer has been in contact with an organization multiple times recently regarding a problem they ve experienced with their billing. If the organization is able to tie together the previous conversations when taking the customer call, they can circumvent a lot of frustration by: Upgrading the relative priority of the call to prevent the customer from unnecessary queuing Trying to route the call to the same agent that dealt with the issue the last time or immediately escalating the conversation to a specialist or supervisor. Ensuring the details of the previous conversations and the actions taken to date are made available to the agent so that the customer does not have to cover old ground. The benefits of a Persistent Conversation are: Reduce the overall frustration levels that customers can experience when organizations fail to use information shared with them during previous interactions. Improve pro-activeness when dealing with customers by predicting and tailoring services based on previous interactions. Improving agent effectiveness and understanding when dealing with specific customer issues. Awareness: The application of all relevant context which includes information, resources, and processes, for a specific customer, at any time. A key enabler of awareness is context, which could include information such as: Customer Attributes: Customer attributes are characteristics pertaining to the customer, for example, Customer Lifetime Value, open case/tickets, recent purchases, propensity to buy, propensity to churn, retention offer, business

19 key performance indicators or KPIs, at risk shopping cart contents, service contract, gender, age group, demographic, communication device, income, last agent talked to, repeated caller, and customer preferences. Resource Attributes (agent, expert, self-service, etc.): Resource attributes are characteristics pertaining to the agent, the expert, or self-service and so forth, for example, expertise, occupancy, cost, presence, on-shore, nearshore, far-shore, outsourcing contract, quality scores, interruptible work, business KPIs, gender, age group, first contact resolution rate, shift times, number of current contacts, and multiplicity rules. Situational Context Attributes: Situational Context Attributes are characteristics pertaining to the situation and the content within, for example, time-of-day, day-of-week, global positioning system (GPS), language, exchange rates, Dow Index, inventory, sales goals, inflation rate, interest rates, market direction, marketing campaigns, customer satisfaction scores, export targets, product announcements, contact center status, holidays, crisis management, and so on. The context could be: Personal, for example, contact details, last order placed, etc.; and public, for example, home town / local information like weather, traffic, and so forth. Historical, for example, account information, yearly spend with the company, etc.; and Real-time, for example, menu option selected from IVR menu in current transaction, GPS information from a Smartphone, etc. Internal to the organization, for example, account details in the CRM system, or External, like exchange rates, share price, and the like. The context used during an interaction could be: Information already stored prior to the interaction. For example, information stored in the CRM and organization resource planning or ERP systems like account details, contact details, recent orders, customer value, services purchased, previous contact history, billing information, outstanding balances, and so on. Information collected during the course of an interaction. For example, information about the caller, his intent, the treatment that is provided to him, etc. It could be collected by various elements in the interaction path, for example IVR, Agent Desktop, Recording system, etc. Examples of this data include caller name, caller product, caller segment, propensity to leave, IVR tree path, call reason (as described by an agent), or agent evaluation. Information stored following the interaction. For example, information such as a contact history, updated personal information, customer satisfaction score, customer feedback, payment information, and so forth. AWARENESS AND PERSISTENT CONVERSATION TOGETHER collectively enable the organization to predict, anticipate, and respond to each customer s individual requirements, and ensure a holistic, personalized, and enduring customer experience.

20 DESIGN Seamless, Connected Customer Experience MANAGEMENT Streamlined, Simplified, Business Driven Management Slide 15 The Avaya Customer Experience Framework Actionable Insights. Better Engagement. Superior Results. Awareness DEPLOYMENT OPTIONS INTERACTION Right Media, Connected, Intelligent, Right Persistent TimeCustomer Engagement EXPERIENCE Enterprise-wide 1:1 Matching of Customers Engagement to Resources using Contextual Awareness PERFORMANCE Actionable End-to-End, Scalable, Real-Time Insight Business Intelligence and Insight SERVICE AND SUPPORT Persistent Conversation Preserve Existing Investments Layer on New Capabilities Leverage Common, Open, Connected Platform Connect to Avaya, Third-party, and Competitive Solutions Let s take a look at how Avaya Customer Experience Management solutions actually support customers in achieving their business objectives. Every customer has their own unique business challenges and lifecycles and interactions and collaborations across web, social, mobile, and the customer services plays a crucial role the overall experience is only as strong as its weakest link. Avaya believes there are seven layers to effective Customer Experience Management. Each dimension delivers unique business values to the organization. When combined, they create a customer experience value Framework that enables organizations to obtain business value in the areas of improving customer acquisition, increasing customer retention and growth, delivering high quality experiences, and providing efficient management; all supported by an infrastructure that provides business continuity, reliability, and stability that is unmatched in the industry. We take this holistic approach and believe it results in helping our customer realize better actionable use of their business data and customer information, better experience design and customer engagement, and ultimately better results for the business. Let s examine the seven layers that make up the Avaya Customer Experience Management Framework. The first is the interaction layer which essentially connects the enterprise with the end customers over their preferred media and modes such as web, social, mobile, voice, and video. This also includes the desktop element that provides relevant information to agents and knowledge workers and facilitates collaboration across all the resources involved in delivering the customer experience. The experience layer which is really is responsible for leveraging real-time awareness of customer needs, business policies, and resource availability to determine the next best action and best resources to address the customer needs at the right time based on the target customer experience the organization wants to deliver. It is also responsible for integrating inbound and outbound self-service, agent selection, and workflows with back office processes and operations to enable this holistic customer experience. The performance layer is responsible for the collection, consolidation, and analysis of data and information in order to gain insight into the customer experience and the business performance. It includes reporting and analytics tools for improving overall workforce management, skills, efficiency, and effectiveness.

21 The design layer includes open standards tools for creating and managing applications and workflows that are integrated into back office processes, third-party applications, and customer databases. This is based on the specific customer experience and business outcomes the organization is trying to achieve. The management layer which enables the centralized management and administration for all the above systems, applications, and resources within the Framework as well as the ability to identify potential issues and perform root-cause analysis to prevent system outages and performance degradation. Deployment Options: Avaya provides a full range of deployment options to best meet the customer s requirements. In addition to current software only and/or appliance models, Avaya contact center products are also support virtualization. Service and Support: Avaya Support and Services can help customers address a variety of business and operational challenges in the contact center and can be of significant value to a contact center. This framework enables Avaya to address the three key requirements for providing exceptional customer experience which we examined earlier, those being: the right media at the right time, enterprise-wide engagement, and actionable insight. All of this is done in a way where Avaya customers are able to: Preserve Existing Investments in routing, self-service, automated service, reporting, desktop, etc. Essentially there is no rip and replace. We simply preserve existing investments. Our focus is to ensure that our installed base customers, irrespective of their starting point, can protect their existing investments. Take, for example, the path to Customer Experience Management irrespective of whether their heritage is Avaya Aura Call Center Elite or Avaya Aura Contact Center or if you are a net new customer, you are on one of two paths that both lead you to Customer Experience Management. Our strategy is to ensure that no one has to turn off what they have today, whether that s their call vectoring, their Call Management System, or whatever else; none of these investments will be lost. Layer on new capabilities to address new business and customer requirements; this basically involves adding new capabilities on top of existing investments, as and when required. Our strategy is to enable customers to add capabilities to what they have today. So essentially it s building capabilities on top of the existing investments. As part of our roadmap we will be building out new capabilities such as Performance Center, Context Store, additional multichannel capabilities, etc. The key thing for customers is that they choose when to use our capabilities as a way to evolve, if and when they desire to do so. But if and when they do decide to add on additional capabilities, it will be in a way that does not require them to turn off or take out their existing investments. Leverage a common, open, connected platform for service design / management, self and automated services, best resource matching, and business intelligence to ensure ease of integration, consolidation, ability have an enterprise-wide view. The key element behind the platform is the ability to integrate and connect data, systems, and information together. The overall platform is developed on an open standards basis, leveraging inherent integration capabilities and methodologies such as SIP and web services. This ensures the ease with which the Avaya environment can connect together but also integrate into other solutions with minimal cost and effort. Connect into Avaya, third-party, and competitive ACDs, switches, applications, and systems. This is of particular importance to customers who have a mixed estate with some Avaya and some competitive solutions, or completely competitive environments. The essence of our strategy is that, regardless of the ACD or the underlying switch, we can start wrapping our capabilities on top of it. Work has already commenced on connectors into competitive ACDs which will ultimately enable our customers to build additional value with Avaya solutions on top of their existing competitive investments.

22 Slide 16 Opportunity in Customer Experience Management For Sales and Partners Increase Attach Rate Customers increasingly prefer Best of Suite solutions Majority of contact centers DON T have integrated multimedia, end-toend self-service, or full workforce optimization deployed Increase Revenue Up to three times more revenue Higher margin applications and services Cross-Sell Customer Experience Management solutions pull through services, unified communications, video, and networking So why should you care about the Customer Experience Management portfolio? Well the bottom line is that not only do we have a huge opportunity to generate highly profitable revenue from Customer Experience Management opportunities both within new accounts as well as our installed base where the majority of our existing customers are only using a portion of the overall available portfolio but Customer Experience Management also pulls through revenues for all the other portfolios Unified Communications or UC, Services, and Networking. Next we ll examine the layers within the CEM Framework, and the capabilities that each layer provides within the framework.

23 DESIGN DEPLOYMENT OPTIONS INTERACTION EXPERIENCE PERFORMANCE SERVICE AND SUPPORT MANAGEMENT Slide 17 Interaction Layer Connect with Customers over Preferred Channels Intelligent Customer Engagement Customer Engagement Intelligent Workspace Real-Time Enterprise Collaboration Optimal Resource Utilization FROM: TO: Standalone, Fragmented, Voice-Based Interactions Connected, Intelligent, Persistent Customer Conversation First let s look at the Interaction layer. The Interaction layer provides opportunities to create engaged customers across advanced multimedia channels. It describes how organization resources interact with customers. There are two distinct areas of value making information available from multiple channels enabling personalized service (good experiences increase revenue) and also by doing this efficiently so that agents can shave off critical seconds in delivering customer service (decreasing expenses). The Interaction layer provides the capability for: Customer Engagement: It is the touch point between the customer and the organization and illustrates how the customer s choice of channel -- voice, , text / SMS, web chat with automated agent responses, video interactions, social media, etc. come into customer service. Intelligent Workspace: Desktop, phone, and screen pop solutions that streamline delivery of interactions with, and information about, the customer to the agents and knowledge workers. Presenting consolidated information about the customer at the agent s desktop such as information from a CRM solution. Real-time Enterprise Collaboration: Enterprise collaboration with subject matter experts to deliver first contact resolution to the customer, irrespective of the channel the customer uses to interact with the organization. For example, this could involve collaboration between an agent and a subject matter expert. Summary: The Interaction layer is enabled by: Providing a fully packaged and configurable workflow for routing and agent assignment Presenting consolidated information about the customer at the agent desktop Integrating into CRM solutions making available relevant customer information Including Avaya s proprietary software developer kits or SDKs for integrating to third-party solutions for call and multichannel support, integrating and modifying at our desktops, and open APIs for building custom desktop solutions Our differentiation comes in with the awareness provided through the context store and persistent conversation enabled through the ability to retain information across channels. The Interaction layer converts the organization from one with standalone, fragmented voice-based interactions to one where the business is connected, intelligent, and maintains a persistent customer conversation.

24 DESIGN DEPLOYMENT OPTIONS INTERACTION EXPERIENCE PERFORMANCE SERVICE AND SUPPORT MANAGEMENT Slide 18 Experience Layer Engage the Right Enterprise Resources at the Right Time Exceptional Customer Experience Contextual Awareness Best / 1:1 Matching Back-Office Connection Optimal Resource Utilization FROM: TO: Dated Routing, Queuing, and Agent Allocation 1:1 Matching of Customers to Resources Using Contextual Awareness Next is the Experience layer. The Experience layer in the framework is essentially the Customer Experience Management brain which enables the organization to deliver the type of customer experience required. It transforms customer experience from dated routing, queuing, and agent allocation to one-to-one matching of customers to resources using contextual awareness. In so doing, it ensures that the right enterprise resources are engaged at the right time to deliver the right customer experience, as designed by the organization. This delivers two key benefits namely optimal resource utilization across the organization and an exceptional customer experience. The Experience layer provides the call flows, the wait treatments, the agent selection, and everything associated with how the customer experience is delivered to customers, irrespective of the channel they are using. It also includes the ability to design and analyze these designs of what a customer will actually Experience when they contact the organization. The Experience layer enables the following: Self-service, providing value as directed by the customer not just through voice but also through other channels like chat and text. Enterprise-wide design providing for multiple contacts that come in from many locations to get the same experience regardless of location or channel, and designed with a visual, graphical design tool in Avaya Aura Orchestration Designer. Queuing at the edge, where calls are anchored at the edge of the network, held until the right customer experience resource can be applied. This reduces network costs significantly and avoids costly codec conversions, intermediate call states, and sending RTP over the customer network wasting bandwidth. Advanced wait treatments can be applied using Experience Portal and the Avaya Aura SIP core for the enterprise, and are consistent across locations, media, trunk-type, etc. Advanced wait treatment are more than just an announcement - it is the ability to collect customer information like intentions, languages, buying profiles, credit card information and more, providing up-selling and cross-selling opportunities, and callback initiatives if the wait is too long. Business rules that define what the experience block does examples are gold customers get the lowest wait times to make sure you get the same agent you called last time or make sure platinum customers always get a platinum agent, even if they have to wait. When appropriate, the contacts are presented to agents where they can be handled with a single session, involving experts if required, provide FAQ information automatically, and so on.

25 The Experience layer essentially performs the following three key activities. Contextual Awareness: The Experience layer essentially knows and applies the DNA of the customers, for example, customer needs and preferences, account information, purchasing history, and so on; the business, for example the business policies, resource expertise, resource availability, customer segmentation, and so forth; and the environment within which the customers and the business operate, for example, a customer s location, the device they are using, the environment, promotions available that may be of interest to them, etcetera; and it processes all of this information in real-time. Best/1:1 Matching: Leverage contextual awareness uses all relevant information to identify the best resource for the customer needs (agent or automated) and ensure execution across the right media at the right time. Contextual awareness helps execute the right match of people and information across the right media at the right time. Business rules define what the Experience block does. Connect to the Back-Office: Connect business processes, back office functions, and information with enterprise routing, agent selection, and workflows to ensure persistent conversation. It uses context provided from back office systems and linked with the Customer Experience Management applications to determine what the next best action should be. The Experience layer knows the next best action to enforce and this is really unique to the business. Summary: As previously mentioned, the key thing here is that customers can take advantage of the Experience layer irrespective of whether their heritage is Call Center Elite or Avaya Aura Contact Center; they are on one of two paths that both lead to Experience Management. Our strategy is to ensure that no one has to turn off what they have today, whether that s their call vectoring, their CMS, or whatever else; none of these investments will be lost. Our differentiation comes in with the awareness provided through the context store and Persistent Conversation enabled through the ability to retain information across channels. In the mileage plus account example, a customer interaction may start with the web, if unsuccessful move to chat, and then move to voice where the same information gets entered at each step. The context store will keep all the information about the previous encounters to keep customers from having to re-enter information. The organization is transformed from one relying on dated routing, queuing, and agent allocation to an organization with one-to-one matching of customers to resources using contextual awareness.

26 DESIGN DEPLOYMENT OPTIONS INTERACTION EXPERIENCE PERFORMANCE SERVICE AND SUPPORT MANAGEMENT Slide 19 Performance Layer Realize Actionable Insights and Improve Effectiveness Outstanding Business Performance Real-Time Performance Actionable Insight Optimize Workforce Improved Customer Experience FROM: TO: Historical, Fragmented Reporting End-to-End, Scalable, Real-Time Business Intelligence and Insight Now let s examine the Performance layer. The Performance layer delivers enterprise-wide reporting that handles dashboard reporting and real-time analytics for full, end-to-end performance management. This will provide organizations with insight into not only what has happened to the customer experience, but also why it has happening and what they need to do about it. The Performance layer essentially performs the following three key activities. Real-time performance: Core platform for the real-time collection, consolidation, and processing of data from contact center and enterprise sources. Actionable insight: Modules of reports and analytics providing critical insights into customer experience and business performance, facilitating improvements in key areas. This could be capabilities such as real-time performance management, collaboration and customer experience reporting, flow, trend and speech analytics, interactive dashboards, and so forth. Optimize the workforce: A suite of integrated workforce optimization applications providing insight into end-to-end customer feedback, quality management, workforce management, elearning, and training support, etc. Summary: The Performance layer will be enabled by Avaya Aura Workforce Optimization or WFO and Avaya Aura Performance Center or AAPC. The Performance layer helps the organization go from one where the business is dependent on historical and fragmented reporting to an organization with end-to-end scalable, real-time business intelligence and insight.

27 DESIGN DEPLOYMENT OPTIONS INTERACTION EXPERIENCE PERFORMANCE SERVICE AND SUPPORT MANAGEMENT Slide 20 Design Layer Enable a Uniquely Branded, Seamless Customer Experience Fastest Time-to-Market End-to-End Experience Design Workflows and Application Simulation Connect and Share Services Lowest Costs FROM: TO: Fragmented, Standalone Applications and Workflows Seamless, Connected Customer Experience Here we ll review the Design layer. The Design layer enables the enterprise-wide design of the customer experience ensuring that when multiple contacts come in from many locations they get the right experience as defined by the organization regardless of the location or channel. The Design layer performs the following three key activities. End-to-End Experience Design: This involves the design and management of the applications for all multichannel inbound and outbound, IVR, and agent workflows, administering, and executing business logic that will influence the customer experience. Workflows and Application Simulation: Design and evaluate customer experience and business outcomes before implementing them into customer-facing, real-time operations. Connect and Share Services: Connect customer service resources workflows with the enterprise applications, data, and processes, and realize a more satisfying and profitable experience. This includes being able to support CRM and back office integration. The Design layer is enabled through tools such as: Avaya Aura Orchestration Designer or OD, which provides a visual, graphical design tool for developing the end-toend service. And Avaya Aura Application Enablement Services or AES a server-based software solution that provides an enhanced set of telephony application APIs, protocols, Web Services, and direct IP access to media, and supports standards that expose Avaya Aura Communication Manager features. Summary: The Design layer helps the organization, through design, transform the customer experience from a fragmented one with standalone disjointed applications and workflows, to one that is seamless and connected.

28 DESIGN DEPLOYMENT OPTIONS INTERACTION EXPERIENCE PERFORMANCE SERVICE AND SUPPORT NAGEMENT Slide 21 Management Layer Streamline, Simplify Management, and Reduce Administration Costs Improved OpEx and Resource Utilization Centralized Administration Multi-tenancy Support Trouble Isolation Fastest Time-to-Market FROM: TO: Time Consuming, Error Prone, Repetitive Administration Streamlined, Simplified, Business-Driven Management Now let s look at the Management layer. The Management layer enables the centralized management and administration for all the above systems, applications, and resources within the framework as well as the ability to identify potential issues and perform root-cause analysis to prevent system outages and performance degradation. The Management layer performs the following three key activities. Centralized Administration: So that organizations can administer their contact center environments with new levels of flexibility and control, making the required changes to their operations such as managing agents, skills, vector directory numbers or VDNs, extensions and call flows, through one, unified, intuitive user interface and centrally apply them across Avaya s Customer Experience Management portfolio. Multi-tenancy Support: Site and role-based access and configuration supporting tenanted environments allow changes to be safely managed by site or by center, rather than IT. Trouble Isolation: Identify potential issues and perform root-cause analysis to prevent system outages and performance degradation. Summary: Some of the benefits of the Management layer are: It simplifies agent administration It enables line of business staff to take more control of administration and make business changes faster than before And it reduces the total cost of ownership or TCO because it frees IT staff from these administration functions