How CAVII™ (Powered by IBM WATSON™) Is Driving a Retailer’s Customer Experience Transformation Feb 2017 Opportunities – Strategies – Growth

OSG at a Glance Privately-held, PE-backed behavioral market research and behavioral analytics company with technology. Founded in 2008 with strong academic credentials Offices in USA, UK, and India Over 800 projects delivered worldwide Diverse range of leading Fortune 500 clients Recognized Analytics thought leader featured in leading publications Recognized for five consecutive years as one of the fastest growing companies in the US This slide has less information but captures attention.

OSG’s Core Mission Is Based on Customer Centricity OSG’s is “The Catalyst for Customer-Centered Marketing We help you understand what your customers want and why Help you develop actionable insights Help you use this insights to innovate and grow your business + = GROWTH Through Differentiation BEHAVIORAL ANALYTICS COGNITIVE ANALYTICS

The world according to Gartner… In 2014, 89% of marketing leaders expected to compete primarily on the basis of CX by 2016, compared with 36% four years earlier, but … 81% of organizations have seen their CX initiatives fail in the last three years. So, what is Customer Experience? Source: Gartner. Avaya

What Is Customer Experience (CX)? Customer Experience Management is the ability to track, manage, and optimize a customer’s journey across the following stages of a product or service transaction Look Into the Shopper’s Mind … For the Desired Future Outcomes AWARENESS ADVOCACY FAMILIARITY LOYALTY CONSIDERATION TRUST PURCHASE INTENT SHARE RATE PURCHASE USE LIKE

A Retail Case Study

Customer Experience Analytics for a National Retailer OBJECTIVES CLIENT A national service provider with 2000 stores SITUATION Client was experiencing decline in per store revenue year over year; They had identified customer retention as a major contributing issue Many technology vendors were already serving them but they specifically wanted behavioral science expertise as well OSG won: OSG was engaged to develop and help identify key drivers of customer satisfaction, implement a program across all their stores and to measure KPIs Key objectives were to: Identify & understand key drivers of customer satisfaction Quantify the relative importance and how would they drive customer loyalty Design & implement a monitoring & tracking system to effectively manage performance

Customer Experience Analytics for a National Retailer THE APPROACH CX PROGRAM DEFINITION Key elements include drivers of customer satisfaction and loyalty Customer segmentation and KPIs Develop hypothesis & design specs for tracking system and data dashboards, real-time alerts, regular reports, etc. PILOT DEPLOYMENT Pilot in 240 stores from 15 franchises Tracking system and data dashboard implementation with email alerts and weekly/monthly reports on top KPIs Quantify the importance of drivers using ASEMAP™ and IBM WATSON™ based Machine Learning Algorithms ACTIVATION Finalize recommendations from pilot program Work with customer team to implement training programs to improve on customer satisfaction and loyalty Refine survey & KPI implementation

CAVII-R™ Started With Retention Analytics Why is willingness to return lower for brakes, transmission, tires ? What is a 1% improvement in CX worth to the retailer?

CAVII-R™ Offers At-A-Glance Drill-Down Capabilities Analytical Widgets: Insights at a glance that drive actions Do we need training? Are we overselling? Is quality flagging? Predictive indicators that fall before revenues trend lower? Drill-Down Franchisee Hierarchy

OSG’s ASEMAP™ Engine at Work Unpacking Customer Experience using the world’s best behavioral Engine – ASEMAP™

IBM Watson NLC in Action…Retention Analytics Training IBM WATSON™ and putting Machine Learning Expertise to work IBM WATSON™ Natural Language Classifier uses confidence score to show its machine learning accuracy

Analyzing Real-Time Business Vitality Analytical Widgets: How is my customer experience trending? Analytical Widgets: How are my revenue trends at each level?

Early Insights Top considerations for choice of service are Quality Trust Convenient location Value for money Fast service Ratings were similar across gender, but disparity across age groups was significant Millennials ranked them the lowest Baby Boomers the highest Issues around trust and quality of service driving loyalty and returns IBM WATSON™ Training Experience Machine-learning algorithm accuracy >95% consistently...trained NLC algorithm on 40 concepts Happy customers use few words The unhappy ones can be verbose giving us many learning opportunities

Summary of What CAVII™ Does for the Retailer? Real-time shopper experience measurement Starts with understanding each shopper expectation Individualized and personalized interventions for each shopper Ability to capture and analyze verbal and text inputs from shoppers Reports and alerts provided at the store, franchise, at regional or national levels Rapid interventions by store managers allowing for improved training and efficient store operations Guaranteed outcomes for clients of OSG

Contact John Duggan, MBA Vice President, Business Development E: john.duggan@optimalstrategix.com P: +1 781 605 8347