Science of Nurture Session 4 Module 7

2 Session Four: Capturing Response and Scoring

3 7. SCORING

4 What you will learn in this module Key benefits –Validates why we score interactions and how IBM and the client will benefit –Outlines how scoring facilitates interactions within a client driven and multi-channel Buyer Journey Key learnings –We must ensure that we most effectively respond to the needs of the client by implementing a rules-based, testable methodology that prioritizes clients based on readiness to speak to an LDR –Scoring is a method of assigning a points value to information captured or implied from the response capture –MAT monitors a client’s activity with IBM and assigns a score value after each interaction, and the scoring threshold determines the quality and quantity of leads that are routed to an LDR –Scoring determines whether the next step will be Nurture, or route to an LDR

5 Purpose To predictably and efficiently identify readiness to purchase, based on client behavior Why To select the best path for client Nurture and optimize use of LDR resources Outcomes Enables the IBMer to become more efficient and effective by only passing responses that are ready to the LDR and increasing the number of clients in quality conversations with IBM WhoHow we’ll use the brand quality differentiators Science of Nurture education Scoring 7 WW DPP select scoring threshold based on analytics DbM performs analytics Agency helps to set up test to improve scoring business rules LOCAL DPP may increase threshold when a response is handed to the LDR, to be in line with local market performance and analytics 1.Setting the shared agenda: Not applicable to this module 2. Making the case with expertise and proven outcomes: The application of a scoring system will allow IBM to make the case with the most appropriate resource at the right time in order to drive the best outcome for our clients 4. Charting the client’s path to deliver that value: Not applicable to this module 3. Collaborating with experts to define future value: Not applicable to this module

6 Scoring drives the right next step for every client – from next offer to conversation with an LDR FROMTO A single client score intended to assist LDR in prioritizing their work queues New scoring methodology applied to each interaction within nurture and indicates the client’s readiness to purchase and initiates passing to an LDR

7 Scoring has benefits both to IBM and to our clients IBM Benefits –Smarter routing of responses through system –More efficient use of LDR resources –More informed discussions with clients –Reduce LDR “did not call” rate –Increase response: lead conversation rate –Increased Sales Accept Rates Client Benefits –Content presented is most relevant –Interactions take place based on demonstrated need –Conversations with IBM LDR and Sales occur when a client is ready

8 We need to understand scoring and how it is applied to all interactions, in order to effectively use it for Nurture Scoring is a method of assigning a points value to each response or interaction that is captured (even initial response capture) The higher the score, the further along the client is in the Buyer Journey Inputs used in scoring are collected from explicit or implied interactions –Explicit interactions: information captured from response capture (both those that are filled out and those that are populated based upon “cookies”) –Implied interactions: information implied by content codes, clicks, and other non-form interactions captured in our systems

9 IBM analysis has validated that higher scores correlate to better response to lead conversion rates The current scoring approach is valid – and ensures better conversion success when LDR follow up with the highest scored responses –Higher scores are indicative of higher success – but this is essentially a self-fulfilling conclusion, as higher scored responses are more likely to be followed up with by LDR Contacts with total scores greater than 100 have the highest conversion rates, 2x greater than the score group. Among highest scores (140+), conversion rates are very high compared to other scores. This could be because of response type “Call” and/or “Request a Quote”, which have high conversion rates. High-Level Findings

10 Scores are evaluated after specific interactions to determine whether the client should speak with an LDR The diagram below assumes that the content interacted with has a numerical scoring value assigned to it (example: Whitepaper downloaded during the Compare stage equals a value of X) Scores are cumulative, each interaction updates a clients score Interaction 1 Score Established Interaction 2 Score Updated Interaction 3, 4, 5 Score Updated Response Received Response Rested Immediate send to LDR Sales: “Please Contact Me” Scoring threshold achieved Send to LDR

11 Advanced scoring will better identify readiness, helping us drive Nurture efficiency Interaction scoring will be executed within the MAT dynamic scoring engine MAT monitors a client’s interactions with IBM and assigns a score value after every interaction –Scores are cumulative –Scores expire after a period of inactivity Scoring threshold governs when a client is handed off to an LDR or kept within the Nurture stage A client routed to an LDR will have a baseline level of readiness regulated by a score threshold established within the MAT dynamic scoring engine How it worksBenefit

12 Looking at two examples of scoring outcomes, we can see how the score threshold determines the next step Doug responds to the first touch, but does not download the white paper offered in the second touch Doug’s score is updated after each interaction he makes, but is still not high enough to meet the score threshold and be sent to an LDR Doug does not get a phone call at this time Nurture continues Doug receives a phone call inviting him to a local event for IBM Doug declines, but later reviews the white paper he downloaded and decides to look for more information on ibm.com Doug downloads another white paper and requests a quote Doug’s score is updated, now meets the score threshold and is sent to an LDR Example 1Example 2

13 MAT score examples below illustrate how scoring will highlight clients whose actions indicate readiness Interaction TypeScore Open5 Click-Through10 Registered20 Event Attended40 Request a Quote150 Call Web Response20 Offer TypeScore Analyst Research15 Assessment30 Book5 Brochure10 CD-ROM20 Client Case Study20 Incentive5 Information Kit20 Interactive Online Tool20 Newsletter15 Online Demo40 Resource Center20 Software/Widget Download40 Survey25 Education Course15 Video20 Web Seminar – Live40 Web Seminar – Podcast/Flash30 White Paper20 These are illustrative scores. Final values will differ by stage in Buyer Journey in future state scoring If interaction is categorized as Web Response, MAT allocates additional points based on offer type accepted Analytics will be used to validate and refine score values over time

14 In Module 9, we will discuss how to test and optimize the scoring threshold The scoring threshold will ultimately determine the quality and quantity of responses that are routed to an LDR Optimizing the score threshold is critical to understanding where the quality/quantity ideal range is for Nurture activity Scoring threshold will be unique to each country and should be based on in-market testing and learning Response Quantity Score Score Threshold Example: High Quality | Low Quantity Score Threshold Example: Low Quality | High Quantity Ideal Score Threshold Optimization Range The middle

15 Our Scoring is Advancing, and will continue to do so December 2011 Develop deeper analysis that cuts across all scoring parameters (interaction/offer accepted), adding considerations for brands, geos or other high-level breakouts. This will be used to calibrate and improve the current system for scores and triggers Profile recent responders on interaction with multiple programs (to guide the development of multiple scores – by program) Develop data improvements and incorporate new data elements and time-based data to reevaluate and improve the approach Integrate relevant Science of Nurture work Develop comprehensive analytic model once the data quality and coverage improves – taking into account all factors, including demographics, firmographics, time series. This is where we start leveraging advanced analytics to help optimize the system

16 Summary of learnings Scoring is a method of assigning a points value to information captured or implied from the response capture and interactions MAT monitors a client’s activity with IBM and assigns a score value after every interaction, and the scoring threshold determines the quality and quantity of leads that are routed to an LDR Scoring determines whether the next step will be Nurture or route to an LDR