1. Organic Growth through Speech: Best Practices for Cross- & Up-Selling Lizanne Kaiser, Ph.D. Customer Experience Designer Genesys August 20, 2007, 10:15am, A101

2. All rights reserved © 2007, Genesys Telecommunications Laboratories, Inc. 2 Sales 101  People do business with people they know, like, and trust.  Critical to winning a Sale is the ability to establish a relationship with your customer

3. All rights reserved © 2007, Genesys Telecommunications Laboratories, Inc. 3 Sales 102  Organic Growth (sales to existing customers) is extremely valuable  Costs 5~10 times more to win a new customer than keep an existing one  Repeat customers spend on average 67% more than new customers  Existing customers tend to refer 7+ new customers  The only thing that costs more than getting customers is trying to get them back ecommerce-guide.com (Aug 2005) “Retaining Customers Requires Constant Contact.”

4. All rights reserved © 2007, Genesys Telecommunications Laboratories, Inc. 4 Sales 103  Customers are most receptive to doing business with you when they’ve contacted you  Inbound customer interactions represent an opportunity to communicate with a customer who is engaged by choice – the time is now! Forrester (Sept 2005) “Inbound Marketing Goes Mainstream.”

5. All rights reserved © 2007, Genesys Telecommunications Laboratories, Inc. 5  Even in well-designed systems that customers want to use, there’s a risk to over-emphasizing Containment Rates… Bank example: -Current touchtone IVR Call Containment = 85+% of 20+M calls/year -Longer-term Goals: 1.Automate 99% of self-service functionality cross-channels 2.Product Penetration: Aggressive Organic Growth through Cross/Up-Selling: -Increase average from 1-2 products/customer to 6 (industry average = 3) How do you grow your relationship with your customers when you’re automating so many customer interactions? Question:

6. All rights reserved © 2007, Genesys Telecommunications Laboratories, Inc. 6 Company versus Customer Needs Missed Opportunities Customer: “Know who I am & help me with what I want to do first, & then give me timely & relevant offers from a knowledgeable person!” Company: “Let’s use our automated phone system & outbound calling to cut costs & grow revenue by cross-selling customers on products they don’t have yet!”

7. All rights reserved © 2007, Genesys Telecommunications Laboratories, Inc. 7 Strategies for Effective Cross- & Up-Selling using Speech  Relevant Targeted Personalized Eligible / Pre-approved Customer-needs-based, not Product-based -“What’s in it for me??” -Recommendations in customer’s best interest, not just the company’s bottom line  Timely During inbound calls Based on real-time customer behavior (IVR, Web Analytics) Suppress Offer if there’s an outstanding issue Don’t over-Offer: -“Say more to your customers by saying less.” “First do no harm.”  With a “Human Touch” Transfer to agent to help customers reach decision on Offer Based on resource availability Route call to most appropriate resource

8. All rights reserved © 2007, Genesys Telecommunications Laboratories, Inc. 8 Maximize your potential by offering when appropriate / relevant Meter the ‘over-supply’ of customer offers Real-Time Offer Management: meters the offers made to customers calling inbound for service based on: optimizing performance value of potential offer resource availability Real-time offer management Marketing & Analytics

9. All rights reserved © 2007, Genesys Telecommunications Laboratories, Inc. 9  Not Ideal: Offer blasted to all callers immediately after IVR Greeting, before Main Menu: “To find out how can save our clients money with our great fixed-rate equity offers, press the star key now.”  Better: Offered only to targeted, pre-approved customers, after playing Account Balance, before Next Steps Menu: “Just to let you know, I see here… you’re also one of our most valued mortgage customers, and you’re eligible for a fixed-rate home equity offer, which could help save you money. Would you like to find out more?” It’s not just What you Say,… …but also When & How you Say it

10. All rights reserved © 2007, Genesys Telecommunications Laboratories, Inc. 10 Track Offer Response Rates © 1995-2001 Marc Teerlink - Consumerism and Beyond RSM Rotterdam School of Management Erasmus Graduate School of Business Mass Marketing 0.2 -- 3.1% Target Marketing 2.0 -- 4.9% Interactive Marketing 6.2 -- 14.6% Event-Driven Marketing 18 -- 34 % Multi-Channel/Multi-Step Event 21 -- 62 %

11. All rights reserved © 2007, Genesys Telecommunications Laboratories, Inc. 11 Key Takeaways  Don’t over-emphasize call containment at the risk of growing your customer relationships  Speech automation is a powerful vehicle for generating warm leads for Cross-/Up-Selling: Identify caller & match with potential Offer(s) Determine what is “top of mind” for customer Present relevant, timely Offer, funneling lead to Human to close Sale  Offers should be presented dynamically based on intelligent Business Rules and real-time analytics & customer behavior Ensure dialog flows smoothly no matter which Offer(s) are presented  Don’t over-Offer  Consider & design Offers from customer perspective

12. Thank you! Lizanne Kaiser, Ph.D. Customer Experience Designer Genesys