Multichannel Sales and Service Customer Interaction and Insight

1. Yuri Karadjov – IBM Travel & Transportation Multichannel Sales and Service Customer Interaction and Insight

2. Executives agree that ‘getting closer to the customer’ is a top priority for the success of their business. CEO Focus Areas in Next Five Years • “Getting closer to customers” is the single most important theme • Better understand customer needs through collaboration and information sharing • Exploit the information explosion to deliver unprecedented customer service • Gain more visibility into the business 88% Getting closer to customer 81% People skills 76% Insight and intelligence 57% Enterprise model changes 55% Risk management 54% Industry model changes 51% Revenue model changes However….. 44% of consumers say the majority of their customer experiences are bland (poor) Source: IBM CEO Study 2010

3. Multichannel Sales & Service addresses four of the top ten CIO initiatives.

4. Transportation companies are looking for new ways to differentiate themselves in the marketplace and move up the value curve. Customer Experience 5 Customer Service 4 Customer Penetration Product Passenger facilities 3 Comfort Assets Entertainment Efficiency Meals Systems Technology 1 2 Price Transparency Revenue management Stage in Market Source: Peppers & Rogers Group – Sweigert – Aviation Outlook MENA

5. Customers are leveraging the “consumerization’ of technology to find new ways to interact and obtain information while they purchase goods and services. Customers are becoming Smarter – increasingly informed, enabled and demanding. • 1.7 B people (25.6% of the world’s population) are online. Estimated to grow to 2.2 billion by 2013. • 4.6 B mobile subscribers in world. • Consumers have access to: • 1,000,000,000,000 Web pages • more than 200,000 iPhone apps • There are 9 times more mobile phone accounts than cars in the emerging world. • 63% of adults research through social networks and blogs. • 77% of online shoppers use peer ratings and reviews when making purchases.

6. Customers are “Mass Mingling” – hundreds of millions actively search for, find, connect, signal, and stay in touch with similar people. Video and Photo Sharing > 500 million users. Average user has 130 friends, spends 55 minutes a day on the site and receives three "event invitations" every month • You Tube • SlideShare Collaboration • Wikipedia Participation Sharing • Digg • Del.icio.us • Search tag clouds Social Bookmarking Social Networks Online Communities • Facebook Community • LinkedIn > 65 million members. A new member joins LinkedIn every second • Second Life • Multiverse Virtual Worlds • Amazon Affiliates • ThisNext Social Commerce Blogs > 100 million users with 50 M tweets sent each day Micro Blogging • Twitter • Jaiku Tumblelogs • Tumblr • Ozimodo

7. Suppliers Distribution Networks Brick & Mortar Agencies Customers Channel distribution for airlines and travel service companies began as a vertical structure with the supplier at the top. The suppliers controlled content, delivery and service management. Transaction Oriented Business Model TETHERED APPLICATIONS Call Center Agency Corporate • 90% of GDS bookings were made on the first display of the screen and approximately 50% of the 90% - were from the first four lines. • Suppliers were able to “bias” screen displays in their favor by controlling schedules, availability and content. Customer Portal “Eye Level” – Shelf Space Retailing

8. Customers Video and Photo Sharing • You Tube • SlideShare Collaboration • Wikipedia Participation Multiple Intermediaries • Digg • Del.icio.us • Search tag clouds Sharing Social Bookmarking Social Networks Online Communities Distribution Network Community • Facebook • LinkedIn Virtual Worlds • Second Life • Multiverse Suppliers Social Commerce Blogs Micro Blogging • Twitter • Jaiku Tumblelogs • Tumblr • Ozimodo Today, new tools and services have empowered the consumer and the hierarchy has flipped to a model with the customer at the top. Continuous Client Interactions TETHERED APPLICATIONS CONSUMING APPLICATIONS Call Center Agency Corporate • Amazon Affiliates • ThisNext Customer Portal Social • The number of Global Mobile users will surpass the number of Desktop Internet users in five years. • By 2013, airlines plan to sell 70% of their tickets via mobile devices (up from the current 18%). Disintermediation • How do you ensure your fair share of sales? Sources: IBM Institute for Business Value, Morgan Stanley Mobile and Internet Trends 2010 and SITA 2010.

9. Consumers are obtaining different value from each touch point and consequently are deconstructing the shopping process. Consumer Customer Browse & Browse & Browse & Browse & Service & Service & Service & Service & Awareness Awareness Awareness Awareness Receive Fulfillment Receive Purchase Purchase Purchase Purchase Research Research Research Research Support Support Support Support Source: IBM Global Retail Industry

10. Browse & Browse & Browse & Browse & Service & Service & Service & Service & Awareness Awareness Awareness Awareness Receive Fulfillment Receive Purchase Purchase Purchase Purchase Research Research Research Research Support Support Support Support Choice Giving customers the ability to shop how they want Consistency Ensure fulfillment of promises & customer expectations Context Providing the right interaction at the right time Community Facilitating a social and emotional connection Continuity Enabling seamless “flows” across touchpoints Consumers are looking for an integrated single service brand, regardless of channel, touch point or device. Consumer Customer Source: IBM Global Retail Industry

11. Customer & BIZ Data Loyalty Database Customer Profiles and CVI Reservations & Inventory Schedules & Availability Other.. Phone Web E-mail Kiosks Agent Mobile Fares & Pricing Services Departure Control Services Multichannel Sales & Service for the Smarter Planet – utilizing channel analysis and customer insight to deliver innovative customer experience by linking intelligent business processes with value fulfillment. Cross-Channel Customer Interaction & Customer Insight Journey Focused Sales and Service Chain Loyalty & Marketing Campaigns Content Management Sales and Marketing Distribution Channels Service Chains & Logistics Loyalty Services Prescriptive Promotion Management Predictive IM and BAO Campaign Management 3. Real-time Journey Performance Descriptive • Customer Analytics • Single View of Customer • Customer Value Indicators • Sales & Marketing Programs Smarter Sales & Service Integrated CRMandMCSS 1. Equity-based Customer Insight Customer Insight Services Web-based Analytics 2. Value Fulfillment at Point of Service Reservation System Modernization Multichannel Sales and Service (MCSS) Customer Experience Touchpoints

12. Browsing Kiosks Promotions Personalization Points of Sale Cross-Up Sell Search Email Social Commerce Mobile Analyzing cross channel client interactions and customer insight to extend product delivery across the enterprise to the end consumer. The new business imperative is to serve customers as a single service brand, regardless of channel, touch point or device….. Business-2-One Eye Wash Integrated Data & Solutions Eye Share Market of One Channelytics Tethered Applications Focus Extended to B2B and B2C Users Mobile Consumers Any Where-Any Time Number of Data Entities Managed

13. Delivering Superior Customer Experience through the Knowledge of One. DATA SOURCES TETHERED APPLICATIONS CONSUMING APPLICATIONS Multichannel Sales and Service Solution Map MIDT Call Center Mobile Services Descriptive Predictive Prescriptive Channelytics Market of One Eye Share-Wash Business-2-One Cognos SPSS iLOG UNICA PNRs Search, Book, Buy, Fulfill, Journey, Loyalty, Support Customer Notification Services Interact – IRROPs, Security Cross-Channel Customer Interaction and Cross-Channel Customer Insight Agency TKTs Corporate Customer Touchpoints Legacy Self-Service Kiosks & Channels Eye Ware via Interactive Design Portals & Content Management QSI Customer Portal 3rd PARTY DATA DATAQUALITY &PROFILING DataWarehouse & Data Marts Social Reporting Analytics Web2.0, Social Media, SOA, ESB, IM Disintermediation