SoundBite Communications and Forrester Research, Inc. share examples of how top companies are creating and implementing preference management solutions.

1. Gaining Buy-In for Preference Management – Leading Companies Show the Way Guest Presenters: Hosted By:

2. Agenda Overcoming the Barriers to Preference Management Dave Frankland, Principal Analyst, Forrester Research Building the Case for a Centralized Preference Management Solution Jamie LaRose, VP, Digital Marketing, Bank of America, Enterprise Email & Mobile Marketing Breaking Through the Noise with Preference Management Debbie Braunert, VP, Solutions and Product Marketing, SoundBite Communications Q&A 2

3. Speakers 3 Dave Frankland Principal Analyst Forrester Research Jamie LaRose VP, Digital Marketing Bank of America, Enterprise Email & Mobile Marketing Debbie Braunert VP, Solutions and Product Marketing SoundBite Communications

5. Agenda What is preference management? What are the barriers to preference management? How can you overcome these barriers?

6. Methodology Forrester has written extensively about communications preference management and contact strategies.

7. Methodology Forrester has written extensively about communications preference management and contact strategies. In Q1 2009, SoundBite commissioned Forrester to survey 150 marketers, customer care professionals, and others responsible for customer communication about their approach to preference management.

8. Methodology Forrester has written extensively about communications preference management and contact strategies. In Q1 2009, SoundBite commissioned Forrester to survey 150 marketers, customer care professionals, and others responsible for customer communication about their approach to preference management. In Q2 2010, SoundBite commissioned Forrester to conduct in-depth interviews with 15 champions of their firm’s preference management programs to learn more about the success and challenges of their program.

9. Understanding Preference Management

10. July 2009 “Marketers: Stop The Abuse! Adopt Preference Management” Consumers say that marketing is irrelevant

11. Consumers say that marketing is irrelevant July 2009 “Marketers: Stop The Abuse! Adopt Preference Management”

12. July 2009 “Marketers: Stop The Abuse! Adopt Preference Management” They are overwhelmed

13. They are overwhelmed July 2009 “Marketers: Stop The Abuse! Adopt Preference Management”

14. July 2009 “Marketers: Stop The Abuse! Adopt Preference Management” They want to control how companies communicate with them

15. July 2009 “Marketers: Stop The Abuse! Adopt Preference Management” They want to control how companies communicate with them

16. Enter preference management Preference management relates to how firms capture, and honor, what, when, and how they communicate with recipients - usually customers or prospects

17. Enter preference management Preference management relates to how firms capture, and honor, what, when, and how they communicate with recipients - usually customers or prospects Preference management Includes, and goes beyond, opt-out/opt-in and observed behavior to focus on preference May relate to content, volume, medium/channel, and/or a combination of these

18. Companies are most likely to capture preferred medium and content type Base: 118 Marketing decision makers Multiple responses accepted Source: “Managing Customer Communication Preferences”, a commissioned study conducted by Forrester Consulting on behalf of SoundBite, April, 2009

19. And, many use preference to determine how to communicate Base: 150 Marketing decision makers Multiple responses accepted Source: “Managing Customer Communication Preferences”, a commissioned study conducted by Forrester Consulting on behalf of SoundBite, April, 2009

20. Those that measure the impact, report positive results Base: 45 Marketing decision makers Multiple responses accepted Source: “Managing Customer Communication Preferences”, a commissioned study conducted by Forrester Consulting on behalf of SoundBite, April, 2009

22. Only updates customer contact info when customer requests a change

23. Don’t proactively contact customers to update communications preferencesNot everyone is at the same level Source: “Managing Customer Communication Preferences”, a commissioned study conducted by Forrester Consulting on behalf of SoundBite, April, 2009

25. Capture preferred medium and type of content

26. Contact customers to update preferences infrequently

28. Only updates customer contact info when customer requests a change

29. Don’t proactively contact customers to update communications preferencesNot everyone is at the same level Source: “Managing Customer Communication Preferences”, a commissioned study conducted by Forrester Consulting on behalf of SoundBite, April, 2009

31. Likely to capture multiple customer-defined combinations of content, medium, and frequency

32. Frequently contact customers to update their communications preferences

33. Preferences are a primary factor in communications

35. Capture preferred medium and type of content

36. Contact customers to update preferences infrequently

38. Only updates customer contact info when customer requests a change

39. Don’t proactively contact customers to update communications preferencesNot everyone is at the same level Source: “Managing Customer Communication Preferences”, a commissioned study conducted by Forrester Consulting on behalf of SoundBite, April, 2009

41. Likely to capture multiple customer-defined combinations of content, medium, and frequency

42. Frequently contact customers to update their communications preferences

43. Preferences are a primary factor in communications

45. Capture preferred medium and type of content

46. Contact customers to update preferences infrequently

48. Only updates customer contact info when customer requests a change

49. Don’t proactively contact customers to update communications preferencesNot everyone is at the same level 37% 21% 43% Source: “Managing Customer Communication Preferences”, a commissioned study conducted by Forrester Consulting on behalf of SoundBite, April, 2009 Note: Percentages do not total 100 due to rounding.

50. Preference management benefits In surveys, interviews, and conversations, companies tell us that preference management makes intuitive sense. Why? Preference Management:

51. Preference management benefits In surveys, interviews, and conversations, companies tell us that preference management makes intuitive sense. Why? Preference Management: Puts consumers in control

52. Preference management benefits In surveys, interviews, and conversations, companies tell us that preference management makes intuitive sense. Why? Preference Management: Puts consumers in control Improves the customer experience

53. Preference management benefits In surveys, interviews, and conversations, companies tell us that preference management makes intuitive sense. Why? Preference Management: Puts consumers in control Improves the customer experience Enhances customer satisfaction

54. Preference management benefits In surveys, interviews, and conversations, companies tell us that preference management makes intuitive sense. Why? Preference Management: Puts consumers in control Improves the customer experience Enhances customer satisfaction Meets regulatory compliance requirements

55. Preference management benefits In surveys, interviews, and conversations, companies tell us that preference management makes intuitive sense. Why? Preference Management: Puts consumers in control Improves the customer experience Enhances customer satisfaction Meets regulatory compliance requirements Generates a measureable impact

56. Preference management benefits In surveys, interviews, and conversations, companies tell us that preference management makes intuitive sense. Why? Preference Management: Puts consumers in control Improves the customer experience Enhances customer satisfaction Meets regulatory compliance requirements Generates a measureable impact It’s the right thing to do

57. Preference management benefits In surveys, interviews, and conversations, companies tell us that preference management makes intuitive sense. Why? Preference Management: Puts consumers in control Improves the customer experience Enhances customer satisfaction Meets regulatory compliance requirements Generates a measureable impact It’s the right thing to do So why isn’t everyone doing it?

58. Barriers to preference management

59. Most firms struggle to implement preference management We often find that firms: Fail to make the business case for preference management

60. Challenges in making the case Firms struggle to make a business case for establishing preference management Fail to tie ‘soft’ benefits of preference management (customer experience, customer satisfaction, etc.) to financial impact

61. Challenges in making the case Firms struggle to make a business case for establishing preference management Fail to tie ‘soft’ benefits of preference management (customer experience, customer satisfaction, etc.) to financial impact Many firms pay attention when only they are forced to (regulatory compliance)

62. “I preach that preference management is all about customer experience, but people listen when it’s about not being fined.” Senior marketer, Large insurance company

63. Most firms struggle to implement preference management We often find that firms: Fail to make the business case for preference management Struggle to align business units, internal functions, and communication channels

64. Organizational alignment Preference management must incorporate: Functions Marketing, customer service, sales, legal, etc.

65. Organizational alignment Preference management must incorporate: Functions Marketing, customer service, sales, legal, etc. Channels Online, email, direct mail, call center, etc.

66. Organizational alignment Preference management must incorporate: Functions Marketing, customer service, sales, legal, etc. Channels Online, email, direct mail, call center, etc. Lines of business Product groups, brands, business lines, etc.

67. “Trying to get everyone on the same page internally is like herding cats. No business group wants to be told that they can’t communicate with a customer. Educating internal colleagues on the benefit of capturing and honoring customer preferences is my biggest challenge.” Senior marketer, Large financial services firm

68. Most firms struggle to implement preference management We often find that firms: Fail to make the business case for preference management Struggle to align business units, internal functions, and communication channels Don’t wish to give up control over how they contact customers

69. Relinquishing control Establishing a preference management program gives consumers control, and they might say “no”

70. Relinquishing control Establishing a preference management program gives consumers control, and they might say “no” This requires a significant culture shift for many organizations

71. Relinquishing control Establishing a preference management program gives consumers control, and they might say “no” This requires a significant culture shift for many organizations It may also require a change in process, measurement metrics, incentive programs, and business operations

72. “The biggest barrier to establishing a preference management program is the natural conflict between respecting consumer wishes and achieving our financial goals. Asking for customer preferences is a fundamental business shift that our organization has to get their head and heart around.” Customer experience manager, Large insurance company

73. Most firms struggle to implement preference management We often find that firms: Fail to make the business case for preference management Struggle to align business units, internal functions, and communication channels Don’t wish to give up control over how they contact customers Lack the technology to capture and/or honor preferences

74. Technical challenges Customer data often sits in disparate systems throughout an organization Often leading to multiple views of the customer Different records for the same customer may indicate different preferences

75. Technical challenges Customer data often sits in disparate systems throughout an organization. Often leading to multiple views of the customer Different records for the same customer may indicate different preferences Once captured, many systems cannot honor preferences, particularly in real-time

76. Technical challenges Customer data often sits in disparate systems throughout an organization. Often leading to multiple views of the customer Different records for the same customer may indicate different preferences Once captured, many systems cannot honor preferences, particularly in real-time Preference information is not always accessible at the point of contact (e.g. in a call center or at a point-of-sale)

77. “The limited preference options that we provide are captured in disparate systems and through disparate processes that require almost continuous updates to the system of record. Every preference element is standalone and must be manually updated.” Head of E-Commerce, Large credit card issuer

78. Overcoming the barriers

79. Overcoming the barriers Start by defining the goal

80. Start by defining the goal Focus on establishing a preference management framework Framework must balance customer experience, sales and marketing opportunities, service effectiveness, and legal and regulatory requirements

81. Start by defining the goal Focus on establishing a preference management framework Framework must balance customer experience, sales and marketing opportunities, service effectiveness, and legal and regulatory requirements Take a programmatic approach Understand that implementing a preference management program is a journey Determine readiness Map out your destination and establish milestones Identify constituents/stakeholders

82. “One of our early challenges was creating a framework for each of our business lines to understand preference in the same way. Once we had that, we were able to align resources at an operational level, and explain progress at a senior level.” VP Marketing, Travel company

83. Overcoming the barriers Start by defining the goal Determine readiness

84. Audit your current communications approach Map the frequency/volume of communications Per contact Per channel Per product/LOB/function

85. Audit your current communications approach Map the frequency/volume of communications Per contact Per channel Per product/LOB/function Analyze the impact of communications Examine differences between those that actively opt-in and other customers Response rates; Opt-outs; Engagement; Referrals; Revenue; Profitability

86. “We audited our email newsletter program and discovered that there were more than one million customers to whom we were sending more than 200 emails per year. We had no idea. It was a complete wake up call that we had to change the way we communicate.” Head of direct marketing, Major CPG firm

87. Overcoming the barriers Start by defining the goal Determine readiness Create ownership

88. Create a governance council Whether or not there is a formal preference management “owner”, a governance council: Ensures business objectives aren't quashed

89. Create a governance council Whether or not there is a formal preference management “owner”, a governance council: Ensures business objectives aren't quashed Establishes contact policies

90. Create a governance council Whether or not there is a formal preference management “owner”, a governance council: Ensures business objectives aren't quashed Establishes contact policies Defines segmentation strategy, and inclusion and exclusion rules

91. Create a governance council Whether or not there is a formal preference management “owner”, a governance council: Ensures business objectives aren't quashed Establishes contact policies Defines segmentation strategy, and inclusion and exclusion rules Collaborates to formalize the rules of the road

92. Create a governance council Whether or not there is a formal preference management “owner”, a governance council: Ensures business objectives aren't quashed Establishes contact policies Defines segmentation strategy, and inclusion and exclusion rules Collaborates to formalize the rules of the road Agrees on objectives and key performance indicators

93. “A group of concerned employees organically emerged from different businesses and roles. As we began to convene, we recognized that there were others that needed to be brought on board. It was only 9 months later that someone was formally appointed to be responsible for the program overall – that person came from the governance council and continues to rely on the rest of us to get things done.” VP Marketing, Insurance company

94. Overcoming the barriers Start by defining the goal Determine readiness Create ownership Recognize the role of culture

95. Culture Tie preference management to initiatives relating to customer-centricity, experience, and/or satisfaction Several companies that we interviewed pointed to executive sponsorship as the catalyst for preference management

96. Culture Tie preference management to initiatives relating to customer-centricity, experience, and/or satisfaction Several companies that we interviewed pointed to executive sponsorship as the catalyst for preference management If necessary, drive cultural change. How? Leverage results from your communications audit Consolidate customer complaints Sign your senior management up for your communications Leverage Voice of the Customer/Customer satisfaction surveys

97. “When we were thinking about communications preferences, we looked as ourselves as individuals – without our corporate hats on – and thought about what we would want as individuals. It changed how we thought about customer communication. That became a guiding light for us – to see ourselves in our customers shoes.” Senior marketer, Automotive company

98. Overcoming the barriers Start by defining the goal Determine readiness Create ownership Recognize the role of culture Iterate

99. Take deliberate [baby] steps Focus on what you can control

100. Take deliberate [baby] steps Focus on what you can control Validate planning assumptions and process

101. Take deliberate [baby] steps Focus on what you can control Validate planning assumptions and process Measure the impact

102. Take deliberate [baby] steps Focus on what you can control Validate planning assumptions and process Measure the impact Test and learn

103. “We started with alerts related to products like payments and fraud triggers, but they were not true preferences. However, it allowed us to understand how consumers demonstrated preferences and to iron out a lot of kinks before we went full bore on designing and implementing a preference management program.” VP Marketing, Financial services firm

104. Overcoming the barriers Start by defining the goal Determine readiness Create ownership Recognize the role of culture Iterate Make the business case

105. Make the case Most leading firms lack a financial justification They describe it as the right thing to do

106. Make the case Most leading firms lack a financial justification They describe it as the right thing to do Others look at the impact of preference management The incremental impact on metrics such as response rates, customer loyalty, profitability, and satisfaction Calculate the value of an contact point (email address, phone number, etc) and demonstrate the cost of opt-outs

107. Make the case Most leading firms lack a financial justification They describe it as the right thing to do Others look at the impact of preference management The incremental impact on metrics such as response rates, customer loyalty, profitability, and satisfaction Calculate the value of an contact point (email address, phone number, etc) and demonstrate the cost of opt-outs Leverage customer’s voice to support the case Look to social media and satisfaction surveys

108. “We don’t have a financial justification, it’s all about customer satisfaction. We plan on tying the benefits back to revenue and cost savings but that really hasn’t been our primary driver.” Senior marketer, Automotive firm

109. Overcoming the barriers Start by defining the goal Determine readiness Create ownership Recognize the role of culture Iterate Make the business case Technology supports the program

110. Deploy the right technology solution Recognize certain building blocks must be in place before implementing a preference management program

111. Deploy the right technology solution Recognize certain building blocks must be in place before implementing a preference management program IT must be part of the solution

112. Deploy the right technology solution Recognize certain building blocks must be in place before implementing a preference management program IT must be part of the solution Build on existing infrastructure

113. Deploy the right technology solution Recognize certain building blocks must be in place before implementing a preference management program IT must be part of the solution Build on existing infrastructure Build technical solution to meet the program design

114. Deciding to outsource or build in-house In-house firms point to: Privacy and data protection System speed and performance Access to data Cost of outsourcing Complexity of data and systems

115. Deciding to outsource or build in-house In-house firms point to: Privacy and data protection System speed and performance Access to data Cost of outsourcing Complexity of data and systems Outsourcers point to: Lack of resources Lack of skills Control over vendor (versus internal IT) Cross-client knowledge sharing Lack specialist knowledge about preference management Speed of implementation

116. “Starting from scratch would be easy. It’s the legacy systems that create the biggest challenge. We worked hand-in-hand with our service provider to tie in our preference management program with all of our other marketing and service initiatives. And, our IT team worked with us and had a major role in the successful implementation of our program.” Head of CRM, Retail firm

117. Summary Preference management delivers value It puts consumers in control; improves the customer experience; and enhances customer satisfaction

118. Summary Preference management delivers value It puts consumers in control; improves the customer experience; and enhances customer satisfaction Becoming a leader requires: Cultural commitment The right set of stakeholders A programmatic approach The right technical infrastructure

119. Thank You! Dave Frankland @dfrankland http://blogs.forrester.com/dave_frankland

120. Jamie LaRose Bank of America Enterprise Email & Mobile Marketing

121. Building the Case for a Centralized Preference Management Solution Employing a pull messaging strategy to improve relevancy Assessing the current enterprise landscape Defining the opportunity cost Servicing & marketing Utilizing marketing as a test bed Communication Testing SourcePoint Subscription Center

122. POC - SourcePoint https://pages.emcom.bankofamerica.com/sourcepoint/?tracking=SiteMap

123. Debbie Braunert VP, Solutions & Product Marketing Breaking Through the Noise with Preference Management

125. Preference Management Solution

126. Contact Center Text Messaging Solution

127. Multi-channel blending and escalation

128. Proactive Customer Communications (PCC) Market leader

129. 200+clients, including ~50 Fortune 500 B2Cs

130. Valued set of business partners

131. Emerging global position

132. ~2B messages annually

133. 10 Years providing PCC

134. ~200 R&D man years

135. Domain expertise: verticals, channels, and customer lifecycle applications

136. Flexible, on-demand platform

137. Extensive patent portfolio

138. Intelligent, interactive, multi-channel communications

139. SAS70 Type II & PCI Level 1 compliant

140. Publicly traded (NASDAQ: SDBT)

141. $40M+ TTM revenue establishes SDBT as a market leader

142. Strong cash position

144. Paradigm Shift: Towards Proactive Communications Reactive Communications 101 Proactive Communications “Interactive multichannel communications provide several benefits… to build strong customer relationships while also reducing costs.” Source: “Proactive Outbound Notification Saves Money”, Forrester Research, January 2009

145. SoundBite Communications Breaks Through the Noise 102 direct mail text messaging email social media voice To get desired results, communications must be proactive and... Personal Timely Engaging Relevant

146. SoundBite Solution Suites Optimization Solutions Customer Lifecycle Solutions Proactive Marketing Mobile PreferenceManagement Proactive Collections & Risk Management ProactiveCustomer Care Contact Center Analytics ProactivePayments 103

147. SoundBite Preference Management Analytics& Decisioning Observed Behavior Text me with special offers Call me for appointment confirmation Email me for payment reminders Stated Preferences The collection and management of stated preferences and observed behavior that guide an organization in how to communicate with each consumer through targeted, relevant communications that achieve superior results 104

149. Changing regulations require opt-in for many types of communications

151. Deliver more targeted, relevant, cost-effective and compliant communications

152. Increase response rates

153. Develop stronger consumer relationships  Preference Management Optimization Solutions Perform Program Readiness Assessment Automate message opt-in Capture and honor communication preferences

154. Survey: Multi-Channel Preferences for Fraud 106 35% TEXT MESSAGE Consumers prefer to be contacted via multiple channels in cases of suspected fraudulent activity. 54%CALL MOBILE 84%CALL HOME 52%EMAIL MESSAGE 2010 SoundBite Fraud Cardholder Communications Survey, Conducted by Harris Interactive

157. Obtain opt-in and customer communication preferences from satisfied customers

159. 51% opted-in to receive future promotional offers

160. Communication channel preferences varied: 32% Voice, 26% Text, 42% EmailDemonstrates the importance of a multi-channel strategy 107

161. Thank You! 108 Debbie Braunert VP, Solutions & Product Marketing SoundBite Communications Preference Management DBraunert@SoundBite.com 1-877-SoundBite x2583 Twitter: soundbitecomm

162. Question & Answer 109 Dave Frankland Principal Analyst Forrester Research Jamie LaRose VP, Digital Marketing Bank of America, Enterprise Email & Mobile Marketing Debbie Braunert VP, Solutions and Product Marketing SoundBite Communications