Pega 3/23/2015 2:30 PM

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Pega Marketing is more prevalent than what you think – we are in multiple countries at some of the world’s largest companies.
We help those companies generate more revue, deepen customer relationships and build trust for over 1.5 billion consumers.

Note: If asked why have we not heard of you

Answer (pivot):

This may sound like a sales pitch but I promise it is the truth.
Because we deal with some of the largest companies in the world
they do not like to admit they treat customers differently; out loud – it
may cause broader issues for them. Moreover, if you are generating
millions of dollars a month you do not want your competitors know
how you are enabling that superior strategy – Hence, we are not
always well known – but we are well utilized!

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• But optimising the marketing funnel is no longer enough
• Gartner's Laura McLellan (the VP of marketing strategies at Gartner, and the often-quoted analyst who famously said that
CMOs will outspend CIOs by 2017) has taken a very strong position on the future and said that she believes the marketing
funnel is dead in B2C because of changing customer behaviour, because the way a customer buys a product has become
so complex
• It looks a bit like this…
• <click>
• It takes in multiple sources of information, through websites, through personal networks and through social media
• It also involves multiple interactions with the providers and these take place across a variety of channels, through the
contact centre and IVR, through email and, online and on mobile and through your retail channel
• A bad interaction at any point in this complex process could result in losing the sale or the customer
• A bad interaction can be caused by many things and some of these are outside the control of the provider
• However one that isn’t and one that leads to significant dissatisfaction is when the provider doesn’t know anything about
the history of the conversation with the customer, when the provider makes suggestions or offers products that are entirely
at odds with what has been discussed previously
• To ensure that this doesn’t happen you need to implement a solution that considers all previous interactions across all
channels and recommends next actions based on a holistic view of the conversation with the customer, all interactions have
to be considered within the boundaries of an on-going conversation with the customer
• And just to make it even more challenging all of this is happening at customer speed, in real time
• You have millions customers, you have thousands of staff, huge numbers of interactions with your customers every day,
and your underlying infrastructure generates tens or hundreds of millions of events each day
• What you know about every customer is going to be constantly changing
• You need to be able deal with all of that information and determine how to best progress the conversation based on the
real time customer context
• I’m going to spend the next slides taking you through our approach to dealing with these challenges
• And show you our unified marketing application, a single platform that makes it easy for you to have true omni-channel
conversations with customers

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(Click) And all of the systems that marketers have put in place to help with the customer journey make it difficult for a marketer
to orchestrate and drive the optimization that all of us are looking for today – And you’ll notice these are only what the
marketers are dealing with – yet at no point do you see the customer!

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Customers want a relevant, trustworthy, and consistent experience on all channels, but large organizations cannot meet the
customers’ needs in a profitable manner due to marketing and customer complexity.
Pega Marketing allows marketers to deliver an easy and consistent customer experience while generating the maximum lifetime
value from each customer, by:

• Understanding the customer’s context and execute relevant actions

• Operating in real-time across all channels
• Providing a single platform for marketers to innovate and evolve new strategies

Pega Marketing automates next-best-actions in context for each customer interaction, to deliver a trustworthy, profitable, and
consistent engagement for your connected customers across their customer journey.

Pega Marketing delivers on the promise of a personalized customer engagement. Pega Marketing delivers customer-centric
interactions that lead to greater engagement, frictionless messaging with increased customer value across all phases of a
customer’s journey. While balancing the needs of the business strategy. This is the heart of Pega Marketing; it’s not just about
automation but about balance for each and every customer interaction!

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The new age of marketing or the “unmarketing” drives contest for the customer at each and every interaction. This occurs across
the customer journey and at any channel or channels a the case may be – Your marketing must be agile and adaptable enough to
meet the expectations of the customer in context – this is the key to meeting your customers desires –

Forrester, Gartner, McKinsey and other firms are saying that CONTEXT is paramount to Marketing success!

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The Next-Best-Action approach represents an important paradigm shift in marketing. You can think about this as the shift from
product-centric to customer-centric marketing.

Product-centric marketing is about starting with offers and pushing them to as many customers as possible.
<CLICK>In the example to the left, the charter for the marketer is essentially to push offer B to as many customers as possible.
There will of course be some level of targeting within the base to try to find the best contacts, but the campaign will inevitably
create a certain amount of SPAM and will be ignored by a majority of the people who receive it.
In contrast, outside-in marketing flips this process by 90 degrees. <CLICK> Customer-centric marketing factors in multiple roles
and actions, not just sales, but also service, retention, and risk mitigation. The charter now becomes looking across the
organization for ways to get extra value out of each customer. <CLICK>
This means that we are always thinking about, first how to get each customer to stay with the company, if they are worth
keeping, and then determine how to continuously maximize the relationship. So the customer-centric approach is to find the
best action, and to do this continuously, at every opportunity, whether we are proactively or reactively communicating with
customers across channels.

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Using The Pega marketing platform, Companies can increase the value that they realise from their customers right the way
through the customer lifecycle. Here is a visualisation of where we typically see increases in customer value through the
application of predictive analysis and decision management, unified with customer process management and work automation.

Discover & Acquire

Companies can use predictive models based on static and real-time data to target the best customers to acquire, through
which channels and with which offers. The new customers can be guided through the quote and capture process, and then
through the appropriate fulfillment with guidance and education so that there is full service take up and utilisation.

Use
As customers begin to use services, Companies can use the predictive analysis and decision management to deliver exceptional
customer service, across any channel, to decide on the best channels for the customer and to optimise margins. This builds
customer trust.

Grow
As customer history builds, relevant and timely offers can be extended for cross-sell and up-sell services to grow ARPU and
AMPU. Again, this can be delivered, consistently and contiguously through any channel.

Mitigate
Those customers that become expose the COMPANY to the risk of non-payment can be identified earlier in the lifecycle and
pro-active actions and offers can be made to minimise those risks. Once customers have entered into the collections cycle,
decision management and customer process management can be used to guide customers and agents towards the swiftest
and best possible outcome for both parties.

Retain and Win Back

The easiest customers to retain are those that have not yet attempted to churn. Predictive and adaptive models can be used to
identify those customer most likely to attempt to churn and the best actions can be taken with the best offers, through the best
channels so that pre-emptive retention can be achieved. This is where very large benefits can be seen by Companies because,
by extending the lifecycle of their customers, they can access additional revenue and margin for longer periods without having
to spend money to re-acquire them.

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To look at the approach we take from a simple consolidated view you can see we separate into 5 primary components -

Insight

We can generate predictive models on our own use your existing models for SAS, SPSS or R and utilize big data as part of our
analysis

Strategy

You can create strategies across the business for retention, risk, bundling products for cross sell, upsell and nurture for Pega and
utilizing your existing marketing systems and data

Deployment

Our centralized hub can provide one are for all decisioning because in really if you want to engage and delight the customer in
context you need one version of the truth and that can only be done in one place – the hub makes this possible – Moreover, we
can do simulation and make big data actionable with our decision strategies within the hub to drive REAL value from big data.

Delivery

And delivery can be for any channel

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Control

Finally you can test, simulate and learn to refine and optimize your strategies to ensure constant improvement

Remember all of these capabilities are in one application on one platform so you can adapt, and succeed

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Within the Pega Marketing application you can create emails for multiple devices

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Mobile applications including Geolocation and location based offer…

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And even microsites, call center applications, ATMs, IPad and several other channels all from a single application.

Moreover, you can connect other email marketing or call center application to Pega marketing for a single place to orchestrate
all Marketing strategies

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In our Marketing application the marketers is in control of the strategies. While some applications can
(Click) do the next best off leading to a next best action –

(Click) We allow you to run 100s even thousands of strategies against predictive models to ensure the right
action is taken – AND we recalculate at every new piece of information to ensure context and balance is
always taken into account

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Geo-fencing (geofencing) is a feature in Pega Marketing that uses the global positioning system (GPS) or radio frequency
identification (RFID) to define geographical boundaries. With this capability marketer to set up triggers when a customer
enters a geofence a personalized offer can be made.

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Another example of marketer’s control is the easy creation of microsites for campaigns with self service capabilities. Again all of
this is on a single application and can be controlled by marketers in one interface.

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The last of our examples is our customer profile this is a great perspective on the customer it provides:
• Their segments
• Their lifetime value
• Propensity scores and;
• Interaction history across channels

All of this can be made available to marketers and other business people who may be interacting with customers to provide
guided selling and other Next Best Action driven customer engagements.

We have shown just a sliver of the out of the box capabilities here in this presentation but we can show far more depth in a
demo.

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Less revenue lost in ‘right-sizing’ plans

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Pega marketing is an application in or a CRM application that is built on the unified Pega Platform. Pega Marketing is an
application for marketers to drive inbound and outbound marketing campaigns. It consists of:
• An omni-channel customer decision hub
• Predictive and self-learning analytics
• Campaign and strategy management tools for marketers
• Big data and complex event processing

Because Pega Marketing is built on a unified platform it is easy to adapt and change to meet market conditions and customer
wants and desires ALL under a marketers control.

Move

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Pega 3/23/2015 2:30 PM

To summarise:

Leading enterprises are treating digital transformation as a here and now imperative

This opportunity is significant as evidenced within key research and through our customers

Digital leaders are embracing the 3 Powers – To Engage, Simplify, & Change

Pegasystems ‘Better Business Software’ provides a unified platform which enables & helps deliver these Powers and create the
Digital Enterprise yielding high impact benefits

There is a proven and practical set of steps which will help you evolve and accelerate the digital enterprise

We have identified some suitable and priority candidate processes and customer journeys with which to start and drive value

We look forward to working together with you

Many thanks

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