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Email Marketing with SAP CRM: Achieving Relevance, Deliverability and Scale
May 12, 2010

PROPRIETARY AND CONFIDENTIAL

Agenda

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Introduction Cross Channel Campaign Management Trends - Suresh Vittal, Forrester Research The Power of CRM + Email: StrongMail & SAPCRM Recent Innovations How to Achieve: Scale Relevance Integration Delivery
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Over 500 Customers

Who is StrongMail?
Leading provider of online marketing solutions for email and social media.

We enable our clients to boost the effectiveness of their marketing campaigns, while saving a significant amount of money.
Our products and services provide an end-to-end solution for some of the worlds biggest brands.

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Cross-Channel Campaign Management Trends

Suresh Vittal Principal Analyst Forrester Research May 12, 2010

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Cross-channel campaign management (CCCM) is evolving but still poses several challenges for vendors and marketers.

Entire contents 2010 Forrester Research, Inc. All rights reserved.

Agenda
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How are CCCM solutions being used today? What do marketers want from a CCCM vendor? Where is CCCM headed?

Entire contents 2010 Forrester Research, Inc. All rights reserved.

CCCM solutions integrate inbound and outbound marketing programs #SAPemail

Source: April 2009 Campaign Management Needs A Reboot

Entire contents 2010 Forrester Research, Inc. All rights reserved.

They serve varying database sizes and messaging volumes #SAPemail

Entire contents 2010 Forrester Research, Inc. All rights reserved.

Marketers continue to struggle with cross-channel programs

The economy is still down
Continued focus on retention over acquisition Retention is hard to define

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Traditional channels continue to dominate

Marketers still arent sure how to best utilize the social space

Streamlining multiple programs across channels still a challenge

Even with a solution in place, its difficult to manage differing data sets from traditional and emerging channels
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Entire contents 2010 Forrester Research, Inc. All rights reserved.

Agenda
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How are CCCM solutions being used today? What do marketers want from a CCCM vendor? Where is CCCM headed?

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Entire contents 2010 Forrester Research, Inc. All rights reserved.

Marketers are looking for a long-term partnership #SAPemail

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but they are staying put because of cost #SAPemail

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Entire contents 2010 Forrester Research, Inc. All rights reserved.

Integration and cost are top concerns in vendor selection #SAPemail

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Entire contents 2010 Forrester Research, Inc. All rights reserved.

Expectations often outpace capabilities

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Marketers want their CCCM tools to do everything But few are advanced enough to utilize all of the features (i.e., social)

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Entire contents 2010 Forrester Research, Inc. All rights reserved.

Email still dominates delivery, with social media trailing behind

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Entire contents 2010 Forrester Research, Inc. All rights reserved.

And few integrate with social media

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Entire contents 2010 Forrester Research, Inc. All rights reserved.

Agenda
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How are CCCM solutions being used today? What do marketers want from a CCCM vendor? Where is CCCM headed?

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Entire contents 2010 Forrester Research, Inc. All rights reserved.

Marketers are generally happy

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No outright source of dissatisfaction Most satisfied with:

Application security Scalability Reliability Ability to support customer selection and segmentation

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Entire contents 2010 Forrester Research, Inc. All rights reserved.

But are not totally satisfied

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Want better integration and contact optimization Multi-channel coordination is still a major concern
Fueled by both marketer and vendor shortcomings

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Entire contents 2010 Forrester Research, Inc. All rights reserved.

Coordination across channels and measurement puzzle marketers most

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Entire contents 2010 Forrester Research, Inc. All rights reserved.

Eight principles for CCCM solutions

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Support an institutional memory of the customer Enable dialogues not just programs Bridge the online and offline gaps Unify inbound and outbound channels Move optimization to the forefront

Include social insights

Provide functionality at marketers' desktops Incorporate planning and resource management capabilities
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Entire contents 2010 Forrester Research, Inc. All rights reserved.

Marketers need to improve too

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Incorporate the social channels

Channel complexities make it difficult to operate on a program level

Focus on marketing accountability

CCCM can exacerbate the measurement problem

Establish an enterprise-wide cross-channel communication strategy

Identify business processes, technologies and organizational models

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Entire contents 2010 Forrester Research, Inc. All rights reserved.

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The Power of CRM + Email: StrongMail & SAP CRM

Ryan Deutsch, VP of Emerging Media StrongMail Sunil Dixit, Sr. Director, Product CRM Marketing SAP

The 4 Cornerstones of the CRM Marketing Product Strategy

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1. FOCUS ON THE CORE

2. CO-INNOVATE

Enterprise Marketing Platform Manage all customer channels Integrated to Back Office

Best of Breed Solution Partners Extend SAP reach Customer driven development

3. DISRUPTIVE TECHNOLOGY

4. DEEP INDUSTRY EXPERTISE

In-memory segmentation using SAP TREX Abode Flex UI, AJAX SAP Business Objects Solutions

Trade Promotions Management - Consumer Goods Loyalty Management - Retail and Travel Real Time Offer Management Telco Marketing Development Funds - High Tech

SAP Changes Segmentation using In-Memory Technology

Highly Intuitive Visual Interface In-memory Analytics
Canned Reports Query Cache SAP In-Memory Segmentation

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Performance

Summary Tables

Database

Data Re-usability

Provides the Ability for Marketer to Find the Needles In the Haystack !
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SAP Delivers Integrated, Loyalty Management in CRM 7.0

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Program Management
Reward Rule Management

Integrated enterprise Loyalty Program enables Customer Experience Management

Reward and retain your high-value customers Plan, manage, and execute customer loyalty programs across the enterprise

Processing Engine

Loyalty

Membership Handling

Increase customer satisfaction and develop deeper customer intimacy

Identify customers based on value and encourage profitable customer behaviors

Membership Handling
Point Accruals Member Activities Points/Bonus Determination by Rule Engine

Processing Engine

Reward Rule Management

Point Redemption Financials

Point Account

Point Expiration

Program Management
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What Does It Take To Build a Successful Loyalty Management Program?

Profitable & Loyal customers

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Phone, Sales Agents, Web, Email, Direct, Fax, Mobile, Social Networking

Do it Decide Plan Understand

Customer Interaction Channels Loyalty Management Marketing Planning Customer Segment Analysis External Data Business Warehouse

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What are marketers looking for in a campaign management system?

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The #1 Answer

Ease of integration with other data sources and systems. SAPs StrongMail integration provides marketers with: 1. Significant Scale 2. Message Relevance 3. Assured Delivery

Achieving Scale: Burst Technology

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Message Assembly
StrongMail Burst Technology

Message Delivery
Intelligent Queue Management (IQMP)

Cost Efficiency
No CPM Fee Model

Scale: Integrate Directly with SAP CRM & Applications

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The Lowest Total Cost of Ownership of Any Tier 1 Solution

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Saved $3.5 Million over 3 years by moving from Epsilon to StrongMail

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The Importance of Relevance

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74% of unsubscribes from email programs are due to irrelevant content.

- Forrester Research, 2008

22% of US Internet users decided to stop purchasing from a company because of too many or irrelevant emails.
- CMO Council, 2010

41% of US Internet users threatened to stop buying from companies that send them irrelevant messages.
- CMO Council, 2010

Delivering Relevant Content is Highly Effective

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Relevancy is Still Underutilized

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SAP CRM + StrongMail = Easier Campaign Execution

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Enterprise Messaging Made Easy: Minimized data transfer time

Single source of program data for campaign analysis and further segmentation
Full featured dynamic content Response tracking Email send, delivery and bounce management

Email Delivery Can Be a Headache

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StrongMail Streamlines Email Delivery

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StrongMail Offers Complete Visibility into Failures

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Summary: SAP + StrongMail Makes Marketing Smarter & Scalable

SAP Provides: - Comprehensive Campaign Management - Integrated Loyalty Management - Innovative & Intuitive Segmentation

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Together, We Deliver
Campaign Management Solutions to Reach Millions of Customers with Lowest TCO Highly scalable Integrated Innovative

StrongMail Provides:

Highly Scalable Email Delivery Sophisticated UI for Marketing Seamless Personalization Real-time Email Reporting

Thank you!
Suresh Vittal VP & Principal Analyst Forrester Research +1 (617) 613.6097 svittal@forrester.com Twitter: @sureshvittal Ryan Deutsch VP of Emerging Media StrongMail +1 (650) 421-7124 rdeutsch@strongmail.com Twitter: @rdeutsch Sunil Dixit Sr. Director, Product CRM Mktg SAP +1 (650) 687-2585 sunil.dixit@sap.com