Unleash the Power of Big Voice Data

Sponsored by: Calabrio

David Myron: Welcome to today's CRM Magazine web event brought to you by Calabrio Inc.
I'm David Myron, editorial director for CRM Magazine and I'll be the moderator for today's
broadcast. Our presentation today is titled, Unleash the Power of Big Voice Data.

Before we start, allow me to explain how you can participate the live broadcast. At the end of the
event, there will be a question and answer session. If you have a question during the presentation,
just type it into the question box provided and click on the Submit button. We'll try to answer as
many questions as possible, but if your question has not been answered during the show, you will
receive an email response to it within a few days. Plus, if you'd like a copy of the presentation,
you can download the PDF on the resource icon at the bottom of the console.

Now, I'll introduce our speaker for today's event. Chip Engdahl, the product marketing manager
at Calabrio Inc. To review his bio, please click on the speaker icon on the bottom of the console.

So, without further ado, let me now pass you then over to Chip Engdahl, product marketing
manager at Calabrio. Welcome to the broadcast, Chip.

Chip Engdahl: Thanks, David. Glad to be here and welcome to everybody who's joined.
Again, my name is Chip Engdahl. I'm a product marketing manager at Calabrio. And for those
of you that are perhaps unfamiliar with Calabrio, don't know a lot about Calabrio, we are a
workforce optimization and analytics solution provider to call centers and other organizations
throughout the world. We have a suite of products including quality recording and quality
management and workforce management and obviously analytics solution as well which
encompasses speech, text, and desktop analytics, although our presentation today is largely about
speech, now we do have a full suite around analytics offering.

Now, just a quick 30 seconds or so about me in terms of my background, I've spent a couple of
decades in software and technology, primarily in the analytics space and the insight space both
quantitative and qualitative. And so I've been doing this for quite a while and I hope to impart on
the audience I guess a little bit of that insight that I've built up over the last couple of decades.

Today, I'm going to run through. You can read for yourself that I guess in terms of what I'm
going to kind of go through. And I guess I should probably apologize upfront for the likelihood
that I'm going to get pretty excited and animated, and maybe I'll start talking quickly and I'll do
my best to slow down and tamper it a little bit, although I get excited when I talk about Calabrio
products and the analytics products in particular. So, as David said, if you have any questions,
we have a lot of content to go through and obviously if you have any questions, certainly ask
them and we'll try and address them at the end of the session and/or we can follow up with you
aftereffect.

So, I'm going to paint a picture, the first few bullets on the agenda there. I'm going to kind of
paint a picture of the environment to the problem that we kind of exist in, and then talk a little bit
about the speech technology. And then the heart of the sort of message or the key elements here
are is the bullet there that says "Key for Success," you know. When you think about a solution
from a speech standpoint and whether you end up talking to Calabrio or choosing a Calabrio
solution or going elsewhere, wherever that must be, there are three fundamental things that you
should be looking for when you go out there and investigate the marketplace.

And then at the end, I'll talk through a few examples, you know, use cases so you kind of get a
flavor of how speech can be applied, and then we'll obviously open it up to questions.

So, it should probably come as no surprise to anybody and everybody on the call here that we live
in this increasingly integrated and connected world. You know, we're actually living in not only
an environment where people are talking to people, you know, and more people are talking to
more people. We are actually living in a world where things have started to talk to people and
things have started to talk to other things, right? Your dishwasher actually might be able to call
the manufacturer and order a part or something of that nature.

And that presents a problem, right? We live in a world where there is more people, more
information, that's a 24 kind of 7 world and customers in particular then when they are looking
for customer support and service, they want that support when they want it, where they want it,
and how they want it. And it end up becomes one of the challenges obviously for a contact center
is the amount of data or the amount of interactions that we're having with customers as well as
how they're interacting with us.

To sort of size up that problem, I came across this data point actually in a report I was reading
that came out from IBM the middle of last year I believe it was and the report, I'll make reference
to there. In the bottom right hand corner, there was a report from IBM called what is Big Data.
And they pinpointed the amount of data that exist out there at 2.5 quintillion bytes. And that's
sort of a nebulous or maybe intangible kind of reference, but that's a quintillion is a 10 with 18
zeroes after it. So, we're talking about a lot of data.

The interesting thing to me or the particularly interesting thing to me was this idea that 90 percent
of that information has been generated in the last couple of years which if you think about it,
shouldn't be overly surprising, right? I mean, you talk about the internet and the explosion of data
in that sense, but, you know, you have social media and whether it's a blog or personal accounts
on Facebook and things like that, but even a large portion of that information is being generated
by corporations as well, right? So, it's not just all social media and individuals, but we've got
companies that are generating lots of data whether that's the reports and things that they're making
on their own or, in the case of the contact center, right, there's all those interactions with customer
which when you're talking about recording and data and that type of data, we're talking about
the (necessity) store, lots of big files, right?

There was a study that comes out annually from international data corporation. They do what's
called a digital universe study. So, we have all of these data out there and but we also have, you
know, what IDC calls dark matter of the digital universe. And dark matter, you know, they're
pulling a phrase obviously from cosmology, right? This idea that out in the universe, and in this
case, the digital universe, there's all this information that we can't really see and they had
estimated that of all of this stuff that exist out there, you know, only 23 percent of it is useful. So,
there's lots of noise out there, right? And the trick for us as analytics practitioners is to figure out
what's useful and what isn't useful.

But the interesting thing about this slide, and you have the 23 percent there on the left hand side.
The most interesting element to me is this idea that less than 1 percent of the useful information is
actually analyzed, right? So, not only is there lots of information out there and only a certain
percentage of that is useful. But even of the useful information, even though of all the
information out there only, you know, one quarter of it is useful, we're looking at and analyzing
and reviewing just a mere fraction of that useful information.

I debated with myself on where I should put in this particular slide. I thought it was important to
mention and it's sort of a transition in the sense that we're talking about the problem of data and
ultimately here we'll move into this sort of the discussion about the solutions and the keys to
success when we talk about those solutions. But this slide here is sort of meant to bridge that gap,
if you will, where it's outlining the problem, you know, it's talking about the amount of data and
the diversity of where that data is coming from, and ultimately the idea that it's become even
increasingly more complicated or complex.

And if you think about in the context of a contact center excuse me if you think about it in the
context of a contact center, you know, whether it was a decade ago or 20 or 30 years ago, when
we when a supervisor or a manager or an organization wanted to know what was taking place in
the interaction with the customer, they literally walk the floor, right? So, a manager would walk
around and they would listen to conversations that agents are having, and then we kind of keep an
eye on what agents are doing. You know, that's not practical really in today's world, right,
because you've got agents that are dispersed whether in various contact centers, you know,
throughout the country or throughout the world or maybe they're working from home, meaning
it's possible to simply walk around and watch them and/or listen to conversations, you know, at
an individual basis.

So, you have the advent of different recording technologies whether you're recording the phone
call itself or taking a look at the desktop of an agent to see what kinds of applications that they are
utilizing. And ultimately, the complexity of the interaction with the customer really made some
supernatural problem, if you will, in that. You've got chat and email and traditional phone calls
and social media and all these different types of things. So, not only did you not only do your
organizations need to have the technology to analyze all of those different things whether it's
speech or text or desktop, but those different things need to be integrated, right? You can no
longer view a customer through one lens.

We happen to be talking about speech today, but as I mentioned, Calabrio has a speech, a text,
and a desktop application that, you know, I'll mention this later too, that are all unified and
integrated and it creates for pretty powerful solution.

I don't normally create slides that, you know, this wordy, if you will, but this and you can read
it for yourself here, but this is just a statement that we use at Calabrio internally or, you know,
one of the statements that we use to sort of describe this problem, right? And I guess the key
phrase in there is the idea that it's virtually impossible without the proper tools to analyze or
understand all of these different interactions that are coming in. So, that's the basic problem that
we have.

And, you know, contact centers big and small whether you're dealing with tens or hundreds or,
you know, a thousand calls a day, over time, those add up and, you know, the reality is and this
sort of gets back to that data point that I used from International Data Corporation even in
within the contact center, only about 1 to 2 percent of calls are reviewed and analyzed in
traditional manner or means, right? So, when you do your traditional quality management and
call recording and review those and you're doing evaluations and scoring those calls, you're
maybe getting to 1 or 2 percent of those calls. And that's a fundamental that's a fundamental
difficulty when you're trying to understand customers whether what they're literally saying or
trying to identify their disposition and all that kind of stuff.

I read this book by Nate Silver a couple of years back called The Signal and the Noise, and, you
know, this isn't meant to be a New York Times book review but it's a pretty good book for
anybody that's interested in analytics and in particular using analytics to predict or anticipate, you
know, what might transpire in the future. And he uses lots of different examples. He uses some
sports analogies and he uses some discussions about weather and things like that.

But the interesting thing about this or the irony that's sort of embedded between the lines within
this quote is the idea that although our need to understand our customers has grown, you know, in
the past few years or a decade, even though our need to understand has grown, our ability, in
most cases, has been diminished because of, you know, the sheer volume of information that's
coming our way and the type of information that's coming our way. It's just changing and
growing in ways that, you know, a decade ago, we would have never imagined.

So, when we talk about voice of customer and actually I'll refer to speech analytics and the idea
of using technology to record and analyze calls, I'll actually refer to those interactions and those
phone calls as the true voice of customer. And I've spent many years in marketing and insights
and things like that and voice of customer, you know, for most of you imagine on the phone is a
term and a phrase that we use, you know, often.

But oftentimes, when we talk about voice of customer, at least in my experience, a lot of times we
end up doing surveys or whether it's a customer satisfaction survey or we pull new customers
about, you know, their ideas and needs and things like that, or even most recently or recently I
can think of a couple of times when I was doing some shopping at, you know, a big-box
department store. And on the receipt, you know, you have a phone number into which you can
call and then take a quick survey and then maybe they give you 10 percent off your next visit or
something like that. But a lot of times, those voice of customer interactions are either manual in
nature and/or they may become after the actual interaction, you know, you're looking the
customer themselves and the companies that are trying to analyze that interaction are looking
back, if you will, on what transpired.

And we have an opportunity from a contact center standpoint because we're interacting, you
know, with customers whether it's via phone or chat or email or whatever happens to be. We're
having interactions "in real-time" and we have the technology and the tools now to actually
analyze that information and then affect ultimately the business outcomes of what we're trying to
do or what we're trying to accomplish.

So, why these all just matter, I mean, why do we care about voice of customer in general and true
voice of customer? There are, you know, probably a handful of sort of generic reasons why we
do what we do, right? And the most obvious one and this gets a lot of has gotten a lot of talk in
the last few years, this whole idea of the customer experience. You know, enhancing the
customer experience, making people feel good about their interactions, making them feel good
about the products, you know, like the Rainforest Caf comes to my I live in Minneapolis. And
anybody that's been to Minneapolis here has maybe actually visited and/or at least heard about the
Mall of America. Well, Rainforest Caf is out at the Mall of America and I know, going back a
few years ago, they were counted as a restaurant that really embraced, if you will, this idea of the
customer experience.

And for anybody that's ever been there, you know that you basically walk into a jungle, not
necessarily literally obviously, but they create an environment where you're experiencing the
sights and the sound and then we say the smells of times of, you know, this jungle experience.
And for my eight-year old, it's actually pretty fun. Although, when he was six, he was a little bit
scared of the gorillas in the background. But that's (inaudible) I guess.

So, when we talk about customer experience, we're really talking about proactively responding
with the customer needs, right? We don't want to just wonder what's going on or wait for
something to happen. We can use speech technology to proactively understand the meaning or
the language of the customer and then use that to positively affect the customer experience and
the outcome.

Other traditional measures are things that people are trying to accomplish obviously or to increase
revenue in different ways. And, you know, for speech analytics and understand the language of
the customer, you can do a couple of different things. You could generate revenue through upsale
and cross-sale opportunities, right? You can sort of determine the disposition, if you will, of the
customer and to sort of figure out if primed for a certain offer or a campaign that you've recently
come out with, that kind of thing.

But also, there's a customer retention element, right? The hope is or, you know, the idea is that
every interaction is fantastic and your customers want to buy more and be more with you.
Sometimes obviously they're not so happy and understanding the language of the customer and
ultimately the disposition of that customer allows you to proactively whether it's your scripts or
other coaching and training of your agents that you can mitigate adverse outcomes.

And then obviously when we talk about contact centers and some of the classic KPIs, if you will,
of what you're trying to accomplish, you have the ideas of productivity and efficiency and
effectiveness and things like that. And, you know, that might manifest itself in KPIs such as first
call resolution or maybe handle times and things like that. And certainly understanding the
language of the customer can allow you to increase and do better at all these sort of things.

Here is a quick example and I'm not going through it necessarily in detail here, but this just makes
some basic assumptions about agent efficiency and this whole idea of after call times, right? So,
when an agent hangs up the phone and try to understand what they're doing in that after call time
to finish up the call or to enter information, you can actually use both speech analytics and then,
you know, in conjunction actually with perhaps desktop analytics and things like that, you can
actually save time. And, you know, how many agents you have and the different assumptions
that you make in terms of the length of the call and all that kind of stuff, you would maybe come
out with a different outcome here in terms of the calculation. But it's real results, right? I mean,
you can talk in terms of either in dollar amounts or in fulltime employees.

And it's important to recognize or I feel compelled to say that, you know, the technology itself
and the, you know, you can go back decades, even back to the auto industry and things like that
where, you know, unions and things like that where perhaps concerned to automation and robots
were going to take over the lives and/or put them out of a job. And in Calabrio, we don't this
isn't technology to replace people. It's really about technology to enhance what they do. It allows
them to do more, it allows them to do better, it allows them to do better things, and it's really what
the technology should be used for (inaudible).

And for anybody that's out there that's dealing with payment card industry compliance or even
internal compliance when it comes to scripts and things like that, speech technology, the speech
application or the analytics is a fantastic tool for verifying much of that information.

I'm going to digress momentarily and I'm about to jump into the keys to success, if you will, after
this slide, but I wanted to digress at least momentarily to talk about the technology itself. And
when you talk about speech analytics, there are basically two fundamental approaches to
analyzing information, one to phonetics based approach and one you can see the big long
acronym there, the LVCSR which is large vocabulary continuous speech recognition. Those are
the two primary ways to go about doing things. And you can see there the large vocabulary
continuous speech recognition is really about changing the recorded speech into a text based
document and then that text document then ultimately gets analyzed. The phonetics side, and this
is actually the technology that Calabrio uses, instead of looking for defined words and phrases,
it's actually looking for sounds and strings of sounds within those spoken words. And there's lots
of different benefits for doing that and they're listed there basically.

But one of the things that I like is the idea that it's not language specific in the send that because
it's looking for sounds, you know, it technically doesn't have to be English or it doesn't have to be
Spanish. You could be looking for sounds within lots of different languages and it also allows
you this element of serendipity, if you will, because it's not limited to basically a dictionary,
right? You can go look for the words and phrases that you think the customer is using, but then
you can also discover sort of serendipitously the language that the customer might actually be
using which is a pretty powerful tool.

So, moving on to what I would call the keys to success, and again, you know, whether you're
interested in Calabrio speech analytics or you're evaluating some other application, these in my
estimation are the three primary things that you should be looking for or should have a top of
mind when you go to evaluate and determine, you know, whether you want an application and/or
which application. And those are the this idea of analytics for everyone, shareability, and then
better decision making. And I'll touch on each one of those now in a little bit more detail here to
give you sort of the flavor or what I'm talking about.

Here's a this side here has got a quarter of stat actually that came out from Gartner. For those of
you that perhaps aren't completely familiar with Gartner, they're I guess in my estimation the
preeminent analyst within the contact center space or this industry.

And actually and I think at the end of the presentation, we've set it up so you can actually go
download a recent report from Gartner. They come out annually with a what they called a
magic quadrant report, and they do this for a variety of different industries and they do it annually
for workforce optimization. And Calabrio along with, you know, the different vendors within our
space are outlined and are talked about within the report. And the one thing I guess that I would
say about the report itself is that Gartner thinks very highly of Calabrio. They put a second year
in a row. Calabrio has been the only vendor that they have they've identified as a visionary
vendor which basically means that we are delivering innovative and potentially market changing
solutions to the industry. So, I would encourage you to take a peek at that thing.

But this quote here was interesting to me because it sort of highlights another one of these
problems that goes along with a massive amount of data that we've got, right? So, we have all
these information coming in and organizations are recognizing more and more that they need the
analytic tools to stay competitive. You know, people organizations are realizing that to remain
competitive, they need to adapt analytic solutions, right? Analytics has become the competitive
battleground or the forefront of what we're trying to do in understanding customers.

And this quote here basically says that there's going to be this need for all these analytics people,
you know, whether they're data scientists or analytic scientists or people that can slice and dice
numbers in different ways, maybe it's business analysts and things like that, there's this huge need
for that but we're not going to have all the people to fill those jobs. Which means you need to
have solutions that are accessible to everyone, right? You shouldn't have to be an analytic
scientist literally and/or figuratively to utilize and benefit from analytics. It should be a
ubiquitous technology, a ubiquitous application that people throughout an organization can
capitalize on.

And the key points for doing that is being able to make the data itself accessible allowing people
whether they're in a contact center whether they're an agent or a supervisor or an executive or
even if they're outside a contact center. We'll talk a little bit about that later I guess in terms of
shareability, but people should be able to look at the data that's pertinent to them or relevant to
them. And obviously because there's lots of different people with lots of different styles and
whatnot, you're going to need an interface and an application and a navigation system that's easy
to use and intuitive.

And I'm not sure if I mentioned this before, but this idea of visual discovery is tremendously
important. And I guess I'd go into a little bit more detail in a couple of slides.

Here, you can see just a consolidated dashboard actually, a snapshot from our analytics product.
And you can see that you're basically are presented with anything and everything that you might
need at your fingertips or in this case, the click of a mouse, if you will. And it's visually
presented, right? It's in widget kind of form. You can customize that information and move
things around.

From a navigational standpoint, we've actually gone to great lengths and brought in outside
design people to help us maximize our user interface both from a navigation standpoint but also
from a simplicity standpoint so that users don't have to click through, you know, four or five
times or whatever to find what they need or what they use most, right? You guys are presenting
information to them inherently on the screen that they're looking at and/or maybe you embed
functionality and/or the stuff that they need maybe equipped for two layers or something like that.
They shouldn't have to go searching high and low for stuff that they do on a regular basis.

It's not self evident here by the screenshots, right? We're not doing sort of an interactive demo
here, but this slide was meant to highlight the idea that there are drilled down capabilities within
the analytics product, right? So, when you talk about analytics for everyone and you talk about
this idea of visual discovery and this idea that the information at various levels should be at the
click of a mouse, but you still might want the detail, right? So, the interface that we provide
aggregates and builds things up so you can see the high level. But then you can also click down,
you know, a click or two, and you can actually get to.

In the case of a speech analytics contact center kind of application, you can actually get down to
the specific call. And in reality, if you're looking at a three to five-minute call or whether what
the length of call happens to be, you can actually get down to the 15 or 20 seconds that the phrase
that you might be looking for or the point in the call where there was either, you know, some
great interaction with the customer or a not so great interaction with the customer, you can drill
down and look at that specific slot in the call. It's pretty powerful stuff.

So, those are the four quick analytics for everyone sort of bullets, if you will. And the second
idea after analytics for everybody for everyone is this idea of shareability. And, you know,
from a shareability standpoint, share obviously means that you have something that others either
want or you think they should have, right? And, you know, your analytics offering or your
analytics solution should have the capability of sharing this, sharing content, right? That might
seem pretty obvious. And certainly know that the tool, whatever it happens to be, can't create the
willingness, if you will, although you can make it easy to share information. The willingness
would come from, you know, your recognition that this is important stuff and worthy of sharing.

So, we talk about shareability, you know, within the contact center or when we talk about phone
calls and those types of interactions with customers, oftentimes we sort of mentally limit
ourselves, if you will, to people within the contact center, the idea that agents might share best
practices with other agents or supervisors might share information with an executive, you know,
within the contact center contacts. But your application should go above and beyond the contact
center itself, right? You should have the interfaces and the capabilities to share information with
sales and marketing, with HR, you know, all the different constituents within our organization
because they too should be able to benefit from that true voice of customer, right? A lot of times,
information within a contact center sort of stays within the contact center for whatever reason, but
that true voice of the customer has applicability and benefits well beyond, you know, what you
might do in the contact center.

So, those are the quick bullets here in terms of what you should be looking for from a shareability
standpoint. And the platform is actually a big one. And the last one there, I debated on whether
or not it should be under this idea that might seem obvious and I ultimately put on it because I
think it's important, this idea of being able to find content.

From a unified standpoint, and I kind of touched on this earlier and I won't necessarily deliver the
point too much, Calabrio offers a suite of products. I mean, in our and when I say suite, it's not,
you know, hodgepodge collection of different stuff that we've acquired. We've actually built the
stuff on a unified platform so that the information itself can be inherently shared within the
system behind the scenes but then also presented and shared to the users. And it's a robust, you
know, flexible system that's uniquely powerful, I would say, because we can present all of it in a
unified fashion both on its surface, you know, from a user interface standpoint but also from a
technology standpoint behind the scenes.

Another thing that sort of goes along with that, this idea that we have a unified mix media player.
What that means, and this kind of alludes back to the idea that Calabrio has a speech, a text, and a
desktop analytics, a complete solution is this idea then when we talk about the mix media player
that whether you're looking or listening to a call or whether or not you're analyzing information
from a desktop standpoint, you know, what an agent might've been doing on the screen and, you
know, whether they were using a CRM system correctly or whether they happened to be out
looking at a YouTube video on hold time or something like that or, for that matter, analyzing a
text, all that is done through the same media player that we have on our unified platform. So, you
don't have to be in and out of different stuff, you don't have to worry about compatibility, all that
kind of stuff. There's obviously an ease of use and a speed element to having that capability.

A quick comment about export capability, the reality is, you know, every analytics solution has
inherent analytics capabilities in terms of reporting or trending patterns with predictive elements,
things like that. The reality is, and at least this has been my experience, at some point at some
point and some particular situation, you want to be able to pump that information out for
whatever reason and share it sort of outside the system, you know, whether that's an individual
recording that you, you know, are exporting in wave format or mpeg format or something like
that, or the data itself and looking to export to CSV file or something like that so somebody
somewhere can do an analysis in Excel or whatever happens to be. Know that you should have
some at least basic export capabilities as well.

In the same way that customers are wanting their information, you know, when and where they
want it and how they want it, the reality is, you know, people within an organization want that as
well. You know, we've got mobile capabilities within the products that we offer, but we also
have the ability to integrate in different fashions and, you know, we can put links within a CRM
system, for instance, back to a recorded call but they exist in our QM application so that, you
know, when you have this granddaddy application of, you know, your CRM system which is
meant to house anything and everything about customers, whether it's when you talk to them,
what mailing you sent to them or when they called in, you know, your CRM system has all these
stuff.

You know, then you think yourself why not have the capability of linking to the recorded calls
themselves and then being able to drill down if necessarily into the identified words and phrases
and, you know, if you have either disposition or that creates context for that call. You should
have those capabilities in whatever application that you decide to go forward with.

And like I said, this whole idea of signing content, I've debated on whether or not I should put it
in here or not. But it's important enough even through it's an obvious element within this whole
idea of shareability, if you want to share it, you've got to be able to find it, right? So, Calabrio
has built in a robust system advance search capabilities and combinatorial capabilities that you
can combine, you know, hold times with call length and whether or not a certain phrase was
talked about in what might be a lengthy call and things like that. And so you can find this stuff of
consequence and you can find that important content.

You know, when we talked about the sea of data and this idea that there's, you know, quintillion
bytes of data out there and, you know, only a certain amount of it is useful, you better have the
tool that can cut through the noise. And the first thing, you need to cut through the noise. But
then, when you identify, you know, the collection of important content, you need to be able to
find within that the stuff that's truly relevant for whatever particular situation you're talking about
at that time.

So, here's a quote from Malcolm Gladwell and from one of his books called Blink. He actually
if you've heard the name Malcolm Gladwell, it actually might've been in the context of a couple
of his other books, one called The Tipping Point and the other called Outliers. But, you know,
this gets back to actually the fundamental problem that we talked about before, this it's not
knowledge that we're lacking in, right?

And when I think of knowledge, I think of data, you know, there's kind of this data element and
sort of the basic knowledge that we have. And it's not knowledge that we lack. It's true
understanding, right? And I thought throughout my career that there's sort of three elements or
three layers that ultimately culminate in understanding. You have the knowledge which is the
data, you have perspective, this kind of this ability to create context or sort of the color
commentary, if you will, the force for the trees of that data, and then ultimately this idea that you
can create collective experiences or shared experiences within an organization to ultimately
develop understanding. And, you know, whatever tools you use whether it's a speech analytics
or, you know, you combine that with more traditional voice of customers and things like that,
your processes in your system should ultimately culminate in this desire to create better
understanding of your customers.

And that's really at the heart of, you know, I think everything that we do whether it's within a
contact center, outside of contact center, it's the better decision making that ultimately leads to
improvements and all of these other elements. And customer experience actually, as I mentioned
before, I think it highlighted or encountered or sort of put up on a pedestal is sort of the end-all,
you know, achievement of what all of us should be striving for whether what was in the contact
center or somewhere within our organization, we should be striving. And I don't disagree with
this. We should be striving to excel and create these wonderful customer experiences that people
are raving about and people are coming back to us for our products and our services and they're
telling their friends and they're telling their friends and all that kind of stuff.

But even customer experience, in my estimation, starts with better decision making, right? The
decisions that you make whether it's an agent that's on a phone, it's the decisions that agent makes
in the moment that really shape the individual call, right? So, you could be an agent trying to
decide what to say, when to say, and how to say it, or you might be a department within a contact
center that's creating best practices or whatnot. And ultimately, in all of those individual
decisions, you know, bubble up in their organizational decisions for you, right? I mean, who and
when to hire and all that kind of stuff.

And ultimately, it's the better decisions at all of those levels that ultimately, you know, make all
of these other things I'll go back quick to that slide that make all of these other things
possible. You can be talking about first call resolution, you could be talking about improved
efficiency. And I'm thinking back to those slides that I showed at the beginning of the
presentation, the whole why does it matter. It ultimately you could any one of those whether
it's productivity or efficiency or customer experience or the idea of generating more revenue or
reducing cost, whatever you as an individual have as your KPIs or goals and ultimately whatever
the organization has as their goals, it all comes down to better decision making. And to have the
tools for better decision making can be a powerful competitive advantage.

I'll quickly touch on a few use cases here. And I've actually have already kind of, you know,
spouted some of these out. The first call resolution, we've got some customers, you know, in this
particular case financial institution that was looking to reduce callbacks, right? And typically, the
first call the stat that I've seen in the industry is that on average, it maybe takes 1.5 calls to
resolve an issue for a customer. Well, for those customers that end up calling back, it actually
takes 2.5 calls to resolve. And anything and everything that an organization can do to reduce
those callbacks can have a tremendous effect on, you know, both from a cost standpoint but then
ultimately, as we talked about before, is a customer experience.

Marketing campaign effectiveness, actually the same customer these two slides sort of will have
to happen about the same customer, but they were looking to justify, if you will, where to spend
their money when it came to marketing campaign effectiveness and they were they would have
1-800 numbers and things like that or toll free numbers on the mailings that they sent out and then
they could track the language that the customer was using when they called back in and to
measure and then ultimately validate not only their response rate but then the reasons why people
were calling back or why they were sort of hooked, if you will, on the mailer.

PCI compliance, you know, you can be a you can be certainly if you're a financial institute,
you deal with this on a daily basis or not every minute. But you could also have other types of
compliance whether it's compliance to scripts or policy internal policies and things like that.
But we've got actually have a number of customers doing this, but this one is meant to highlight
this major manufacturer that, you know, needed 100 compliance as everybody does, right, when it
comes to PCI because if you don't have 100 percent compliance, it's going to cost you money.
And we were able to combine our call recording technology along with those speech analytics to
ensure that not only were they complying but then they could prove or demonstrate that they were
in compliance, right, when an auditor comes in, you know, they have the evidence and the
different systems to go back to the documentation and the recording themselves to prove that they
were doing what they were supposed to be doing.

And then the last one here, we had a we have an online university that, you know, their
customer is a student but it's the same premise. They were having they wanted to quantify and
ultimately sort of quell, if you will, some of the customers, in this case, students, they were
defecting or dropping out, if you will. And they were able to increase their retention on a
monthly basis by 20 percent (inaudible) stuff.

I felt compelled we already talked about all these stuff here, but I felt compelled to put in a slide
that looked prettier than, you know, some of the ones that I kind of put in bulleted fashion. And
you can see, you know, you can see for yourself a lot of the stuff we already talked about in terms
of the benefits of analytics. You know, better understand customers you can utilize, the verbal
queues. And here's something I guess maybe that I didn't talk about in great length, this idea of
utilizing verbal queues within an individual call.

So, to affect the outcome of that call, imagine that you have, you know, done speech analytics on,
you know, X number of calls over, you know, a certain period of time, within a month or
something like that. And you've really zoned in on the language of the customer, right? You've
begun to understand the true voice of the customer and the language that they're using in the
context of a particular problem.

You know, for a financial institution, maybe financial institution, for instance, maybe it was
difficulty these people were having with debit cards or something like that or activation of debit
cards. Well, if they if an organization using speech analytics can identify those problems and
then understand the language that's used when those problems occur, then they can use additional
language and/or scripts to sort of mitigate and/or affect the outcome of an individual call, right?
So, if an agent is beginning to recognize that certain words or phrases are being used in a call,
that those words and phrases can be used to anticipate where the call might actually be going,
whether it's because of the disposition of the customer and maybe the growing negativity that that
customer is feeling, and/or maybe the organization has learned and thus the agent knows that that
particular problem that the customer is expressing or the language that they're using is really a
symptom of a bigger problem which then they can proactively mitigate in the call itself.

So, those are the three keys to success, the idea of analytics for everyone, the shareability, and
then just the basic recognition, if you will, that better decision making and what it's all about,
right, whether it's customer experience or first call resolution or fraud detection, all of those
things come from better decision making. And the speech analytics tool and certainly the one
that Calabrio provides is a tool that you can use to create that competitive advantage within your
own marketplace.

And I guess, with that, I'm going to turn it back over to David and I'm going to make because I
haven't been looking at the questions that were coming in, but he can take over from here I guess.

David Myron: All right, great. Thank you for that good presentation, Chip, by the way. OK, so,
as you mentioned, we are now going to enter our question and answer session. I do have a couple
of questions for you to kick things off. But before I do, I just want to remind everyone that if you
have a question, please just type it into the question box provided and click on the Submit button.
As I stated earlier, we'll try to answer as many questions as possible, but if your question has not
been answered during the show, you will receive an email response to it within a few days.

All right, great. So, my first question, Chip, is, how long does it take to implement the speech
analytics solution?

Chip Engdahl: Yes, that's a good question and it's a good question if only because, you know,
speech analytics or the technology itself might seem a little daunting, but Calabrio has
streamlined what I would call parallel kind of implementation process, and there's two elements
to it. There's the software itself, right, the application in terms of implementing that and we have
a fantastic implementation team here that is able to put that in quickly.

But then also, simultaneously, from a phonetics standpoint or getting the language set up, we
have another group of people that go in simultaneously to do that. And you can be up and
running in just a few weeks. Typically, if there are any delays or anything like that in the process,
it's usually because the customers themselves have a reason for not quite implementing. You
know, we're ready to go, you know, at a drop of a dime, so it's relatively paying much from our
perspective.

David Myron: All right. Another question for you, does your speech analytics include natural
language processing?

Chip Engdahl: Yes. So, the phonetics space, yes. Phonetics based approach is, by definition or
inherently, natural language processing or NLP is, you know, the acronym a lot of people use.
And that is the basis for what we do, the idea that you're looking for sounds in sort of a natural
way, that's really what we do as opposed to the text based approach and having to work off of,
you know, a dictionary or just natural language base.

David Myron: All right, thanks for that. OK, so, those are the questions that I had to kick things
off, but I'll now jump to a couple of questions from the audience. But before we do, I just want to
mention that you'll see a survey popping up on the screen. And if you don't mind, just take a look
at it and fill that. Your feedback is very, very helpful to us.

OK. And while you're doing that, I'm going to jump to a couple of questions from the audience.
So, in the use cases, will speech analytics apply to all calls? If not, how (hard to sample)?

Chip Engdahl: Yes. So, that's a fantastic question. The typically and actually the use cases
that I mentioned, we'll go in and we'll usually look at a sample of calls over a short period of time
to validate, if you will, the sounds and the words and phrases that we're going after. You know,
there I say it's a proof of concept. It's not really that, it's sort of the introductory element. And
ultimately, once we've refined, if you will, the words and phrases and the sounds that we're
looking for, we're applying it to all calls. And yes, and as you take a step back, we actually
apply it to all calls within a small window to refine it, and then we continue to apply it to all calls
after the fact.

So, we're you know, we have 100 percent coverage and that's, you know, it gets back to one of
the fundamental problems sort of the historical or the traditional manual way is that under normal
circumstances without, you know, a speech application, you're only able to look at, you know, 1
to 2 percent of your calls at best, and we have the ability to our speech product our speech
analytics product to go after 100 percent of those calls and to analyze 100 percent of those calls.
So, it's a tremendously powerful solution.

David Myron: All right. Earlier in your presentation, you've talked about the speech technology
that's available today from companies that are having LVCSR or a phonetics application a
phonetic solution, Calabrio using the latter. Why would a company go with the phonetics based
approach as opposed to LVCSR?

Chip Engdahl: Yes. I that's a question or it's worthy of repeating. And ultimately, if you go
back and look at this presentation again, you'll see some of them outlined on that individual slide,
but it's really about the idea that it's not inherently tied to a dictionary. This idea that you don't
have to know all of the words and the phrases that you're looking for specifically before you go
into it. There's this element of serendipity or an extra element of discovery when it comes to truly
understanding what not only what the customers are saying but how they're saying it, right?
There might be a dialect that's a little bit different than what you thought, it might be words and
phrases, you know, generational. You know, my 14-year old, you know, speaks differently than,
you know, a 55-year old.

So, understanding the dialect and/or the nuances in the individual languages is one of the
powerful elements of phonetics in particular. And then, and as I mentioned, not being tied to a
dictionary and being able to basically analyze things in any language ultimately because you're
looking for sounds and the words and phrases from a phonetics standpoint.

David Myron: OK, great. Thank you for that. It looks like we are out of questions. So, with
that, we'll go ahead and close this out. I'd like to thank our presenter, Chip Engdahl, product
marketing manager at Calabrio. I'd also like to thank all of the people who submitted questions
today. If you'd like a copy of the presentation, you can download it once the event is (off time).
And if you'd like to review this event or send it to a colleague, please use the same web address
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This concludes our broadcast. Thank you for joining us.