October 2013

LivePerson Solutions Brief

Pay-for-Performance Managed Services for Chat

2013 LivePerson, Inc.© 1

SOLUTIONS BRIEF Pay-for-Performance Managed Services

Why Use Managed Services for Your Chat Infrastructure?The cost per interaction with live chat is lower than with any other human-assisted channel, but getting the best return on your live chat

investment requires highly optimized operations. Three factors typically stand in the way of maximum value:

Chat operations are different, and change in the industry is swift and ongoing. LivePerson’s chat operations managers have developed

best practices based on the experience of thousands of customers, including some of the biggest organizations in the world. Their

expertise enables them to optimize every aspect of your chat infrastructure, from technology to processes to agent training.

Achieve the Results You Need—Quickly—With Industry-leading Chat Operations Experts

LivePerson’s Pay-for-Performance managed services combine the cutting-edge technology of the LiveEngage platform

with the industry’s most experienced chat program managers, delivering the specific digital engagement results you

need very quickly. Fees for the services are based on our achievement of agreed-upon performance goals, as spelled

out in the Master Agreement that you develop with LivePerson.

he�o

Cost, specifically the inability to achieve a

desired outcome with

in existing budget

Quality of interactions,

as it is a challenge to recruit and

train chat agents to facilitate

multiple customer conversations

that meet internal expectations

Scale, the inability to scale a chat program in

a managed way, while

controlling quality and cost

2013 LivePerson, Inc.© 2

SOLUTIONS BRIEF Pay-for-Performance Managed Services

Who Can Benefit from Pay-for-Performance Managed Services?Pay-for-Performance services are ideal for organizations that have sufficient web volume to support an

agent team of 15 or more, and have a clear idea of what they want to accomplish. Customers can choose

Pay-for-Performance services for the initial rollout of the LiveEngage platform, and existing customers who

are self-managing LiveEngage can transition to Pay-for-Performance services.

e-Commerce SalesFor the e-commerce sales leader, live chat has the potential to reduce a company’s cost

per acquisition and to drive additional incremental sales by combining a well-tuned

site visitor engagement strategy with agents proficient at online sales. LivePerson

Pay-for-Performance services can deliver these results quickly without interrupting

existing momentum.

Marketing LeadersMarketing leaders value systems that help make customers into promoters. LiveEngage

Pay-for-Performance services apply our internal best practices for world-class chat programs

to recruit and train chat agents to have conversations with customers that exceed

expectations.This results in improved brand perception, greater customer satisfaction,

and—in the case of several of our customers—J.D. Power awards for excellence.

Service Leaders For service leaders, the focus is on the cost of resolution. A timely solution to the initial

problem, along with appropriate use of cross-sell and upsell opportunities, are big factors

in customer satisfaction and key elements of the program. LivePerson Pay-for-Performance

services can help agents enhance the quality of conversations, creating cross-sell and

upsell opportunities that don’t typically exist for a service center.

What Does a Pay-for-Performance Engagement Look Like in Practice?When you engage LivePerson’s Pay-for-Performance services, we work with you as an operational partner

rather than a technology vendor. You don’t even have to pay separately for the software infrastructure, as

technology is included in the Pay-for-Performance pricing.

LivePerson will work with your team to determine one or two key performance indicators (KPIs) on which

Pay-for-Performance pricing will be based, along with specific goals and timelines. Once the Master

Agreement is in place, the Pay-for-Performance team will focus intently on deploying the technology and

processes necessary to meet these goals.

What Do You Want To Optimize?

These following are some ROI areas that could be included in a Pay-for-Performance agreement. For each relevant category, LivePerson works with you to define goals and timelines for meeting them.

1. Reduction in fully-loaded cost per interaction

2. Reduction in cost per acquisition

3. Reduction in cost per resolution

4. Increase in customer satisfaction or Net Promoter scores

5. Increase in cross-sell and upsell ac tivities

Technology is included in the Pay-for-Performance pricing.

2013 LivePerson, Inc.© 3

SOLUTIONS BRIEF Pay-for-Performance Managed Services

Using the Scorecard capability in the LiveEngage

platform and additional analytics only available to

Pay-for-Performance customers, your LivePerson

Pay-for-Performance campaign manager will

monitor your KPIs and related metrics on a real-time

basis. By monitoring performance trends, the team

can proactively work at the product and operational

levels to make adjustments on the fly, and see the

results in virtual real time.

Communications are key to any services

engagement, and are even more important in a

dynamic channel like live chat. Your team will meet

weekly—and perhaps even more frequently—with

the LivePerson Pay-for-Performance team, as well

as with LivePerson partners involved in

service delivery.

Pay-for-Performance customers usually see

tangible positive movement in core KPIs within 60

days and are typically able to scale to an optimal

environment in six to nine months.

Improvement will be noted at every layer—quality,

agent output, customer comments, satisfaction

scores, and ROI.

Under normal circumstances, customers realize

at least a 10 percent reduction in fully-loaded

cost-per-interaction, with many surpassing

this goal.

For more information, visit

www.liveperson.com/services/pay-for-

performance or contact your LivePerson

account team member.

What Results Can I Expect?

Communicate, and Communicate Some More

The following is an example of the cadence of communications in a Pay-for-Performance engagement:

Daily Pay-for-Performance Campaign Manager receives reports on KPIs, makes adjustments on the fly

1-2 Times Per Week Calibration session hosted by LivePerson with client and service delivery partner

Weekly Operational review between LivePerson and client

Operational review between service delivery partner and client

Quarterly Business review with management and stakeholders

Improvement is noted at every layer–quality, agent output, customer comments, satisfaction scores, and ROI pricing.

2013 LivePerson, Inc.© 4

SOLUTIONS BRIEF Pay-for-Performance Managed Services

Customer Success

Raising CSAT satisfaction by 20 points in one month

A well-known telecommunications company had an self-managed live chat program. Customer satisfaction percentages hovered in the upper 50s, and the cost of the program was higher than expected. The company decided that Pay-for-Performance would be a good option to drive performance. Thirty days after launching Pay-for-Performance services, customer satisfaction for the Pay-for-Performance team was above 90 percent, while agent output increased almost threefold.

Customer Success

Reducing costs while getting J.D. Power’s attention

A long-term Pay-For-Performance client worked with LivePerson on a strategy focused on creating passionate promoters of the brand via chat conversations that would exceed visitors’ expectations. Through combined technology and operational training efforts, Net Promoter scores were raised by 10 to 20 percentage points over the course of a year. As a result of these improvements, the company won a J.D. Power award for excellence for its live chat channel.

The Pay-for-Performance DifferenceSelf-Managed Live Chat Pay-for-Performance Services

Channel Staffing

Client assumes ownership LivePerson manages the

targeting technology and

staffing levels to maximize the

client’s desired result

Agent Training

Client assumes ownership LivePerson adapts and delivers

the client's training content for

ongoing agent training

Operations Management

Client assumes ownership LivePerson takes the lead to

manage day-to-day operations,

with collaboration from the

client, to ensure that quality

expectations are met and results

align with expectations

Strategy Client assumes ownership LivePerson works with the client

to devise a strategy based on

best practices

Pricing Software pricing

(cost-per-interaction)

+ needed services +

self-management costs

Single fee to LivePerson based

on achievement of agreed-upon

goals

About LivePersonLivePerson, Inc. (NASDAQ: LPSN) offers a cloud-based platform that enables businesses to proactively connect in real-time with their customers via chat, voice, and content delivery at the right time, through the right channel, including websites, social media, and mobile devices. This “intelligent engagement” is driven by real-time behavioral analytics, producing connections based on a true understanding of business objectives and customer needs. LivePerson is headquartered in New York City with offices in San Francisco, Atlanta, Tel Aviv, London, and Melbourne.

ContactLivePerson, Inc. T: 212.991.1794 475 Tenth Ave F: 212.609.4233 5th Floor info@liveperson.com New York, NY 10018 www.liveperson.com