Achieving ROI through SAP’s 360° Approach to Web Localization

1. Achieving ROI through SAP’s 360° Approach to Web Localization Rashmi Schaefers, Senior Director, eChannel Localization SAP AG October 2011

2. Evolution of the Digital Channel at SAPWhy is Localization Strategic?

3. Why is Localization Strategic? • Globalization • Rise of new economic superpowers (China, India) and relative decline of traditional markets • Strategic local markets (Brazil, Russia etc) • New Business Channels • Digital channel engages directly with customers & prospects • Partners extend new local business opportunities • Personalization • „Starbucks effect“ on customer experience • Search Engines fuel this effect in the digital world • Social media changes the game, customer’s voice expressed through the “crowd” • Customers expect to be engaged in their language & on their terms • To capitalize on Global Business Opportunities, Local Matters Most…

4. The Evolution ofthe Digital Channel at SAP Importance of Localization increases as the Digital Channel evolves New SAP.com Experience SAP eChannels SME Microsite ByDesignBusiness Center • Single largest brand “window” to customers & prospects SAP.com Branding Page • Online buying experience Level of Visitor Engagement • Optimized for demand generation and SEO • Personalized, role-based web strategy • Strict application of Corporate Identity 2000 2007 2009 2011 H1 2011 H2

5. Localization still an Afterthought “Localization afterthought syndrome refers to that pattern of treating localization requirements as secondary considerations within content strategies and solutions. Global companies leak money and opportunity by failing to address localization issues as integral to end-to-end solutions rather than ancillary post-processes. Examples abound.” Mary Laplante, Vice President and Lead AnalystOutsell Inc. No Analytics. Content Insufficiently Used for Leads and Conversions Local Customers & Prospects • Content not truly localized • Hardly visible due to lack of SEO Italy India Brasil China UK France Inda ... Japan Spain Little Insight in Local Requirements Germany “….we have huge amount of assets which we cannot handle locally. I cannot afford the review of upcoming assets – whether they are mandatory or not. At the moment I am quite happy with the current assets and don’t need more. The current assets are quite enough for achieving targets (MGOs) that we have.” Elena Khamagaeva SME Marketing Director, Russia US Country Organizations & Local Web CIS ANZ Global Teams No Best Practice Exchange between Countries Assets produced inefficiently – many agencies, fragmented process

6. India UK France ... Germany. Spain Brasil China US CIS Japan CIS Adopting a Centralized Localization Approach • What drives ROI? • A Mandate for iterative Content & Web Optimization will help increase local business impact significantly. • Localization Standardization across all areas of Marketing. Governance will ensure significant cost savings due to marketing efficiencies and greater degree of local business impact. 5. Optimize Content and Design for SEO *↑ Traffic ↑ Awareness 4. Measure Customer Demand, Optimize Offers *↑ Leads Local Customers & Prospects 1. Roll-In of Country Requirements↑ Relevancy↓ Cost Italy 360 Degree Localization Model Country Organizations & Local Web 3. Localization Community & Best Practice Sharing ↑ Faster Learning SoMa and Global Teams 2. Produce assets with standard tools; SLAs for translation review, publishing↑ Efficiency ↑ Brand↓ Cost

7. 360° Approach to LocalizationHow did we build out a holistic process?

8. SAP’s 360° Approach to Web LocalizationIntegrating Roll-In and Roll-Out • Closely Collaborating with Global, Regional & Local Teams to Deliver these Services 360° Web Localization Approach Roll-Out Roll-In

9. LocalizationPlanning: IntegratingwithUpstream Content Development • Communicate local market requirements to content teams • Increase relevance of global master content • Promote marketing efficiency • Track content planning & production and communicate early to countries • Get early feedback & opt-in from countries • BOM Database streamlines process • Coach content teams on how upstream planning ensures an efficient localization process 360° Web Localization Approach Roll-Out Roll-In

10. Country Enablement:Right Content, Right Market, Right Time • Establish consistent & reliable communication channel with the countries • Joint & individual conference calls • Internal community platforms & wiki • Early communication of content planning, guidelines & governance • Include business rationale and recommended usage • Getcountryfeedback and resourcecommitment 360° Web Localization Approach Roll-Out Roll-In

11. Content Delivery:Efficient Translation Processes & LocalizationCoordination • Use a scalable, end-to-end process • Follow-through to local content activation • Continuously evaluate and improve processes • Leverage Tools & Best Practices • Team up with SAP Language Services (SLS) and Web Publishing team • Utilize existing tools to gain efficiencies, i.e. World Server, digital asset management system • Build new tools to bridge gaps, i.e. BOM Database • Integrate SEO localization • Increase local content visibility, by applying local SEO to all content types • Make best use of local marketing resources by outsourcing SEO localization to translation agencies 360° Web Localization Approach Roll-Out Roll-In

12. LocalizationAnalytics • Monitor contentperformance • Provide reports on local web performance • Highlight key trends and impact • Raise questions, suggest actions • Guide countries to identify improvement potential • Measurelocalization ROI • Cross-country analysis • Measure overall business impact of investment in content & localization • Identify needs for improvement on a global level • Communicate to global stakeholders 360° Web Localization Approach Roll-Out Roll-In

13. Local Web Efficiency • Evaluate country feedback • Systematically collect country feedback • Condense into actionable proposals (focus on quick wins) and prioritize together with countries • Transform into optimization projects • Launch cross-department projects for Content Efficiency. 360° Web Localization Approach Roll-Out Roll-In

14. Best Practices • Identify local marketing practices and share across country, regional & global teams • Gain efficiency and scalability by peer-to-peer experience sharing • Empower local marketing employees by elevating their ideas • Establish a Community of Practice • Promote local best practice sharing to address common problems • Give local marketing employees a voice in a global forum 360° Web Localization Approach Roll-Out Roll-In

15. Measuring the Value of Localization to your Business

16. Measure & Optimize ROI Through Localization Analytics LOCALIZATION ANALYTICS OBJECTIVES Help our stakeholders to achieve their KPIs by providing them with immediate transparency and performance overview of their web content SERVICES • 2. ANALYSIS • Ad-hoc analysis • Optimization recommendation • ROI on localisation Constant Analytics and Optimization Cycle • 1. REPORTING • Provide reporting requirements • Omniture reporting • Executive dashboards • 3. OPTIMIZATION • Constant monitoring of optimisation activities • Test and Target Regional/ country teams • Regional Demand Center teams • All local marketing teams Global teams • SME Marketing team • RDS Marketing team • Business ByDesign Marketing team STAKEHOLDERS

17. Main Page Conversion • Lead Generation / Conversion Analysis – Mobility Microsite, July 2011 Key trends and insights 2 1 Observed Facts 10. Whatshouldbethemainconversiondriver? 3 OL2s 3 • There has been a significant decrease in total number of visitors, but subsequent numbers and conversion rate is much better. How does this align with the goal of the main mobility page? • Consider the purpose of the page: education or lead generation? • Has a popular link or source to page removed? Suggested Actions/Questions  3 leads tracked during July 2011

18. Measure the Localization ROI WitheChannel Localization ROI Calculator Challenge By localizing assets such as brochures, videos and whole web sites we lacked the information on What is the total cost for us to localize assets How can we measure the financial return of the assets How profitable are the localized assets (ROI) Solution We developed in a team effort the eChannelLocalizationROICalculatorwhich enables us to measure the cost, return and ROI for the localized assets.

19. First Results of the Localization ROI WitheChannel Localization ROI Calculator Results for a German Marketing Brochure Example: We localized a Marketing Brochure into German and the ROI Calculator can tells us: Localizing Investment: 743 € Generated Return: 851 € (within 4 months on the German web site) ROI: +12,6% Break-even Point: 3,5 months Additional to the information above we are able to identify: Average monthly return On the shelf time of the assets. i.e. already localized but not yet placed on the web site and therefore not generating any return Missed return opportunities if assets are already localised but not yet placed on the web site

20. Strategic Driver of Corporate Objectives

21. Localization Can Drive Your Corporate Objectives MARGIN • Reduce Costs and Increase Marketing Efficiencies • Localize only country relevant content and ensure activation • Make most efficient use of local marketing resources • Achieve greater economies of scale for globally produced content GROWTH • Drive more Leads and Conversions • Ensure compelling local content to convert more leads and revenue • Integrate SEO into localization process to increase content visibility • Measure content performance through analytics and continuously optimize CUSTOMER SUCCESS • Bring Marketing Content closer to our Customers • Provide appropriate cultural “tonality” to improve customer experience • Engage customers & prospects in their language and on their terms EMPLOYEE MOTIVATION • Foster a Community of Practice • Empower local marketing employees and give them a global „voice“ • Promote and share local Best Practices in a worldwide forum

22. Thank You! Contact information: Rashmi Schaefers Senior Director eChannel Localization Rashmi.Schaefers@SAP.com

23. Localization AnalyticsFocus on your stakeholder needs and objectives The Optimization Cycle How can analytics support your stakeholders? Just a few examples… • Help you drive more traffic to the site with optimized campaigns • Search for optimizable „low hanging fruits“ on the site • Exploreyour real business questionsand issues • Further align the standard reports with your business objectives for 2011? • Help you setting up A/B tests 1 Measure Gather success metrics and KPI 5 Innovate Try new ideas - and test them 5 1 4 2 3 2 Report Individualized reports and dashboards for stakeholders 4 Optimize Apply insights, focus on strength and leave out weaknesses 3 Analyze & Test What leads to success? • Analytics needs Action! Analytics without Action is Reporting It depends on their real needs!

24. Providing Stakeholders at The Right View • Objectives: • Structure report at right level of details • Setup next steps