ONLINE CUSTOMER SERVICE SOLUTIONS 2007 - BUYER'S GUIDE

Buyer’s Guide: Online Customer Service Solutions (2007) Copyright © E-consultancy.com ltd 2007 – not for distribution to non-subscribers without written permission 1 Other E-consultancy Buyer’s Guides: Ad Serving Solutions Affiliate Marketing Networks Content Management Systems E-commerce Solutions Email Marketing Platforms Hosting and Managed Service Providers Online Advertising Networks Online Surveys and Research Search Engine Marketing Site Search Shopping Comparison Engines Usability & Accessibility Web Analytics http://www.e-consultancy.com/research/Online Customer Service Solutions 2007 A Buyer’s Guide E-consultancy May 2007 Copyright © E-consultancy.com ltd 2007 – not for distribution to non-subscribers without written permission Sample only, please download the full report from: http://www.e-consultancy.com/publications/online-customer-service-solutions-buyers-guide-2007 Buyer’s Guide: Online Customer Service Solutions (2007) Copyright © E-consultancy.com ltd 2007 – not for distribution to non-subscribers without written permission 2 Table of Contents 1. Introduction Error! Bookmark not defined. 1.1 About E-consultancy..................................................Error! Bookmark not defined. 2. Executive Summary Error! Bookmark not defined. 3. The Market Error! Bookmark not defined. 3.1 Market Definition and Scope of Report ....................Error! Bookmark not defined. 3.2 Market Growth.........................................................Error! Bookmark not defined. 3.3 Drivers of Growth and Market Trends .....................Error! Bookmark not defined. 3.3.1 Focus on customer retention and engagement drives market growthError! Bookmark not defined. 3.3.2 Businesses must meet customer expectations in multi-channel worldError! Bookmark not defined. 3.3.3 Increased use of e-service technology as sales and marketing tool ..Error! Bookmark not defined. 3.3.4 Interoperability drives ‘best of breed’ approach................................Error! Bookmark not defined. 3.4 Return on Investment (ROI) case for Online Customer Service SolutionsError! Bookmark not defined. 3.5 Strengths, Weaknesses, Opportunities and Threats (SWOT)Error! Bookmark not defined. 4. Costs and Pricing Models Error! Bookmark not defined. 4.1 Advantages of On-Demand /ASP Model ..................Error! Bookmark not defined. 4.2 Pricing Models ..........................................................Error! Bookmark not defined. 4.3 Trials and Pilots ........................................................Error! Bookmark not defined. 5. Tips and Pitfalls: how to find the right supplierError! Bookmark not defined. 5.1 Introduction...............................................................Error! Bookmark not defined. 5.2 What does your organisation really need?................Error! Bookmark not defined. 5.3 What kind of vendor are you looking for? ................Error! Bookmark not defined. 5.4 What additional resources – and buy-in -may be required to manage the software and get the most value out of it?.....................................Error! Bookmark not defined. 6. Market Positioning Charts Error! Bookmark not defined. 6.1 Explanation for Chart 1 – Company Focus ...............Error! Bookmark not defined. 6.2 Explanation for Chart 2 – Business Focus................Error! Bookmark not defined. 6.3 Explanation for Chart 2 – Geography.......................Error! Bookmark not defined. 6.4 Explanation for Chart 2 – Company Culture............Error! Bookmark not defined. 7. Matrix Error! Bookmark not defined. 8. Supplier Market and Profiles Error! Bookmark not defined. 8.1 Creative Virtual (Lingubot) – Company & Service DetailsError! Bookmark not defined. 8.2 InstantService – Company & Service Details ...........Error! Bookmark not defined. 8.3 InQuira – Company & Service Details......................Error! Bookmark not defined. 8.4 Kana – Company & Service Details ..........................Error! Bookmark not defined. 8.5 LivePerson (Timpani) – Company & Service DetailsError! Bookmark not defined. 8.6 Microsoft (ASA) – Company & Service Details ........Error! Bookmark not defined. 8.7 Parker Software (WhosOn) – Company & Service DetailsError! Bookmark not defined. 8.8 RightNow – Company & Service Details ..................Error! Bookmark not defined. Buyer’s Guide: Online Customer Service Solutions (2007) Copyright © E-consultancy.com ltd 2007 – not for distribution to non-subscribers without written permission 3 8.9 Synthetix (SmartAgent) – Company & Service DetailsError! Bookmark not defined. 8.10 Talisma – Company & Service Details ....................Error! Bookmark not defined. 8.11 Transversal – Company & Service Details...............Error! Bookmark not defined. 8.12 Trinicom – Company & Service Details ..................Error! Bookmark not defined. Sample only, please download the full report from: http://www.e-consultancy.com/publications/online-customer-service-solutions-buyers-guide-2007 Buyer’s Guide: Online Customer Service Solutions (2007) Copyright © E-consultancy.com ltd 2007 – not for distribution to non-subscribers without written permission 4 1. Introduction E-consultancy’s buyer’s guides are the ideal starting place for anybody researching new service providers in interactive market sectors. They contain in-depth vendor profiles, to help you to evaluate suppliers quickly, as well as market analysis to help you put things into perspective. Vendors/suppliers are selected for the report based on a combination of factors, not limited to but including: • Analysis of capabilities (services /products) • Clients and Partners • Experience (qualifications /trade bodies /case studies /client lists) • Expertise (by sector /topic), • UK status (a UK office is preferred, occasional exceptions are made) • Ability to take on and fulfil new projects • Recommendations from trusted sources (or anecdotal evidence to the contrary) • Google visibility • Business model (a high % of turnover should be related to these services) • Company website E-consultancy does not explicitly recommend any of the suppliers featured in these guides, principally because it is impossible for us to work with all of them to form a firsthaan opinion. But we do believe -based on an intensive and careful selection process -that the chosen service providers represent quality. Buyer’s Guides are typically updated on an annual basis, so the information contained within is recent, valid, and reflects changing market conditions. Send any questions or comments to E-consultancy editor Chris Lake via chris@e-consultancy.com. 1.1 About E-consultancy E-consultancy is an online publisher of best practice internet marketing reports, research and how-to guides. E-consultancy, which was named Publisher of the Year at the 2006 AOP Awards, also publishes buyer’s guides and has a directory of 100,000+ third party internet marketing white papers. Since moving to a paid-content model in 2003 E-consultancy has amassed thousands of paying subscribers, 50,000 registered users and 145,000+ unique user sessions per month (audited by ABC Electronic). Subscribers pay from £149 per year to access the exclusive and highly practical content. E-consultancy has more than 100 events lined up for 2007, including roundtables and monthly Supplier Showcases. E-consultancy also provides a range of public and in-house training programmes, such as seminars and workshops. http://www.e-consultancy.com/about/2. Executive Summary Buyer’s Guide: Online Customer Service Solutions (2007) Copyright © E-consultancy.com ltd 2007 – not for distribution to non-subscribers without written permission 5 This buyer’s guide covers the market for online customer service solutions, sometimes described as the e-service market. The vendors profiled in this report offer technologies ranging from email management solutions and intelligent FAQs to virtual interactive assistants and real-life chat features. According to E-consultancy, the UK market for Online Customer Service Solutions will grow by 50% in 2007. Trends in the Online Customer Services Solutions sector, covered in this guide, include: • Focus on customer retention and engagement drives market growth • Businesses must meet customer expectations in multi-channel world • Increased use of e-service technology as sales and marketing tool • Interoperability drives ‘best of breed’ approach Sample only, please download the full report from: http://www.e-consultancy.com/publications/online-customer-service-solutions-buyers-guide-2007 Buyer’s Guide: Online Customer Service Solutions (2007) Copyright © E-consultancy.com ltd 2007 – not for distribution to non-subscribers without written permission 6 3. The Market 3.1 Market Definition and Scope of Report This buyer’s guide covers the market for online customer service (OCS) solutions, sometimes described as the e-service market. The vendors profiled in the report all sell technology which can enhance the quality of interaction which companies have with their customers or prospects. The vendors profiled in this report offer technologies ranging from email management solutions and intelligent FAQs to virtual interactive assistants and real-life chat features. The detailed vendor profiles in Section 8 make the focus of each supplier clear. Each profile also contains marketing positioning charts, aimed at shedding further light on each supplier’s proposition. For those who want an at-a-glance view of which vendors offer what technologies and services, a summary matrix is included in Section 7. 3.2 Market Growth Sample only, please download the full report from: http://www.e-consultancy.com/publications/online-customer-service-solutions-buyers-guide-2007 Buyer’s Guide: Online Customer Service Solutions (2007) Copyright © E-consultancy.com ltd 2007 – not for distribution to non-subscribers without written permission 7 3.3 Drivers of Growth and Market Trends 3.3.1 Focus on customer retention and engagement drives market growth 3.3.2 Businesses must meet customer expectations in multi-channel world In a multi-channel environment it is important for businesses to ensure that their customers can switch between channels effortlessly. The experience should be as similar and familiar as possible, notwithstanding the restrictions of a particular mode of contact. 3.3.3 Increased use of e-service technology as sales and marketing tool 3.3.4 Interoperability drives ‘best of breed’ approach A continued theme in the online customer service space is the importance of interoperability with other technologies, whether CRM or complementary types of eserrvic technology. Sample only, please download the full report from: http://www.e-consultancy.com/publications/online-customer-service-solutions-buyers-guide-2007 Buyer’s Guide: Online Customer Service Solutions (2007) Copyright © E-consultancy.com ltd 2007 – not for distribution to non-subscribers without written permission 8 3.4 Return on Investment (ROI) case for Online Customer Service Solutions Online Customer Service (OCS) Solutions can offer organisations a number of advantages ranging from highly tangible cost savings and cross-selling opportunities, to softer benefits such as improved brand perceptions. The actual time it takes to make your money back will vary between technologies and vendors. 3.5 Strengths, Weaknesses, Opportunities and Threats (SWOT) This section contains a ‘SWOT’ analysis for the Online Customer Service Solutions sector. 3.5.1 Strengths • The market for e-commerce is becoming stronger and stronger. Online could account for 20% of retail sales by 2010, according to the IMRG. o As people become more familiar with online browsing and shopping, there are increased expectations about levels of service. Companies therefore recognise that investment is necessary to differentiate themselves and, increasingly, just to keep up with their competitors. 3.5.2 Weaknesses • For some types of software the quality of service is only as good as the information that goes into them, which means that on-going focus and commitment is needed after installation. 3.5.3 Opportunities 3.5.4 Threats Sample only, please download the full report from: http://www.e-consultancy.com/publications/online-customer-service-solutions-buyers-guide-2007 Sample only, please download the full report from: http://www.e-consultancy.com/publications/online-customer-service-solutions-buyers-guide-2007 Buyer’s Guide: Online Customer Service Solutions (2007) Copyright © E-consultancy.com ltd 2007 – not for distribution to non-subscribers without written permission 9 5. Tips and Pitfalls: how to find the right supplier 5.1 Introduction In order to identify the right vendor it is important to understand that different companies have different areas of focus. For example, the company may have a core proposition around either an email response management system or virtual interactive agents. Other vendors may offer a suite of services covering the whole OCS solutions spectrum, describing themselves more broadly as CRM vendors. So, in order to get the right fit with your own organisation, the first step is to identify exactly what services, solutions and expertise you need. The detailed company profiles and market positioning charts contained in this guide will help you to find the right match. This section contains some key considerations to keep in mind and some pitfalls to avoid. 5.3 What kind of vendor are you looking for? Suppliers come in different shapes and forms and it is useful to have an idea of the supplier’s background as an organisation. Sample only, please download the full report from: http://www.e-consultancy.com/publications/online-customer-service-solutions-buyers-guide-2007 Buyer’s Guide: Online Customer Service Solutions (2007) Copyright © E-consultancy.com ltd 2007 – not for distribution to non-subscribers without written permission 10 6. Market Positioning Charts Each of the profiles includes market positioning charts which are shown in order to give buyers a further understanding of where a particular supplier sits in the marketplace. 6.1 Explanation for Chart 1 – Company Focus Chart 1 – Business Model The vertical axis of this chart indicates whether the profiled company is more geared towards customised software or off-the-shelf software. The horizontal axis indicates to what extent the vendor sees itself as a consultancy service compared to being a provider of software. For example, a position in the bottom right quadrant of this chart indicates a company that has a consultancy approach and offers customised solutions. The red circle indicates the company’s current position while the blue circle denotes where it is heading. Bespoke Software/solutions We sell software Online customer service consultants and solutions providers Where we are now Where we are going Off-the-shelf software/solutions Buyer’s Guide: Online Customer Service Solutions (2007) Copyright © E-consultancy.com ltd 2007 – not for distribution to non-subscribers without written permission 11 6.2 Explanation for Chart 2 – Business Focus The vertical axis of this chart indicates whether a vendor is focussed purely on customer service or offers a wide range of business software solutions. The horizontal axis shows to what extent the company concentrates on one particular customer service solution. A position in the bottom left of this chart therefore indicates a vendor whose business is built around one particular customer service solution. Focus on online customer service solutions Full range of online customer service solutions Focus on a single, core product/solution Where we are now Where we are going Broad range of business software and solutions Buyer’s Guide: Online Customer Service Solutions (2007) Copyright © E-consultancy.com ltd 2007 – not for distribution to non-subscribers without written permission 12 6.3 Explanation for Chart 2 – Geography The vertical axis of this chart shows the extent to which a company’s staff are all in one location. The horizontal axis indicates what proportion of the company’s work is in the UK. Majority of our staff are in one location All our work is in the UK A small proportion of our work is in the UK Where we are now Where we are going Our staff are spread around many locations Buyer’s Guide: Online Customer Service Solutions (2007) Copyright © E-consultancy.com ltd 2007 – not for distribution to non-subscribers without written permission 13 6.4 Explanation for Chart 2 – Company Culture The vertical axis of this chart shows the company' preferred working style in terms of whether they are more process-oriented or flexible and ad hoc. The horizontal axis shows the company’s size relative to its rivals in the market place. Flexible, ad hoc approach Predictable and process-driven Large compared to competitors Small compared to competitors Where we are now Where we are going Buyer’s Guide: Online Customer Service Solutions (2007) Copyright © E-consultancy.com ltd 2007 – not for distribution to non-subscribers without written permission 14 7. Matrix An at-a-glance overview of who’s doing what… 8. Supplier Market and Profiles Sample only, please download the full report from: http://www.e-consultancy.com/publications/online-customer-service-solutions-buyers-guide-2007 Sample only, please download the full report from: http://www.e-consultancy.com/publications/online-customer-service-solutions-buyers-guide-2007