Study Amplifies the Need for Highly Scalable eCRM Solutions to Support Rising Customer Traffic Across All Points of Contact

MENLO PARK, Calif. – March 11, 2002 – KANA®, the leading provider of external-facing eCRM solutions, today announced that results of a recent study of consumer behavior found that e-mail and Web customer interactions continue to increase and that rapid response times to customer inquiries are a key element in providing a positive customer experience. The survey found that nearly a third of all respondents cited slow response times as their biggest issue with organizations, causing companies to lose potential sales opportunities.

The study, sponsored by KANA, was based on a cross section of consumers who have made purchases in both on-line and off-line environments. The study sought reaction to customer service independent of channel, including off-line interaction, phone, e-mail, Web chat or on-line self-service.

Key findings of the survey include:

  • 56 percent of consumers stated that interactions over the Web or via e-mail represent their most positive customer experience;

  • 33 percent of consumers indicated that slow response times are the key contributor to a negative experience;

  • 20 percent of respondents decided not to purchase product as a result of slow response times.

KANA’s survey is not the only study that points to increased use of the Web resulting in the need for faster response times. Jupiter Media Metrix recently reported that the number of companies responding in a timely manner to customer service e-mails hit an all time low of 22 percent.

Although on-line customers expect a response to their e-mail inquiry within 48 hours, very few companies within retail, travel and financial services were able to achieve this level of service.

The survey illustrates the growing need for eCRM solutions that are highly flexible and scalable to meet ever-increasing consumer demands. Fast, high-volume, intelligent, automated e-mail, Web, and instant messaging request management are key elements that allow companies to respond faster and more accurately to customer requests.

“Consumers are putting pressure on organizations to provide faster customer care across all points of contact, and those companies that can meet this demand have a real competitive advantage in the marketplace,” said Bud Michael, executive vice president of products and marketing for KANA. “An integrated external-facing eCRM solution like KANA’s enables businesses to provide the highest level of service with scalable solutions that will support continued personalized care even as interaction over the Web increases.”

The KANA iCARE suite is the industry’s only complete and fully integrated eCRM solution on the market today. A comprehensive enterprise software suite, KANA iCARE includes an ultra scalable contact center solution, the industry’s leading in- and out-bound e-mail management system, a robust knowledge base for self- and assisted-service and sophisticated marketing and analytics.

Nearly 1,300 companies worldwide are using KANA next-generation eCRM solutions to drive better relationships through effective, efficient interactions with customers at all points of contact (Web collaboration, phone, e-mail, live chat) and throughout the enterprise. The KANA approach to customer relationship management technology solutions combines sophisticated analytics with thin-client Web architecture to deliver extraordinary customer interactions that decrease costs and drive revenue.

About KANA

KANA (NASDAQ: KANA) provides the industry’s leading external facing eCRM solutions to the largest businesses in the world, helping them to better service, market to, and understand their customers and partners, while improving results and decreasing costs in contact centers and marketing departments. Through comprehensive multi-channel customer relationship management that combines the best-in-class KANA iCARE Architecture with enterprise applications, KANA has become one of the fastest-growing providers of next generation eCRM technology. The company’s customer-focused service, marketing and commerce software applications enable organizations to improve customer and partner relationships by enabling them to productively interact when, where and how they want – across all touch points, including web contact, web collaboration, e-mail, and telephone. KANA’s global customer base includes Global 2000 organizations in the financial services, manufacturing, high technology, communications, retail and services markets. ADP, Chase, E*Trade, GAP, GM, Hewlett-Packard, Kodak, Sony, United Airlines, Verizon, and Williams Sonoma are among the  industry leaders that have implemented KANA’s eCRM solutions. KANA has locations in 22 countries worldwide, in addition to an extensive global network of channel partners. For more information, please visit