KANA Study Reveals That Tracking and Leveraging Customer Histories is Critical to Providing High Levels of Customer Satisfaction

Knowledge Base Solutions Combined with External-Facing Personalization Capabilities
Address Key Customer Concerns and Allow Companies to Provide Positive Customer Experiences

MENLO PARK, Calif. – March 18, 2002 -KANA┬« (NASDAQ: KANA),
the leading provider of external-facing eCRM solutions, today announced results of a
recent study of consumer behavior that revealed that capturing and leveraging knowledge
across all customer communication channels is vital to providing extraordinary customer
experiences. Nearly half of consumers polled find that repeating their orders, questions,
mailing address, and payment method are the most negative aspects in dealing with a business
and are frustrated by an enterprise’s lack of knowledge of their history with the organization.

This KANA-sponsored survey 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. Results show that consumers
demand that their service representatives have a knowledge of their past history and
current relationship with an organization.

Key findings include:

  • 42 percent of consumers found that past customer
    interactions were not leveraged by the customer service center that they were contacting.
    The lack of knowledge that these call center representatives have of their own company’s
    services and typical customer questions is a problem that these customers would like addressed

  • 45 percent of consumers found that having a personalized account
    set up, either in a call center, on the Web or via e-mail, made their experience more beneficial

  • The second most common frustration among those polled was
    dealing with a business’ impersonal approach.

  • 67 percent of participating consumers stated that courtesy,
    timely responses, and personalization across all channels have an impact on their future
    relationship with the company.

KANA is not alone in showing that tracking customer
histories and providing that information is critical to the success of a business.
According to Jupiter Communications, e-commerce Web sites using technology that captures
this information have seen annual revenue increases of up to 52 percent.

“KANA sponsored this survey to identify the
expectations of today’s customers relative to personalized service,” said Bud
Michael, executive vice president of products and marketing for KANA. “The survey
indicates that customers have grown to expect customized service across all communication
channels. KANA’s integrated, external-facing Contact Center solution uniquely enables
businesses to provide this high level of service. KANA Web-architected solutions provide
the knowledge needed for personalized care, even while 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
www.kana.com.