Healthcare Industry Experiencing Significant Growth in Demand for Customer Information via the Web

Providers Can Dramatically Cut Costs and Increase Customer Satisfaction Through
Adoption of Web Self-Service Customer Care

MENLO PARK, Calif. – July 8, 2002 -KANA® (NASDAQ: KANA),
the leading provider of external-facing eCRM solutions, today announced the findings of a
recent survey which revealed that healthcare customers are increasingly demanding
self-service capabilities to find more accurate information quickly via the Web. While
most patients currently rely on the phone for information – due to its
immediacy – the healthcare industry is beginning to see traction in online and
self-service customer care. The survey illustrates the need for rapid adoption of more
flexible, Web-based, contact center services by healthcare providers seeking to give
customers a more immediate and satisfying communication experience.

The study, sponsored by KANA, compared customer service
requirements across numerous industries. The healthcare industry was found to be one of
the most time- and security-sensitive markets, wherein patients are increasingly demanding
immediate private and personalized service. Healthcare providers need to empower medical
professionals that have patient-facing responsibilities with multi-channel customer
service tools that enable them to provide this accurate and timely information via the Web.

Key findings related to healthcare organizations from the survey include:

  • 50 percent of respondents currently communicate via the telephone due to its immediacy

  • 40 percent of respondents cited Web self-service as the most
    ideal form of communication to receive rapid responses to inquiries

  • 79 percent of respondents requested that healthcare
    providers add Web communication channels, such as self-service, e-mail and chat

“Healthcare providers are experiencing increased
competitive pressure to maintain and grow their subscriber base through improved member
experiences,” said Bud Michael, executive vice president of products and marketing
for KANA. “As healthcare organizations strive to provide extraordinary customer
experiences, this survey illustrates the need for rapid adoption of Web-based
communication channels. KANA has a strong presence in the healthcare industry and has
already enabled numerous organizations to provide high-quality interactions at extremely
low costs through the implementation of its external-facing eCRM solutions, resulting in a
rapid return on investment.”

Migrating to a Web-based service model can also help
healthcare providers dramatically cut operating and service costs. According to a Gartner
study, e-mail interactions cost about 40 percent of what a phone interaction costs and
self-service interactions represent an even greater savings of about 25 percent of a phone
call. By eliminating redundant and disparate customer data and decreasing process times,
healthcare providers can benefit from a significant cost savings while increasing customer satisfaction.

The KANA iCARE™ suite is a comprehensive enterprise
software suite made up of modular eCRM solutions, including 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. KANA’s modular approach enables companies to address specific customer
service issues with a particular eCRM solution, without the need to deploy an entire
suite. Additionally, KANA’s Web architecture ensures the ability to integrate with
additional eCRM solutions as needed.

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.

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