KANA Study Reveals High Tech Industry Among First To Widely Adopt eCRM Solutions

High-Volume of Web-based Customer Service Keeps Contact Center Costs Low and Customer Satisfaction High

MENLO PARK, Calif., August 13, 2002�-KANA� (NASDAQ: KANA), the leading provider of external-facing eCRM solutions, announced today that a recent survey of high technology
customers found that these consumers demand better and more efficient online service than any other industry. In response, the high tech industry is providing its customers with faster
Web-based interactions such as e-mail and Web self-service, resulting in fewer calls into the contact center and lower costs of customer service.

The study, sponsored by KANA, compared customer service across a wide range of industries.
Results showed that within the high tech industry, customer satisfaction is very high due to reliance on the Web for quicker and easier customer transactions.

Key findings related to customer care in the high tech industry include:

  • Over 60% of current interactions with high tech companies are conducted via e-mail and Web self-service.
    Conversely, less than 10% of customer service questions are answered over the phone.
  • 56% of respondents felt that a combination of all methods (e-mail, self-service, phone and Web chat) would be the most effective way to receive answers to queries.
  • 65% of customers felt a combination of Web self-service and e-mail response results in the fastest resolution of questions.

The survey shows that Web self-service is not only the most requested way to find answers, it is also considered the quickest and most reliable alternative. The survey also demonstrated that all Web methods of customer service finished well above phone interactions. This could be due, in part, to the industry�s early realization that the costs of e-mail and Web self-service are a mere fraction of phone transaction costs. Within the high tech industry, companies have quickly adopted the use of complete contact centers, not just call centers, to drastically reduce costs and provide
customers with the most effective and accurate answers to queries.

�Customers in the high tech industry demand answers in a timely and efficient manner, as the
industry moves at rapid speed,� said Bud Michael, executive vice president of products and
marketing for KANA. �This study shows that the high tech industry fully understands the value of online customer service. By integrating KANA�s modular eCRM solutions, leaders in this cutting-edge industry have been able to provide superior levels of service on a flexible application
framework that enables fast time to value and maximum return on investment.�

The next critical step for these companies is to tightly integrate customer response across all
customer-facing service channels, including the phone, Web and
e-mail. 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 integrates across multiple service channels and ensures the ability to integrate with additional enterprise 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.

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.