Customers.com Technologies

How Is Customer Service Technology Changing?

How Did Customer Service Technology Fare in 2012?

With this 4Q2012 Customer Service Update Report, we complete our ninth year of quarterly updates on the suppliers and products in customer service. Yes, we’ve been writing these reports since 2004, focusing on factors that are important in the evaluation, comparison, and selection of customer service products: customers, products, and company activity, staffing, and financial performance.

This quarter the suppliers and products are:

- Aptean Knova
- Attensity Analyze and Attensity Respond
- eGain Service
- IntelliResponse Virtual Agent (VA)
- KANA Enterprise, KANA Experience Analytics
- Moxie Spaces
- Next IT ActiveAgent
- Nuance/VirtuOz Intelligent Virtual Agent
- Oracle RightNow CX Cloud Service
- Salesforce.com Service Cloud, Knowledge, Marketing Cloud (Radian6)

Briefly, customer service came back strong in 4Q2012 to post a very good quarter driven by customer growth. We’re relieved and encouraged. Fourth quarters are typically good quarters for software suppliers, as their customers complete strategic projects and spend down expiring budgets. But, at the end of 2011, we were concerned. There had been a string of six consecutive mixed quarters, and it raised concerns about the state and the future of customer service software. One quarter certainly does not make a trend, but we’re encouraged. The suppliers we track have introduced or will soon introduce strong new products and major new product versions that will help their customers deliver better customer service.

VirtuOz Intelligent Virtual Agent

Today, virtual assisted-service offerings focus on the service. VirtuOz Intelligent Virtual Agent is a good example. Its virtual agents are cross-channel virtual agents that deploy on web, mobile, and social channels and can answer questions that help customers complete activities across all phases of the lifecycles of their relationships with businesses. VirtuOz’ Virtual Agents best capability is the range of virtual agent interaction styles. Yes, these Intelligent Virtual Agents can deliver direct answers of text, links, and images to customers’ questions. But virtual agents can also “converse” with customers to guide them to web pages that contain more complex answers or to have a question and answer dialog that leads customers to answers based on how they answer the virtual agent’s question. And virtual agents can perform tasks with case management and CRM systems on customers’ behalves, acting as customer proxies.

By the way, speaking virtual agents are coming back. Think of Siri. Their best fit is on mobile devices for customer service apps that are narrow in scope. For example, “What’s the status of my order?”

We’ll be publishing more evaluations of virtual assisted-service products in the next several months. Next up is our review of Creative Virtual V-Person. Stay tuned.

~ Mitch

VirtuOz Intelligent Virtual Agent
Powerful and Flexible Cross-Channel, Cross-Lifecycle Virtual Assisted-Service
By Mitch Kramer, Senior Consultant, Patricia Seybold Group, July 26, 2012

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NETTING IT OUT

VirtuOz Intelligent Virtual Agent (IVA) is the virtual assisted-service product from VirtuOz, Inc., a privately held, venture capital funded, 10-year-old supplier based in Emeryville, CA, and Paris, France.

Organizations purchase subscription licenses of the VirtuOz IVA for cloud deployment. To date, VirtuOz claims that approximately 25 customer organizations have licensed its virtual assisted-service product.

VirtuOz earns very good grades on our Virtual Assisted-Service Report Card for Virtual Assisted-service—exceeds-requirements grades in all virtual agent technologies (answers, question analysis and matching, and customer service integration) and meets-requirements grades for analytic functionality, product viability, and supplier viability.

VirtuOz IVA is an attractive and useful offering with powerful and flexible capabilities. Use it to deploy virtual agents on web, mobile, and social channels to answer customers’ questions with direct answers, through guided dialogs, or by performing tasks on customers’ behalves within case management and CRM systems.

We recommend VirtuOz for large B2B and B2C organizations in North America and Western Europe that want to add virtual assisted-service to their customer service portfolio to support web, mobile, and social channels for answering customers’ questions across the entire customer lifecycle.

Customer Service Suppliers Poised for Growth in 2012?

Each quarter we review the state of the customer service industry by providing updates on the nine top suppliers (after industry consolidation): Astute, Attensity, Consona, eGain, IntelliResponse, Kana, Moxie, Oracle, and Salesforce.com.

The first quarter of 2012 was not a good quarter in customer service. After a big 1Q2011, 2011 faded through the next three quarters as customer growth and financial performance were mixed, and product and company activity were relatively light. The fade has continued into 1Q2012.

But no fading for Salesforce.com. SFDC had another huge quarter, continuing its string of consecutive quarters, the latest better than the previous. IntelliResponse had some large deals and shifted from educational institutions to more commercial accounts.

The surprise in Q1 was Oracle RightNow. After Oracle’s acquisition of RightNow closed on January 25, Oracle RightNow began operating as a Global Business Unit, hiring aggressively and introducing regular, quarterly product releases. When Oracle announced its intent to acquire RightNow on October 24, 2011, we felt and we wrote that, post-acquisition, RightNow could quickly lose its identity and its brand and its product could disappear within Oracle’s very large software portfolio. Not the case. No losers in this acquisition. The new Oracle RightNow is bigger and is growing faster than the old RightNow.

Salesforce.com launched a new entry-level customer service offering called Desk.com, which is based on the technology that it obtained in its September 12, 2011 acquisition of Assistly. The firm also launched Salesforce Rypple, its first HCM/HR application that adds social networking to performance management. The product is based on the technology that came to Salesforce.com in its December 15, 2011 acquisition of Rypple.

In fact, Salesforce.com and Oracle make us optimistic for the remainder of 2012. All of the other suppliers have new and refreshed offerings that can help organizations address requirements, especially for social-service and for customer service processes. It’s an election year in the U.S. The economy, certainly the corporate world, appears to be growing. Corporate growth means more customers, and more customers means more customer service.

Here's my quarterly Customer Service Supplier and Product Update for 1Q2012.

Customer Service Supplier and Product Update Report

This week’s report concludes our sixth year of publishing Quarterly Customer Service Updates. It’s been a great ride for us, for our suppliers, for their customers, and, we’re pretty sure, for their customers—the folks that call the contact centers, access the self-service Web sites, and participate in communities and social network to get answers to questions and solutions to problems.

We’ve taken a different approach to our 4Q2010 report. As usual, we examined the quarter’s customer growth, financial performance, product activity, and company activity for each of our eleven suppliers. We also awarded Customers.com Customer Service Stars—suppliers that demonstrate excellent, balanced, and improved performance across these dimensions for the quarter. Attensity Group, Moxie Software, and Salesforce.com earned Stars for 4Q2010.

What’s new and different is that we examined performance across the four dimensions for all of 2010, looking for excellence, balance, and improvement for the year. We have the data. Why not use it?

Updated In-Depth Review of Salesforce.com's Service Cloud

To date, Salesforce.com claims that nearly 9,000 customers have licensed Service Cloud, four million user licenses have been purchased for Customer Portal, and approximately 100 customers have licensed Salesforce Knowledge. Very few customers have licensed Answers, a community/user forum application that was introduced last February with Spring '10 release.

Support for social media got our attention. Service Cloud, of course, supports Chatter, SFDC's application for collaboration among an organization's internal users. For example, you might use Chatter to track and communicate the work to resolve a case, exchanging technical information and status among level one and level 2 CSRs, developers, QA personnel, and even the account executive. However, Service Cloud, and, in fact, all of Salesforce CRM, does not support external, public social media. SFDC has been talking about Salesforce for Twitter and a Salesforce for Facebook or a Facebook Connector for quite a while, but these are not actual products with warranties and support. Rather, they're free, downloadable apps from AppExchange that have been developed by SFDC personnel outside formal product development. SFDC told us that these are "managed." That is, they are built to accommodate and support upgrades and they cannot be modified by the organization that downloads them. To be sure, they are useful apps, and we gather that a few thousand organizations have downloaded and deployed them. Take care in using them.

Our report on Service Cloud Summer '10 updates our report on the Winter '10 release of Salesforce.com's customer service. We had described Winter '10 as a "release 1" offering with basic knowledge management capabilities, limited search, basic escalation facilities, and virtually absent analytic functionality. In Spring '10 and Summer '10, Salesforce.com has made many significant improvements to Service Cloud. Analytic functionality in Service Cloud 2 Summer '10 has been improved significantly. Certainly it's no longer a release 1 offering.

Service Cloud and its Answers, Customer Portal, Entitlements, Salesforce Knowledge, and Salesforce Mobile add-ons provide a very broad range of cross-channel, cross-lifecycle case management, knowledge management, and social media customer service capabilities. These applications are positioned to address the requirements of high volume B2C contact centers that provide support for complex products as well as B2B contact centers. Within this positioning, Service Cloud's case management capabilities and Salesforce Knowledge KM capabilities support assisted-service and, through the Customer Portal and Force.com-based public Web sites, support self-service. In addition, Service Cloud's Answers application supports a level of peer-service or social service.

We've performed this evaluation of Service Cloud Summer '10 using our new, more general, customer service framework rather than the framework for evaluating knowledge management-based customer service offerings, the framework we used to evaluate Service Cloud Winter '10. The new framework places less emphasis on knowledge management and search technologies and places more emphasis on the channels and customer activities supported. Service Cloud is much more than a KM-based customer service offering. Its strengths are in case management and customer activity support. As a result, it earned better grades both because of its improvements and because of the changes in our evaluation criteria. Most of the new and enhanced capabilities in Spring '10 and in Summer '10 have not been made in knowledge management or search technologies. Salesforce.com still has work to do in those areas.

Bottom line, Service Cloud 2 Summer '10 has no major limitations, no showstoppers. We recommend that you consider it for your organization's case management, knowledge management, and account management requirements. If your organization's customer service experience is built on your contact center, then Service Cloud 2 could very well be your best fit.

Salesforce Service Cloud Summer '10
Significantly Improved Cross-Channel, Cross-Lifecycle Customer Service
By Mitchell I. Kramer, Sr. VP and Sr. Consultant, Patricia Seybold Group, August 5, 2010