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Press Releases Wednesday, May 29, 2002   
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Bertelsmann Marketing Service Looks to KANA’s External-Facing eCRM Solution to Provide Global, Multilingual Customer Support

Logistics Service Center Providers Rely on KANA Response to Improve Customer Service on the Web and Build Strong Customer Relationships

MENLO PARK, Calif. - May 20, 2002 -KANA® (NASDAQ: KANA), the leading provider of external-facing eCRM solutions, today announced Bertelsmann Marketing Service GmbH., one of the world’s largest direct marketing service providers, has deployed KANA ResponseTM software, KANA’s market-leading e-mail management solution. Currently, KANA Response is implemented throughout its 13 call centers around the world with over 11,000 agents utilizing the software every day. As a result, they are able to dramatically reduce response times to customer inquiries while reducing costs.

Bertelsmann required a solution to accommodate a large volume of inquiries in multiple languages. With KANA Response, Bertelsmann is able to route the e-mails to a call center or customer service representative that is able to respond in the native language each individual e-mail is written in, providing the customer with superior levels of customer support. With KANA Response, Bertelsmann customer service representatives have now reduced their average e-mail response time from 10 minutes to an average of 1.5 minutes.

“After evaluating several vendors, we chose KANA Response because of its ability to enable our customer service representatives to provide faster responses while identifying each customers individual customer history instantly,” said Andreas Jung, Bertelsmann Service GmbH’s head of IT management. “Additionally, KANA’s flexible Web-architecture is able to scale with our business and our customer’s business.”

KANA Response provides world-class agent-assisted service with fast, high volume, intelligent, automated e-mail, Web, and instant messaging request management. The most effective and widely used e-mail management system in the world, KANA Response enables Bertelsmann Service GmbH to respond faster and more accurately to customer requests, increasing customer satisfaction and productivity in the contact center.

“Bertelsmann Service GmbH needed an external-facing eCRM solution that incorporated multilingual capabilities and would be scalable enough to effectively manage high volumes of e-mails coming from several different countries,” said Bud Michael, executive vice president of products and marketing for KANA. “With KANA’s Web-architected solutions, Bertelsmann Service GmbH has been able to decrease response time and provide extraordinary customer service on a global scale, while dramatically reducing costs in the contact center.”

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 Bertelsmann Service GmbH
Bertelsmann Marketing Service GmbH, based in Gütersloh (Germany), is one of the largest direct marketing-service companies. The core business is the holistic mapping of individual customer binding systems. In details: the conception of customer binding systems, the implementation in data management systems, customer care, warehousing, logistics and clearing of financial transactions. The worldwide service center looks after more than 35 Million Customers.

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.

Cautionary Note Regarding Forward-looking Statements Under the Private Securities Litigation Reform Act of 1995: Information in this release that involves KANA’s financial forecasts, projections, expectations, beliefs, hopes, plans, intentions or strategies regarding the future are forward-looking statements that involve risks and uncertainties. These statements include statements about KANA’s expected profitability, cash flow, revenue, margins, expenses, growth and new business, its market position and its relationship with customers. All forward-looking statements included in this release are based upon information available to KANA as of the date of the release, which may likely change, and we assume no obligation to update any such forward-looking statement. These statements are not guarantees of future performance and actual results could differ materially from our current expectations. Factors that could cause or contribute to such differences include, but are not limited to, risks associated with the merger with Broadbase and integration of the companies; risks associated with lack of market acceptance of KANA’s products or services; inability to enhance and develop our products and services within budget and on schedule; competition in our marketplace, including introduction of new products or services, or reductions in prices, by competitors; inability to attract and retain qualified employees, to manage cash and expenditures or to expand sales; inability to manage business in light of recent management changes and personnel reductions; KANA’s history of losses; and trends and uncertainties slowing and uncertain economic conditions, particularly as they affect spending by our prospective customers on eCRM and similar enterprise software products. These and other factors are risks associated with our business that may affect our operating results are discussed in KANA’s filings with the Securities and Exchange Commission (“SEC”), including our most recent annual report on Form 10-K and quarterly report on Form 10-Q, and registration statement on Form S-4.

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NOTE: KANA is a registered trademark, and KANA Software, KANA iCARE, KANA Contact Center, KANA IQ, KANA ResponseIQ, KANA Response, KANA Marketing, KANA iCARE Analytics and the KANA logo are trademarks of KANA Software, Inc. All other company and product names may be trademarks of their respective owners.

KANA
Jessica Hohn
(508) 653-4000
jhohn@KANA.com

PAN Communications
Jennifer Meyer/Karen Pantinas
978/474-1900
kana@pancomm.com

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