4C Consulting selects eGain as partner of choice to deliver customer experience solutions

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Slough, United Kingdom, December 20, 2006 – eGain Communications (OTC BB: EGAN.OB), a leading provider of customer service and contact centre software, is today announcing it has signed a partnership agreement with 4C Consulting, whereby the two companies will collaborate on customer service project implementations in Benelux and France.

4C Consulting, the market leader in customer value management solutions, spent over one year analyzing the software available in the marketplace. As a result 4C Consulting selected eGain over strong competition in this field.

4C Consulting has selected eGain as its software partner of choice for suitable customer service and self-service management project implementations. The parameters of this agreement enable 4C Consulting, an independent consultancy, to broaden its service offering to include implementation management.

The partnership commences with immediate effect with the two companies initially collaborating on sales and marketing activities. 4C will support eGain’s full software suite and will undertake in-depth training on the software. Thereafter the two companies will collaborate on proposals and project implementations for customer support oriented and customer value management solutions for companies. The key target markets include: telcos; utilities; media; financial services; pharmaceuticals and B2B services.

Johan Van Genechten, managing partner, 4C Consulting commented: “We selected to work with eGain due to their tremendous market knowledge, supported by excellent customer references. eGain’s case-based reasoning / knowledge management software and self-service environment were superior and offered a clear differentiator over the competition. Additionally, eGain, like ourselves, has a strong emphasis on user adoption, which is proving a major pitfall in many CRM projects at the moment”.

Andrew Mennie, Vice President and General Manager EMEA, eGain said: “Our partnership with 4C Consulting will enable eGain to deliver exceptional projects across key European markets. Our two companies share the same belief: that it’s essential to put the customer experience first. This partnership focuses on that ethos and will provide tangible benefits to all parties, including of course our prospective customers”.

eGain customer interaction hub deployment named an InfoWorld 100 award winner for 2006

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eGain clients continue to win awards for transforming their customer service operations with creative use of technology

Mountain View, Calif., November 20, 2006 – eGain Communications (OTC BB: EGAN.OB), provider of the industry’s top-rated* customer service and contact center software for in-house or on-demand deployment, announced today that InfoWorld (www.infoworld.com) has named ABN AMRO an InfoWorld 100 award winner for providing innovative customer service to their clients, leveraging eGain’s software for building customer interaction hubs. The award was based on enabling multi-channel customer service to treasury management clients, who use ABN AMRO’s online reporting and transaction initiation tool, CashPro®. The solution includes virtual agent self-service, and agent-assisted service through email, chat, and web collaboration.

With eGain, ABN AMRO has been able to meet the increased demand for customer service without expanding its staff, while enhancing the customer experience through unified multi-channel service.

“The eGain solution has made it possible to service new customers effectively, enhance our relationships with existing business clients, and gain a better understanding of our customers’ needs. Outstanding service is a competitive differentiator, and eGain has helped us gain that edge,” said Milton Santiago, Senior Vice President of Electronic Banking Products for ABN AMRO, North America.

The InfoWorld 100 award honors IT projects that demonstrate the most creative use of cutting-edge technologies to further their business goals. Nominations were submitted by InfoWorld readers, technology partners, and end-user companies in late-summer. To be considered, projects must stretch beyond the typical, off-the-shelf solution, and must use multiple technologies in innovative ways to serve well-defined business goals.

“It’s been said that fortune favors the bold. The inspiration for this year’s finalists to tackle such sweeping changes varies widely—from reducing delivery time of products and services to replacing cumbersome legacy systems,” said Richard Gincel, InfoWorld Senior Editor. “But regardless of the motivation, high ambition unites them all.”

“Our best products have been the direct result of co-innovating with our leading customers,” said Ashu Roy, CEO of eGain. “It is extremely rewarding to see our clients win prestigious awards like the InfoWorld 100 by creating transformational business value with our solutions.”

Additional information on the award is available in the November 13th, print edition of InfoWorld, as well as at the following URL: http://www.infoworld.com/reports/46SR06iw100.html.

eGain experiences growing momentum for best-of-breed products for cobrowsing and chat customer service

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Blue-chip customer service innovators across industry sectors use eGain’s web collaboration solutions to orchestrate extraordinary customer service experiences, while generating revenue at the same time

Mountain View, Calif., November 7, 2006 – eGain Communications (OTC BB: EGAN.OB), a leading provider of customer service and contact center software for on-premise or on-demand deployment, today announced that the company is seeing strong adoption of its chat and cobrowse products.

According to Forrester Research, customer experience is becoming the sole differentiator in more industries, particularly in consumer-facing industries like communications, technology, and financial services, helping leading companies to attract and retain customers, as well as continually increase wallet share of those customers. (Source: The Forrester Wave: eService Suites Q2 2006, Forrester Research, Inc., May 2006)

Many of eGain’s marquee clients are using the company’s chat and cobrowse solutions to deliver memorable customer service experiences and increase sales. These solutions enable businesses to help customers find information, fill out enrollment forms, complete shopping transactions, get advice, and learn to use web self-service.

eGain provides the industry’s most comprehensive and robust set of integrated solutions for a broad range of web collaboration needs including the following:
eGain® ChatBot™ for automated chat
eGain® Chat™ for agent chat, which includes page-pushing, proactive chat, and click-to-call capabilities

eGain® Cobrowseâ„¢ – Standard Edition for rapid deployment of standard cobrowse capabilities

eGain® Cobrowseâ„¢ – Advanced Edition for proxy-based cobrowsing

Some of eGain’s clients are innovating in web collaboration, combining phone interactions with concurrent cobrowsing, to deliver unique customer experiences. Furthermore, eGain plans to enable cobrowsing for rich internet applications by adding support for the following standards in 2007:

AJAX® in Spring 2007
Adobe® Flash® and Adobe® Flex™ in Summer 2007
“As web collaboration products become more robust, they create a fuller experience for the customer, and you have a lot more options to work with than just text chat,” said John Ragsdale, VP of Research for SSPA (Society of Service and Support Professionals). “My long-term view is that full web collaboration (remote access, screen sharing, joint form fill, page push, etc.) can even be a better experience than phone support.”

“We continue to co-innovate with our clients, delivering best-in-class applications and enabling competitive advantage for these clients,” said Ashu Roy, CEO of eGain. “Stellar examples of this co-innovation, our web collaboration solutions are an integral part of the eGain Service customer interaction hub suite.”

For additional information, visit the following web pages on the eGain website:
http://www.egain.com/products/chat_bot.asp for eGain® ChatBot™
http://www.egain.com/products/chat.asp for eGain® Chat™
http://www.egain.com/products/cobrowse.asp for eGain® Cobrowse™

eGain announces financial results for first fiscal quarter ended September 30, 2006

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Revenue of $6.0 million up 15% from the comparable year-ago quarter
License revenue of $1.6 million up 19% from the comparable year-ago quarter
Hosting revenue of $1.0 million up 22% from the comparable year-ago quarter
Services revenue of $1.2 million up 24% from the comparable year-ago quarter

Mountain View, Calif. (November 09, 2006) – eGain Communications (OTC BB: EGAN.OB), a leading provider of customer service and contact center software, today announced financial results for the first fiscal quarter ended September 30, 2006.

Total revenue for the first quarter of fiscal year 2007 was $6.0 million, an increase of 15% or $780,000 from the comparable year-ago quarter. License revenue was $1.6 million, an increase of 19% or $258,000 from the comparable year-ago quarter. Support and services revenue was $4.4 million, an increase of 14% or $522,000 from the comparable year-ago quarter.

Cost of revenue for the first quarter of fiscal year 2007 was $2.0 million, an increase of 12% or $205,000 from the comparable year-ago quarter. Gross margin for the quarter was 67% compared to 66% in the comparable year-ago quarter. Research and development expense for the quarter was $1.0 million, an increase of 44% or $312,000 from the comparable year-ago quarter. Sales and marketing expense for the quarter was $3.3 million, an increase of 55% or $1.2 million from the comparable year-ago quarter. General and administrative expense for the quarter was $940,000, an increase of 49% or $311,000 from the comparable year-ago quarter.

Net loss for the first quarter of fiscal year 2007 was $1.5 million, or $(0.10) per share, compared to a net loss of $297,000, or $(0.02) per share, for the same quarter a year ago. Net loss for the quarter included stock-based compensation of $75,000 and interest and tax expense of $285,000, compared to stock-based compensation expense of $76,000 and interest and tax expense of $276,000, for the same quarter a year ago.

Total cash and cash equivalents were $5.2 million at September 30, 2006 compared to $6.9 million at June 30, 2006. Days sales outstanding in receivables for the quarter ended September 30, 2006 were 51 days compared to 69 days for the comparable year-ago quarter. Deferred revenues totaled $3.9 million at September 30, 2006, down from $4.3 million at June 30, 2006.

“We are pleased with our revenue growth in the quarter,” said Ashu Roy, eGain CEO. “As planned, we are ramping our investment in the first half of fiscal year 2007 across direct sales, channel development—especially with Cisco, and product development.”

Guidance for Fiscal Year 2007
Management anticipates revenue to be in the range of $27 million to $30 million or a 20% to 33% increase from fiscal year 2006.
Management anticipates GAAP income from operations to be positive for fiscal year 2007.

eGain announces first quarter fiscal 2007 earnings call

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Teleconference scheduled for Thursday, November 9, 2006

Mountain View, Calif.,–(MARKET WIRE)- Monday, October 30, 2006: eGain Communications (OTC BB: EGAN.OB), a provider of customer service and contact center software for in-house or on-demand deployment, will announce financial results for the first quarter ended September 30, 2006 on Thursday, November 9, 2006 after the close of market.

Management of eGain will host a conference call that day to discuss the results at 2:00 p.m. (Pacific) / 5:00 p.m. (Eastern).

This call will be webcast and can be accessed from the Investor Relations section of eGain’s web site at www.egain.com. A replay will be available following conclusion of the call on eGain’s Investor Relations web site or for one week at the following number: (703) 925-2533 (international) or (888) 266-2081 (domestic) with ID# 989876.

New eGain software includes nine new applications, and enables customer service innovation through customer interaction hubs

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eGain® Service™ 7.6 brings together traditional and new communication channels, enhances customer experience, boosts process efficiencies, and ensures compliance through comprehensive and integrated customer interaction hub platform

MOUNTAIN VIEW, CA — (MARKET WIRE) — October 30, 2006: eGain Communications (OTC BB: EGAN.OB), a leading provider of customer service and contact center software for in-house or on-demand deployment, today announced a major new release of its customer interaction hub (CIH) software suite.

Jointly conceived and developed by eGain and its blue-chip customers, eGain Service 7.6 suite includes nine new applications and directly addresses the mindset of today’s consumers, who expect choice of communication channels and superior service quality when interacting with their favorite brands. The software suite combines deep knowledge management and process automation tools with a rich set of applications for managing the ever-growing volume of interactions through traditional as well as emerging communication channels. The CIH approach centralizes channel management, knowledge bases, business rules, and analytical engines in one place, and drastically reduces the cost of managing multiple channels while improving customer experience and process efficiencies.

eGain’s new suite is the first to support short message service (SMS) customer service interactions, as well as next-generation web self-service, chat, cobrowsing, email, fax, postal mail, notification management, call tracking and resolution, knowledge management, and service fulfillment.

eGain Service 7.6 is built on eGain CIHâ„¢ Platform, the industry’s most comprehensive, integrated, and flexible customer interaction hub platform. Based on a 100% J2EE architecture, it includes out-of-the-box integration with leading business applications, content management systems, and call center infrastructure solutions. The fine-grained service-oriented architecture of the platform enables rapid development of powerful custom applications.

“To gain competitive differentiation during the next five years, leading enterprises will invest in building a customer interaction hub,” said Esteban Kolsky, Research Director at Gartner. “The CIH model enables the business to learn and meet or exceed customer expectations across all communication channels.”

Penn Foster Career School, one of the oldest and largest distance learning institutions in the world, has recently implemented eGain Service 7.6. Currently used by more than 60 agents, the solution has already enabled the institution to reduce response times by half. Furthermore, Penn Foster expects to handle a 50% increase in customer service traffic while curbing service costs. The school is also using the software to automate service processes involving subject matter experts, within and outside the contact center, when student inquiries require resolution that extends beyond the initial interaction. As part of its customer interaction hub vision, it plans to implement the chat and web self-service solutions in eGain Service 7.6 to further improve the quality of interactions with students.

“We are committed to meeting the lifelong learning needs of adults,” said Rob Bruno, Vice President of IT at Penn Foster Career School. “eGain Service 7.6 will enable us to provide prompt and effective service to our student base. This service level, together with the quality of our education offerings, will help ensure that we are the preferred institution for distance learning.”

New applications in eGain Service 7.6

Self-service
eGain MessageCenterâ„¢: Enables secure communication of sensitive information through email between the customer and the business, and enables customers to view all their interactions through an authenticated website.

Assisted service
eGain Adviserâ„¢: Empowers agents—whether they are novice, expert, in-house, or outsourced—to handle complex customer interactions that entail not only informational and transactional customer service, but also contextual upsell and cross-sell, follow-on service fulfilment, and value-added advice through conversations that are compliant with regulations and corporate best practices. The solution includes a highly flexible user interface, integrated workflow, and interactive process guidance, powered by eGain’s Inference® reasoning engine, a proven technology used by enterprises for over 15 years.

eGain CallTrackâ„¢: Provides phone call logging, tracking, resolution, and follow-on service fulfillment.

eGain SMEâ„¢: Allows customer service agents to collaborate with subject matter experts (SMEs) within and outside the contact center to speedily respond to an inquiry.

eGain SMSâ„¢: Provides a flexible system for managing customer interactions done through SMS, an increasingly popular channel of interaction.

Process automation
eGain AutoClassifyâ„¢: Helps companies shorten the turnaround time on inquiries by intelligently classifying and routing incoming emails and other inquiries. The solution uses eGain’s Inference® reasoning engine for more advanced and robust classification of inquiries than simple keyword matching.

eGain AutoWorkflowâ„¢: Works with eGain Workflowâ„¢ Engine and eGain Adaptersâ„¢ to execute service processes that do not need human involvement.

eGain Notifyâ„¢: Helps manage and deliver event-based reminders, alerts, and updates at any stage of a customer transaction or the overall customer lifecycle.

eGain Surveyâ„¢: Helps contact centers, ecommerce sites, and customer portals solicit and act on customer feedback to improve and grow customer relationships.

“eGain continues to win deals on the strength of its platform and an increasingly process-centric message,” writes Chip Gliedman, VP of CRM Research at Forrester. “The vendor’s attention to business processes has made it a leader in eService process orientation and it is winning deals, particularly in Europe, where modeling and executing processes are key deal attributes.” (The Forrester Wave: eService Suites Q2 2006, Forrester Research, Inc., May 2006).

“eGain has delivered a series of industry-firsts over the last decade, and we continue that tradition with eGain Service 7.6, the most complete customer interaction hub solution available in the market today,” said Ashu Roy, CEO of eGain. “A direct result of our collaboration with leading clients, who are at the forefront of customer service innovation, the solution can enable any enterprise to differentiate itself through stand-out customer service.”

Immediately available on a worldwide basis, eGain Service 7.6 can be deployed on-demand or on-premise. Details on the solution are available at http://www.egain.com/products/index.asp.

eGain to host 2006 North America Customer Summit and Best Practices conference

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World-class customers, partners and industry analysts to share contact center and customer service best practices and innovation

Mountain View, California, November 1, 2006: eGain Communications (OTC BB: EGAN.OB), provider of the industry’s top-rated* customer service and contact center software for in-house or on-demand deployment, today announced that its blue-chip customers, partners and industry thought leaders will participate at the company’s upcoming North America Customer Summit and Best Practices Conference being held at the Bahia Resort Hotel in San Diego, CA on November 6th and 7th, 2006.

The theme of the conference will be Serviceâ„¢ 2.0, the next generation of strategies and tactics that can help companies win in their markets through exceptional customer service. The event will feature presentations from industry thought leaders on emerging trends in the customer service and contact center space, as well as success stories and best practices from eGain customers. Attendees will also learn about eGain’s newly announced eGain Serviceâ„¢ 7.6 product suite, and have the opportunity to network with peers. In addition, Esteban Kolsky, director of research for CRM and Customer Service at Gartner, will deliver a keynote speech on Customer Interaction Hubs and moderate a panel discussion on the next generation of multi-channel customer service.

“We are excited about the strong interest in this year’s North America customer summit,” said Ashu Roy, CEO of eGain. “Attendees will benefit from networking with their peers from marquee companies, many of them thought leaders, across industry sectors including retail, financial services, telco, ebusiness, and others.”

Registration
Attendees can register online at the URL: http://www.egain.com/news/customer_summit06.asp or alternatively call 650-230-7449 for information.

Alliance & Leicester Commercial Bank selects eGain Serviceâ„¢ to enhance customer experience

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Customers embrace web self-service pilot resulting in full roll out

SLOUGH, UK, October 11, 2006: eGain Communications (OTC BB: EGAN.OB), today announced that Alliance & Leicester Commercial Bank, part of one of the UK’s major financial services groups, has selected eGain Serviceâ„¢ to improve the customer service it provides to its customers on a 24×7 basis.

Following a review of the market, Alliance & Leicester Commercial Bank selected eGain to deliver a customer service solution to support its newly launched Internet Banking offering. Alliance & Leicester Commercial Bank had a two-fold customer service requirement. The first was to introduce a web self-service element to enable customers to find answers to their questions in a manner and at a time convenient to themselves. The second was to improve the quality and speed of service delivered by its Helpdesk facility by providing its Customer Advisors with improved access to knowledge. The bank required a central knowledge base for both contact channels, to enable it to efficiently provide a consistent and quality service to its customers via the channel of their choice.

eGain’s solution for Alliance & Leicester Commercial Bank will involve the development of a customer-focused Knowledge Based Repository. A 160-page manual of queries, frequently asked questions and technical information will be made available through an intuitive and easy to use interface, tailored for use by both customers directly via the web and by agents.

eGain Service has been implemented in two phases. Phase one has already delivered benefits to Alliance & Leicester Commercial Bank’s customer service by providing its Customer Advisors with improved access to Frequently Asked Questions and the new knowledge base. In phase two, the bank will implement a full web self-service solution for its customers. This will enable those customers who prefer to use the web to search for information and assistance in the way and at a time that suits them. The banks believes that due to the high take up of web self-service by its customers around 50 per cent of the calls its Advisors currently handle per week will in the future be resolved by web self-service.

Donna Cunliffe, Head of Customer Services for Alliance & Leicester Commercial Bank commented: “We aim to deliver a one stop shop for our customers, with consistent quality information available across all channels of communication. Our Retail banking division’s experience of working with eGain provided us with the confidence that they could progress the project quickly and with industry and organisation insight.”

Cunliffe continues: “Phase one of eGain’s solution went live within six weeks and has already led to a significant improvement in customer experience. We will make eGain’s solution available to our customers via web self-service during October to further improve service delivery.”

Andrew Mennie, Vice President and General Manager EMEA, eGain commented: “Alliance & Leicester Commercial Bank wanted its breadth and depth of customer service knowledge to be made available to all Advisors regardless of their experience, effectively making every customer service representative a seasoned expert. This is exactly what eGain Serviceâ„¢ enables.

“This rapid take up of the Internet banking system by its customers must be supported by quality on-line customer service. Our web self-service solution will deliver a better level of customer service and in turn reduce service related phone calls,” concluded Mennie.

eGain named to Software Magazine’s 24th annual “Software 500” list for fourth year in a row

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Software Magazine ranks eGain as one of the world’s 500 largest software companies

Mountain View, Calif. (October 25, 2006): eGain Communications (OTC BB: EGAN.OB), provider of the industry’s top-rated* customer service and contact center software for in-house or on-demand deployment, today announced its inclusion on the Software 500, Software Magazine’s list of the world’s foremost software and services providers.

The Software 500 is a revenue-based ranking of the world’s largest software and services suppliers targeting medium to large enterprises, their IT professionals, software developers, and business managers involved in software and services purchasing. The ranking is based on total worldwide software and services revenue for 2005. This includes revenues from software licenses, maintenance and support, training and software-related services and consulting. Suppliers are not ranked on their total corporate revenue, since many have other lines of business, such as hardware. The financial information was gathered by a survey prepared by King Content Co. and posted at www.Softwaremag.com, as well as from public documents.

“The software industry continues to be dynamic with more than 90 new companies on the list this year,” says John P. Desmond, editor of Software Magazine and Softwaremag.com. “The Software 500 helps CIOs, senior IT managers and IT staff create the short list of business partners. It is a quick reference of vendor viability.”

“Being part of the Software 500 for the fourth year in a row is a great honor for eGain,” said Ashu Roy, CEO of eGain. “Moving up almost 30 spots from last year shows the increasing importance of customer service as a business differentiator and the growing demand for robust customer interaction hub software.”

The “Software 500″ list is published online at www.Softwaremag.com.

eGain joins the NOA to drive best practice in the contact centre industry

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SLOUGH, UK — (MARKET WIRE) — October 4, 2006 : eGain Communications (OTCBB: EGAN.OB), a leading provider of customer service and contact centre software, today announced that it has joined the National Outsourcing Association (NOA), and will be actively involved in initiatives and events organised by the NOA to drive best practice in the contact centre industry.

Joining as a premier member, eGain will help lead the NOA’s drive to significantly improve the customer service experience in contact centres both locally and in the offshore market. eGain will help develop industry research into call centre industry pain points and will also participate in the NOA’s recently launched contact centre Special Interest Group, which has been set up to promote best practice for outsourced contact centre operations.

Some of the industry issues eGain will be working with the NOA on promoting to the broader contact centre community include:
Addressing the recent backlash against offshore contact centres
Advising on how to bring contact centres back onshore without service disruption
Promoting efficiency and moving contact centres to deliver superior customer service through single contact request resolutions
Highlighting flexible approaches to promote consistency across different communications channels

“Outstanding customer service is an extremely important differentiator for today’s contact centres—whether the contact centres are outsourced or in-house—it is important that businesses are able to respond both quickly and accurately to their existing and prospective customers through a variety of different communications channels,” said Andrew Mennie, Vice President EMEA, eGain Communications.

Mennie continues: “As a premier member of the NOA we are looking forward to sharing our expertise in customer service solutions with new organisations in the contact centre industry and believe the NOA provides an important forum to share and learn from other industry leaders.”

In conjunction with the NOA, eGain will be hosting a seminar on the 21st November focusing on: The Future of Customer Service: Keeping up with your Customers. The seminar will touch on the offshore market and highlight best practises, including a variety of leading customer examples.

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