WIXLIB

FOR: ApplicationDevelopment& DeliveryprofessionalsThe Forrester Wave : CRM SuiteCustomer Service Solutions, Q3 2012by Kate leggett, July 11, 2012Key TaKeaWaysCustomer service is The Cornerstone For delivering a GreatCustomer experienceHowever, delivering good service is difficult. Sixty-eight percent of US consumersreport an unsatisfactory service interaction during the past 12 months.Organizations must navigate rapidly changing customer expectations and lookfor vendor solutions that enable the business capabilities necessary to deliverdifferentiated experiences.The Customer service Vendor Landscape Consolidates To supportConverged CapabilitiesThe landscape of CRM suite customer service solutions is maturing and convergingthrough mergers and acquisitions activity. This is a response to the demand forsolutions that support cross-channel, end-to-end customer journeys, deliveringhigh customer satisfaction scores and garnering brand loyalty among customers.Buyers Need To probe deeply To Find The Right Customer servicesolutionThe CRM suite vendors offering customer service solutions have adopted clouddeployment models, offer improved support for business process management,have deepened their ability to manage customer data and provide richer analytics,and have added social and mobility capabilities.Forrester Research, Inc., 60 Acorn park Drive, cambridge, mA 02140 UsATel: 1 617.613.6000 Fax: 1 617.613.5000 www.forrester.com

For Application Development & Delivery ProfessionalsJuly 11, 2012The Forrester Wave : CRM Suite CustomerService Solutions, Q3 2012How The Top 18 Solutions Stack Upby Kate Leggettwith William Band, Boris Evelson, and Rowan CurranWhy Read This ReportDuring the past five years, the customer service capabilities of customer relationship management (CRM)suite solutions have greatly matured as vendors have focused on solidifying the foundational buildingblocks of customer support capabilities. Vendors have folded new technologies such as social computing,business process management, decisioning, business intelligence, and mobility into their solutions to alloworganizations to offer more-personalized customer service experiences. In this report, we evaluated 18significant products in the CRM customer services solutions space from a broad range of vendors: CDCSoftware, FrontRange Solutions, Maximizer Software, Microsoft, NetSuite, Oracle (looking at its OracleCRM On Demand, Oracle E-Business Suite CRM, Oracle PeopleSoft Enterprise CRM, and Oracle SiebelCRM products), Pegasystems, RightNow Technologies (now Oracle RightNow CX Cloud Service), SageCRM, Sage SalesLogix, salesforce.com, SAP (SAP CRM and SAP Business-All-in-One), SugarCRM, andSword Ciboodle. This report details our findings on how CRM suite customer service solutions measureup and plots where they stand in relation to each other in order to help application development anddelivery (AD&D) professionals select the right solution for their needs.Table Of ContentsNotes & Resources2 Transform Customer Service To Deliver GreatCustomer ExperiencesForrester conducted vendor surveyevaluations in February 2012 and evaluated18 CRM solutions worthy of consideration bylarge organizations. We also surveyed vendorcustomers.4 CRM Suite Customer Service SolutionsEvaluation Overview8 The Results: Buyers Have Many Choices ToSift Through11 Vendor Profiles21 Supplemental MaterialRelated Research DocumentsAssess CRM Capabilities To PinpointOpportunitiesJune 20, 2012Define The Right CRM MetricsApril 10, 2012Navigate The Future Of Customer ServiceJanuary 30, 2012 2012, Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Information is based on best availableresources. Opinions reflect judgment at the time and are subject to change. Forrester , Technographics , Forrester Wave, RoleView, TechRadar,and Total Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective companies. Topurchase reprints of this document, please email clientsupport@forrester.com. For additional information, go to www.forrester.com.

For Application Development & Delivery Professionals2The Forrester Wave : CRM Suite Customer Service Solutions, Q3 2012TRANSFORM CUSTOMER SERVICE TO DELIVER GREAT CUSTOMER EXPERIENCESIn our recent survey of 118 customer experience decision-makers, 86% said that delivering a goodcustomer experience is one of their top strategic priorities.1 Customer service and support are thecornerstones of your organization’s ability to meet this priority.Forrester defines customer service as:The ability to provision service to customers — either via self-service or via an interaction with acustomer service representative — before, during, and after a purchase.Customer service is important because: Good customer service experiences boost long-term loyalty. Customer loyalty has economicbenefits as measured over three dimensions: willingness to consider another purchase,likelihood to switch business to a competitor, and likelihood to recommend to a friend orcolleague.2 The revenue impact from a 10-percentage-point improvement in a company’scustomer experience score, as measured by Forrester’s Customer Experience Index, translatesinto more than 1 billion.3 Poor customer service leads to increased costs. The cost of failing to meet customerexpectations is high: 75% of consumers move to another channel when online customerservice fails, and Forrester estimates that unnecessary service costs to online retailers due tochannel escalation are 22 million on average.4 Poor service experiences risk customer defections and revenue losses. For example, if acompany has 4 million customers and each spends 100 per year, the total projected revenuefor a year would be 400 million. Forrester survey data shows that approximately 30% of acompany’s customers (or more) have poor experiences.5 That represents 1,200,000 customers,and typically only about 2% of them complain to the contact center. That leaves 98% who don’tcomplain, or a total of 1,176,000 customers at risk to defect. At 100 apiece, this represents a 117,600,000 loss in revenue annually.Good Customer Service Is Hard To DeliverCustomers know what good service is, and they demand it from every interaction that they havewith a company. Forrester data shows that 68% of US consumers say that they’ve had unsatisfactoryservice interactions in the past 12 months. Seventy percent of online consumers expect businessesto try harder to provide superior online customer service.6Customer service leaders must balance the need to keep their customers satisfied against the cost oftheir operations. Specific challenges include the need to: 2012, Forrester Research, Inc. Reproduction ProhibitedJuly 11, 2012

For Application Development & Delivery Professionals3The Forrester Wave : CRM Suite Customer Service Solutions, Q3 2012 Provide a consolidated customer service tool set for agents. Transactional data and customerhistory are often neither consistent nor consistently available to customer service agents acrosscommunication channels. Eighty percent of companies have nonintegrated communicationchannels: phone, email, chat, and web self-service.7 This leads to customers receivinginconsistent service, which increases costs and decreases customer satisfaction. Follow consistent processes. Customer service agents often use multiple disconnectedapplications when resolving a single customer issue. This lack of a standardized discoveryprocess negatively affects agent consistency and productivity, increases agent training times,and leads to a higher level of agent turnover due to frustration with the tool set.8 Comply with policy. Regulations in industries such as financial services and healthcare arebecoming increasingly complex. Few real-time processes in customer service organizationsaudit agent actions against policy requirements, leading to higher service costs due to incurredpenalties. Monitor customer needs and satisfaction. It is critical for customer service managers toreceive direct customer feedback, preferably as soon as the interaction with the customer hashappened. It is also critical for them to understand the general impression of their serviceoffering as expressed in the social sphere. Service managers use this information to balance thecost of service with overall customer satisfaction so that they can make realistic tradeoffs. Provide cross-channel customer service in the way that customers want to receive it. Inthe past 12 months, 68% of customers used the phone, 60% used help or frequently askedquestions (FAQs), 54% used email, 37% used chat, 20% used SMS, and 19% used Twitter.9Customer service agents supporting these media types need access to the same information inorder to ensure consistent service.The Customer Service Solution Landscape Has Matured And ConsolidatedDuring the past several years, there has been continued consolidation and turmoil in the customerservice solutions landscape. Vendors have acquired direct competitors or companies in adjacentspaces to broaden their customer engagement management capabilities and offerings. For example,in 2011, Oracle acquired InQuira, a leading knowledge management solution. In 2012, it acquiredRightNow Technologies, a cloud CRM vendor that emphasizes customer experience and contactcenter technology. RightNow had gone through its own series of acquisitions prior to this, acquiringQ-Go, a natural language search vendor, and HiveLive, a social media monitoring vendor.In late 2010, SAP acquired the mobility platform solutions provider Sybase. In 2011, the companyentered into a partnership with eGain for knowledge management. In early 2012, SAP made a moveinto social media analysis with a partnership with NetBase, which provides social media analysis.It also acquired Syclo to accelerate its push into mobility, including efforts behind mobile assetmanagement and field service solutions. 2012, Forrester Research, Inc. Reproduction ProhibitedJuly 11, 2012