Cross-Channel, Cross-Lifecycle Customer Service Product and Company Update 4Q2007

Customer Growth and Big Deals Make for an Excellent 4Q2007

February 28, 2008

Customer Service suppliers closed out 2007 with a very good fourth quarter. No exceptions. All of the customer service suppliers that we cover—ATG, eGain, InQuira, InStranet, KANA, KNOVA, and RightNow—had good fourth quarters Customer growth was the driver in 4Q2007 as it had also been in 3Q2007. Fourth quarter is typically quiet from a product perspective across the software industry. Two customer service companies had significant product activity: RightNow and KANA. There was very little company activity in 4Q2007. Most significantly, despite what appears to be tough economic times ahead, suppliers continue to hire aggressively. Excellent customer service delivered effectively and efficiently keeps customer satisfaction and loyalty high and operational costs low.


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