The Future of Customer Service Software

From: Laura Wood (
Date: Mon May 26 2003 - 04:02:13 EEST

I enclose details on the Future of Customer Service Software Report.

Companies striving to enhance the quality and longevity of their customer relationships, both online and off, are increasingly turning to service automation software.

The Future of Customer Service Software examines the current state and future implications of service automation within CRM.

The report also discusses the uptake of service automation in 13 vertical markets.

Special consideration is dedicated to the service automation vendor competitive landscape.

Industry verticals analyzed include: financial services, telecommunications, technology, commercial transport/logistics, retail, outsourcers, healthcare, entertainment, government, manufacturing, travel & tourism, utilities and other.

For a complete index of this report click on

Report Index:

The business model of yesterday
Focus on enterprise market
Direct sales forces
Selling on features
Point solutions
Factors forcing change
Declining revenues
Limited access to capital
Commoditization of products
Emerging markets
New sweet spot
What does this mean to you? The new business model
Indirect sales force
The SME market – golden opportunity
Selling on benefits
Suite solutions

What is this report about?
Traditional customer care software (TCCS)
Who is the target reader?
How to use this report

Key findings
Market size
Market segments
Traditional customer care software (TCCS)
Drivers and trends
Traditional customer care software
End-user business drivers

Traditional customer care software is being deployed for one of three reasons: to compete on an equal footing with other companies, to differentiate or a combination of the two

Market trends

Traditional customer care software vendors are increasingly partnering with business intelligence vendors or are developing analytical tools in their efforts to capture a portion of the lucrative business intelligence market

ERP vendors are steadily migrating to the traditional customer care software market

As the eChannel continues to become a preferred method of communication for the call center, traditional customer care software vendors are rapidly developing strategic partnerships (OEM agreements) or are developing eServices in-house

Architecture support remains the top priority among end-users. The primary issue lies with integrating service automation software applications with existing IT infrastructures

The market for ASPs is being driven primarily by SMEs in their efforts to reduce IT expenditures


End-user business drivers

The adoption of eService technologies is being driven by increased Internet usage and an increase in eCommerce activities by the consumer and the inability of end-users to adequately service an increasing number of Internet-based service requests

Market trends

Most eService vendors offer a hosted version of their products but do not host it themselves

The days of the point solution are coming to an end. End-users are demanding comprehensive eService suite solutions to add greater depth and functionality to their CRM technology needs

Email management

End-user business drivers

The inability of firms to deal with a deluge of emails is the primary driver behind the adoption of email management software

The adoption of email management software stems from a company’s desire to cut costs

Web-based self-service

End-user business drivers

End-users need to equip their Web sites in order to meet the demands of society with an increasing self-service mentality and desire to deal with queries on its own

Web-based self-service applications offer the greatest cost savings over any other interaction

Market trends

Email management, Web-based self-service and TCCS vendors are partnering in force with knowledge management vendors in their efforts to provide added value to their products

Live Web-agent help: text-chat

End-user business drivers

The main drivers behind the growth of text-chat are essentially the same as those of email management and Web-based self-service - increasing Internet penetration and increasing eCommerce activity. In addition, marketing hype as to the benefits of text-chat is helping drive sales

Market trends

Consumer usage of text-chat has not taken off as fast as expected. However, there is enough consumer interest in online real-time servicing for end-users to implement text-chat solutions

The lack of a definable ROI model is hampering growth of text-chat

Live Web-agent help: VoIP

End-user business drivers

Market trends

The primary reason for the lack of VoIP uptake is concern over its viability as a communication channel

Lack of consumer demand is impeding the uptake of VoIP technologies. The issue is high costs associated with hardware


Key findings
Vertical market revenues split
Customer identification
Financial Services
Commercial Transport/Logistics
Retail/Remote Shopping
Travel and Tourism

Call center size band
Branding and marketing
Importance of multi-channel strategy
Distribution channels/partnership strategies
Direct Sales
The ASP model

Key findings
Competitor identification

Ask Jeeves
Chordiant Software
Computer Associates (CA)
divine (formerly eShare Communications)
Interactive Intelligence (InIn)
Point Information Systems (PIS)
Primus Knowledge Solutions
RightNow Technologies (RNT)
Siebel Systems
Competitive structure

Key findings
Service automation software to 2006
Market forecast
Traditional customer care software
Market forecast
Future trends

An increasing share of traditional customer care software sales will come from emerging markets

Market forecast
Future trends

In two to three years, the eServices market will not exist as a stand-alone market

Growth of eServices will spark growth of Web-enabled call centers

The fastest adopters of WBSS will be the technology, financial service and telecommunication companies

Despite the deployment of customer-facing WBSS applications, enterprises will first test out these products in a B2E environment

Enterprise portals will drive growth of (text-chat and) IM in the B2B space

The increase in instant messaging usage will hamper text-chat growth

In the short term, VoIP is not a significant threat to text-chat vendors. However, text-chat vendors should incorporate a voice element in their products in anticipation of increased demand for click-to-talk functionality in the long term

VoIP will account for a larger percentage of eService expenditures but will not be as great as the market has predicted


Key findings

Companies that offer point products must become partners of choice or obtain strong competitive advantage in order to survive in a crowded eServices space

Email management vendors must seek other revenue streams as evolving market dynamics necessitate this change

Integration and suite solution issues will drive consolidation in the WBSS space. Therefore, WBSS vendors must partner accordingly

WBSS vendors should invest heavily in knowledge base tools to capture the voice of the customer

WBSS vendors need to get out of the shadow of email management by demonstrating the sophisticated capabilities that it has as well as the cost savings that it can achieve

The greatest opportunity for text-chat (at present) is in financial services institutions with a focus on the brokerage space. Therefore, text-chat and IM vendors must focus on the financial services industry

Vendors should reposition/rebrand their text-chat offering as Instant Messaging (IM) products and target the enterprise space


Supplementary data
Vertical markets
Research methodology
Rounding errors
How to contact experts in your industry

Report Pricing:
Hard Copy EUR 4,339
Electronic EUR 4,275
Site Licence EUR 4,275


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Click on for details.

Thank you for your consideration.

Kind Regards,

Laura Wood
Senior Manager
Research and Markets Ltd

The Future of Customer Service Software
Category: Services, Software, CRM

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