KANA’s Web-Architected eCRM Solutions Deliver Rapid ROI and Speed Time to Customer Satisfaction for the Retail Industry

KANA’s Web-Architected eCRM Solutions Deliver Rapid ROI and Speed Time to Customer Satisfaction for the Retail Industry

Business Editors/High-Tech Writers

MENLO PARK, Calif.–(BUSINESS WIRE)–Sept. 16, 2002

Leading Retailers, Including Estee Lauder, J.Crew, Staples, The Gap, Williams Sonoma and 1-800-FLOWERS.com Reduce Costs and Improve Customer Service Using KANA’s External-Facing Solutions

KANA(R) (NASDAQ: KANA), the leading provider of external-facing eCRM solutions, today announced it is experiencing considerable market momentum in the retail industry through the increased demand for its market-leading solutions. Since implementing KANA’s Web-architected eCRM solutions, leading retailers including, Estee Lauder, J. Crew, Staples, The Gap, Williams Sonoma and 1-800-FLOWERS have been able to meet growing customer demand for Web-based, multi-channel customer service. The result is shortened response times, increased customer satisfaction and reduced costs in the contact center.

As consumers become more sophisticated, retailers need strategies and solutions that enable them to understand existing customer buying behavior and provide personalized and consistent support to help build ongoing loyal relationships. KANA’s external-facing eCRM solutions address these needs by equipping retailers with the ability to share customer histories across all communication channels and provide extraordinary customer service on a consistent basis. Additionally, KANA’s highly-scalable solutions meet the unique needs of retailers who face dramatic increases in customer inquiries during peak buying periods.

In an effort to provide more rapid and personalized customer service while reducing costs, Staples, the world’s largest operator of office supply superstores, turned to KANA’s external-facing eCRM solutions and has experienced significant improvement in productivity along with a full return on investment in the first year as a result.

“Soon after our implementation of KANA’s Web-architected eCRM solutions, we saw a 10 percent jump in CSR productivity and today we are estimating productivity has increased more than 25 percent,” said Randy Scollins, director of customer service strategy for Staples. “KANA has scaled to efficiently handle the needs of our growing business while helping us provide terrific customer service.”

The KANA iCARE(TM) suite is a comprehensive enterprise software suite made up of modular eCRM solutions, including an ultra scalable contact center solution, the industry’s leading in- and out-bound e-mail management system, a robust knowledge base for self- and assisted-service and sophisticated marketing and analytics. KANA’s modular approach enables companies to address specific customer service issues with a particular eCRM solution, without the need to deploy an entire suite. Additionally, KANA’s Web architecture integrates across multiple service channels and enables integration with additional enterprise solutions as needed.

Since every minute counts when interacting in real time with customers, it’s imperative that retail companies can rely on their solution vendors to be responsive to service and support needs. American Greetings, the leading online greetings site and premiere personalized content delivery company, relies on its relationship with KANA to provide immediate and efficient service and support at the most critical times.

“It’s refreshing to find that a vendor with outstanding customer service software also provides outstanding customer service,” said Bruce Petro, CIO of American Greetings.

Additional leading retailers that are benefiting from KANA’s external-facing eCRM solutions include Drugstore.com, Gloss.com, Red Envelope and TaylorMade-adidas Golf, among many others.

“Providing extraordinary customer service is a competitive differentiator for KANA and for our customers,” said Bud Michael, executive vice president of products and marketing for KANA. “KANA’s Web-architected solutions are ideal for retailers and many other organizations that are seeking a cost-effective way to provide outstanding customer service. As retailers continue to move customer service to the Web, KANA’s market-leading solutions enable them to improve customer experiences and decrease overall costs in the contact center. The result is enhanced satisfaction and loyalty that directly translates into increased revenue for the company.”

Nearly 1,300 companies worldwide are using KANA’s 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 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, competition in our marketplace, including introduction of new products or services, or reductions in prices, by competitors; 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; 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; the trends and uncertainties of 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 and are discussed in KANA’s filings with the Securities and Exchange Commission, including our most recent annual report on Form 10-K and quarterly report on Form 10-Q.

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.

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