WEB-BASED CUSTOMER INTERACTION TO REVOLUTIONIZE CRM

E-commerce vendors are searching for solutions to the exponential rise in customer service expectations, says Cahners In-Stat Group, a high-tech market research firm. Customers take center stage in e-commerce transactions, and with the rapidly increasing e-commerce volume, on-line businesses must find new ways to satisfy customers at their initial point of contact - the Web site. In-Stat defines this application solution niche as Web-based Customer Interaction (WCI). WCI applications use four primary technologies to enable real-time Web-based interaction: e-mail response management, chat, Web collaboration and voice over IP (VoIP).

A small group of vendors whose core business is Web-based customer interaction technologies are taking the lead in the WCI market. However, In- Stat research shows that some well-established CRM heavy-hitters such as Oracle, Quintas, and Interactive Intelligence are likely to enter the WCI market in the near future.

"Complementing traditional CRM solutions, a combination of start-ups and nimble vendors characterize the volatile landscape of this emerging WCI market" noted Kirsten Cloninger, In-Stat's Internet Commerce Infrastructure Analyst. "As Web-based customer interaction technologies integrate with, rather than complement, traditional CRM solutions, the two markets will begin to converge. Enterprise vendors who can offer tight integration with traditional CRM applications and back-end systems are a clear threat to the WCI vendors."

The In-Stat research also shows:

• The potential WCI market is huge. Approximately 1,600 out of 95,000 medium to large business Web sites are currently using more than one WCI application.
• By 2004, In-Stat estimates the total market for WCI services will reach $1.8 billion. In-Stat believes that where many on-line businesses were initially enamored with traditional CRM applications, they are beginning to re-evaluate the efficacy of these technologies to meet their specific Web-based business needs.

The report, Web-based Customer Interaction: A New Trend in CRM, #EC0001MS, defines the WCI market and identifies challenges and opportunities. The report profiles the eight most significant vendors including the specific technologies each offers, and examines the potential of traditional CRM vendors as market entrants. To purchase this report or for more information about In-Stat research, please call Matt Woods at 617-630-2139 mwoods@instat.com or visit www.instat.com/catalog/cat-ec.htm to purchase online. The report price is $1995 USD.

Cahners In-Stat Group, www.instat.com, covers the full spectrum of digital communications research from vendor to end-user, providing the analysis and perspective that allows technology vendors and service providers worldwide to make more informed business decisions.

Contact Kirsten Cloninger, Industry Analyst - Internet Commerce Infrastructure, kcloninger@cahnersinstat.com, 617-630-2147