QUADSTONE LAUNCHES PREDICTIVE MARKETING SOLUTIONS

Despite the market explosion of CRM and analytics software tools, a lack of end-user know-how means that most companies are failing to demonstrate fast and measurable returns from such investments. According to Gartner Group, "Through 2006, 55% of CRM initiatives will fail to meet measurable benefit objectives and will fail to positively affect ROI, due to a lack of business processes for conducting ongoing measurements." To address this market need and capitalize on over six years of knowledge and experience in how to predict customer behavior, Quadstone today launches a comprehensive range of packaged solutions for specific industries, applications and customer touchpoints. The Quadstone solutions help businesses achieve maximum value from their marketing, customer service and CRM initiatives.

Quadstone's new solutions augment the company's award-winning predictive marketing software with dedicated applications for predicting the four key dimensions of the customer - what Quadstone calls the "4Rs" - Retention, Response, Risk and ROI. A unified understanding of these critical business issues allows customer interactions to be driven to increase retention rates, increase responses, reduce risk, and focus all marketing, sales and service initiatives on maximizing customer ROI.

The Quadstone solutions address the financial services, retail, telecommunications and marketing services industries. They allow marketers to action the most valuable customer contacts through dedicated software interfaces, to the key customer touchpoints: database marketing, call centers, Web, branch and store marketing.

Building on the proven technology of the Quadstone System, the company now provides direct applications support to guide users more quickly through the process of understanding, predicting and acting on customer behavior.

The new Quadstone solutions provide step-by-step support to help business users:

• Connect to the right customer and interaction data sources
• Understand customer behavior through measurement, exploration and discovery
• Predict how customers behave and what best actions to take
• Improve customer contact rules through a visual overlay of business objectives
• Deploy best actions and monitor results to deliver maximum customer ROI

Quadstone's new solutions will enable organizations to quickly and easily implement focused initiatives to gain immediate return on their operational system investments. The new offerings are ideal for businesses that need to reduce their time to market for customer contacts, or those that do not have dedicated statisticians or IT teams working in support of an analytical marketing process.

Mark Smith, president and Chief Marketing Officer for Quadstone, said, "In the race to sell technology, vendors have pushed aside the fact that CRM has to be a business process driven by intelligence and analytics. The great CRM successes from the few leading exponents must now be translated to the main market, where a purely statistical approach does not help cut through the lack of know-how in how to maximize the value from customers. Quadstone is focused on removing the complexity from technology and thus enabling companies to gain an immediate return on their CRM investment."

Quadstone's solutions have received vocal support from core analyst organizations. Kevin Scott, a Senior Analyst with AMR Research, comments on the Quadstone interface: "Quadstone's slick GUI and ability to provide managers with in-depth analysis of online and offline campaigns should allow it to be successful in its strategy of providing predictive analytics to other CRM vendors."

Gareth Herschel, Senior Analyst with Gartner Group, comments on Quadstone's market fit, "Most analytical software applications are either too simple or too sophisticated. Quadstone sits right in the middle. It can be used by a non-statistician and the visualization of the data is a standout."

Quadstone's solutions for vertical markets and customer touchpoints give customers access to our software solutions, Quadstone's best practice methodologies for key customer applications, and Quadstone's experienced analytical services resources. The Quadstone solutions are available today. For detailed pricing and other information, please contact Quadstone at 800-831-8031, or visit www.quadstone.com.

About Quadstone

Quadstone helps companies maximize customer value and generate increased financial returns by understanding, predicting and influencing customer behavior in and across all channels. Quadstone offers software and services for specific industries, touchpoints and applications. These solutions improve the efficiency and effectiveness with which marketing users can address issues of customer retention, ROI, risk and response.

Quadstone's international clients include market leaders in the financial services, retail/e-tail, telecommunications and marketing services sectors and include CVS, GUS, Fingerhut, Barclays and Vodafone amongst others. Founded in Edinburgh, Scotland in 1995, Quadstone now also has offices in London, England and Boston, Massachusetts.

Contact Quadstone, Kevin Long, 617-753-7393, kevin.long@quadstone.com.