Verint Research Reveals Need for New Rules of Customer Engagement

New Consumer Study Conducted with Ovum and Opinium Outlines Factors
Necessitating Business Strategy Alignment with Customer Engagement


MELVILLE, N.Y.–(BUSINESS WIRE)–Verint®
Systems Inc
. (NASDAQ: VRNT) today released the results of new
research in partnership with analyst and consultancy firm Ovum. The
study reveals the complexity of customer service expectations and
provides advice on how businesses can respond. Drawing on global and
regional research conducted by UK-based research company Opinium, the
findings highlight the demand for quick and convenient service coupled
with a calculated approach to personalization in order to foster
customer engagement.

Key findings from U.S. consumers include:

Theme #1: Effortless Resolution is King, Relationship is Secondary

  • Customers demand that organizations have the relevant information
    at their fingertips and resolve issues quickly.
    When asked to
    choose between “all I want are my questions answered” and “I want
    companies to know my mood and respond accordingly,” 80 percent chose
    “my questions answered.” Additionally, the two top-rated responses
    that created a positive impression of companies were: “I felt they
    dealt with my request quickly (47%)” and “they understood my issue and
    history (34%).”
  • Customer service is viewed as a transaction. When asked to
    choose between “customer service is an experience that should reflect
    me as a person” and “customer service is a transaction—it shouldn’t
    matter who I am,” 55 percent went with “customer service is a
    transaction.”

Verint Viewpoint: Speed and convenience are consumers’ top
priorities when it comes to engaging with company brands. They want
their questions answered quickly and on first contact. This requires
putting complete and real-time information about customers at the
fingertips of those on the frontline and that it carry through and be
systemic across contact channels—the phone, social media, online, chat,
email, etc.

Theme #2: Companies Need to Navigate Between “Stranger and Stalker”

  • Familiarity is a double-edge sword. Customers struggle with the
    balance between privacy and personalization. When given a choice of “I
    like it when service is personalized to me and my interests” and “I am
    suspicious about how my data is used”—responses were nearly split (51%
    to 49% respectively). Younger Americans (ages 18-34) were more
    comfortable with personalization (59%) compared with Americans ages
    35+, where less than half (46%) indicated they would choose
    personalization over privacy concerns.
  • Churn factors vary by industry. Frustration factors that would
    lead to a switch in service providers vary based on the type of
    service. Reasons cited for changing banks, for instance, hinged on
    customer service and performance with “too many mistakes (31%),” and
    “impolite, rude or uninterested staff (25%)” as top reasons for
    leaving. Comparatively, for supermarkets, grocery stores and clothing
    retailers, 34 percent said “finding a cheaper alternative” would be
    the biggest driver in their choice to switch.

Verint Viewpoint: There is a quid-pro-quo regarding
personalization between customers and providers. In some industries
familiarization and sharing of personal data is necessary in order to
deliver service. For these, the lines of acceptable personalization
extend further as compared to commodity industries. In this study, there
was a clear delineation in the factors for churn between high
relationship (i.e., bank, credit card), moderate relationship (i.e.,
insurance, mobile phone, online retailer) and low relationship (i.e.,
supermarkets, grocery stores, clothing retailers) industries. Service
providers need to implement solutions that provide contextual boundaries
for personalization based on the type of service available.

Theme #3: Long-Term Engagements on the Decline

Since conducting a similar study, “Service is the New Marketing” in
2012, the percentage of respondents who indicated that they maintained a
relationship with their service provider for three years or more has
declined from 85 to 60 percent. Americans ages 35+ were more likely to
maintain long-term relationships (70%) as compared to younger Americans
(ages 18-34), where less than half (40%) indicated they had been with
service providers for three years or more.

The industries with the most long-term (three years or more) engagements
rank as follows:

  • #1 (tie)—Banks (71%), supermarket/grocery/clothing (71%)
  • #3—Gas/energy/water (66%)
  • #4—Mobile phone company (60%)
  • #5—Insurance company (58%)
  • #6—Credit card company (55%)
  • #7—Online retailer (50%)
  • #8—Home phone/landline/broadband (48%)

Verint Viewpoint: The majority of consumers surveyed feel
the customer service experiences should reflect them as a person, yet
were less concerned about companies knowing their current mood and
responding accordingly. Even when companies make mistakes, many
consumers are forgiving of companies they feel make an effort to
understand what they are trying to accomplish and how helping them will
reach that goal. A clear need to strike the right balance between
personalized service and privacy helps establish longer-lasting
relationships.

To deliver on these requirements and get ahead in customer service, the
rules of engagement are changing, and study results point to the need to:

  • Meet the needs of the customer—arm the organization with
    the right information, tools and processes to provide the speedy
    service that customers demand.
  • Create an effortless experience—understand customers, and use
    this knowledge to deliver the right level of personalized service
    every time.
  • Make it easy to engage—offer a range of ways for customers to
    contact the organization to provide flexibility and meet the demands
    of a diverse customer base.
  • Avoid relying on discounts and loyalty schemes—only an average
    of nine percent said offers and rewards actually make them more loyal.
  • Be transparent and open with customers about the use and security
    of their data—
    let them know how it helps deliver a better customer
    experience.
  • Go the extra mile—creating memorable experiences can pay off
    and be rewarded by brand champions telling friends and family,
    engaging on social media and writing positive reviews.

To learn more about The New Rules of Customer Engagement,
download the full white paper here.

About the Research

Interviews were conducted amongst 18,038 consumers in the following
countries: Germany (2,006), France (2,001), Netherlands (2,002), Poland
(2,001), UK (2,004), South Africa (2,010), U.S. (2,007), Australia
(2,007) and New Zealand (2,000). The research was conducted online, in
the local language for each area and respondents were incentivized to
participate. The results outlined in this document were based on U.S.
consumer responses.

About Verint Systems Inc.

Verint® is a global leader in Actionable
Intelligence
®, which has become a necessity in a dynamic
world of massive information growth. By empowering organizations with
crucial insights, Verint solutions enable decision makers to anticipate,
respond and take action, and make more informed, effective and timely
decisions. Our solutions are designed to address three important areas
of the actionable intelligence market: customer engagement optimization;
security intelligence; and fraud, risk and compliance. Verint’s vision
is to create A Smarter World with Actionable Intelligence®,
and today, more than 10,000 organizations in over 180
countries—including over 80 percent of the Fortune 100—already benefit
from this vision. Learn more at www.verint.com
and NASDAQ: VRNT.

This press release contains “forward-looking statements,” including
statements regarding expectations, predictions, views, opportunities,
plans, strategies, beliefs, and statements of similar effect relating to
Verint Systems Inc. These forward-looking statements are not guarantees
of future performance and they are based on management’s expectations
that involve a number of risks, uncertainties and assumptions, any of
which could cause actual results to differ materially from those
expressed in or implied by the forward-looking statements. For a
detailed discussion of these risk factors, see our Annual Report on Form
10-K for the fiscal year ended January 31, 2015, our Quarterly Report on
Form 10-Q for the quarter ended July 31, 2015, and other filings we make
with the SEC. The forward-looking statements contained in this press
release are made as of the date of this press release and, except as
required by law, Verint assumes no obligation to update or revise them
or to provide reasons why actual results may differ.

VERINT, ACTIONABLE INTELLIGENCE, MAKE BIG DATA ACTIONABLE,
CUSTOMER-INSPIRED EXCELLENCE, INTELLIGENCE IN ACTION, IMPACT 360,
WITNESS, VERINT VERIFIED, KANA, LAGAN, VOVICI, GMT, VICTRIO, AUDIOLOG,
ENTERPRISE INTELLIGENCE SOLUTIONS, SECURITY INTELLIGENCE SOLUTIONS,
VOICE OF THE CUSTOMER ANALYTICS, NEXTIVA, EDGEVR, RELIANT, VANTAGE,
STAR-GATE, ENGAGE, CYBERVISION, FOCALINFO, SUNTECH, and VIGIA are
trademarks or registered trademarks of Verint Systems Inc. or its
subsidiaries. Other trademarks mentioned are the property of their
respective owners.

Contacts

Industry Information
Verint
Systems Inc.
Candace Flynn, +1-303-254-7152
candace.flynn@verint.com
or
Investor
Relations

Verint Systems Inc.
Alan Roden,
+1-631-962-9304
alan.roden@verint.com