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The Forrester Wave: Customer Service
Solutions For Small And Midsize Teams,
Q2 2014
by Kate Leggett, April 7, 2014
For: Application
Development
& Delivery
Professionals
KEY TAKEAWAYS
Customer Service Is A Cornerstone For Delivering A Great Customer
Experience
However, delivering good service is difcult. Nearly 70% of US consumers report an
unsatisfactory service interaction during the past 12 months. Organizations must
navigate rapidly changing customer expectations and look for vendor solutions that
enable the business capabilities necessary to deliver diferentiated experiences.
The Customer Service Vendor Landscape Consolidates
Te landscape of customer service solutions has matured and converged as a result of
merger and acquisition activity. Tese vendors ofer solutions replete with features and
functions, and every vendor can just about tick every box. Customer service leaders
must understand the core focus area of each vendor to make the right buying choice.
Keep An Eye On This Space
Oracle Service Cloud and salesforce.com battle for the lead in this evaluation due to
their breadth of capabilities and mature business practices. Change in the customer
service vendor space will continue. Suite vendors will fll in functionality gaps with
acquisitions. Vendors in adjacent sofware solution categories will make a play for
existing customer service vendors to augment their oferings.
2014, Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Information is based on best available
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FOR APPLICATION DEVELOPMENT & DELIVERY PROFESSIONALS
WHY READ THIS REPORT
In Forresters 84-criteria evaluation of customer service vendors for enterprise organizations, we
identifed the 11 most signifcant solution providers Astute Solutions, eGain, Kana Sofware, Microsof,
Moxie Sofware, Oracle (Oracle Service Cloud), Parature, salesforce.com, SAP (SAP Cloud for Service),
SugarCRM, and Zendesk in the category and researched, analyzed, and scored them. Tis report details
our fndings about how well each vendor fulflls our criteria and where they stand in relation to each other
to help customer service professionals select the right partner for their customer service initiatives.
Table Of Contents
Good Customer Service Boosts Revenue,
Poor Service Increases Costs
The Customer Service Market Is On The
Cusp Of Signicant Change
Customer Service Vendors Focus On Market
Segments For Success
The Customer Service Vendor Evaluation
Process Explained
The Results: Buyers Have Many Choices To
Sift Through
The Results: Vendor Proles
Supplemental Material
Notes & Resources
Forrester conducted vendor survey
evaluations in December 2013 to January
2014 and evaluated 11 customer service
solutions worthy of consideration by large
organizations. We also surveyed vendor
customers.
Related Research Documents
Navigate The Future Of Customer Service In
2014
February 6, 2014
TechRadar For AD&D Pros: Contact Center
Solutions For Customer Service, Q2 2013
April 17, 2013
Transform The Contact Center For Customer
Service Excellence
June 22, 2012
The Forrester Wave: Customer Service
Solutions For Small And Midsize Teams, Q2 2014
Due Diligence Required: These Vendors Are Great At Supporting
Small And Midsize Teams
by Kate Leggett
with Stephen Powers, Michael Facemire, and Victoria Boutan
2
5
7
13
10
15
21
APRIL 7, 2014
FOR APPLICATION DEVELOPMENT & DELIVERY PROFESSIONALS
The Forrester Wave: Customer Service Solutions For Small And Midsize Teams, Q2 2014 2
2014, Forrester Research, Inc. Reproduction Prohibited April 7, 2014
GOOD CUSTOMER SERVICE BOOSTS REVENUE, POOR SERVICE INCREASES COSTS
In the age of the customer, executives dont decide how customer-centric their companies are
customers do. And providing good customer service is a win-win for customers and companies. In
fact, recent Forrester data shows that an investment in customer service technology is the second
most important investment that companies are making in 2014 (see Figure 1). Why? Because good
customer service has quantifable revenue impacts:
Good customer experiences boost long-term loyalty. Customer loyalty has economic benefts
as measured over three dimensions: willingness to consider another purchase, likelihood to
switch business to a competitor, and likelihood to recommend to a friend or colleague.
1
Te
revenue impact from a 10-percentage-point improvement in a companys customer experience
score, as measured by Forresters Customer Experience Index (CXi), translates into more than
$1 billion.
2
And customer service, for many companies, is a cornerstone to their customer
experience strategy.
Poor customer service leads to increased costs. Te cost of failing to meet customer
expectations is high: 75% of consumers move to another channel when online customer service
fails, and Forrester estimates that unnecessary service costs to online retailers due to channel
escalation are $22 million per year on average.
3
Poor service experiences risk customer defections and revenue losses. For example, if a
company has 4 million customers and each spends $100 per year, the total projected revenue for
a year would be $400 million. Forrester survey data shows that approximately 11% of companies
have poor CXi scores.
4
Tat represents 440,000 customers, and typically only about 2% of
them complain to the contact center. Tat leaves 98% who dont complain, or a total of 431,200
customers at risk to defect. At $100 apiece, this represents over $40,000,000 million potential
loss in revenue annually.
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Figure 1 Organizations Are Investing In Customer Service In 2014
Source: Forrester Research, Inc. 113657
As your rm considers its software strategy and investments, which departments
or business groups is it focusing on the most? (select up to three)
Sales 38%
Customer service 32%
Finance 25%
Marketing 25%
Research and development 25%
Field service 22%
Order fulfllment 21%
Manufacturing 18%
Procurement 16%
Supply chain 14%
Human resources 13%
Offce of the CEO and other
executive management
7%
Other 4%
Base: 2,074 IT executives and technology decision-makers
Source: Forrsights Software Survey, Q4 2013
Good Customer Service Is Hard To Deliver
Customers want to feel empowered to get service anywhere, anytime, and they expect their service
interactions to be pain-free. Over half of US online consumers are likely to abandon their online
purchase if they cannot fnd a quick answer to their questions, and three-quarters say that valuing
their time is the most important thing a company can do to provide them with good service.
5
Its no surprise that customers are ofen frustrated with the efort that it takes to receive customer
service. Forrester data shows that 67% of US online consumers say that theyve had unsatisfactory
service interactions in the past 12 months.
6
Tis parallels recent data from the Accenture Global
Consumer Pulse Research survey, which says that 91% of respondents are frustrated by having to
contact a company multiple times for the same reason, 90% by being put on hold for a long time,
and 89% by having to repeat their issue to multiple representatives.
7
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2014, Forrester Research, Inc. Reproduction Prohibited April 7, 2014
Customer service leaders of small and midsize teams aim to strike the correct balance between
customer needs and cost of operations. Specifc challenges in fnding the right balance include the
need to (see Figure 2):
Provide multiple communication channels for customer interaction. Te breadth of
communication channels that customers use for customer service is increasingly varied. Recent
Forrester data showed that 73% of US online consumers used the phone, 67% used help or
frequently asked questions (FAQs), 58% used email, 43% used chat, 24% used SMS, and 22%
used Twitter in the past 12 months.
8
Customer service agents supporting these media types
must be able to deliver channel-agnostic information a challenge for 41% of organizations
that, for example, are unable to deliver relevant customer information about their account and
profle over a range of channels.
Support end-to-end customer journeys. Customer service organizations must also support
omnichannel customer journeys journeys that start on one communication channel and move
to another with a seamless handof between channels so that customers do not have to restart the
conversation something that only 3% of organizations are extremely efective at doing.
Empower customers and agents with consistent answers. Customer service agents rely on
knowledge management solutions to efectively answer customer inquiries. In addition, 67%
of US online consumers use web self-service knowledge to fnd answers to their questions.
9

Yet, knowledge management implementations have a 58% satisfaction rating among US online
adults who have used the channel in the past 12 months.
10
Tis is because knowledge is ofen
difcult to locate, difcult to maintain, and not always relevant to the customers context.
Monitor customer needs and satisfaction. It is critical for customer service managers to
receive direct customer feedback, preferably as soon as the interaction with the customer has
happened. It is also critical for them to understand the general impression of their service
ofering as expressed in the social sphere. Service managers use this information to balance the
cost of service with overall customer satisfaction so that they can make realistic tradeofs.
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Figure 2 Customer Service Organizations Struggle To Provide Consistent Cross-Channel Experiences
Source: Forrester Research, Inc. 113656
How would you rate your companys effectiveness at implementing the
following for your multichannel strategy?
Ability to provide a consistent
cross-channel experience
Ability to deliver a channel-agnostic capability
for customers to get relevant information
about their account and profle
Ability to provide a seamless handoff between
channels for customers regardless of whether
offine-to-online or online-to-offine
Base: 80 eBusiness and channel strategy professionals
(percentages may not total 100 because of rounding)
Source: December 2013 Global eBusiness And Channel Strategy Professional Online Survey
1 = not at all effective 5 = extremely effective 2 3 4
12% 26% 19% 18% 5%
9% 32% 26% 10% 3%
15% 29% 24% 9% 3%
THE CUSTOMER SERVICE MARKET IS ON THE CUSP OF SIGNIFICANT CHANGE
Te customer service vendor space is a mature space. Yet there have been many changes in the fve
years that have accelerated with time, and more change is likely to continue. Two driving factors will
accelerate these changes: consolidation and emerging competition.
Big Fish Eat The Little Fish, And Each Bite Broadens The Reach Of The Big Fish
In recent years, there has been continued consolidation and turmoil in the customer service
solutions landscape. Vendors have acquired direct competitors to fll in gaps in their ofering.
More importantly, vendors have acquired companies in adjacent spaces to broaden their customer
engagement management capabilities and oferings. Notable acquisitions include the following:
Oracle uses its acquisitions to actualize its customer experience management suite. Oracle
has made a series of acquisitions to round out a customer experience suite that provides
consistent experiences across the breadth of interactions and transactions that customers
have with companies. Notable acquisitions include ATG for eCommerce (2011); InQuira for
knowledge management (2011); RightNow Technologies for multichannel customer service
(2011); Market2Lead for demand generation and marketing automation (2012); Endeca
Technologies for web commerce and business intelligence: Eloqua for marketing automation
(2012); Collective Intellect for social intelligence (2012); Involver for social media development
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(2012); Vitrue for social marketing (2012); BigMachines for confgure, price, and quote (2013);
Compendium for content marketing (2013); Responsys for marketing orchestration (2013); and
BlueKai for data management (2014).
SAP makes a few key strategic moves. SAP, like Oracle, is focused on providing consistent end-
to-end customer experiences via its breadth of products. It has made a few, but key, acquisitions
to round out its capabilities in this area: Sybase for its mobility platform (2010); Ariba for
procurement (2012); Syclo for mobile asset management and feld service; KXEN for predictive
analytics (2013); and hybris for multichannel eCommerce (2013). In addition, SAP partnered
with NetBase for social media analysis (2012) and eGain (2010) and MindTouch (2013) for
knowledge management.
Salesforce.com has become an acquisition monster. Salesforce.com made a series of moves
to quickly round out the capabilities of its Service Cloud, namely: Instranet for knowledge
management (2007); Informavores for visual workfow (2009); ActivaLive for chat (2010);
Radian6 for social media monitoring and engagement (2011); Assistly for small and medium
size business (SMB) customer service (2011); GoInstant for cobrowsing (2012); and Prior
Knowledge for predictive analytics (2013). It has used this same tactic to broaden its customer
relationship management (CRM) footprint, with the notable acquisition of Buddy Media for
social media publishing (2012) and ExactTarget for business-to-consumer (B2C) marking
automation (2013). Adding maturity to its end-to-end customer relationship management
(CRM) solution, the introduction of salesforce1 in 2013, a platform for mobile application and
development, has allowed salesforce to expand its reach beyond the traditional CRM category
and set its sights on becoming a viable competitor in the platform-as-a-service space.
11
Kana Sofware has built its portfolio via acquisitions and in turn has been acquired. Kana
has made a number of recent acquisitions to build out its customer service portfolio, which
include the following: Lagan, a government-to-citizen (G2C) CRM solution (2010); Overtone,
a social media listening company (2011); Trinicom, a midmarket, cloud-based multichannel
customer service vendor (2012); and Ciboodle, a business process management (BPM)-centric
customer service vendor (2012). Kana, in turn, has been acquired by Verint Systems (2014), a
workforce optimization company looking to unify customer service and agent utilization and
performance capabilities. Tis cross-category acquisition indicates a possible consolidation of
two mature sofware spaces.
Other acquisitions of note include Microsofs acquisition of Netbreeze (2013) for social listening
and Parature (2014), which helps Microsof Dynamics round out its knowledge management and
chat capabilities; Nuance Communications acquisition of VirtuOz (2012), a virtual agent company;
Nice Systems acquisition of enterprise feedback monitoring (EFM) vendor Fizzback (2011); and
Verints acquisition of EFM vendor Vovici (2011).
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Vendors From Adjacent Markets Emerge As Competitors
New customer service point solution vendors (for example predictive analytics, mobile customer
service, virtual agents) are popping up at an unprecedented rate and deliver modern interfaces and
a mobile-frst strategy. You just have to look at the entry list for the yearly CRM Idol (www.crmidol.
com) competition to get a feel for the range of these vendor oferings.
However, the most interesting disruptor to this space may be coming from another well-
established category of vendors the contact center providers and, in particular, the cloud-based
contact center providers. Tese vendors provide an end-to-end solution for customer service:
a unifed communications infrastructure, robust routing, and queuing engines for interactions
of all types voice, digital, and social. Tey have integrated workforce optimization engines
for agent quality management, scheduling, and forecasting. Today, they tend to have lighter-
weight case management and knowledge capabilities, which can be easily hardened or acquired.
Most importantly, these vendors have proven small; midsize; and enterprise-ready, large-scale
deployments. Tis category of vendor may well contain candidates that will appear in the next
update of this evaluation as they add more sophisticated customer engagement capabilities to
their products.
CUSTOMER SERVICE VENDORS FOCUS ON MARKET SEGMENTS FOR SUCCESS
In this mature customer service market, you will fnd that each of the leading vendors ofers a
checklist of features and functions. Customer service buyers must remember that more is not
better this is especially true for small and midsize teams; many times, more is just more. In fact,
when you dont need or cant use extra features more is sometimes worse. Customer service
organizations of all sizes need to carefully understand the customer service market segmentation in
order to focus in on the right category of vendor that is the right size for their needs.
Start By Asking What Size Of Organization Each Vendor Targets
Even with consolidation, customer service solutions fall into two primary groups to choose from,
although the distinctions between these categories have become less pronounced over the past three
years (see Figure 3):
Customer service solutions for enterprise organizations. Customer service vendors focused on
large organizations organizations with typically 1,000 or more agents who are primarily phone
agents ofer robust case management capabilities. Tese vendor solutions can scale to serve
very large agent populations, in the tens of thousands and higher. Tey ofer their products
primarily through the traditional on-premises licensing model, but many now also ofer hosted
and SaaS deployment options. Many vendors ofer deeply vertical solutions and have pre- and
post-sale company resources dedicated to supporting their vertical products. Vendors in this
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category also target midsize organizations, ofering prepackaged versions of their solutions with
more-afordable price tags. We have highlighted the leading vendors in this category in our
Forrester Wave evaluation of customer service solutions for enterprise organizations.
12
Customer service solutions for midsize and small organizations. Vendors primarily target
these solutions at teams with hundreds of customer service agents or fewer who support
inquiries over a breadth of voice, digital, and social communication channels. Other vendors
target their solutions at divisions of customer service organizations that have dedicated teams
for digital and social customer service within a larger contact center. Tese solutions are highly
usable, ofen have very good mobile capabilities, and have a broad and deep set of multichannel
customer service capabilities. Tey are predominately SaaS solutions, ofering a rapid time
to value. Some vendors in this category have upgraded their solutions to be more suitable to
enterprise-class buyers and are gaining acceptance in this segment. Te leading vendors in this
category are highlighted in this report.
Figure 3 Customer Service Solutions Fall Into Two Distinct Categories
Source: Forrester Research, Inc. 113657#
Not all vendors target the same size of business
Agent
numbers:
Channel
mix:
Deployment:
Small Midsize
organizations
Enterprise
organizations
10s
SaaS
Mixed, but
trending to
SaaS
100s 1,000s 10,000s
Primarily multichannel Primarily voice-based
On-premises
Number of deployments
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Drill Into The Customer Service Functions That You Need To Be Successful
Te customer service needs for a business-to-business (B2B) company are not the same as the needs
for a B2C company. Likewise the needs of a phone customer service agent are not the same as that of
a customer service agent supporting digital or social channels. As you refne your vendor selection,
carefully evaluate the criteria in this evaluation to pick a solution that is right for your needs.
Categories to evaluate include:
Case management. Some vendors have heavyweight case management functions that can
extend to guiding through predefned workfows. Other vendors provide lighter-weight case
management functions that support simple process fows and are suitable for many B2C
customer service interactions.
Multichannel management. Customers today want to interact with customer service
organizations over the breadth of voice, digital, and social communication channels. But its not
a good strategy to deploy all available channels to your customers. You must understand what
communication channels are important to your customers based on their demographic, issue
type, and the journey that they want to take with you. You must then choose a vendor solution
that is able to support your customers end-to-end omnichannel journey.
Knowledge and content. Customer service organizations are increasingly leveraging curated
knowledge base content in order to provide accurate, relevant, and complete answers to customer
questions or virtual agents in order to support automated natural language conversations with
customers. Organizations are also increasingly leveraging social content from discussion forums
to complement their curated content. Vendors provide the breadth and depth of knowledge and
content capabilities, which must be the right size for your business. In this case especially, having
too many knowledge features is ofen overkill for organizations with lightweight needs.
Business intelligence. Customer service is all about metrics and measurement. Tese
measurements are used to monitor and manage in real time the success of your operations for
example customer issues and expectations, as well as agent workload and performance. Customer
service organizations must also forecast the success of their future operations using predictive
modeling, simulations, and statistical analysis. Small organizations have simple real-time and
historical measurement needs, while larger organizations may look for these capabilities from
a vendor solution or look to extract pertinent data from a customer service solution to be
processed via a business intelligence engine.
Usability and cost. Customer service organizations, both large and small, need highly usable
solutions with modern user interfaces and user experiences that help reduce training time and
increase job satisfaction with the tool set. Good usability goes a long way to combatting the
high turnover rate in most organizations. Similarly, overall cost of ownership is an important
evaluation dimension and particularly important to small to midsize teams looking for
solutions that dont break their budgets.
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THE CUSTOMER SERVICE VENDOR EVALUATION PROCESS EXPLAINED
Afer examining past research and through conversations and inquiries with customer service
professionals and vendors, we developed a comprehensive set of 84 evaluation criteria. Combined,
these criteria provide a detailed look at breadth of capability, strategy, and market presence of 11
small and midsize customer service solutions. We grouped the criteria into three high-level buckets.
Current ofering. Each vendors position on the vertical axis of the Forrester Wave graphic
indicates the strength of its current product ofering. We looked at the strength of each
vendors products across a wide spectrum of customer service capabilities. Tese included case
multichannel support, knowledge and content, business intelligence, architecture and platform,
mobility, usability, and cost.
Strategy. A vendors position on the horizontal axis indicates our assessment of its strategy. We
assessed the strength of each vendors product strategy and vision. We assessed the application
ownership experience and corporate strategy of each vendor. We used a combination of vendor
evaluation responses, documentation, and customer feedback and vendor strategy briefngs to
complete this section.
Market presence. Te size of each vendors bubble on the chart indicates its market presence.
We gauged the size of each vendors customer base and evaluated the depth of human and
fnancial resources available to enhance its products and serve customers.
Eleven Vendors Offer A Diverse Range Of Capabilities
We included 11 solutions in our assessment of enterprise customer service solutions, including:
Astute Solutions, eGain, Kana Express, Microsof, Moxie Sofware, Oracle Service Cloud, Parature,
salesforce, SAP Cloud for Service, SugarCRM, and Zendesk.
We did not include in the assessment solutions that specialize in one or a narrow set of customer
service functionalities such as, for example, knowledge management vendors, chat vendors, or
social engagement vendors. We did not include vendors focused on a single industry. We also did
not include in our assessment customer service vendors that are suited for enterprise-size customer
service organizations. Leading vendors in this category are covered in our customer service
evaluation for enterprise organizations.
13
Each vendor included in the evaluation (see Figure 4):
Ofers a multifunctional customer service application. Each vendor included has
functionality in the following customer service subdisciplines: case management, knowledge
management, multichannel management, and business intelligence.
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Provides multichannel self-service and agent-assisted customer service capabilities: Te
vendors and products in this evaluation can support a minimum of four of the following
customer interaction channels: phone, web self-service, email, chat, cobrowse, customer service
via social channels (e.g., Facebook, Twitter), and virtual agents.
Has a strong presence in the customer service solutions market. Each of the evaluated
vendors has hundreds, if not thousands, of customers and over $15 million in revenue from
customer service licenses and users in 2012.
Has a product now in general release and in use by customers. Te solutions we included
have a specifc release that was generally available at the time of data collection for this
evaluation with references available for contact.
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Source: Forrester Research, Inc.
Vendor
Astute Solutions
eGain
Kana Software, a
Verint Company
Microsoft
Moxie Software
Oracle
Parature
salesforce.com
SAP
SugarCRM
Zendesk
Product evaluated
ePowerCenter
eGain 11
Kana Express
Microsoft Dynamics CRM
Spaces by Moxie
Oracle Service Cloud
Parature Customer Service Software
Service Cloud
SAP Cloud for Service
Sugar 7
Zendesk
Product version
evaluated
8.7
11
Version 13
2013
9
Nov-13
13.1
Winter 14
1311
7
Nov-13
Version
release date
September 2013
September 2013
June 2013
October 2013
Summer 2013
November 2013
N/A
October 2013
November 2013
November 2013
November 2013
Vendor selection criteria
Offers a multifunctional customer service application. Each vendor included has functionality in the
following customer service subdisciplines: case management, knowledge management, multichannel
management, and business intelligence. Products promoted primarily as best-of-breed solutions for a
single functional area were not included.
Provides multichannel self-service and agent-assisted customer service capabilities: The
vendors and products in the evaluation can support a minimum of four of the following customer
interaction channels: phone, web self-service, email, chat, cobrowse, customer service via social
channels (e.g., Facebook, Twitter), and virtual agents.
Has a strong presence in the customer service solutions market. Each of the evaluated vendors
has hundreds, if not thousands, of customers and over $15 million in revenue from customer service
licenses and users in 2012.
Has a product now in general release and in use by customers. The solutions we included have a
specifc release that was generally available at the time of data collection for this evaluation with
references available for contact.
Figure 4 Evaluated Vendors: Product Information And Selection Criteria
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THE RESULTS: BUYERS HAVE MANY CHOICES TO SIFT THROUGH
Te evaluation uncovered a market in which (see Figure 5):
Oracle Service Cloud and salesforce battle for dominance. Oracle and salesforce have distinct
and compelling visions for customer service. Oracle focuses on end-to-end cross-channel
customer experiences, supported by its solutions. Salesforce focuses on connected customers, who
controls the relationship that they have with companies. Te depth and breadth of both companies
deployments in the marketplace from very small to very large refect the maturity of the
customer service capabilities and company resources to support their customer bases.
eGain, Moxie Sofware, and Oracle Service Cloud enable high-volume multichannel service.
eGain, Moxie Sofware, and Oracle Service Cloud support robust multichannel customer
service, with each vendor having examples of small and large deployments. SAP Cloud for
Service is a new entry in this space, with a subset of overall multichannel functions. Tese
solutions appeal to customer service organizations that handle very large volumes of digital and
social inquiries. Tese organizations ofen have dedicated agent teams for these channels, with
separate teams dedicated to the voice channel. In many cases, these teams are ofen part of an
eBusiness or digital operations organization instead of a core customer service organization.
A foundational layer of robust knowledge management delivers channel-specifc answers to
customer inquiries.
Astute Solutions, Kana Express, Parature, and Zendesk power small teams. Tese vendors
ofer a breadth, although not depth, of customer service capabilities. Tey have a broad
range of packaging options, which are attractive to smaller teams not requiring the full set of
functionality. Tese solutions are targeted at small teams, but due to their sound architecture,
they are fnding homes in smaller divisions of large enterprises.
Microsof and SugarCRM focus on supporting phone agents. With their strong case
management capabilities, computer telephony integration (CTI), and reporting, Microsof and
SugarCRM ofer customer service capabilities for phone agents, but they lack the multichannel
and knowledge management capabilities that other vendors ofer. Microsof has recently
addressed this defciency by acquiring Parature and will integrate this solution into Dynamics
CRM. SugarCRM relies on partners to fll these gaps, and, with its commercial open source
development approach, it is increasingly catching the interest of larger organizations.
Te customer service market is a mature market. Te frst products were introduced in the 1990s,
and leading vendors have had solutions in the market for well over a decade. Tis evaluation of the
customer service market for small and midsize organizations is intended to be a starting point only.
We encourage clients to view detailed product evaluations and adapt criteria weightings to ft their
individual needs through the Forrester Wave Excel-based vendor comparison tool.
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Figure 5 Forrester Wave: Customer Service Solutions For Small And Midsize Teams, Q2 14
Source: Forrester Research, Inc.
Risky
Bets Contenders Leaders
Strong
Performers
Strategy Weak Strong
Current
offering
Weak
Strong
Go to Forrester.com to
download the Forrester
Wave tool for more
detailed product
evaluations, feature
comparisons, and
customizable rankings.
Market presence
Oracle Service
Cloud
salesforce.com
Microsoft
eGain
SAP Cloud
for Service
Moxie Software
Zendesk
SugarCRM
Kana Express
Parature
Astute Solutions
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Figure 5 Forrester Wave: Customer Service Solutions For Small And Midsize Teams, Q2 14 (Cont.)
Source: Forrester Research, Inc.
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CURRENT OFFERING
Case management
Multichannel capabilities
Knowledge and content
Business intelligence (BI)
Architecture and platform
Mobility
Usability
Cost

STRATEGY
Product strategy and vision
Application ownership
experience management
methodologies
Corporate strategy

MARKET PRESENCE
Customer base
Total number of employees
Financial performance
4.05
4.26
4.51
4.58
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10%
3.28
3.42
3.67
3.00
3.70
2.67
1.00
4.34
2.98
2.79
2.80
3.00
2.67
1.50
1.00
3.00
4.00
3.15
4.16
2.19
0.72
3.60
4.77
3.00
5.00
4.00
4.02
3.60
4.25
4.32
3.67
3.40
5.00
4.50
3.93
3.78
4.61
3.82
4.10
3.67
3.00
3.66
3.66
3.13
3.20
3.25
3.00
2.10
2.00
2.00
3.00
4.27
3.88
4.16
4.44
4.10
4.53
5.00
5.00
3.98
4.48
4.60
4.50
4.34
2.56
2.20
5.00
3.00
2.97
2.82
2.76
2.34
3.10
3.05
2.00
3.66
3.64
2.81
2.80
3.75
2.34
1.53
1.60
1.00
1.50
4.04
4.80
3.54
3.88
2.95
4.50
5.00
5.00
3.64
4.46
4.60
3.75
4.67
3.32
3.40
4.00
2.00
3.10
3.74
2.98
0.90
3.70
3.47
4.00
3.66
3.66
3.97
3.40
3.75
4.66
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3.28
4.16
2.55
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2.95
3.20
3.00
2.67
1.87
1.40
3.00
4.50
3.69
3.02
3.20
2.88
4.70
3.19
5.00
5.00
4.32
3.23
3.20
3.75
3.00
2.63
2.60
3.00
2.50
All scores are based on a scale of 0 (weak) to 5 (strong).
THE RESULTS: VENDOR PROFILES
Leaders
Oracle Service Cloud delivers strong support for B2C companies. Oracle Service Cloud is
a key asset in Oracles customer experience management portfolio. It provides a fexible, easily
confgurable customer service solution and is particularly strong in delivering consistent cross-
channel customer service experiences. It has strong multichannel capabilities: very strong
cobrowse and forum capabilities; strong chat, email response management, social customer
service, and knowledge management; and sound social listening, backed by very strong
reporting. It gets high marks for usability and provides sound case management capabilities.
Te solution ofers quick time-to-value due to its SaaS deployment model. It has an average
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deployment size of fewer than 250 agents, and customer service organizations use it as a
companywide customer service solution, as a standalone solution to support its digital and
social channels, or in a hybrid deployment to extend the digital capabilities of an on-premises
customer service solution.
Tis product came to Oracle via its 2012 acquisition of RightNow Technologies. Since the
acquisition, the product team has continued to execute on a robust road map of enhancements,
many of which focus on tighter integrations to other solutions in Oracles customer experience
product portfolio. It benefts from Oracles mature practices for implementation, user adoption,
and support. However, Forrester clients tell us frequently that they have lost some of their
personalized touch that preceded its acquisition. Oracle Service Cloud is best suited for midsize
B2C teams that ofer robust web self-service and multichannel customer service to their
customers and that emphasize the value of customer experiences.
Salesforce extends its reach into customer service with clear vision and sound execution.
Te salesforce vision is one of a connected customer, where customers control the interactions
that they have with enterprises. To support this vision, salesforce provides pervasive social and
collaboration capabilities in Service Cloud. In addition, salesforce provides very strong case
management capabilities, social customer service, and social listening. It has a sound knowledge
base, overall sound multichannel capabilities, strong reporting, but very weak business analysis
tools relying on its AppExchange partners to complement its product ofering. All capabilities
are delivered via intuitive interfaces at a sound cost structure. It has a strong architecture and
platform, and, with an average deployment size of 200 agents and a range of packaging and
pricing options, it is suitable for midsize teams.
Salesforce is adopting an increasingly vertical strategy. It currently focuses on a handful of
key verticals (fnancial services, media, government, healthcare, retail, and automotive), and it
relies on strategic partnerships for deeper vertical oferings. It has also segmented its sales and
support functions into two business units one dedicated to enterprise accounts and one to
midsize accounts, which helps better support each type of account. Salesforces diferentiated
vision and aggressive product road map has allowed it to rapidly increase its footprint of
customer service deployments both large and small. Salesforce best suits organizations
looking for a SaaS-based, easy-to-use, rapidly deployable customer service application with
strong social capabilities.
Microsof ofers a fexible, cost-efective customer service solution. Te primary buyers of
Microsof Dynamics CRM are upper midmarket and enterprise customers that require easy-to-
use, fexible customer service solutions that yield productivity gains for their customer service
organizations. As a result, Microsofs strategy focuses on delivering these results across a choice of
deployment options (on-premises, cloud, partner-managed, or hybrid), payment options (license,
subscription, or fnancing), and access points (mobile, Outlook client, browser, or SharePoint
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site). Microsof Dynamics CRM provides strong customer service capabilities delivered via a
robust, scalable platform and architecture and gets high marks for usability (based on the familiar
Ofce user interface [UI] look and feel). It ofers very strong support for native business process
management and provides strong support for case management for phone agents.
However, Microsof Dynamics CRM relies on its recent acquisition of Parature to provide
support for multichannel customer service, knowledge management, and social customer
service. Microsof Dynamics CRM relies on its Netbreeze acquisition to provide social listening
capabilities. It has a broad range of industry templates for vertical solutions, which complement
those available from an extensive partner network. Microsof ofers an attractively priced solution
compared with other vendors, especially when the solution is bundled with the Microsof Ofce
suite and with its recent Parature acquisition. Te company also has a solid product road map
and vision for future enhancements. Microsof Dynamics CRM is best suited for B2B companies
that have made a commitment to the Microsof technology stack and that require integration
with other Microsof solutions such as Microsof Ofce, SharePoint, and Lync.
Strong Performers
eGain excels at knowledge-powered digital customer engagement. eGain solutions have been a
mainstay in the multichannel customer service space for over a decade. eGain provides a customer
engagement hub: multichannel capabilities that access a common knowledge base and a common
case management framework, backed by solid reporting. Tis enables eGain to deliver consistent
service experiences across digital channels and to support customers in their cross-channel
journeys. eGain has overall strong multichannel capabilities, but has a dated UI. It has very strong
email response management, page push, and cobrowse; strong chat, including very strong video
chat; and sound social customer service and social listening. eGain has very strong knowledge
management and virtual agent capabilities that include the ability to guide the user to the best
answer. Companies deploy eGain as a suite or for a subset of channels (for example, email, chat,
and knowledge) or as a singular channel (for example, email, chat, knowledge). eGain has large
suite deployments ranging upward of 20,000 agents, as well as single-channel deployments. With
an average agent seat size of over 500 agents, eGain may be too heavyweight for smaller teams.
eGain has a sound cost structure, ofering fexible investment options based on agent seats,
volume of self-service sessions, or volume of sales ofers, as well as tiered cloud and on-premises
investment options. It also has packaged pricing for jumpstart options. eGain has a long-
standing relationship with Cisco Systems, which is the original equipment manufacturer (OEM)
for eGains email and chat products for its Unifed Contact Center Enterprise product. Cisco
also resells the entire eGain solution. Although eGains solution is comprehensive from a feature
perspective, the company relies on customer and partner feedback and organic growth to evolve
its products as opposed to a strong vision. eGain is best suited for B2C buyers that need robust
engagement solutions with advanced knowledge capabilities to support a breadth of channels or
a single digital channel.
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SAP Cloud for Service complements and extends the SAP CRM solutions. In recent
years, SAP has released an end-to-end cloud customer engagement solution portfolio, which
includes cloud oferings for CRM, fnance, enterprise resource planning (ERP), human capital
management (HCM), procurement, and social collaboration. SAP Cloud for Service is a new
addition (released in 2013) to SAPs cloud ofering for CRM (SAP Cloud for Customer solution,
which includes sales, marketing, service, and collaboration products). SAP built all these cloud
solutions on a common architecture using SAP Hana as its platform, and it leverages common
application services such as reporting and analytics, security, integration, and collaboration.
SAP Cloud for Service is positioned as a separate product, but it can also be deployed in a
hybrid mode to complement and extend the native capabilities of SAP CRM.
SAP Cloud for Service has a sound architecture and platform, strong integration, sound
customization and confguration, and very strong security capabilities. It also has a solid set of
predefned key performance indicators (KPIs), reports, and dashboards for customer service.
Its multichannel and knowledge capabilities are varied in maturity. It has sound email and
social customer service capabilities. It does not have native chat, social listening, or knowledge
management capabilities; instead, it leverages SAP Business Communication Management
for customer-to-agent chat, SAP Social Media Analytics by NetBase for social listening, and
MindTouch for knowledge management. It has few deployments to date, with an average
deployment size of fewer than 100 agents. However, the product is strengthened by SAPs strong
vision for customer service, its sound application ownership experience, and SAPs very strong
corporate strategy. SAP Cloud for Service is best suited for companies that are committed to
SAP, that need to rapidly deploy customer service solutions to its customer base or that are
looking to augment the capabilities of SAP CRM.
Moxie Sofware allows customers and employees to connect for service. Moxie ofers two
interconnected solution suites: Customer Engagement Spaces, a digital customer interaction
hub, which provides multichannel customer service, and Community Spaces, which allows
collaboration within and outside of the enterprise. Tese solutions bring customer and
employee engagement together making it easier to capture and share knowledge and service
customers. Moxies Customer Engagement Spaces ofers very strong multichannel capabilities:
very strong email response management, social listening, page push, and cobrowse and
strong chat, including very strong video chat and social customer service. Moxie has a strong
knowledge base and sound forum support. It also has very strong reporting for customer
service. Companies ofen deploy Moxie sofware as a suite, for a subset of channels (for example,
email, chat and knowledge) or for a single channel (for example, email, chat, knowledge).
Moxie has a strong architecture and platform and an average deployment size of 500 agents.
However, it has weak business process and workfow tools. Moxie has a sound cost structure and
attractive pricing for very small teams starting at 20 agents or 100 knowledge articles. Moxie has
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a sound cost structure, vision for solving customer facing problems, and application ownership
experience. Moxie is best suited for customer service or sales buyers needing support for high-
volume digital interactions.
Zendesks mobile-frst mindset delivers highly usable customer service solutions. Zendesk
targets its mobile-frst customer service solution to customer service teams with between 10
and 250 agents. Its simplicity, usability, and application ownership has garnered it over 40,000
customers since its inception in 2007. Zendesk ofers a straightforward solution with sound,
simple case management and multichannel management and knowledge base capabilities. It has
very strong reporting and dashboarding, enabling teams to track correlations between related
key performance indicators. In addition, Zendesk allows users to compare their KPIs to their
peers. KPIs are available by industry, audience, and company size and help users understand the
level of service that they deliver. It has a sound architecture and platform that is robust enough
to support large implementations of over 5,000 agents.
Zendesk is a SaaS solution that typically requires no implementation. Small teams can sign
up for the service and confgure the sofware themselves. For larger deployments, Zendesk
uses a network of partners who can assist with more complex implementations, including
customizations, design, and data migrations. It ofers very strong support, with boot camps
for best practice training in customer service. Zendesk has an aggressive product road map,
solid business vision, a clear focus on its target market, and strong revenue growth. Zendesk is
best suited for small customer service teams looking for a modern, mobile-frst multichannel
solution and a company to help them understand best practices for service.
SugarCRM ofers the customization fexibility of an open source platform. SugarCRM
ofers a fexible platform built on open source components and open standards, which allows
organizations to take a basic CRM platform application and build upon it using their own
technology management resources or add-on modules that are available through SugarCRMs
partner and developer communities. SugarCRM provides a sound architecture and platform
with very strong integration support and security and strong support for customization and
confguration. It has very strong usability. It also ofers strong case management capabilities
and social listening capabilities, but it has weak support for business process and workfow
tools. However, SugarCRM provides weak support for most other customer service capabilities,
including multichannel capabilities, knowledge base, and social customer service.
SugarCRM has a sound product strategy and vision and a sound application ownership
experience. Te product is available as an on-premises or SaaS deployment via private cloud,
public cloud, and partner cloud deployments. Its average deployment size is 20 agents, however,
customer-service-led deals are much larger, resulting in SugarCRM emerging on the radar as a
viable option for both small and large organizations. SugarCRM best suits organizations needing
phone-based customer support and seeking fexible pricing options with deep customization
fexibility in a packaged CRM application.
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Kana Express balances cost of operations with customer experience. Kana Express is a
SaaS-product that Kana Sofware acquired in 2012 from Trinicom. It is a straightforward
multichannel product with strong usability and a rapid time to value. It has sound case
management capabilities and a sound knowledge base and virtual agent. It also has sound
multichannel capabilities: sound chat, email response management, and social customer
service capabilities. It has weak social listening capabilities and very weak forum capabilities.
Kana targets this product to small customer service teams with an online focus within midsize
businesses and divisions and subsidiaries of larger enterprises, and it has an average deployment
size of between 20 and 50 agents. Full implementation, including typical integrations with
telephony and back-ofce systems, usually takes a few weeks.
Kana Express has a small global footprint of 250 customers, with a very small presence outside
of the Benelux region and in North America. Although Kana has a sound business vision for the
solution, and the product has a sound application ownership experience, Kanas recent acquisition
by Verint, a company focused on enterprise buyers, puts the long-term emphasis of this product in
question. Kana Express best suits small organizations focused on delivering multichannel service
with sound knowledge management to their customers using a rapidly deployed solution.
Parature balances agent productivity with customer experience. With an average deployment
size of 45 agents, Parature ofers a breadth, but not depth, of multichannel capabilities to
over 3,000 customer service teams. It has sound chat, email response management, and social
customer service capabilities as well as usability. It ofers a simple knowledge base with strong
knowledge retrieval capabilities and solid knowledge authoring and publishing workfows. It has
very weak forum capabilities and lacks social sentiment analysis and virtual agent capabilities.
It ofers a fexible portal structure to allow single teams of customer service agents to support
separate brands. It also ofers strong reporting capabilities, with a breadth of customer service
reports to allow organizations to monitor their operations.
Microsof acquired Parature in January 2014. Microsof will continue to ofer Parature as a
standalone product. Microsof will also leverage Paratures chat and knowledge capabilities to fll
in the gaps in its product ofering. It currently ofers prepackaged connectors from Dynamics
CRM to Parature, which will be strengthened in 2014 as well as attractive bundled pricing to
enhance the Parature footprint within the Dynamics CRM installed base. Parature is best suited
for small teams looking to deploy a multichannel solution with an emphasis on web self-service.
Contenders
Astute Solutions delivers agent productivity with a focus on select industries. With an
average deployment size of fewer than 100 agents, Astute Solutions focuses on midsize teams
more than on small teams in the consumer packaged goods, retail, restaurant, and airline
industries. Its ePC product ofers solid, across-the-board capabilities, which are enhanced by
other products in the Astute portfolio. ePC ofers sound incident management capabilities, with
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solid scripting and strong workfow. It has sound multichannel capabilities: sound customer-to-
agent chat, but weak chat supervisor tools; strong email response management; and sound social
customer service. Te core product has very weak native social listening capabilities, instead
leveraging the strong capabilities of the Astute social relationship management (SRM) product.
It has sound knowledge base and very strong virtual agent capabilities, which are integrated into
its core knowledge management solution. Astute ePC has very weak reporting. Full reporting
capabilities including dashboarding, advanced data visualization, and advanced are provided
by the Astute Insights solution. It has sound integration, customization, and confguration, but
weak security and usability.
Astute has a small customer base, which it supports with basic user adoption and support
methodologies. Astute continually assesses and optimizes the economic value that customers
realize, building strong loyalty within its customer base. Te company has a weak business
vision for the product, which is centered on simplifying the agent experience by building simple,
integrated tool sets in order to deliver better customer service. However, Astute has a sound
vision for solving customer-facing problems. Its focus on a handful of industries has allowed it
to be proftable and experience strong revenue growth year over year. Astute best suits midsize
teams in consumer-focused companies with knowledge management needs, which can utilize
the breadth of the Astute portfolio to complement core capabilities of its ePC solution.
SUPPLEMENTAL MATERIAL
Online Resource
Te online version of Figure 5 is an Excel-based vendor comparison tool that provides detailed
product evaluations and customizable rankings.
Data Sources Used In This Forrester Wave Evaluation
Forrester used a combination of several data sources to assess the strengths and weaknesses of each
solution:
Vendor surveys. Forrester surveyed vendors on their capabilities as they relate to the evaluation
criteria. Once we analyzed the completed vendor surveys, we conducted vendor calls and
briefngs where necessary to gather details of vendor qualifcations.
Customer reference survey. To validate product and vendor qualifcations, Forrester also
conducted a survey of some vendors current customers.
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The Forrester Wave Methodology
We conduct primary research to develop a list of vendors that meet our criteria to be evaluated
in this market. From that initial pool of vendors, we then narrow our fnal list. We choose these
vendors based on: 1) product ft; 2) customer success; and 3) Forrester client demand. We eliminate
vendors that have limited customer references and products that dont ft the scope of our evaluation.
Afer examining past research, user need assessments, and vendor and expert interviews, we develop
the initial evaluation criteria. To evaluate the vendors and their products against our set of criteria,
we gather details of product qualifcations through a combination of lab evaluations, questionnaires,
demos, and/or discussions with client references. We send evaluations to the vendors for their review,
and we adjust the evaluations to provide the most accurate view of vendor oferings and strategies.
We set default weightings to refect our analysis of the needs of large user companies and/or
other scenarios as outlined in the Forrester Wave document and then score the vendors based
on a clearly defned scale. Tese default weightings are intended only as a starting point, and we
encourage readers to adapt the weightings to ft their individual needs through the Excel-based
tool. Te fnal scores generate the graphical depiction of the market based on current ofering,
strategy, and market presence. Forrester intends to update vendor evaluations regularly as product
capabilities and vendor strategies evolve. For more information on the methodology that every
Forrester Wave evaluation follows, go to http://www.forrester.com/marketing/policies/forrester-
wave-methodology.html.
Integrity Policy
All of Forresters research, including Forrester Wave evaluations, is conducted according to our
integrity policy. For more information, go to http://www.forrester.com/marketing/policies/integrity-
policy.html.
ENDNOTES
1
Forrester data confrms the strong relationship between the quality of a frms customer experience (as
measured by Forresters Customer Experience Index) and loyalty measures such as willingness to consider
the company for another purchase, likelihood to switch business, and likelihood to recommend. See the
July 7, 2011, The Business Impact Of Customer Experience, 2011 report.
2
To help customer experience professionals prove the business value of a better enterprise customer
experience, we built simple models that show how revenue increases when a companys Customer
Experience Index (CxPi) score goes up. Our models show that the benefts are signifcant across all 11
industries we looked at. Wireless carriers and airlines have the largest potential upside: more than $2 billion.
Customer experience professionals should use the interactive models in this report to estimate the range
of benefts their frm might see. Tat data combined with customers verbatim comments and customer
experience stories will help customer experience leaders make a powerful case for change. See the June
10, 2013, The Business Impact Of Customer Experience, 2013 report.
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2014, Forrester Research, Inc. Reproduction Prohibited April 7, 2014
3
When consumers switch from the Web to the phone, email, or chat, a companys cost to serve them goes up
dramatically. Forrester built models to add up the unnecessary cost that a retailer might incur as a result of
missed self-service opportunities. Calculations showed an extra $22,567,967 in sales and service costs that
could have been avoided if the website had enabled users to complete their goals. See the January 13, 2011,
2011 Will Challenge The Status Quo Of eBusiness Online Customer Service report.
4
For the seventh consecutive year, Forrester asked more than 7,500 consumers to rate the experiences they
had with 175 brands across 14 industries. One-tenth of the brands we asked about earned scores in the
poor or very poor categories. See the January 21, 2014, The Customer Experience Index, 2014 report.
5
Over half of US online consumers are likely to abandon their online purchase if they cannot fnd a quick
answer to their questions, and three-quarters say that valuing their time is the most important thing a
company can do to provide them with good service Source: North American Technographics Customer
Experience Survey, 2013.
For more data on the efects of customer experience, see the March 11, 2013, Understand Communication
Channel Needs To Craft Your Customer Service Strategy report.
6
Source: North American Technographics Customer Experience Online Survey, 2013.
7
Accenture Global Consumer Pulse Survey measured the experiences of 12,867 customers in 32 countries
and across 10 industries to gain insight into the changing dynamics of todays nonstop customers and
assess consumer attitudes toward marketing, sales, and customer service practices. Te survey included
1,256 US customers. Source: Global Consumer Pulse Research, Accenture (http://www.accenture.com/
microsites/global-consumer-pulse-research/Pages/home.aspx).
8
Tis data was derived from the North American Technographics Customer Experience Online Survey, Q4
2012 (US), which asked US customers what communication channels they had used to receive customer
service in the past 12 months.
9
Forrester asked 7,506 US online consumers what communication channels they had used to receive
customer service in the past 12 months. Source: North American Technographics Customer Experience
Online Survey, Q4 2012 (US).
10
With a 67% overall average adoption rate across generations, help and FAQ sections are the most
commonly accessed online customer service channel, and usage of this communication channel has
increased by 10 percentage points in the past three years. But with a 58% satisfaction rate, this channel has
one of the lowest-reported satisfaction ratings. Tis is the result of few companies having solid knowledge
management programs in place to optimize content based on content usage data, search term analysis, and
customer satisfaction ratings. See the March 11, 2013, Understand Communication Channel Needs To
Craft Your Customer Service Strategy report.
11
Salesforces ambitions are to help clients create Internets of customers through anytime, anywhere,
intelligent interactions and services. Salesforce1 helps unify the weak integration between its various
platforms and tools. See the November 26, 2013, Quick Take: With Salesforce1, Finally, An Integrated
Cloud Platform report.
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12
For a detailed evaluation of these solutions for enterprise organizations, see the April, 7, 2014, The
Forrester Wave: Customer Service Solutions For Enterprise Organizations, Q2 2014 report.
13
Eleven vendor solutions suitable for enterprise customer service organizations are evaluated in our
evaluation of customer service solutions for enterprise organizations. See the April 7, 2014, The Forrester
Wave: Customer Service Solutions For Enterprise Organizations, Q2 2014 report.
Forrester Research (Nasdaq: FORR) is a global research and advisory frm serving professionals in 13 key roles across three distinct client
segments. Our clients face progressively complex business and technology decisions every day. To help them understand, strategize, and act
upon opportunities brought by change, Forrester provides proprietary research, consumer and business data, custom consulting, events and
online communities, and peer-to-peer executive programs. We guide leaders in business technology, marketing and strategy, and the technology
industry through independent fact-based insight, ensuring their business success today and tomorrow. 113657

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ANDREA DAVIES, client persona representing Application Development & Delivery Professionals
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