ABSTRACT Speech and Text Analytics Product and Market Report

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1 ABSTRACT Speech and Text Analytics Product and Market Report 1

2 DMG Consulting s tenth annual report on the speech analytics market has been expanded to include coverage of the text analytics sector, and has been renamed the Speech and Text Analytics Product and Market Report. This Report is designed to inform end-user organizations and help them make the right technology investment decision for their operating environment. The 468-page Report focuses on practical and strategic applications of speech and text analytics in the contact center and across the enterprise. It examines leading and emerging solutions, trends and challenges, market share, pricing, return on investment (ROI), best practices, and more. Please contact Deborah Navarra at or with any questions. To order your copy of the report, visit 2

3 Speech and text analytics solutions perform the unique function of identifying the meaning, sentiment and insights contained within conversations and written documents. Speech analytics is a high-value application with greatt potential to deliver quantifiable strategic and tactical benefits to many departments within enterprises, including the contact center, when it is used properly. There s a very good reason why the number of speech analytics market has grown from 24 customers in 2003 to over 3.5 million licenses in 2015, although adoption is expected to increase as more companies learn to use these sophisticated analytical solutions and the availability of third-party resources with the knowledge and experience in implementing and managing these solutions increases. Speech analytics is also starting to make its way into the emerging world of customer journey analytics, as a method for understanding various aspects of the customer experience. As these solutions and the resources to manage them mature, adoption is expected to increase, as will their utilization and contributions to enterprises of all kinds. DMG projects that speech analytics will be viewed as mission-critical functionality for corporations within the next 5 years. Text analytics has been around much longer than speech analytics, and despite being a requirement for any company with a social media program, adoption remains surprisingly slow. As text analytics capabilities are often embedded into third-party solutions, DMG expects that this lack of interest and investment will gradually be overcome. Both speech and text analytics are valuable on a stand-alone basis, but when combined with other analytical applications, their contributions become even greater. DMG expects speech analytics and text analytics to become fundamental and core components of contact center and enterprise customer journey analytics solutions. Analytics-enabled quality assurance (AQA) is one of the emerging applications poised to transform how speech analytics is used in contact centers. Traditionally, quality assurance (QA) has been a labor-intensive function; supervisors and reviewers manually search through hours of calls so identify a subset for evaluation. Analytics-enabled QA is the antithesis of the traditional process. By leveraging speech, text, and possibly desktop analytics, AQA solutions can automate the quality assurance process and make it more targeted, precise, beneficial and costeffective. The adoption of speech and text analytics applications in contact centers is increasing the value of QA and changing the process for the better. Service quality and the customer journey will be further aided by the emerging real-time speech analytics capabilities, which can be used for matching customers to the right agents to enhance the service experience, facilitate the personalization of service, to enhance customer and agent satisfaction, and improve productivity. Although this is just the beginning for real-time speech analytics, it is the first step in a gradual process that is consistent with the direction of the market. Getting interactions to the most appropriate resource will allow for a more customized service/sales experience, which will increase revenue and improve the customers ease of doing business with a company, another important market trend. Real-time speech analytics solutions are being implemented in a variety of practical ways. They are being used to drive real-time guidance so that agents know precisely what to do for each customer opportunity. Real-time speech is now being applied to automate the verification process via voice biometrics; this process will improve security and reduce the risk and cost of fraud. As a result, doing business by phone will become one of the more secure ways to interact with a company. The phone will also become an increasingly simple, quick and easy communications channel, which will, in turn, reduce enterprise costs and improve the customer experience. The edition of the Speech and Text Analytics Product and Market Report provides deep analysis and insights into leading and emerging vendors, solutions, opportunities and best practices. It explains all aspects of the speech and text analytics markets, discusses trends and challenges, and provides speech analytics market activity data, pricing, benefits and implementation best practices. The Report is designed to help prospects identify the right vendor and acquisition model to meet their current and future needs. Six vendors fully met DMG s participation criteria and are analyzed in detail in this year s Speech and Text Analytics Product and Market Report. These vendors are: Avaya, CallMiner, Genesys, incontact, NICE and Verint. Three additional vendors Interactive Intelligence, OnviSource and ZOOM International are included on a partial basis. 3

4 Key Reasons to Buy This Report How speech analytics works, including a description of the speech engines and a review of the functional building blocks that comprise speech analytics solutions Review of the text analytics process and the underlying technology that enables it Explanation of the relationship between text and speech analytics, and how they provide visibility into the customer journey Service delivery models and deployment options for speech and text analytics solutions: on-premise, cloud, hosted, managed service and hybrid The trends and challenges driving enterprise investments in speech and text analytics solutions and vendor innovation New functionality that has recently been introduced, and what is planned to be delivered in the next months How speech-analytics-enabled QA is redefining quality management How real-time speech analytics solutions are driving improvements in agent and contact center performance and customer satisfaction The role of speech and text analytics in supporting top contact center servicing trends and initiatives for 2015 How speech analytics is being used to reduce risk and achieve regulatory compliance Speech analytics market activity and market share analysis, adoption rate, and 5-year projections Analysis of the speech analytics competitive landscape, including a discussion of new and emerging competitors, company snapshots, product summaries and packaged offerings Detailed company reports for the 9 leading and contending vendors, analyzing their products, functionality and future product development plans In-depth technical and functional review and side-by-side comparative analyses of the key functional and technical capabilities of the 6 featured speech analytics solutions Speech and text analytics benefits, uses and return on investment (ROI) analysis Implementation analyses for both speech and text analytics solutions, including vendor best practices, maintenance and support, workshops, training and professional services Comprehensive vendor satisfaction survey results that measure and rank vendor approval ratings across 21 product components and 10 vendor categories Detailed pricing comparison and analysis for on-premise, cloud-based and managed service speech and text analytics solutions Speech and Text Analytics Vendor Directories 4

5 Report Highlights Speech analytics tools are becoming more actionable: As vendors recognize and deliver speech analytics and text analytics solutions and functionality either embedded in, integrated with, or tied to other applications, their uses and benefits grow. Learn how speech analytics and text analytics solutions are powering next-best-action recommendations, real-time guidance, prescriptive analytics, predictive analytics, and a whole lot more. The top three uses of speech analytics are different from past years: Uses of speech analytics are maturing and extending beyond the boundaries of the contact center. The top three uses of speech analytics are: improving agent and operational effectiveness and efficiency, understanding the customer experience/ capturing the voice of the customer, and improving sales effectiveness. These uses are indicative of the continued innovation, expansion and adoption of speech analytics. End users are finding more practical ways to use and apply both post-call and real-time speech analytics solutions, a trend that DMG expects to see continue. Predictive analytics will be instrumental in the future of contact centers: DMG s strategic roadmap explains the changing and increasingly important role that contact centers will play in helping organizations deliver an outstanding, personalized service/sales/collections experience. Speech and text analytics, which drive predictive analytics, are enablers of the contact center of the future. Slow adoption of text analytics will be overcome: Although a requirement for any company with a social media program, sales of text analytics solutions have been hampered by a lack of end-user interest and an unwillingness to invest. As text analytics capabilities are embedded in third-party solutions, however, adoption will pick up. 5

6 SAMPLE FIGURE What is Speech Analytics Source: DMG Consulting LLC, June

7 TABLE OF CONTENTS 1 of 2 1. Executive Summary 2. Introduction 3. DMG Consulting Research Methodology 3.1 Report Participation Criteria 4. What is Speech Analytics? 4.1 How Speech Analytics Works 4.2 Post-Call (Historical) vs. Real-Time Speech Analytics 4.3 Application Building Blocks 4.4 High-Level Functional Analysis 4.5 Speech Engines 4.6 High-Level Technical Analysis 5. What is Text Analytics? 5.1 How it Works 5.2 Text Analytics Functional Building Blocks 5.3 Detailed Text Analytics Functional Analysis 5.4 The Relationship Between Text and Speech Analytics 5.5 Using Text and Speech Analytics to Support Multi-Channel Analytics 5.6 Making Results Actionable 6. Service Delivery Models for Speech Analytics Solutions 6.1 DMG Service Delivery Definitions 7. Speech and Text Analytics Market Trends and Challenges 7.1 Speech and Text Analytics Trends 7.2 Speech and Text Analytics Challenges 8. Speech Analytics Market Innovation 8.1 New Product Features 8.2 Future Enhancements 9. Analytics-Enabled QA 9.1 What is Analytics-Enabled QA? 9.2 Traditional Versus Analytics-Enabled QA 9.3 How to Transition to Analytics-Enabled QA 9.4 Skills-Based Coaching 9.5 Analytics-Enabled QA for Multi-Channel Interactions 9.6 Vendor Analytics-Enabled QA Capabilities 10. Real-Time Speech Analytics 10.1 Uses of Real-Time Speech Analytics 10.2 Vendor Real-Time Speech Analytics Capabilities 10.3 Real-Time Speech Analytics Best Practices 11. Using Speech Analytics and Text Analytics to Support Top Contact Center Servicing Trends and Initiatives for Deliver an outstanding customer experience 11.2 Improve productivity 11.3 Reduce the Cost of Service 11.4 Increase the Use of Self-Service Applications 11.5 Reduce Customer Effort 11.6 Enhance Reporting and Analytics 11.7 Improve Customer Retention 11.8 Increase Sales 11.9 Improve Compliance Improve Customer Engagement 7

8 TABLE OF CONTENTS 2 of Increase Employee Engagement and Empowerment Gamification 12. Reducing Risk with Speech Analytics 12.1 Compliance 12.2 Fraud Prevention 13. Speech Analytics Market Activity Analysis 14. Speech Analytics Market Adoption 15. Speech Analytics Market Projections 16. Speech Analytics Competitive Landscape 17. Vendors and Solutions 17.1 Company snapshot 17.2 Vendor Offerings and Products 17.3 Packaged Offerings 18. Speech Analytics Detailed Functional Analysis 18.1 Application Accuracy and Tuning 18.2 Speech Recognition Capabilities 18.3 Indexing, Search and Queries 18.4 Recording, Retrieval and Replay 18.5 Emotion Detection/Sentiment Analysis 18.6 Storage 18.7 System Administration 18.8 System Security 18.9 Reporting, Dashboards and Alerts 19. Speech and Text Analytics Uses, Benefits and Return on Investment 19.1 Speech Analytics Uses 19.2 Text Analytics Uses 19.3 Benefits 19.4 Return on Investment Analysis 20. Implementation Analysis 20.1 Speech Analytics Implementation Process 20.2 Speech Analytics Implementation Best Practices 20.3 Speech Analytics Workshops and Training 20.4 Text Analytics Implementation Process 20.5 Text Analytics Implementation Best Practices 20.6 Text Analytics Workshops and Training 20.7 Maintenance and On-going Support 21. Vendor Satisfaction Analysis 22. Pricing 22.1 Premise-Based Pricing 22.2 Cloud-Based Pricing 22.3 Managed Service Pricing 23. Company Reports Appendix: Speech Analytics Vendor Directory 8

9 TABLE OF FIGURES 1 of 2 Figure 1: What is Speech Analytics? Figure 2: Historical vs. Real-Time Speech Analytics Use Cases Figure 3: Speech Analytics Technology Building Blocks Figure 4: High-Level Speech Analytics Capabilities Figure 5: The Ideal Speech Analytics Platform Figure 6: Speech Analytics Engines Figure 7: High-Level Speech Analytics Technical Summary Figure 8: Text Analytics Figure 9: The Classic Text Analytics Process Figure 10: Sources of Unstructured Data Figure 11: Data Inputs Supported by Text Analytics Figure 12: Standard Text Extraction Process Figure 13: Text Analytics Building Blocks Figure 14: Detailed Text Analytics Capabilities Figure 15: Customer Journey Figure 16: Using Text and Speech Analytics to Support Analytics-Enabled Processes Figure 17: Customer Journey Analytics Solutions Figure 18: Other Analytics Offerings Figure 19: Making Results Actionable Figure 20: Service Delivery Models, Advantages and Disadvantages Figure 21: DMG s Service Delivery Model Definitions Figure 22: Vendor Service Delivery Options Figure 23: 2015 Speech and Text Analytics Trends Figure 24: 2015 Speech and Text Analytics Challenges Figure 25: New Product Features Figure 26: New Product Features, by Category Figure 27: Future Enhancements, by Category Figure 28: Using Text Analytics to Support Analytics-Enabled Quality Management Figure 29: Analytics-Enabled Quality Management Figure 30: Real-Time Speech Analytics Figure 31: Uses of Real-Time Speech Analytics Figure 32: Real-Time Speech Analytics Capabilities Figure 33: Best Practices for Real-Time Speech Analytics Figure 34: Top Enterprise Servicing Goals for 2015 Figure 35: 2015 Enterprise Servicing Initiatives, by Category Figure 36: Using Speech and Text Analytics to Deliver an Outstanding Customer Experience Figure 37: Using Speech and Text Analytics to Improve Productivity Figure 38: Using Speech and Text Analytics to Reduce the Cost of Service Figure 39: Using Speech and Text Analytics to Increase the Use of Self-Service Applications Figure 40: Using Speech and Text Analytics to Reduce Customer Effort Figure 41: Using Speech and Text Analytics to Enhance Reporting and Analytics Figure 42: Using Speech and Text Analytics to Improve Customer Retention Figure 43: Using Speech and Text Analytics to Increase Sales Figure 44: Using Speech and Text Analytics to Improve Compliance Figure 45: Using Speech and Text Analytics to Improve Customer Engagement Figure 46: Using Speech and Text Analytics to Increase Employee Engagement and Empowerment Figure 47: Gamification Features Figure 48: Compliance Figure 49: Fraud Prevention Figure 50: Contact Center Speech Analytics Seat and Percent Growth, Figure 51: Speech Analytics Seat Trend Detail by Geography, Figure 52: Speech Analytics Activity, as of March 31, 2015 Figure 53: Speech Analytics Market Share Based on Seats, as of March 2015 Figure 54: Speech Analytics Customers and Seats by Vendor, 2013 vs Figure 55: Speech Analytics Customer Trends by Vendor, Figure 56: Speech Analytics Customer Trends by Vendor, Figure 57: Speech Analytics Seat Trends by Vendor, Figure 58: Speech Analytics Seat Trends by Vendor, Figure 59: Speech Analytics Contact Center Adoption Rate, Figure 60: Speech Analytics Market Growth Rate Projections Based on Seats, Figure 61: Speech Analytics Seat Trend Detail by Geography, Figure 62: Speech Analytics Competitive Landscape Figure 63: Company Information as of December 2014 Figure 64: Speech and Text Analytics Product Analysis Figure 65: Speech and Text Analytics Core and Optional Modules Figure 66: Complementary Contact Center Applications Figure 67: Packaged Offerings Figure 68: Tuning and Accuracy Figure 69: Speech Recognition Capabilities Figure 70: Indexing, Search and Queries Figure 71: Recording, Retrieval and Replay Capabilities Figure 72: Emotion/Sentiment Detection Figure 73: Storage Figure 74: Administration Figure 75: Security Features Figure 76: Dashboards and Reporting and Analytical Capabilities 9

10 TABLE OF FIGURES 2 of 2 Figure 77: Figure 78: Figure 79: Figure 80: Figure 81: Figure 82: Figure 83: Figure 84: Figure 85: Figure 86: Figure 87: Figure 88: Figure 89: Figure 90: Figure 91: Figure 92: Figure 93: Figure 94: Figure 95: Figure 96: Figure 97: Figure 98: Figure 99: Figure 100: Figure 101: Figure 102: Figure 103: Figure 104: Figure 105: Figure 106: Figure 107: Figure 108: Figure 109: Figure 110: Figure 111: Figure 112: Figure 113: Figure 114: Figure 115: Figure 116: Figure 117: Figure 118: Figure 119: Figure 120: Figure 121: Figure 122: Figure 123: Figure 124: Figure 125: Figure 126: Figure 127: Figure 128: Figure 129: Figure 130: Figure 131: Figure 132: Figure 133: Figure 134: Figure 135: Figure 136: Figure 137: What were the top 3-5 business issues that you want speech analytics to solve? Top 10 Uses of Speech Analytics, by Vendor Top Uses of Speech Analytics, by Category Top 10 Uses of Text Analytics Speech and Text Analytics ROI Benefit Categories Average Speech and Text Analytics ROI (in months) Speech Analytics Implementation Analysis Speech Analytics Implementation Analysis Training, Workshops and Professional Services Text Analytics Implementation Analysis Text Analytics Implementation Best Practices, by Vendor Text Analytics Training, Workshops and Professional Services Maintenance and Ongoing Support Customer Survey Rating Categories Average Satisfaction Ratings, by Category Product Satisfaction Ratings, by Category Ease of Use/Configuration/Maintenance Satisfaction Ratings, by Customer Ease of Integration with Third-Party Applications SatisfactionRatings, by Customer Ease of Creating Searches and Queries Satisfaction Ratings, by Customer Accuracy and Business Relevancy of Results Satisfaction Ratings, by Customer Ability to Fine-Tune Results Satisfaction Ratings, by Customer Call Analysis Satisfaction Ratings, by Customer Text Analytics Satisfaction Ratings, by Customer Emotion Detection/Sentiment Analysis Satisfaction Ratings, by Customer Ability to Conduct Automated Root Cause Analysis Satisfaction Ratings, by Customer Ability to Conduct Discovery and Surface Previously Unknown Issues or New and Breaking Trends Satisfaction Ratings, by Customer Ability to Correlate Seemingly Unrelated Issues Satisfaction Ratings, by Customer Ability to Serve as an Early Warning System to Identify Issues Before They Escalate and Impact a Large Number of Customers Satisfaction Ratings, by Customer Ability to Make Results Actionable Satisfaction Ratings, by Customer Real-Time Capabilities Satisfaction Ratings, by Customer Reporting and Dashboards Satisfaction Ratings, by Customer Ability to Support Analytics-Enabled Quality Assurance Processes Satisfaction Ratings, by Customer Ability to Improve Quality and Agent Coaching Satisfaction Ratings, by Customer Ability to Improve Compliance with Regulatory Requirements Satisfaction Ratings, by Customer Ability to Detect Fraud Satisfaction Ratings, by Customer Ability to Reduce Customer Effort Satisfaction Ratings, by Customer Ability to Improve Customer Engagement Satisfaction Ratings, by Customer Implementation Satisfaction Ratings, by Customer Training/Workshops Satisfaction Ratings, by Customer On-going Service and Support Satisfaction Ratings, by Customer Professional Services Satisfaction Ratings, by Customer Innovation Satisfaction Ratings, by Customer Responsiveness to Product Enhancement Requests Satisfaction Ratings, by Customer Communication Satisfaction Ratings, by Customer Pricing Satisfaction Ratings, by Customer Overall Vendor Satisfaction Ratings, by Customer What were the top 3-5 business issues that you want speech analytics to solve? What are the top 3-5 benefits that were realized from speech analytics? What business units are using speech analytics information? Please tell us the top 3-5 strengths of your speech analytics solution What enhancements/additional capabilities would you like to see in your speech analytics solution? What is the biggest impact that speech analytics has had on the contact center? What is the one thing you wish you knew about the speech analytics solution before you made the purchase? What is the top 3-5 ways that text analytics is being used? (if applicable) Additional comments about your experience with the vendor and/or product Price Ranges Premise-Based Solution, 2015 vs Comparison Pricing for a Premise-Based Speech Analytics Solution: 250 Seats Pricing for a Premise-Based Text Analytics Solution: 250 Seats Pricing for Speech Analytics, Cloud-Based: 250 Seats Pricing for Text Analytics, Cloud-Based: 250 Seats Pricing for Speech Analytics, Managed Service: 250 Seats 10

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