Contact Center Workforce Management Market Report Reprint

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1 Contact Center Workforce Management Market Report Reprint 2012 Reprinted for:

2 Table of Contents 1. WFM Market Activity Analysis Market Share Analysis Workforce Management Vendor Satisfaction Analysis Summary of Survey Findings and Analysis Detailed Survey Findings and Analysis... 9 About NICE Systems About DMG Consulting LLC i - DMG Consulting LLC

3 1. WFM Market Activity Analysis Momentum is growing in the contact center (and back-office and branch) WFM sector, as more companies decide to use these solutions. Interest in these solutions is so strong that more vendors are jumping in with new and sometimes rudimentary offerings, giving end users alternatives that they did not have even as recently as three years ago. Competitors are entering the North American market, for example, Teleopti and Injixtu (InVision), and new solutions are being introduced by workforce optimization vendors, such as CallCopy, and standalone vendors, such as L3 Prime. A second major trend that is driving adoption of contact center WFM applications is the strong interest and growing preference for hosted and cloud-based solutions. For the past three years, end-user organizations have been showing growing interest in acquiring WFM in the cloud. While cloud-based solutions do not resolve all end-user concerns about WFM applications, they mitigate the risk by limiting the cost, exposure, commitment and, very importantly, start-up time and cost. And, with some of the vendors, the cloud-based/hosted WFM offerings include an essential component that is missing at many contact center sites WFM domain expertise. An interesting aspect of the market is the slow adoption of this delivery model by two of the leading WFM vendors. Verint jumped on the cloud delivery bandwagon quickly, and has been reaping the rewards and new customers. (Pipkins was one of the earliest WFM vendors to move their solution to the cloud, and this acquisition model has fueled their growth for the past three years.) Aspect and NICE, the two contact center WFM market leaders, have been reticent about the cloud. During the past couple of years, both of these companies have used partners to deliver their WFM solutions in the cloud, but the activity has been slow. It s been clear that these vendors were not great fans of this alternative delivery approach. This is finally changing, and during 2012, DMG expects both Aspect and NICE to offer their own cloud-based WFM offerings. However, we still expect these companies to use the cloud as an alternative when customers demand it, instead of fully embracing it for what DMG expects it to become an increasingly popular approach for acquiring WFM functionality. (DMG anticipates that very large sites will continue to prefer premise-based solutions, but a growing number of sites with 300 or fewer seats are expected to show a preference for cloud-based WFM.) Figure 1 shows contact center WFM market activity as of December 31, It shows both the number of seats and number of customers for a majority of the WFM vendors in the market, and is sorted by the number of seats. Most of the DMG Consulting LLC

4 vendors in the market share their numbers with DMG, but when they did not, we estimated their activity. This Figure shows that NICE/IEX is the contact center WFM market share leader based on number of seats, as of the end of Aspect is in second place, and Verint is in third place. invision is in fourth place, and Genesys is believed to be in fifth place. In the prior year s edition of DMG s Contact Center Workforce Management Market Report, Pipkins was in sixth place. However, as of the end of 2011, Teleopti has moved up and taken over the sixth position. Figure 1: 2011 Contact Center WFM Market Activity by Vendor, as of December 31, 2011 Total Number Vendor Customers Seats/Agents NICE/IEX 1 1,580 1,430,000 Aspect 1, ,283,437 Verint 1, 3 1,700 1,200,000 InVision ,000 Genesys ,988 Teleopti ,000 Calabrio ,400 Pipkins ,000 eg solutions 42 41,000 Interactive Intelligence ,816 Monet (Left Bank) ,785 Holy-Dis ,994 incontact ,774 Envision ,000 L3 Prime 8 1,200 Other ,739 Less: Double Count (20) (5,774) Total 8,067 6,041,359 Notes: 1. DMG Consulting LLC estimate. 2. Aspect s 2011 customer numbers are smaller than in prior years because they are changing how they define customers in their internal systems; they are merging individual customer names under master accounts. 3. This number represents Verint s contact center WFM seats, including GMT and hosting DMG Consulting LLC

5 Figure 1: 2011 Contact Center WFM Market Activity by Vendor, as of December 31, 2011 Vendor Total Number activity; it does not include their non-contact center WFM licenses. 4. Numbers include sales of injixo, InVision s cloud-based WFM solution. 5. Holy-Dis provided the number of customers they had as of the end of DMG used this number to estimate 2010 seats and 2011 market activity. 6. As of August 2010, incontact began selling an OEM ed edition of Verint s WFM solution. As of 2010, all new WFM sales for incontact are included in Verint s numbers. 7. Other is estimated to be 10% of the total for the named vendors. Source: DMG Consulting LLC, May Market Share Analysis Figure 2 analyzes contact center WFM market activity by number of seats, as of the end of The top three vendors, NICE/IEX, Aspect and Verint, dominate the contact center WFM market, accounting for a combined 64.7% of all known seats. NICE/IEX has picked up some momentum and market share, growing from a 22.5% of the market in 2010 to 23.7% in Sales of WFM solutions appears to have slowed for Aspect during 2011, as their share of the market dropped from 22.2% in 2010 to 21.2% in In fact, however, based on Aspect s revenue, they are performing well in the area of WFM. Their numbers decreased due to a change in their tracking and reporting methodology. Verint performed very well in the area of WFM during Their share of the contact center WFM market grew from 15.9% in 2010 to 19.8% in The growth is attributable to a couple of factors: Verint acquired one of their WFM competitors, GMT, and their market activity numbers were combined in the market activity section of this Report. GMT sold WFM solutions for back office, branches and the contact center. While GMT did not have many contact center clients, a couple of them were large. A second driver of Verint s contact center WFM growth is their partnership with incontact, a cloud-based contact center infrastructure provider. incontact was effective in ramping up and selling WFM during 2011, and they are positioned to execute even better in this area during 2012, now that their entire sales staff is trained. (Due to a change in reporting methodology, it appears as if they lost momentum in the WFM market, when the apparent decrease in market share is attributable to how they track this information.) Pipkins share of the contact center WFM market appears to have dropped significantly between 2010 and In fact, though, by all accounts, Pipkins is performing well. This change in ranking is being driven by a different tracking and reporting methodology DMG Consulting LLC

6 L3 Prime, based in Canada, was added to DMG s WFM market share analysis this year. They are a new market entrant and captured 0.02% of the contact center WFM sector during Figure 2: Contact Center WFM Market Share by Number of Seats, as of December 2011 Source: DMG Consulting LLC, May Workforce Management Vendor Satisfaction Analysis On an annual basis, DMG Consulting conducts independent customer satisfaction surveys to measure end-user satisfaction with vendors and their products as well as their service, support, professional services, training and innovation. DMG conducts these analyses because they provide great insights into general market and end-user issues and concerns, as participants are open and candid in generously sharing their thoughts and challenges with us DMG Consulting LLC

7 This study evaluates the performance of the six vendors analyzed at a detailed level in the Workforce Management Market Report: Aspect, Calabrio, Interactive Intelligence, NICE/IEX, Teleopti and Verint. For each of these vendors, DMG obtained a completed survey from three customers. Since confidentiality is important to the survey participants and respected throughout our process, the names of references and the companies that they represent are not directly attributed to any of the comments or ratings contained in this Report. The research for DMG Consulting s customer satisfaction survey was conducted as follows: 1. The WFM vendors were asked to provide contact information for five customers who had agreed in advance to participate in the satisfaction survey. These references could not be the same ones provided in the prior year s WFM Report. 2. DMG Consulting sent the participating customers an with a link to a Web survey. The survey consisted of 14 questions, which fell into the following categories: 1. Customer background what activities and channels they were using their WFM vendor to support, how they were performing WFM prior to implementing their WFM solution, primary reasons for selecting their vendor/product as their WFM solution, and top three to five benefits gained from using the WFM application 2. Product satisfaction did the product meet expectations, reasons for meeting/not meeting them and would they recommend the product to others. The survey asked detailed questions about product satisfaction including: ease of set-up/use/maintenance, ease of integration with thirdparty applications, system flexibility, intra-day interface and features, adherence interface and features, self-service interface and features, time-off management features and functionality, real-time capabilities, forecasting accuracy, scheduling features and flexibility, multi-channel/ multi-media capabilities, long-term planning capabilities, ability to support workflow automation and analytics, dashboards and reports. 3. Vendor performance satisfaction levels with the vendor s performance in implementation, training, professional services, service and maintenance, innovation and responsiveness to product enhancement requests, communication, pricing and ratings for the customer s overall vendor satisfaction level DMG Consulting LLC

8 4. Open-ended questions areas where their WFM vendor excelled; what their WFM vendor could do better; what product enhancements they would like to see; and an open invitation for participants to express general thoughts about their experience with the vendor. A total of 18 customer responses (three from each vendor) were received and analyzed. The vendor satisfaction ratings reported in this analysis were calculated by averaging the scores provided by customers for each vendor and category, using the point scale illustrated in Figure 3. Customer insights, which are a compilation of the open-ended responses from reference customers of all eight vendors analyzed for this Report, are also reflected in this analysis. Figure 3: Customer Survey Rating Categories Satisfaction Rating Points Assigned Completely satisfied 5 Highly satisfied 4 Satisfied 3 Somewhat satisfied 2 Not satisfied 1 Source: DMG Consulting LLC, May Summary of Survey Findings and Analysis The figures and analyses that follow represent the results of DMG Consulting s WFM customer satisfaction survey. All six of the vendors Aspect, Calabrio, Interactive Intelligence, NICE/IEX and Verint were included in last year s survey. As seen in Figure 4, a majority (46.2%) of satisfaction ratings across all vendors for the 9 major categories surveyed fell into the highly satisfied range (4.0 to 4.9). 42.6% of the average ratings fell into the satisfied range (3.0 to 3.9), and 11.1% fell into the completely satisfied range. Of the individual vendors, the most notable results were achieved by NICE/IEX, which swept top scores for every category that measured customer satisfaction with either the product or the vendor. Even more remarkably, NICE/IEX achieved a perfect score, 5.0, across 6 of 9 vendor satisfaction categories and 11 of 15 product satisfaction categories. Three areas implementation, professional services and overall vendor satisfaction came in at the category average high of 4.1. NICE/IEX earned a completely satisfied score of 5.0 across all three categories. Teleopti achieved second place for implementation, earning a score of 4.3, highly satisfied. Teleopti DMG Consulting LLC

9 shared second place in the other two categories, with Aspect for professional services, 4.3 (highly satisfied) and with Verint for overall vendor satisfaction, also with scores of 4.3. Satisfaction with the WFM product itself and vendor communication were tied for second place with category averages of 3.9. NICE achieved the top ratings in both of these categories, earning scores of 4.9 and 5.0 (completely satisfied), respectively. Verint followed in second place for both categories, earning highly satisfied ratings of 4.1 for product satisfaction and 4.3 for vendor communication. Third place among the category rankings was shared by 3 areas, each with an average score of 3.8 service and maintenance, training, and innovation/responsiveness to product enhancement requests. Although these three categories shared the same average, training had the largest range of scores, 2.7, of all the other categories surveyed. This suggests important differences in the training provided among the 6 leading and contending WFM vendors. NICE earned the top spot across all three categories, earning a perfect score of 5.0 for training, innovation/responsiveness to product enhancement requests, and a highly satisfied score of 4.7 for service and maintenance. Teleopti and Verint earned second place across all three categories with scores of 4.0, and shared second place with Interactive Intelligence for training satisfaction. Product pricing had the dubious distinction of coming in last, with an average score of 3.7 (satisfied). The top-ranked vendor in the pricing category was NICE/IEX with a score of 4.7, highly satisfied. Calabrio ranked in second place, achieving a highly satisfied rating of 4.3. Figure 4 shows the average customer satisfaction ratings by category for each of the eight vendors DMG Consulting LLC

10 Figure 4: Average Satisfaction Ratings, by Category Innovation/ Responsiveness to Product Enhancement Requests Communication Pricing Overall Vendor Satisfaction 2 Service & Professional Vendor Product 1 Implementation Maintenance Training Services Aspect Calabrio Interactive Intelligence NICE/IEX Teleopti Verint Category Average Range Notes: 1. Product satisfaction scores were derived by averaging the results of the 15 product satisfaction components in Figure These scores do NOT represent the average of the other categories; this is a separate category where customers were asked to rate their overall satisfaction with all aspects of their vendor relationship. Source: DMG Consulting LLC, May DMG Consulting LLC

11 2.2 Detailed Survey Findings and Analysis Product Satisfaction by Category Survey participants were asked to rate their satisfaction with their vendor s WFM solution across 15 key components, including: ease of set-up/use/maintenance, ease of integration with third-party applications, system flexibility, self-service interface and features, intra-day interface and features, adherence interface and features, real-time capabilities, forecasting accuracy, scheduling features and functionality, multi-channel/multi-media capabilities, long-term planning capabilities, ability to support workflow automation and analytics, dashboards and reports. Figure 5 provides the vendors average satisfaction scores for each of these product categories. As seen in Figure 5, a majority (47.8%) of average satisfaction ratings across all vendors for the 15 major categories surveyed fell into the satisfied range (3.0 to 3.7). 33.3% of the average ratings fell into the highly satisfied range (4.0 to 4.7). On the high end of the scale, 12.2% of the average vendor scores were completely satisfied, 5.0, while on the low end, 6.7% were only somewhat satisfied with their vendor. The most notable range, 2.4, occurred in the areas of ease of integration with third-party applications and multi-channel/multi-media capabilities, which is an area of differentiation among WFM solutions. With regard to individual vendor averages, NICE/IEX swept the top honors, earning the highest score in all 14 of the product categories; 11 of which were a perfect score, 5.0, completely satisfied. In the remaining 3 categories, NICE/IEX earned a top score of 4.7, highly satisfied. Verint earned second place in 4 of the 14 categories real-time, multi-media/multi-channel, and long-term planning capabilities and reports. Teleopti earned second place rank in 3 categories; ease of set-up/use/maintenance, scheduling features and flexibility, and ability to support workflow automation and analytics, with highly satisfied scores of 4.7, 4.3 and 4.3, respectively. Interactive Intelligence was rated highly satisfied, 4.3, earning them the second place rank for intra-day interface and features. Teleopti and Verint shared second place in two product satisfaction categories, ease of integration with third-party applications (4.0) and system flexibility (4.0). Teleopti and Interactive Intelligence were tied for second place in the categories of forecasting accuracy (4.3) and dashboards (4.0). Verint shared second place with Aspect for self-service interface and features, each earning a highly satisfied score of 4.0. Among the product component categories, survey participants were most satisfied with ease of set-up, use and maintenance and adherence interface and DMG Consulting LLC

12 features, with each of these categories earning an average of 4.1. NICE/IEX earned a perfect score of 5.0 in both categories to lead in first place. Teleopti, with 4.7, came in second for ease of set-up, use and maintenance, with Verint and Interactive Intelligence tied for second place in adherence interface and features, also scoring 4.7. Customers also rated their average satisfaction across three other categories self-service interface and features, forecasting accuracy and scheduling features and flexibility as highly satisfied, with each category achieving an average satisfaction rating of 4.0. NICE achieved a perfect score of 5.0 for self-service interface and features and scheduling features and flexibility, and also came in first place for forecasting accuracy with a score of 4.7. Aspect and Verint shared second place for self-service interface and features (4.0); Teleopti took second place for scheduling features and flexibility (4.3); and Teleopti and Interactive Intelligence tied for second in forecasting accuracy (4.3). The remaining 10 product satisfaction categories received average customer satisfaction ratings in the satisfied range ( ). Four categories, intra-day interface and features, real-time capabilities, ability to support workflow automation, and analytics and reports, earned an average satisfaction rating of 3.9. NICE/IEX earned a perfect score of completely satisfied across all four areas. Verint, following closely with 4.7, earned second place for real-time capabilities and reports. Interactive Intelligence and Teleopti, with scores of 4.3, took second place for intra-day interface and features and ability to support workflow automation and analytics, respectively. System flexibility and time-off management features and functionality each earned an average score of 3.8. NICE/IEX s customers were completely satisfied with their solution in these two categories, earning the vendor first place, with scores of 5.0. Teleopti and Verint shared second place for system flexibility, each scoring 4.0 (highly satisfied). Verint also shared second place with Aspect for time-off management features and functionality, each earning a 4.0 score. Ease of integration with third-party applications and dashboards each achieved an average satisfaction score of 3.7. NICE/IEX again led these two categories with a highly satisfied score of 4.7 for each. Teleopti earned second place in both of these categories with scores of 4.0, and tied with Verint for ease of integration with third-party applications, and with Interactive Intelligence for dashboards. The two product satisfaction categories ranked in last place were multichannel/multi-media capabilities and long-term planning capabilities. These results are an end-user testament to what DMG has observed during the in-depth product demonstrations that were conducted as part of the research. As discussed in previous sections of this Report, these are two area of growing DMG Consulting LLC

13 importance and areas of significant differentiation among the solutions. NICE/IEX achieved the top score in both categories, with scores of 4.7 and 5.0, respectively. Verint achieved second place, with average scores of 4.0 for each of these two categories. Figure 5 provides the average satisfaction ratings by vendor for each of the 15 product categories surveyed DMG Consulting LLC

14 Figure 5: Product Satisfaction Ratings, by Category Interactive Intelligence NIC/IEX Teleopti Verint Category Average Aspect Calabrio Range Ease of set-up/use/ maintenance Ease of integration with thirdparty applications System flexibility Intra-day interface and features Adherence Interface and features Self-service interface and features Time-off management features and functionality Real-time capabilities Forecasting accuracy Scheduling features and flexibility Multi-channel/multi-media capabilities Long-term planning capabilities Ability to support workflow automation and analytics Dashboards Reports Vendor Average Source: DMG Consulting LLC, May DMG Consulting LLC

15 About NICE NICE (NASDAQ: NICE) is the worldwide leader of intent-based solutions that capture and analyze interactions and transactions, realize intent, and extract and leverage insights to deliver impact in real time. Driven by cross-channel and multi-sensor analytics, NICE solutions enable organizations to improve business performance, increase operational efficiency, prevent financial crime, ensure compliance, and enhance safety and security. NICE serves over 25,000 organizations in the enterprise and security sectors, representing a variety of sizes and industries in more than 150 countries, and including over 80 of the Fortune 100 companies. The NICE Enterprise Offering enables organizations to impact every customer interaction with targeted solutions for enhancing the customer experience, increasing service-to-sales revenue, streamlining operational efficiency, and complying to policies and regulations. Driven by real-time, cross-channel analytics including speech analytics, text analytics, feedback analytics, web, and social media analytics and coupled with real-time decisioning and guidance, NICE Enterprise solutions are implemented by contact centers of all sizes, branch networks, retail stores, trading floors, and back office operations. About DMG Consulting LLC DMG Consulting is the leading provider of contact center and analytics research, market analysis and consulting services. DMG s mission is to help end users build world-class, differentiated contact centers and to assist vendors in developing high-value solutions for the market. DMG devotes more than 10,000 hours annually to researching various segments of the contact center market, including vendors, solutions, technologies, best practices, and the benefits and ROI for end users. Our research covers Hosted Contact Center Infrastructure, Hosted/Managed Service IVR, Quality Management/Liability Recording (Workforce Optimization), Speech Analytics, Desktop Analytics, Text Analytics, Surveying/Enterprise Feedback Management, Contact Center Performance Management, Workforce Management, and Contact Center Analytics. DMG is an independent firm that provides information and consulting services to contact center management, the financial and investment community, and vendors in the market. This reprint is excerpted from the Contact Center Workforce Management Market Report, which was released in June 2012 with the permission of DMG Consulting LLC. More information about this Report and DMG Consulting is available at DMG Consulting LLC

16 Contact Center Workforce Management Market Report 2012 DMG Consulting LLC. All rights reserved. This Report is protected by United States copyright law. The reproduction, transmission or distribution of this Report in whole or in part in any form or medium without express written permission of DMG Consulting LLC is strictly prohibited. You may not alter or remove any copyright, trademark or other notice from this Report. This Report contains data, materials, information and analysis that is proprietary to and the confidential information of DMG Consulting LLC and is provided for solely to purchasers of this Report for their internal use. THIS REPORT AND ANY DATA, MATERIALS, INFORMATION AND ANALYSIS CONTAINED HEREIN MAY NOT BE DISCLOSED TO OR USED BY ANY OTHER PERSON OR ENTITY WITHOUT THE EXPRESS PRIOR WRITTEN CONSENT OF DMG CONSULTING LLC. Substantial effort went into verifying and validating the accuracy of the information contained within this Report, however, DMG Consulting LLC disclaims all warranties as to the accuracy or completeness of this information. DMG Consulting LLC shall not be liable for any errors or omissions in the information contained herein or for any losses or damages arising from use hereof DMG Consulting LLC

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