ABSTRACT 2015-2016 Outbound Solutions Product and Market Report 1
This is the third edition of DMG s Outbound Solutions Product and Market Report. The Report covers leading and contending vendors, their products and services, underlying technology, pricing, benefits, return on investment (ROI), go-to-market strategies, trends and challenges, and planned innovations. This 476-page Report the most comprehensive research on this reinvigorated sector also analyzes the competitive landscape and provides insights into market activity, customer satisfaction with vendors, and implementation best practices to help users realize the greatest continuing return on their technology investments. Please contact Deborah Navarra at deborah.navarra@dmgconsult.com or 516-628-1098 with any questions. To order your copy of the report, visit www.dmgconsult.com. www.dmgconsult.com 2
Many people cringe at the term outbound dialing its reputation as a nuisance and an intrusive practice have given the outbound market a bad rap. Then came the 1991 Telephone Consumer Protection Act (TCPA), which placed strict mandates on organizations using outbound solutions, and resulted in huge penalties for noncompliance. The Do Not Call legislation of 2004 placed additional restrictions on who companies could call, further limiting outbound activity to the point where many vendors saw little value in investing in their solutions, and the market slowed further. In 2012, the TCPA Order further restricted telemarketing by imposing more stringent rules regarding express written consent, established business relationship exemptions, and introducing new requirements for automated, interactive opt-out capabilities for telemarketing messages. This new regulation has driven a wave of innovation and awakened the outbound solutions market. Users have begun to realize that they need more sophisticated capabilities to conduct business, and the vendors got to work building solutions that would help organizations comply with the new rules. Regulatory requirements, combined with modern consumer demand for anytime-anywhere interaction, have yielded today s generation of outbound solutions designed and built with the customer experience and compliance in mind. It s a big departure from the dialer days of old, and these solutions can now truly help users grow their businesses, cultivate satisfied customers, and deliver an outstanding customer experience. Research conducted by DMG earlier this year indicates that delivering an outstanding experience is the top objective for companies in 2015. This underscores a growing appreciation of the essential role of customer care and customer engagement throughout the customer journey and lifecycle. The outbound solutions market has responded to changing regulatory and market dynamics, and is reinventing itself. Vendors and users alike are making big changes to position organizations to deliver an exceptional customer experience. The evidence is in the market growth over the last year. The total number of outbound solution customers increased by 2,205, 15.4%, from 14,357 in 2013 to 16,562 in 2014. The number of seats increased by 8.9% (or 283,373 seats), from 3,193,235 in 2013 to 3,476,607 in 2014. The overall perception of outbound interactions has improved dramatically over the last two decades. In fact, today s savvy consumer actually welcomes a strategic, high-value, targeted outbound touch via a variety of channels. By facilitating multi-channel outreach that puts the customer s needs first, organizations can automate routine, important and time-sensitive communications while driving desired business results and building customer loyalty. Known as proactive customer care (PCC), this trend has been growing steadily. When done correctly as part of a larger customer experience strategy and with the right business rules in place PCC efforts can yield significant benefits. DMG recommends that, if they have not done so already, users need to get their technology up to speed to handle strategic multi-channel outbound interactions while complying with regulations. Organizations need to rethink their servicing strategies to incorporate targeted and effective outbound communications. And now is a great time to do just that, with many vendors investing significantly in R&D to provide new and better options for users. To assist prospects in evaluating outbound solutions, DMG conducted an independent survey that measures enduser satisfaction with vendors, products, services, support, training and innovation. This study evaluates the performance of the vendors analyzed at a detailed level in the 2015 2016 Outbound Solutions Product and Market Report. A majority (50%) of satisfaction ratings across all vendors for the 10 major categories surveyed fell into the highly satisfied range (4.0 to 4.66). 35.7% of the ratings fell into the satisfied range (3.0 to 3.66), 12.9% were completely satisfied (5.0) and 1.4% were only somewhat satisfied. The Report discusses the full results of this study. Outbound is one of many ways for organizations to interact with customers to establish, extend, enhance and enrich relationships. DMG anticipates sales of outbound solutions to continue to perform strongly over the next five years, and is increasing its previous projections. DMG expects the number of outbound dialing seats agent-assisted to grow by 7% in 2015, 8% in 2016 and 2017, and 7% in 2018 and 2019. If these numbers hold true, the outbound sector of the contact center market will outperform the inbound sector. The 2015 2016 Outbound Solutions Product and Market Report is the most timely and complete guide to the evolving outbound market. The Report provides a detailed analysis of seven of the leading and contending outbound solution providers: Altitude, Avaya, Connect First, Five9, Interactive Intelligence, Nuxiba and Noetica. Acqueon, a vendor that offers a campaign management capability, and Enghouse Interactive, are covered at a high level. www.dmgconsult.com 3
Key Reasons to Buy This Report Examination of the technical framework, functional components and integration requirements that are essential for leading outbound solutions Description and explanation of the 8 primary dialing modes and when each should be used A look at the trends and challenges that are driving investments by enterprises and vendors Description of vendor innovation, either recently introduced or planned for delivery in the next 12-18 months Examination of the role of outbound solutions in building and supporting blended omni-channel customer engagement strategies Discussion of why PCC is a high-value activity that enhances the customer experience In-depth review of the outbound regulations in the US, UK, Canada and other geographies, which continue to impact the outbound sector, as well as an analysis of how leading outbound solutions help users comply with regulatory requirements Update on changes to Payment Card Industry Data Security Standard (PCI DSS) requirements, and the implications for contact centers Market activity and market share analysis, adoption rate, and 5-year projections Insightful examination of the outbound competitive landscape, to help end users identify the right vendor for their organization Overview of the 7 featured outbound solution providers, including company snapshots and product summaries In-depth review and side-by-side comparative analyses of the key functional and technical capabilities of the 7 featured outbound solutions Implementation analysis, including a review of vendor implementation methodology and best practices Analysis of the ROI and benefits of outbound solutions, by vendor Comprehensive vendor satisfaction survey results that measure and rank vendor approval ratings across 20 product components and 10 vendor categories Detailed pricing comparison for on-premise, cloud-based and managed service outbound solutions for 75-, 300- and 500- seat implementations Company reports for the 9 solution providers covered in this Report, analyzing their products, functionality and future product development plans A comprehensive Outbound Vendor Directory www.dmgconsult.com 4
Report Highlights A new day is dawning for the outbound solutions sector: Since the passage of Do Not Call legislation, it has been quiet on the development front, and outbound dialing s reputation went from bad to worse among consumers. But that s all changing with the prevalence and effectiveness of good proactive customer care and a new round of innovation that is empowering companies to reach out cost effectively to their customers. Proactive customer care done right can yield big benefits: Outbound interactions are no longer regarded as a nuisance. Today, strategic outbound touches are actually welcomed by consumers. PCC efforts and live outreach can yield significant benefits like better business results, greater customer loyalty and improved Net Promoter Scores, by facilitating multi-channel outreach that puts the customer s needs first. DMG is increasing its growth projections for the outbound solutions market: The rebirth of this market and the fact that users see new value in having the right outbound solutions in place will drive even more growth than initially predicted. DMG expects the number of outbound dialing seats agent-assisted to grow by 7% in 2015, 8% in 2016 and 2017, and 7% in 2018 and 2019. Before investing, buyers should conduct careful due diligence: With many solutions to choose from and significant differences among the offerings, the outbound market can be confusing for buyers to navigate. DMG advises buyers to dedicate time to researching the options, and consider other users experiences when acquiring new technology. To support this process, DMG has conducted an independent survey that measures end-user satisfaction with vendors, products, services, support, training and innovation. www.dmgconsult.com 5
SAMPLE FIGURE Outbound Solutions Building Blocks Source: DMG Consulting LLC, May 2015 www.dmgconsult.com 6
TABLE OF CONTENTS 1 of 2 1. Executive Summary 2. Introduction 3. DMG Consulting Research Methodology 3.1 Report Participation Criteria 4. Service Delivery Models for Outbound Solutions 4.1 DMG Service Delivery Definitions 5. Outbound Solution Functional Building Blocks 5.1 Dialing Modes 5.2 Core Outbound Functionality 5.3 Outbound Optimization Capabilities 5.4 Blended/Multi-Channel Capabilities 6. Outbound Trends and Challenges 6.1 Outbound Trends 6.2 Outbound Market Challenges 7. Outbound Market Innovation 7.1 New Product Features 7.2 Future Enhancements 8. Multi-Channel Outbound Customer Engagement 8.1 Multi-Channel Customer Engagement Strategies 8.2 Measuring the Multi-Channel Customer Journey 9. Proactive Customer Care Enhances the Customer Experience 9.1 Proactive Customer Care 10. Outbound Regulations and Compliance Requirements 10.1 Marketing Operations Outbound Regulations and Compliance Requirements 10.2 Debt Collections Operations Outbound Regulations and Compliance Requirements 10.3 Vendor Regulatory Compliance Features 11. Payment Card Industry Data Security Standards for Contact Centers 11.1 Evolution of PCI DSS 11.2 What is the Payment Card Industry Data Security Standard? 11.3 Are Contact Centers Merchants? 11.4 Implications of PCI DSS for Contact Centers 11.5 Contact Center Best Practices for PCI DSS 11.5.1 Remote Access Best Practices 11.5.2 Call Recordings and Vendor Solutions 11.5.3 Are Contact Centers Sensitive Areas? 11.6 PCI DSS Non-Compliance and Breaches 11.7 Final Thoughts 11.8 Payment Card Security-Related Resources 12. Outbound Market Activity Analysis 12.1 Outbound Market Projections 13. Outbound Competitive Landscape 13.1 Outbound Solutions Executive Guide 14. Outbound Vendors and Solutions 14.1 High-Level Company and Financial Overview 14.2 Vendor Offerings and Products 14.3 Packaged Solutions www.dmgconsult.com 7
TABLE OF CONTENTS 2 of 2 15. Detailed Functional and Technical Summary 15.1 Architecture and Technology 15.2 Telephony Capabilities 15.3 Campaign Management 15.4 List Management 15.5 Contact/Dial Plan Management 15.6 Best-Time-to-Call Features 15.7 Speech Analytics 15.8 Supervisor Features 15.9 Agent Features 15.10 Scripting 15.11 Gamification 15.12 Dashboards, Reporting and Analytical Capabilities 15.13 Security 15.14 System Administration 16. Implementation Process and Training Services 16.1 Implementation Process 16.2 Integration 16.3 Dialing Best Practices 16.4 Maintenance and Support 16.5 Training and Workshops 17. Outbound Uses and Benefits 18. Outbound Vendor Satisfaction Analysis 18.1 Summary of Survey Findings and Analysis 18.2 Detailed Survey Findings and Analysis 18.3 Customer Insights 18.3.1 Outbound Activities 18.3.2 Primary Purchasing Drivers and Benefits 18.3.3 Strengths and Challenges of Outbound Solutions 19. Pricing 19.1 Premise-Based 19.2 Cloud/Hosted 19.3 Managed Service 20. Company Reports 20.1 Acqueon Technologies, Inc. 20.2 Altitude Software 20.3 Avaya 20.4 Connect First 20.5 Enghouse Interactive 20.6 Five9 20.7 Interactive Intelligence 20.8 Noetica 20.9 Nuxiba Appendix: Outbound Dialing and Proactive Customer Care Vendor Directory www.dmgconsult.com 8
TABLE OF FIGURES 1 of 2 Figure 1: Service Delivery Models, Advantages and Disadvantages Figure 2: DMG s Service Delivery Model Definitions Figure 3: Outbound Vendor Service Delivery Options Figure 4: Outbound Solutions Building Blocks Figure 5: Dialing Modes Supported Figure 6: Core Functionality Figure 7: Outbound Optimization Features Figure 8: Blended/Multi-Channel Capabilities Figure 9: 2015 Outbound Trends Figure 10: 2015 Outbound Challenges Figure 11: New Product Features Figure 12: New Product Features, by Category Figure 13: Future Enhancements Figure 14: Multi-Channel Capabilities Figure 15: Multi-Channel Customer Engagement Strategies Figure 16: Proactive Customer Care Uses Figure 17: Proactive Customer Care (PCC) Figure 18: Outbound Regulations and Compliance Requirements Marketing Operations Figure 19: Outbound Regulations and Compliance Requirements Debt Collection Operations Figure 20: Regulatory Compliance Features Figure 21: Regulatory Compliance Features Figure 22: Payment Card Brand Annual Transaction Levels Figure 23: PCI DSS Merchant Validation Requirements Figure 24: Notable Changes for Contact Centers from PCI DSS 2.0 to 3.0 Figure 25: Outbound Solutions Market Activity by Vendor, as of December 31, 2014 Figure 26: Outbound Solutions Market Activity by Number of Seats, as of December 2014 Figure 27: Outbound Solutions Market Activity by Vendor, December 31, 2014 vs. December 2013 Figure 28: Outbound Solutions Seats per Customer by Vendor, December 31, 2014 vs. December 2013 Figure 29: Total Outbound Solution Seats by Vendor, 2012 2014 Trends Figure 30: Outbound Solutions Market Projections, 2015 2019 Figure 31: Company Information as of December 2014 Figure 32: Product Analysis: Core and Optional Modules Figure 33: Packaged Offerings Figure 34: Architecture/Technology Figure 35: Telephony Capabilities Figure 36: Campaign Management Capabilities Figure 37: List Management Capabilities Figure 38: Contact/Dial Plan Features Figure 39: Best-Time-to-Call Features Figure 40: Speech Analytics Figure 41: Supervisory Features Figure 42: Agent Features Figure 43: Scripting Figure 44: Gamification Features Figure 45: Dashboards and Reporting and Analytical Capabilities Figure 46: Security Features Figure 47: Administration Figure 48: Implementation Process Figure 49: Integration Figure 50: Best Practices Figure 51: Maintenance and Support Figure 52: Training and Workshops Figure 53: Top Uses and Benefits Figure 54: Customer Survey Rating Categories Figure 55: Average Satisfaction Ratings, by Category www.dmgconsult.com 9
TABLE OF FIGURES 2 of 2 Figure 56: Figure 57: Figure 58: Figure 59: Figure 60: Figure 61: Figure 62: Figure 63: Figure 64: Figure 65: Figure 66: Figure 67: Figure 68: Figure 69: Figure 70: Figure 71: Figure 72: Figure 73: Figure 74: Figure 75: Figure 76: 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: Product Satisfaction Ratings, by Category Outbound Dialing Capabilities Satisfaction Ratings, by Customer Contact/Dial Plan Management Features Satisfaction Ratings, by Customer IVR/Call Flow Scripting Feature Set Satisfaction Ratings, by Customer Outbound Optimization Features Satisfaction Ratings, by Customer Call Blending Capabilities Satisfaction Ratings, by Customer Multi-Channel Customer Engagement Capabilities Satisfaction Ratings, by Customer Proactive Customer Care (Automated Outbound Notification) Capabilities Satisfaction Ratings, by Customer Campaign/List Management Features Satisfaction Ratings, by Customer Regulatory and Compliance Features Satisfaction Ratings, by Customer Agent Scripting Feature Set Satisfaction Ratings, by Customer Agent User Interface and Features Satisfaction Ratings, by Customer Supervisor User Interface and Features Satisfaction Ratings, by Customer Ease of System Configuration and Set-Up Satisfaction Ratings, by Customer Ability to Customize System Satisfaction Ratings, by Customer Ease of Ongoing Use and Maintenance Satisfaction Ratings, by Customer Reporting and Analytics Satisfaction Ratings, by Customer Dashboards Satisfaction Ratings, by Customer Alerting Satisfaction Ratings, by Customer System Scalability Satisfaction Ratings, by Customer System Security Satisfaction Ratings, by Customer Current Product Satisfaction Ratings, by Customer Implementation Satisfaction Ratings, by Customer Training Satisfaction Ratings, by Customer Professional Services Satisfaction Ratings, by Customer Ongoing Service and Support Satisfaction Ratings, by Customer Product Innovation Satisfaction Ratings, by Customer Responsiveness to Product Enhancement Requests Satisfaction Ratings, by Customer Vendor Communication Satisfaction Ratings, by Customer Pricing Satisfaction Ratings, by Customer Overall Vendor Satisfaction Ratings, by Customer What dialing methods are your currently using? (Please choose all that apply) For what business purposes are you using the outbound dialer? (Please choose all that apply) What were your top 3-5 primary reasons for selecting this outbound solution? What are the top 3 to 5 benefits you have realized from your outbound dialing solution? Verbatims: Please tell us the top 3-5 strengths of your outbound solution. Verbatims: Please tell us the top 3-5 challenges of your dialing solution. Verbatims: What product enhancements would you like to see? Please provide any additional comments about your experience with the vendor and/or product. Pricing (Premise-Based Solution), 75 Agents Pricing (Premise-Based Solution), 300 Agents Pricing (Premise-Based Solution), 500 Agents Pricing (Cloud-Based Solution), 75 Agents Pricing (Cloud-Based Solution), 300 Agents Pricing (Cloud-Based Solution), 500 Agents Pricing (Managed Services), 75 Agents Pricing (Managed Services), 300 Agents Pricing (Managed Services), 500 Agents www.dmgconsult.com 10
6 Crestwood Drive, West Orange, NJ 07052 (973) 325-2954 www.dmgconsult.com 11