PartyGaming Selects KANA Response and KANA IQ to Improve Global Customer Support Operations Following Successful Pilot

KANA Solutions to Support More Than 4 Million Customer Contacts Per Year via E-Mail

MENLO PARK, Calif. – July 17, 2006 – KANA Software Inc. (Pinksheets: KANA.PK), a world leader in multi-channel customer service, today announced that PartyGaming Plc, the world’s leading online gaming company, has selected software from KANA to enhance its global customer support operations. PartyGaming handles more than four million customer contacts per year via telephone and e-mail. Fundamental to PartyGaming’s success to date has been its technology-based culture focused on reliability and scalability to accommodate its rapid growth.

PartyGaming initially selected KANA for its pilot project in April due to its excellent track record in eService, which was validated by customer and industry analyst testimonials. KANA was measured on three key criteria: reliability, performance and scalability. The pilot proved successful on all counts. As a result, KANA Professional Services will work with PartyGaming to roll the following KANA solutions out to more than 1,000 agents in Gibraltar, London and India by the end of 2006:

* KANA Agent IQ - offers a unique combination of guided knowledge management and external document search to streamline the process of resolving customer questions. PartyGaming expects it to help both agents and customers find answers to problems more quickly, accurately and consistently by creating a single knowledge platform for the customer support organization.

* KANA Customer IQ for Web Self-Service - proven to reduce call volume and increase customer satisfaction by guiding customers through every step of their self-service interactions from research to resolution.

* KANA Response for Email Escalation - provides customers with one-click email escalation for additional help with their self-service inquiries. KANA Response will enable PartyGaming to quickly and accurately respond to the thousands of e-mails received every week from customers who expect rapid responses 24 hours a day.

“As the world’s leading online gaming company, we aim to offer the most innovative technology, best service and most recognized and trusted brands,” said Manish Grover, Director of Customer Services for PartyGaming. “KANA stood out as a provider of innovative technology and will help to us to achieve a very high standard of customer service. We are delighted by the results of the pilot and look forward to a successful roll-out.”

“PartyGaming’s pilot and planned roll-out really speaks to KANA’s unparalleled capability to scale to the needs of large, multinational, high volume call center operations,” said Marchai Bruchey, chief marketing officer at KANA. “We are very pleased that such a tech-savvy global market leader like PartyGaming has concluded that our solutions are the best fit for their discerning current and future requirements.”

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