Oracle Corporation (NYSE:ORCL) January 31, 2012 12:00 PM ET
Greg R. Gianforte - Founder
Thomas Kurian - Executive Vice President of Product Development
Wayne Elliot Huyard - Former President and Chief Operating Officer
Well, welcome, everybody. Sorry for the Safe Harbor statement, but that's to protect us in terms of any forward-looking statements we might make. So I appreciate everybody joining.
First, a special welcome to RightNow customers. Last week, we announced that RightNow officially became a part of Oracle. We're excited. It's not just about buying a company. We've added what we consider to be the best customer services technology in the market. This is a big deal to us. It's core to us. It's about delivering superior customer experiences to customers, and that's what RightNow has been doing for years.
Let's go to the next chart. What we're announcing. We've completed the acquisition of RightNow, superior customer experience is now the only source of sustained customer advantage for companies. We have a broad suite -- we, Oracle, of customer experiences, and we're integrating that with RightNow's market-leading SaaS customer service solutions for web, social and contact centers. Together, we think we offer the best, most complete and most advanced solution in the world, and we have a very aggressive plan to invest into RightNow, build a stronger roadmap than ever before.
Now what you can expect from us. We're going to actually invest more R&D than RightNow could have ever done alone. We're going to add more features, more capabilities to RightNow based on the IP that I've already described. We're going to continue to deliver superior customer experience to you.
We have retained the RightNow team, and we're actually expanding the Bozeman operations. You're now backed by an additional 8,000 global support experts, and there's access to even more expertise: Oracle architects, advisers, et cetera. So I want to welcome all of you. Frankly, RightNow employees, RightNow customers, RightNow prospects, I want you to know you're in good hands. I'd say great hands. This is a big deal to us, strategic to us, and we're going to invest into this.
Now today, I'm joined by Greg Gianforte, who's the founder of RightNow; Thomas Kurian, who runs all of software development for Oracle; Wayne Huyard, who will be leading the RightNow business unit at Oracle for us. And his team -- first of all, we're thrilled -- if you can get, we're thrilled to have him with us. It's a big deal to us, and I think we've done a great job working together through the transition period. And they're going to walk you through in detail how all of these pieces fit together and how we plan to deliver the value to you that I've talked about.
So with that, I'm going to hand it over to Greg. And first of all, welcome.
Greg R. Gianforte
Okay. Thank you, Mark. Great. It's my pleasure to be with you today. The -- RightNow has been on a 14-year mission to rid the world of bad experiences. We've had the pleasure of working with nearly 2,000 organizations, helping them transform the experience they deliver to their customers and in the process, reduce expenses, increase customer retention and drive more revenue.
I want to talk to you this morning, for just a few minutes, about why improving the customer experience is so critical. And then Thomas Kurian is going to describe the Oracle-RightNow solution strategy and product roadmap, and Wayne Huyard will talk about how we're going to engage with you as customers and our new prospects.
So first, let's talk about customer experience. In a very real sense, the basic rules of business have changed. Today, globalization has increased customer choice, both for consumers and for business buyers. And in a very real sense, supply in many markets now exceeds demand for most products. And this gives consumers power, and it gives them more choices and makes it easier for them to switch suppliers. So we've got to deal with this in our businesses.
In addition, products are becoming more commoditized. Innovation in new features are quickly copied by fast followers, and unfortunately, this increased pace of business makes it more and more difficult to sustain differentiation based on product features alone. We've got to look elsewhere for this brand and corporate differentiation.
And thirdly, traditional marketing methods have become less effective. Markets are noisier. It's harder to get buyers' attention. Advertising has become less effective. Direct response is less effective. So this leaves us with the question: If marketing is less effective, how do we promote our companies and our brands? Well, the only thing left is word of mouth. And how do we deliver great word of mouth? Well, we've got to create raving fans, who love our products and talk about them. The only way to do that is to deliver great experiences.
So in addition, social networks have really amplified the voice of consumers today. It used to be the rule of thumb that if someone had one bad experience they tell 10 of their friends. Well, now, with Twitter and Facebook, these same people can now tell 10,000 or 1 million of their friends. The negative impact of a bad customer experience is really dramatic.
And fourth, consumer expectations are rising. As companies get customer experience right, expectation rise across the board. And when -- you just think about it yourself. When we have great experiences, don't we expect more next time? Of course we do, and it works across the industries. A great experience in retail raises our expectation for our airline and for our business supplier. As companies embrace great customer experiences, a key differentiation strategy, customer expectations across all industries rise.
Customer experience is today's primary business imperative, and it's at the heart of brand differentiation. I've personally done -- I've visited with many of you, over 500 individual customer visits over the last few years. And when I meet with the executives, customer experience is always in the top 3 of priorities within the business. Not embracing customer experience as a core strategy will leave you unable to compete, whether you sell to consumers or other businesses.
So I want to share a little survey data with you. We've had the pleasure of going out and doing a survey each of the last 6 years, both in the U.S., in Europe and in Australia. And this data I'm going to share with you in the next couple of slides came out of our most recent study that was just completed and published here in January.
So first, I'll give you the bad news. Of the consumers we spoke with, 86% have stopped doing business with a company because of a bad experience. Think about it. I'm sure each one of you can remember a time when you had a bad experience with someone you bought a product or service from, and you'll probably never go back to that company as a result. And your customers are no different. To make it worse, after a bad experience, 26% of these consumers posted negative comments on a social network like Twitter or Facebook, and amazingly, 79% of those complaints were ignored by the company that they were directed to. So the conclusion here is not taking customer experience seriously will have a huge impact on your business.
But there is a silver lining. Outstanding service is the #1 reason consumers recommend a company. It's not product, and it's not price. It's the service experience that ultimately depends when someone recommends a company. So from our survey data, 86% of the consumers we talked to said they would spend more for a better experience. And just think about it in your own life. If you had 2 suppliers you can pick from and they both provided products or services, but one provided a great experience with very little friction in the interaction. Wouldn't you spend a little more? Well, that's what the survey said. What would it mean to your business if you were able to charge 5% or 10% more? Certainly, have a great impact on the top line, but it also has a very dramatic impact on your bottom line, because you don't have to add additional expenses to get that increased revenue.
So great customer experience not only differentiates a brand. It also drives higher revenue. It's really the new marketing. And to illustrate, one major online retailer that we've had the pleasure of working with, when we first started working with them, they were not listed in the top 150 retailers in terms of client satisfaction. After a number of years of work, of implementing systems and redesigning process -- and we're proud to be right alongside with them, they're now in the top 5 of all major retailers in the U.S. in client satisfaction and in the process, also drove operational efficiencies. So they're now saving about $12 million a year in operating expenses while driving better experiences.
So the customer experience also matters in a B2B environment. We're all consumers. And then we go to work, and we bring the experiences we have as individual consumers to our B2B interactions with suppliers and in the workplace. It's sort of like at home, we've gotten used to the user interface of iPads and iPhones and buying at Amazon. And yet we go to work, and we've still got stone tablets and chisels, and we bring the expectations as consumers. So on a very real sense, there is a consumerization of B2B interactions, and the lessons we're learning about delivering great experiences with very low friction are coming into the work environment. So -- and this is borne out by the study data as well. #1 reason to stay loyal to a brand is quality service. We also found that almost 70% of the B2B executives that we spoke with view customer experience as a competitive advantage. So this customer experience theme applies equally in B2B and B2C environments.
So just to quickly wrap up my section with you today. At RightNow, we've spent 14 years building a cloud-based solution that addresses this customer experience imperative I've been talking about. RightNow CX is a customer experience suite that empowers organizations to engage directly with customers through great social, web and contact center experiences.
When we start with a client, we generally start by doing a CX or customer experience assessment. It takes 2 days to 2 weeks. We have a bullpen of CX strategists that are really tremendous at what they do. And they come in and benchmark your operation, and jointly, we build out a roadmap. They sit in your call center. They listen to calls. They look at the touch points that you have across your business, and we look for low-hanging fruit. And then we hope to have an opportunity to work with you to redesign process and to pilot solutions. And the results can be substantial: significant reductions in operating cost, typically a 10% to 30% reduction in late contact center cost in terms of labor; increased customer retention rates; and accelerated customer acquisition.
We have done this work for nearly 2,000 organizations around the globe. We're very proud of the business results we've delivered, and we're excited about the additional resources that clipping in and merging with Oracle really brings to us in our -- in working on this customer experience movement. And we're excited about the opportunity to create additional business value.
So with that, I'd now like to introduce Thomas Kurian, the Executive Vice President for Software Development at Oracle, and he's going to talk more about the solution roadmap.
Thank you, Greg. So we are really excited about the combination of Oracle and RightNow. We share a vision on the value that great customer experience provides as a competitive differentiator to our joint customers. So what are we going to do about the products? Now to understand what we're going to do about the products and the solutions we're going to deliver, spanning Oracle products and RightNow, I think the central question is to understand what do we -- what's our shared vision about what great customer experience means?
So think about yourselves going out as consumers and buying things. Typically, there's 2 phases to it. You go through a buying process, where you're trying to -- first, you decide you have a need for a product. Then you go out in the web or you go to a store to research different products that are available. Finally, you select a product, and you purchase it. Now once you purchase it, you receive it. You begin to use it. Maybe there's an issue with the product. You need some maintenance done on it. And if you have great experience through this entire process, you may recommend it in a positive way. Or if you don't have a great experience, you may recommend it in a negative way. And so the central question is -- the customer experience spans this entire process. It doesn't start around customer service. It starts from the time the customer perceives the need for a product.
And so our fundamental vision is that consumers and business customers move through a closed-loop continuous life cycle. And every touch point with that customer is a piece. It's a time, and it's an event for you to influence the customer experience that, that customer experiences. So it spans the marketing and selling process during the buying phase that a customer has, and it spans the support and service process that happens once the customer owns the product.
And the important thing is that customers today engage with an organization through multiple channels. They may come to the store. They may go to website. They may go to e-commerce. They may go to a site -- website like Facebook or social media site or Yelp, and research products and about your organization that you don't control. So they're engaging with you through multiple channels, and they're engaging with different parts of your organization. Your marketing organization is creating a perceived need for the product. Your sales force may be selling a product to them. Your brand managers are changing the brand's perception through your website as well as through social media.
And so our fundamental belief is that customers require a simple, consistent and amazing experience throughout this entire life cycle, through all the channels that they perceive the product and solution and service that you're offering them, and through all the different parts of your organization and the partners through which you reach these customers. If we do that, then we fulfill the vision that Greg was talking about: allowing our customers to offer their customers exceptional customer experience; and creating loyalty, advocacy and repeat business. At the same time, it helps you grow your top line and grow revenue, and our big focus is also allowing you to offer this great experience while reducing cost.
So let's look at this in more detail on the product side. And we're going to talk about how we're going to focus in going after companies and organizations that offer business to the consumer products and then business-to-business, because this buying part of the process is a little different between business-to-consumer functions and business-to-business functions.
So looking at business-to-consumer. The fundamental thing today is that consumers are constantly interacting with your organization, whether you perceive that or not. We talk about a consumer who's any time, anywhere and wants the personalized experience. So any time: they're connected to the web all the time. They may be connected from a mobile device. They may be coming through social media. They may be coming into your e-commerce site, or they may be interacting on a site and social media that you are not responsible for but have enormous customer perception impact. So they're going to interact with you across a lot of different channels, and you want to offer them a seamless experience, no matter which channel they're coming from and what phase of this buying and owning cycle they're part of.
The second is we want to empower the brand manager. The brand manager in your organization is the person responsible for enhancing your perceived brand with your customer base. And to do so, they need to bring together all the interactions that a customer has with your organization to make sure they have a great and really fundamentally amazing experience throughout that life cycle. And so we're going to enable them with strategic tools and applications that enable the brand manager, the person responsible for marketing, the customer service organization to have a unified way of reaching customers, engaging with them, selling to them, servicing them across all the channels and devices they may come in.
Now it's important to realize that the traditional definition of customer service -- and by "traditional definition," we mean web service or contact centers are just part of this entire process of customer engagement and customer experience. And we are going to combine Oracle's products and RightNow's to offer the industry's only complete solution. Let me talk about that in a little bit more detail.
You want to create the perceived need for a product to influence customer perception of their need. Oracle has a product called FatWire that allows you to create exceptional marketing experiences for customers on the web. Customers then go in and research, and they may do research in a couple of different ways. They may talk to other people and find out information about whether -- what the perceived value of your product is from other people, and a social networking tool called the Oracle Social Network allows them to do such research. They then come to your e-commerce site and say, "I want to actually select a particular product." And they need fantastic guided navigation and a great experience on the site, and the combination of Oracle and Decca and ATG Commerce offers an unmatched experience to customers in selecting and purchasing products.
Now after you've done that, customers then need to get the product shipped to them and then to receive it. And if you want to go with a complete SaaS solution, we offer Oracle Fusion financials procurement supply chain to automate that. Or if you happen to have Oracle or non-Oracle ERP solutions, this same collection of products will work with that back-office infrastructure, which drives the process of shipping and receiving.
Now once the customer receives it, they have questions about using the product. RightNow service allows you to reach them through the web. If they have questions that they need to speak to somebody, they can come through the contact center. And our engagement capability and recommendation capability allows them to go all the way from using, maintain, recommend and become advocates on your behalf.
So the first and important thing I want to reemphasize is for business-to-consumer customers, we offer the ability to reach them through this entire life cycle and offer unified customer experience across the entire life cycle and across all the channels through which that consumer may be reaching and interacting with your organization.
So what's the business value that this offers? The business value for B2C organizations is 4 important things: better and unmatched service quality and reliability; second, that in turn drives increased conversion rates and generates more sales opportunities and more buying opportunities; it improves multichannel and cross-channel interactions with your customer; and then most importantly, at the end of the day, all of that matters only because it drives greater customer loyalty and advocacy.
What do we mean by improved service quality and reliability? What we really mean is that it enables organizations to deliver on the needs and intent of the customer, because you have to understand what the customer really wants to do when you offer them self service, assisted support or e-commerce. So the first step to improve service quality and reliability, you have to understand the intent of the customer. Then you can offer them amazing experience.
Once you offer them amazing experience, the second thing you can do to increase conversion rate and generate more opportunities is to enable the service organization that's interacting with the customer during that customer service process to create a buying opportunity by upselling and cross-selling them products, so to drive consumer engagement and sales interactions through recommendations and other things during a service interaction with the consumer.
Third, to improve multichannel and cross channel. This is fundamentally understanding the context in which that buyer is looking at your organization through all the channels they're coming in from and enabling all the different parts of your organization that's interacting with that consumer to have that shared context to deliver them a great differentiated personalized experience.
And finally, to drive loyalty and advocacy. It's important to listen to the customer, to monitor what's going on, to analyze them and then to participate and engage with them.
So I'm going to talk about 2 different areas just to take these business value propositions and translate them into concrete projects we're undertaking in our product development organization to fulfill this vision.
The first one -- and these are just examples. There's a huge list of projects because of the aggressive R&D investment plan that we have that's on our roadmap. But I'm going to illustrate just 2 examples: to improve service quality and reliability; and to increase conversion rates and generate more opportunities for an organization.
First of all, to improve service quality and reliability. What do you really need to do? Agents who are interacting with that customer, that consumer, you have to have a single view of the customer: What products do they own? What have they been doing on the web? What are they browsing on and looking for? And what's the service history that they've had with you? Second, an agent who is helping a customer needs to have an "up to the minute" view of what orders that customer may be placing, because they may be in the process of buying something when they reach out to you.
Third, to help them in a more efficient and a more personalized way, you have to have an understanding of the customer's intent. What were they actually trying to do when they reached out to you? And finally, to provide users with a variety of different mechanisms in a unified way through which they can interact with you: chat, live help, which traditionally is called, is "click to chat" or "click to dial"; all the way to assisted support, where they come in to a contact center.
So how are we delivering this? We're going to integrate ATG Commerce and RightNow service so that RightNow -- when you're an agent using RightNow service in the cloud, you can get an "up to the minute" view of what's the customer, what products have they bought, what are they doing right now in the e-commerce site and what's the history that they've had. We can also -- we're also going to take order management status information and move it into the RightNow agent desktop. So agents sitting there can look at what's exactly the customer doing right now from the point of buying products. Both of these give you much richer context as an agent to help the customer better.
The third thing we're doing is to provide a unified natural language search capability across self service, e-commerce and support. And the reason we want to do that is it allows us to have a much better understanding of customer intent. The combination of this natural language search, which gives us a better, richer understanding of customer intent and the unified view of the customer and what they're doing at this time, gives the agent a much more efficient and much richer context to better help the customer.
Finally, we're integrating our live help capability from ATG with RightNow so that in a single process, a customer can chat with somebody, click to dial and then go all the way to the contact center and have people help them without having awkward handoffs between different parts of the organization. Now how will that, in turn -- so these projects, we're going to deliver on a very aggressive schedule to allow customers to get this value.
Same time, we also want to increase conversion rates and generate more opportunities. How do we do that? What we want to do is to enable your agents to assist customers and to convert the service interaction into an opportunity to sell products. How do we do that? We enable agents to assist customers at the right time, wherever they are. Second, we want to use a customer service history to deliver personalized offers to them. And third, we also want to use this service history as a key attribute in customer segmentation.
Okay. So think about it: an agent to help the customer at the right time, no matter what they're doing; to have a better view of what customer segmentation segment this customer falls in; and then to deliver them a personalized offer based on the segment they belong to and what they've been doing right at this moment.
So the way we're going to do this is by integrating Oracle's real-time engagement engine with RightNow's self- and assisted service across channels. So when a person is sitting on the web and browsing and they haven't done anything, the engagement engine pops up something to the customers, say, "Are you stuck right now? Can I help you?" It allows them to chat with somebody. It allows them to interact with somebody. And then worst case, if they don't know what to do, it allows us to bring an agent into an assisted process right at that instant with that customer right during their browsing session.
The second thing is we're going to take service history from RightNow and bring it to a customer segmentation warehouse, where you can then place customers, based on service attributes, into segments. And then the third is we're going to use the engagement engine to drive personalized offers. Think about service increasingly becoming an attribute of a product, the way that a customer buys a product. And you've traditionally thought of organizations offering recommendations about product. You can use service as part of that to recommend a new kind of capability from personalized offers.
Now the important thing is a number of organizations, leading organizations in the world, already do this today. If you go running or you exercise, you're probably wearing clothes from a leading sports apparel provider. And today, Oracle and RightNow provide unmatched customer experience for this organization. They use our commerce product and Decca and RightNow service to fulfill some of the vision that I talked about. A leading global telecommunications provider uses ATG Commerce, our Siebel products, both for billing and contact center and then integrated RightNow Web Service into that. And a weight loss program provider that everybody knows about uses our commerce and RightNow Web Service to offer unmatched customer experience to their customers.
Now all of these organizations, because they offer this unmatched customer experience, have benefited from the value that Greg talked about: driving customer loyalty; driving advocacy and retention; and as a result, growing their top line and lowering the cost of customer service.
And let's look at B2B, because B2B is different than B2C. And part of our experience as Oracle and RightNow, and particularly with the great team that's joined us from RightNow, is we get a real good understanding that while competitors may talk about customer service, there's actually a very different process between B2C and B2B. And the real difference is fundamentally the way the buying process works, okay?
So in a B2B situation, a customer perceives a need for product. They may go on the web and research it but often, they're invited by an organization selling them a product to a marketing session or a seminar or even a direct sales interaction, where a sales team comes in and shows you the product that they have. That may lead then to a lead-in opportunity process which drives the selection and finally, a purchase decision. Okay? The traditional products that are engaged here are what's -- in the nomenclature of the industry, talked about as sales force automation products. And that's very different in the consumer space, where the buying process is largely a commerce, an online commerce or a retail point-of-sale purchase process. Okay?
Now once the customer has purchased it, they still need to receive it, own it, probably maintain it. And then, if they have a great experience throughout that entire process, they will be an advocate and recommend the product to their -- to other customers.
So how do you deliver amazing customer experience to B2B companies? It's really about 2 very important things. The first one is there's a lot of different parts of an organization that's going to interact with a B2B customer. You have a marketing organization. You have your brand managers. You have a field sales organization. You have your contact center team as well as, if you've got a product that needs servicing, often you've got field service people who go out on site to fix the product and maintain it. And so the first step is to provide an efficient, seamless and unified view across all of these lines of business that are interacting with the customer, off a common view of that customer: What do they own? What are they troubled with? What's the service history that they've had? And how do you collaborate as a team to deliver them an amazing experience?
And so our fundamental design principle and vision is to deliver an effective, efficient solution to allow you to grow revenue. And how do we do that? By providing a consistent cross-channel experience to business customers, delivering a unified view of the business to that customer. And so the customer doesn't perceive you having different parts of your organization that are not coordinated in the way you're interacting with that customer. And enabling sales people to use a customer's service history to drive both a differentiated experience for them and to predict sales opportunities.
The second is to provide amazing customer service. And how do we do that? By enabling all the different parts of the organization that I talked about: your sales people, your field service people, people in your contact center, your brand managers and your marketing team. They collaborate using a unified set of applications and social media tools to sell products, to service them and to create customer advocacy. Okay? So the combination to us accelerates the process of acquiring new customers and maximizes customer retention.
Now let's talk about the business value before we go into specific projects that we're going to undertake. The business value of these solutions: First and foremost, if you -- if we deliver this vision, we want to deliver a tool set that allows you to get amazing sales results and customer service. That, in turn, will generate more sales opportunities for you and reduce the cost of customer acquisition and retention, as well as reduce the cost of each service interaction with that customer.
So how do you do this? To deliver amazing sales results and customer service, it's really about enabling sales people, your field service team, your contact center agents and all your customer service-facing functions to collaborate better so that you can sell and service them better, but using a single view of the customer's information: What do they own? What are they in the process of buying? What might be potential sales opportunities? And what's their service history?
The second, how do you generate more sales opportunities? Well, it's really easy: enabling sales people to use customer service history as part of the prospecting process to drive more effective upsell, cross-sell and increase sales velocity. Now in turn, how do you then reduce customer cost of acquisition and retention? Well, if you offer great customer experience, one of the things you want to do is to have your customers become an echo chamber and use social media as a way to get customers who are having a positive experience with you and partners who have a positive experience with you to help other customers and other partners, thereby reducing your own cost of customer acquisition and retention.
And then finally, how do we want to reduce the cost of each and every service interaction. It's really about 2 simple things. The first one, it's about allowing customers to find answers to the questions themselves. And the way we want to do that is by providing much better knowledge management and search so that customers, frankly, can find the right answer the first time when they go to your website or to your customer service desk.
The second is also to allow people who are interacting with that customer to have a unified view of all of their contractual obligations. What is the product? What's the -- what if the customer buys a product, what warranties do they have? What are the upcoming service milestones? Do you need to reach out to them to offer them proactively a service process? And then how do you meet customer service obligations during their entire life with your products and with the collection of products they own from your organization?
So now that you understand the key business value we're going to drive, I want to illustrate again using just 2 examples of projects we're going to undertake. And we have people working on, right as I speak, to deliver you some of these capabilities.
First of all, to deliver amazing sales results and customer service, it's really about 4 things. Sales people and agents needs a single view of the customer, the products they own and the installed base, meaning what's all the different versions they have purchased and are running. Second, they need an "up to the minute" view of service history. Sales people need to know, "I'm about to sell a customer a product. Are they upset about some other product of mine that they happen to be using? And have they had a positive experience with that? How can I help that customer resolve some of the outstanding service requests?" So bringing sales people an ability to view service history.
Third, enabling agents on your service desk to prioritize service for high-value customers and prospects. You want agents to understand that the sales team in the organization is working a large deal with a particular customer. How do you prioritize service and your service desk to enable and resolve outstanding service request priorities, based on potential leads and opportunities you might be working?
And finally, allowing sales people and agents to collaborate so that they can service customers better because often, a customer calls a salesperson who sold them a product to tell them, "I'm having an issue with it." And we want to bring sales people and agents together in order to provide better customer service.
So concrete projects, we're going to integrate Oracle Fusion sales and RightNow service, as well as our other sales and marketing products with RightNow service, to enable you to get a single view of customers, product and installed base. Second, we're going to bring RightNow service request status into our Saas Fusion customer 360 product on the Fusion sales and marketing side so that sales people can look at the entire history of what's going on with the customer, including their service requests and where they are with their service history.
Third, allowing the RightNow SaaS customer service application to be able to take -- as part of the prioritization process and the routing process for service request, to include in that, from a rules point of view, the status of leads and potential opportunities so they can prioritize service for important potential customers. And finally, using our social networking tools to facilitate social sales and service.
In turn, this will generate more opportunities. And so what do we want to do to generate more opportunities? Again, back to if you offer customers exceptional service, we want to make that a competitive differentiator and to use their service history so that sales people can use that as a prospecting tool.
So the first step is to take the customer service history as a key attribute into our customer segmentation data warehouse. Secondly, to then use our data mining and artificial intelligence technology, which is part of something called Fusion Sales Predictor, which allows a salesperson the tool that runs on the customer's -- the installed base information that you have and what products and services the customer has bought, and helps a salesperson identify potential new sales opportunities based on a collection of algorithms that understand what a customer owns and what they may be predisposed to buying -- so using now service history as another attribute in that process so that you can understand and drive the potential sales opportunities based on what a customer may have experienced in service.
And finally, enabling a salesperson to create a personalized sales campaign. It does not have to go through a corporate marketing organization. But based on, hey, I happen to know I've got 10 customers in my territory that I want to offer a specific sales process and campaign, and I want to use customer service. People have had -- some of them have had great customer service, and some of them have not had great customer service, and I'm going to target 2 different campaigns for them. And so bringing service as an attribute into the sales process to allow personal sales tools for a salesperson to sell more effectively.
Now our -- some of our leading customers do this today. One of the world's top 5 chemical companies uses a Siebel Call Center and RightNow service to handle customer service for B2B. One of the largest computer manufacturers in the world uses Oracle and RightNow together. They use Siebel Marketing to drive B2B marketing. They use call center to handle the customers coming back in and RightNow service as a way to provide web self-service. And again, B2B does not mean that you can't use commerce as a process within that, and Oracle and RightNow provide the leading business information provider in the world a complete solution for driving the sales and buying behavior and then the aftermarket service.
So I hope you understand. We -- I want to leave you with 2 important things, messages. Customer experience spans the entire life cycle, all the way from the time the customer perceives a need for a product, the way they research it, they search for it, they purchase it, they own it, they need maintenance on it. And then finally, if they really like it, they'll recommend it. Oracle offers a much broader suite of solutions to enable an end-to-end amazing customer experience. Okay? I've talked about a number of products today and how we're bringing them together with the RightNow product to differentiate ourselves, and no one in the industry offers the breadth of capability that we do.
Second, it's very important that this capability be delivered across channels. And by across channels, I mean across all the touch points through which a customer might interact with you: social, mobile, online, at point-of-sale, with a sales person, with field service. Again, Oracle offers a really unmatched breadth of capability to enable cross-channel customer experience differentiation.
Greg and his team have had an unmatched success in the industry in their 14 years as an independent company, and now as part of Oracle, in delivering proven customer experience success. We have hundreds and hundreds of customers who we've helped on this journey, and no one else in the industry has provided that level of customer success. In -- the way we have enabled it is by understanding having deep industry expertise. And by deep industry expertise, we understand that there are differences in customer experience and the customer service process, the way customers -- the way you market, the way people buy things in different industries. The way somebody does something in telecommunications is different than the way a university reaches out to its student population. The way that a high-tech manufacturer sells and services product is very different than a retailer who's selling products online. And our deep industry expertise allows us to help you differentiate your organization.
Finally, every piece of the solution footprint I talked about you can get delivered through the cloud. We have a highly differentiated cloud offering. It has a number of capabilities, both in terms of the kind of uptime, performance, flexibility and kind of whether you want to run single-tenant or multi-tenant, et cetera, that we offer. But it's also possible to combine some of these cloud offerings with your own on-premise solutions, Oracle or non-Oracle, so that you have unmatched choice in the kind of thing you want to do.
So I really want to just close by telling you how excited we in product development are in -- we've been working for a number of years in building out a product portfolio, because we believe that customer experience is going to be a central, the central differentiation element competitively for every one of Oracle's customers. And the product set, both what we have today and the exciting roadmap that we've built jointly with our development organization and the RightNow development team, makes me very excited about what we can do for you.
Now I want to introduce Wayne Huyard. Wayne, welcome. [indiscernible] the RightNow Global Business Unit, and he's going to talk about how we're going to bring these solutions to you.
Wayne Elliot Huyard
I will. Thank you. And it's great to be working in partnership with you and your team to deliver these value propositions to our customers and prospects. I look forward to it. Thank you very much.
You can expect strong commitment and capability to solving customer experience issues and opportunities from Oracle and RightNow. Our approach to addressing customer experience opportunities is proven and leads to positive business outcomes for our clients. In addition to industry-leading solutions, here's what you can expect from an engagement with Oracle and RightNow.
First, as Greg said, we bring specialized expertise to the customer and partner engagement, from beginning to end, through the assessment, design, business case, implementation and ongoing success management phases of the engagement. For the customers of our clients, we perform an in-depth assessment of their customer journeys -- as Thomas said, at every single touch point, assessments that lead to business cases that are compelling, with strong return on investment, and to business cases that lead to customer-friendly agreements that we call "easy-to-buy."
Easy-to-buy contracts provide up to 6 years' price commitment with annual termination for convenience, complete with usage pooling and rebalancing. Then come fast, affordable implementations performed with strict methodology, producing deployments with minimal disruption, maximum quality and sound training; then a client success management team that maximizes and optimizes the effectiveness of our solution throughout your -- our client's, tenure. It's all supported by a redundant global data center network that's top-tier, equipped with tools to give our clients full visibility into their infrastructure. It's all shielded with security protections and secured with a comprehensive portfolio of certification and compliance achievements. All of this together produces results, significant savings, a better-quality customer experience, improved customer loyalty and increased sales.
We engage prospective clients, as shown on the red arrows on this chart, through an assessment process with black belt-level analysis of your opportunities and capabilities. Then we build a CFO-quality business case to document payback and return on investment; then implementations and client success management that produces the results above the business case. Then we work jointly with the client on recognition for their results as achieved through our solutions. We bring it all together with people, process, partners and technology, supported by the power of the fully integrated and expanding RightNow service portfolio.
From a people- and a partner perspective, we operate on a global scale, with our greatest concentrations of employees in North America, the U.K., Japan and Australia. And we operate across many markets, both private sector and public sector. And we cover many diverse industries, with significant experience in high technology, online services, communications, retail, financial services, travel and transportation and higher education, just to name a few.
What is it that we pursue? It's business value. Step one is lower cost, as found often in self-service. It is best in industry. It reduces calls to the contact center. It averts e-mails, usually by 10% to 40%. On the agent desktop, it saves many, many seconds in average handle time, which is then highly leveraged by the number of contact center calls for significant savings. Paybacks are often less than one year. Then clients can reinvest those savings, deployed to initiatives that increase customer loyalty and increased sales; increased upsells; more cross-sells; and greater product adoption, as enabled by things like analytics, intelligent queuing, workspace context and proactive engagement.
Service quality builds trust. Just think about your own experiences. Do you shop more and stay longer where experiences are easy and effective? That's exactly what RightNow enables.
What are the opportunities, broadly defined, that many of our clients share? The root of all positive customer experience is knowledge: historical, insightful, expanding and current. Customers want a complete, accurate and relevant answers. And they want to be empowered to have immediate and easy access to that knowledge no matter where it is, no matter where it resides: on the phone, on the web, on their mobile devices or on their Facebook interactions.
And further, where assisted service is required, enabled frontline employees provide immediate assistance and fast first-call resolution. Customers expect consistency across channels, no matter their point of access. Multichannel, in addition to providing that to clients -- the customers of our clients, also allows our clients to leverage lower-cost channels. Customers want their voices heard and action taken. Learn what the customers are thinking, capture and act on feedback and grow the knowledge foundation.
Customers want to explain themselves only once, so design seamless experiences, transparent cross-department experiences, ensure smooth handoffs. Instill, in your customers and in your employees, confidence. Customers want personnel and relevant interactions. Leverage segmentation, context and personalization to present relevant offers in line, and thereby increase revenue.
Customers want an organization that adapts to them. Evaluate your key moments of truth. Baseline your customers. Identify gaps. Prioritize and act. The fully integrated RightNow solutions can effectively address all of these opportunities.
There are 9 examples of customer success on this slide. And together, they are the tip of the iceberg for a global, multi-industry, private- and public sector RightNow customer base. My favorite example, not on this page, is North America's largest satellite radio company. It was our largest implementation in 2011, and it is a classic story of expert assessment; intelligent business case; fast and effective deployment; and results above expectation; and recognition.
We initiated our partnership with this firm in July of 2011. We installed a portfolio of web solutions in 2 months and a dynamic agent desktop for more than 3,000 seats in 4 months. That's fast deployment. And here we are, 8 months later, and their monthly savings, meticulously tracked, of CFO quality will soon exceed their monthly cost for the solution at just 6 months after web deployment and 4 months after contact center.
Oracle and RightNow are a perfect pair, bringing together the owning cycle with the buying and selling cycle, as Thomas had referenced, unifying capabilities to better address the customer experience opportunity, enjoining sales force automation with RightNow services for our B2B community, combining commerce and RightNow services for our B2C community. It's all for a purpose: to differentiate from sales force and others by having the unique capability of serving the entire customer life cycle, from beginning to end, with understanding, integration, insights and full-featured capability.
Since our announcement of the Oracle and RightNow combination in October, we have been talking to customers and partners, and the feedback has been great. New doors of opportunity and integration opened. The level of interest and engagement is high, and I know many of you have questions about what does it mean, and how does it fit together for me as a client or a prospect. We're eager to address your questions and interest, so please contact your Oracle or RightNow representative today. We have presentations that explain our strategy, focus and future, and we're touring the world to meet as many of you as possible in the weeks and months ahead.
The combination of RightNow and Oracle cements our leadership in the important and fast-growing customer experience space. And it's great news for you, for RightNow and Oracle clients, prospects and partners. For those of you associated with RightNow, clients, prospects and partners, the combination brings together the best and most complete customer experience solution. Oracle is committed to the RightNow product portfolio and will increase, is increasing this very day, the level of investment in that portfolio to further strengthen and expand our capabilities.
Additionally, Oracle, as Thomas had mentioned, will be aggressive in building integrations to other Oracle assets, like commerce and sales force automation, to expand the integrated solution, to better satisfy the needs of the -- the needs across that customer journey. We'll also expand the strength of our B2C capabilities to our community of customers and prospects in B2B.
For Oracle customers, prospects and partners, know that Oracle is committed to continuous innovation for your existing applications. The purchase of RightNow is an example. Oracle can now offer best-in-class customer service into the cloud. Customer choice across various delivery methods is a key strategy at Oracle, and Oracle will continue to provide unprecedented flexibility and choice of deployment models: on-premise, private cloud, public cloud or hybrid.
With regard to next steps, I'd encourage you again to speak with your Oracle or RightNow representative today. We've been growing the business and enjoying great success. We have the scale and the bandwidth to assess your opportunity now. Let us tailor an overview to meet your organization's requirements. It's all about the customer experience and the most effective way to serve it.
Thank you for your time today, and all the best to your business. We look forward to speaking with you soon. Thank you very much.
Copyright policy: All transcripts on this site are the copyright of Seeking Alpha. However, we view them as an important resource for bloggers and journalists, and are excited to contribute to the democratization of financial information on the Internet. (Until now investors have had to pay thousands of dollars in subscription fees for transcripts.) So our reproduction policy is as follows: You may quote up to 400 words of any transcript on the condition that you attribute the transcript to Seeking Alpha and either link to the original transcript or to www.SeekingAlpha.com. All other use is prohibited.
THE INFORMATION CONTAINED HERE IS A TEXTUAL REPRESENTATION OF THE APPLICABLE COMPANY'S CONFERENCE CALL, CONFERENCE PRESENTATION OR OTHER AUDIO PRESENTATION, AND WHILE EFFORTS ARE MADE TO PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS, OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE AUDIO PRESENTATIONS. IN NO WAY DOES SEEKING ALPHA ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN ANY TRANSCRIPT. USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY'S AUDIO PRESENTATION ITSELF AND THE APPLICABLE COMPANY'S SEC FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER DECISIONS.
If you have any additional questions about our online transcripts, please contact us at: firstname.lastname@example.org. Thank you!