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eGain’s Virtual Agent technology gains momentum in Japan

Japanese Financial Services Giant Aiful Provides State-of-the-Art Web Customer Service with eGain’s Industry-Leading Virtual Agent Solution

SUNNYVALE, CALIF., October 8, 2002 – eGain Communications Corporation (NASDAQ: EGAN), a leading provider of knowledge-powered customer service software and services to the Global 2000, today announced continued adoption of its virtual agent technology for online customer service in Japan. Aiful, Japan’s leading financial services company, deployed Sayaka-an online virtual agent powered by eGain AssistantTM-to provide friendly and intelligent customer service on their web site.

Launched on September 2, 2002, Sayaka helps web site visitors instantly find information about the company’s products and services in areas such as real estate loans and consumer credit, on a 24×7 basis.

Visitors to Aiful’s web site can submit questions in natural-language format to Sayaka, just as if they were communicating verbally. Sayaka engages in a life-like conversation with emotional and cultural awareness, her facial expressions reflecting the flow of the conversation. Customized for the Japanese market, Sayaka is modeled after Ms. Sayaka Tatsuka, a popular Japanese actress who is featured in Aiful’s advertising campaigns.

“Implementation of the eGain-enabled virtual agent is a key part of our strategy to deliver user-friendly and convenient services to our customers and visitors by using the latest technologies. We are always looking to provide new channels for our customers to do business with us. eCashing, our service delivered over web-based cellular phones or PCs, and AiMail, our email-based services, are other pioneering initiatives that have been part of this strategy,” said Mr. Hideaki Kuwahata, Manager, Management Planning at Aiful.

The results of the deployment have been noteworthy. Since the launch, the Aiful web site has recorded as many page views in four days as they had previously registered in a month. The number of customer service sessions per day with Sayaka has already crossed the 24,000 mark.

“Aiful’s adoption of eGain’s virtual agent solution is another example of an industry leader extending their competitive advantage via state-of-the-art customer service,” said Gunjan Sinha, eGain’s President. “This deployment reflects a growing momentum for eGain’s best-of-class solutions in the Japanese market.”

About eGain Assistant

eGain Assistant is the first solution in the industry that allows the creation of emotionally and culturally intelligent virtual agents that are also the most scalable. eGain Assistant enables differentiated web self-service with seamless escalation to assisted service. Using an engaging conversational approach to problem resolution, eGain’s virtual agent technology enhances customer loyalty, improves sales, and reduces service costs. eGain Assistant is an integral part of eGain’s comprehensive application suite for knowledge-powered multi-channel customer service.

About Aiful

Aiful Corporation (www.aiful.co.jp) is a leading financial services company in Japan. Established in 1967 by founder President Yoshitaka Fukuda, the firm specializes in personal finance. Aiful has emerged as a leading company in the consumer lending and credit services sector and enjoys a strong market presence in the retail financial services market.
In 2002, Aiful became the fourth largest company in the Japanese consumer finance industry based on total amount of loans outstanding. A publicly listed company, Aiful aims to strengthen its competitive position by diversifying its products and customer development channels, and through acquisitions.

About eGain Communications Corporation

eGain (Nasdaq: EGAN)is a leading provider of software and services that enable knowledge-powered multi-channel customer service. Selected by 24 of the 50 largest global companies to transform their traditional call centers into knowledge-powered multi-channel contact centers, eGain solutions measurably improve operational efficiency and customer retention, delivering a significant ROI. eGain eService Enterprise, the company’s software suite, also available as a hosted service, includes applications for knowledge management, web self-service, email management, and web collaboration, as well as certified integrations with existing call center infrastructure and business systems. Additionally, eGain offers a comprehensive set of professional services including business consulting, implementation services, 24×7 support, education, and training.

Headquartered in Sunnyvale, California, eGain has an operating presence in 18 countries and serves over 800 enterprise customers worldwide, including ABN AMRO, DaimlerChrysler, and Vodafone. To find out how eGain can help you leverage customer service for competitive advantage, please visit http://www.eGain.com or call the company’s offices – United States: (888) 603-4246; London: +44 (0) 1753 464646; or Sydney: +612 9492 5400.

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Trademarks: eGain, the eGain logo and all other eGain product names and slogans are trademarks or registered trademarks of eGain Communications Corp. in the United States and/or other countries. All other company names and products mentioned in this release may be trademarks or registered trademarks of their respective companies.

Cautionary Note Regarding Forward-looking Statements: All statements in this release that involve eGain’s plans, forecasts, beliefs, projections, expectations, strategies and intentions are forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, which are based on information available to eGain at the time of this release, are not guarantees of future results; rather, they are subject to risks and uncertainties that may cause actual results to differ materially from those set forth in this release. These risks include, but are not limited to, the challenging economic environment; the uncertainty of demand for eGain products; the anticipated customer benefits from eGain products; increased competition and technological changes in the markets in which eGain competes; eGain’s ability to manage its expenditures; and other risks detailed from time to time in the company’s filings with the Securities and Exchange Commission, including the company’s annual report on Form 10-K filed on September 28, 2001, and the company’s quarterly reports on Form 10-Q. eGain assumes no obligation to update these forward-looking statements.

Editorial Contact:

Anand Subramaniam
eGain Communications
Tel: 408 212 3506
pr@egain.com