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Jive Communications Award Write Up
1.
2017 North American Hosted
IPTelephony and UCaaS Customer Service Leadership Award
2.
BEST PRACTICES RESEARCH ©
Frost & Sullivan 2017 2 “We Accelerate Growth” Contents Background and Company Performance ........................................................................3 Industry Challenges..............................................................................................3 Quality of Customer Service and Customer Impact ...................................................4 Conclusion...........................................................................................................8 Significance of Customer Service Leadership .................................................................9 Understanding Customer Service Leadership .................................................................9 Key Benchmarking Criteria ..................................................................................10 Best Practice Award Analysis for Jive Communications ..................................................10 Decision Support Scorecard .................................................................................10 Quality of Customer Service ................................................................................11 Customer Impact ...............................................................................................11 Decision Support Matrix ......................................................................................12 Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices .................................................................................................................13 The Intersection between 360-Degree Research and Best Practices Awards.....................14 Research Methodology ........................................................................................14 About Frost & Sullivan ..............................................................................................14
3.
BEST PRACTICES RESEARCH ©
Frost & Sullivan 2017 3 “We Accelerate Growth” Background and Company Performance Industry Challenges Businesses around the world are rapidly moving their communications and information technologies (IT) to the cloud. A 2017 global Frost & Sullivan survey of 1,934 IT decision makers and influencers revealed that cloud communications solutions are used by 80 to 95 percent of organizations across industries. Among cloud adopters, 64 percent have already moved all or part of their telephony services to the cloud and another 31 percent plan to do so in the next two years. Top drivers for cloud communications adoption among respondents include greater flexibility at times of downsizing or rapid growth (38 percent) and access to advanced features/capabilities (37 percent). Frost & Sullivan expects the global hosted IP telephony and unified communications as a service (UCaaS) market, an important segment within the broader cloud communications space, to experience robust annual growth rates of 20 to 30 percent in terms of both installed users and revenue over the next decade. Cloud migration is, however, a daunting task. Developing a cloud strategy is rated as one of top 3 challenges by 24 percent of IT decision makers around the world. Various factors restrain some businesses from making the move to cloud. UCaaS penetration beyond early adopters entails greater scrutiny with regard to service quality and reliability. Almost half (49 percent) of cloud non-users state security as their primary concern, whereas 46 percent state that they prefer to maintain full control of their IT and communications infrastructure. When selecting a cloud provider, 45 percent of respondents rank security as one of their top criteria and 40 percent rank reliability among the most important factors. Businesses also acknowledge that UCaaS solutions differ in terms of features, price, underlying technology and architecture. Although frequently overlooked in purchasing decisions, provider customer service and support capabilities play a critical role in customer satisfaction and loyalty. Most hosted IP telephony and UCaaS providers continue to experience high customer churn due to poor service availability and/or inadequate provider support throughout the solution lifecycle— from design and implementation, to customer onboarding and ongoing solution management. As competition intensifies, providers are ramping up their service and customer support capabilities. To improve customer satisfaction and retention, providers are deploying distributed, geographically-redundant architectures that ensure greater service availability and also help improve voice quality. Forward-thinking providers are also placing a strong focus on the customer experience and are enhancing their solution implementation and lifecycle management capabilities, including more streamlined sales and provisioning processes, a more holistic and custom-tailored approach to customer technology needs and business objectives, and a broader team effort within the provider organization to ensure successful deployments.
4.
BEST PRACTICES RESEARCH ©
Frost & Sullivan 2017 4 “We Accelerate Growth” Providers that more strongly focus on customer value have invested in technologies, processes and people to deliver superior customer service and support. They are well positioned to capitalize on growing business demand for reliable and secure cloud communications solutions and a long-term relationship with a trusted service provider. Quality of Customer Service and Customer Impact Jive stands out among UCaaS competitors with its exceptional attention to the overall customer experience. It ensures greater customer satisfaction through a robust network architecture, excellent customer lifecycle management, compelling communications and collaboration solutions, and a sustainable business strategy. Robust Network Architecture Service availability is the top concern for businesses with respect to voice and other real- time communications services. However, few UCaaS providers have built their networks to significantly reduce the possibility of service downtime. Often, UCaaS services are delivered from a single primary data center with a second data center serving as a back- up. True cloud architectures are typically more distributed and extensible than hosted solutions that often mimic the legacy telecom architectural model. As businesses look to combine the flexibility and cost efficiencies of public broadband connections with the numerous benefits of cloud communications, the robustness of the cloud architecture and the UCaaS provider’s ability to effectively control service quality and reliability become of paramount importance. Jive’s cloud architecture features dynamic routing, load balancing, self-healing, and distributed computing that allow the service provider to deliver greater quality while maintaining competitive service prices. As a company born in the cloud, Jive has no legacy telecom assets and services to contend with, which has allowed it to be more flexible and more innovative in building a highly extensible, geo-redundant architecture to better serve evolving customer needs. With services delivered out of several data centers in North America— Atlanta, Chicago, Dallas, Los Angeles, Monterrey, New York, Salt Lake City, and Seattle—and two additional data centers in Sao Paulo (Brazil) and London (UK), Jive ensures there is no single point of failure and greatly minimizes the possibility of disruptive downtime that can significantly impact customer productivity and sales. The distributed architecture allows Jive to handle device registration and storage closer to the customer edge and thus realize cost savings, which it passes on to its customers. This network design also benefits mobile users who can connect to a data center relatively close to their current physical location and thus receive more persistent, reliable and higher-quality access to their business communications. Private connections among Jive data centers further enhance the network’s stability. Multiple peering arrangements with call origination and termination carriers also help ensure greater service reliability and more cost-effective call handling. Internet–based
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BEST PRACTICES RESEARCH ©
Frost & Sullivan 2017 5 “We Accelerate Growth” diagnostic tools allow Jive to better monitor service quality and more proactively resolve service issues. Jive reports network availability of more than 99.99 percent, which is higher than many of its competitors’ service availability and clearly demonstrates the value of its highly distributed architecture. It also demonstrates Jive’s commitment to service quality and customer satisfaction. The provider’s continued investment in network reliability is likely to positively impact its ability to deliver top-quality services in the future. Excellent Customer Lifecycle Management Customer expectations of their UCaaS providers are constantly rising. Businesses require exceptional service from the initial consultations, to implementation, to ongoing troubleshooting and service updates/upgrades. As the market becomes increasingly competitive, providers are looking to enhancing various aspects of their customer lifecycle management capabilities. Few UCaaS providers, however, truly stand out with a holistic approach to customer needs. Jive places a particularly strong emphasis on solution design and customer onboarding. It assigns dedicated project managers to all new accounts, regardless of business size. While many of its competitors provide extensive implementation support only to businesses of a minimum size (i.e., several dozen users), Jive provides all of its customers with the needed attention to ensure deployment success. Jive’s entire workforce is trained and encouraged to support customers throughout the duration of their service with the provider. All teams within Jive’s organization are empowered and cross-trained to quickly and more effectively address various customer issues. Jive prides itself on short hold times for incoming customer calls, which it aims to keep under 15 seconds, with actual hold time on some days down to zero seconds. Jive closely monitors social media and service provider review sites to track customer concerns and other feedback. Dedicated staff resolves potential issues using the customers’ medium and communications modality of choice (e.g., social media, email, etc.). Jive’s executive management, which includes three founders, consistently stresses the importance of delivering a stellar customer experience. It provides compelling incentives and rewards to company staff to ensure their commitment to customer service excellence. Each year Jive sets a company net promoter score (NPS) target and encourages everyone in the organization to be a customer service representative and help achieve this goal. To boost employee drive to deliver superior customer service, Jive management launched a particularly compelling program in 2017: if the company reaches its NPS goal all company employees and their families will receive a free trip to Hawaii. The results of Jive’s exceptional focus on customer service and support are evidenced by its NPS of 68, which significantly exceeds the industry average of 27.83 (per G2 Crowd). Jive also claims one of the lowest churn rates in the industry and reports that user
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Frost & Sullivan 2017 6 “We Accelerate Growth” expansion within existing customers is more than offsetting any user or customer losses. Also significant is the fact that more than half of Jive’s customers have participated in the provider’s referral programs, recommending Jive to other businesses. Jive proudly shares on its website customer reviews from various sources (G2 Crowd, GetApp, My VoIP Provider, etc.). Customers praise Jive’s features as well as the professionalism and service excellence dedication of its staff. Compelling Business Communications and Collaboration Solutions Customer satisfaction in the rapidly evolving UCaaS market is highly dependent upon the provider’s feature set, service packaging and pricing, and technology roadmap. Businesses of any size and industry require effective communications and collaboration tools to withstand growing competition in their respective markets. Most businesses do not require a full suite of UC applications for all of their users, but do need different features for various users. Many businesses start small, with a limited set of UC features, but look to expand their use of more advanced tools as their needs evolve. The cloud delivery model allows businesses greater flexibility than premises-based solutions to adjust their communications and collaboration functionality based on evolving requirements. Most UCaaS providers offer broad feature sets, but packaging and pricing differ among competitors. Jive delivers superior price/performance value with its competitively priced, all-inclusive feature bundles. This approach greatly simplifies the customer purchase and ownership experiences. Businesses can gradually expand their feature sets as they acknowledge the need for different or additional communications and collaboration tools throughout their lifecycle journeys. With prices ranging from $19.95 for deployments of 50+ users to $29.95 for deployments of one to four users, Jive bundles compare strongly against other available solutions. Each bundle is comprised of an extensive set of core business voice features as well as more unique features such as call reporting, call recording, analytics, voicemail to email, fax to email, presence, user and admin web portals and more. Further, Jive mobile, desktop and web apps provide users with access to their communications tools on any device and network. Jive also offers certain advanced solutions a-la-carte. Jive Video is a full-fledged video conferencing solution for businesses requiring advanced visual collaboration. Jive Contact Center provides businesses with an inexpensive customer care solution. Through a partnership with InContact, it also offers a multi-channel contact center option. Jive’s cloud architecture, home-grown UCaaS platform and software-based solutions enable the provider to innovate rapidly and scale cost-effectively. The Jive platform is based on open industry standards and therefore facilitates integration with other standards-based SIP components and applications. Unlike many of its UCaaS competitors using third-party platforms, Jive’s platform ownership allows it greater flexibility to address evolving customer needs.
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Frost & Sullivan 2017 7 “We Accelerate Growth” Jive also leverages advanced, contemporary software development processes. The company uses a Scrum methodology based on Agile principles which includes rapid iteration and continuous integration, whereas the vast majority of telecom vendors and service providers use static/proprietary firmware and waterfall development processes. Cascading releases enable more frequent functionality updates allowing Jive to stay at the forefront of technology innovation. Jive’s services are easy to set up and provision. Jive phones are shipped ready to plug and play with no additional configuration required. For most small customers Jive provides a “soft install”. Jive visually builds the PBX software for the customer using web share tools. For large customers, installation is often provided by Jive channel partners. Jive provides numerous engineering services to customers for free. It provides both off-the- shelf and custom integration with third-party platforms such as Salesforce, Microsoft Outlook, Zendesk and others, including vertical-specific applications (e.g., dental and medical software). It’s clear that Jive remains committed to delivering compelling UCaaS solutions to businesses through further feature enhancements and integrations with third-party software. Business Stability Provider financial challenges can be highly disruptive to customers. As the market increasingly consolidates and provider mergers and acquisitions continually re-shape the competitive landscape, businesses grow ever-more concerned about the future of their partnerships with their UCaaS providers. Jive has demonstrated considerable effectiveness in strategy execution and business management that has resulted in rapid growth and profitability with limited external financing. Since its inception, the company has consistently reported above-industry- average growth rates, boosted by organic expansion as well as several acquisitions. A combination of direct and indirect sales helps extend the provider’s customer reach. Jive currently employs a direct sales force serving SMB, commercial enterprise and public sector (K12, higher education, and government) along with several other vertical-specific account reps focused on hospitality, food services, e-tailing, and so on. Jive has also focused on expanding its channel network in order to ensure broader geographic reach and better customer service. Channel partners include telecom agents, managed telecom service providers as well as master distributors. Jive also operates a successful referral program for customers and strategic partners, which allows them to recommend and refer Jive to their associates. Jive targets both small businesses and large organizations, including the public sector, which gives it a broad addressable market. Jive employs vertical strategies (e.g., specific industry certifications and custom integration with vertical apps) that create unique
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Frost & Sullivan 2017 8 “We Accelerate Growth” capabilities to help businesses in different industries. Jive reports particularly strong traction in education and the public sector as well as among national franchises where customers appreciate its robust functionality, compelling pricing and platform agility that enable flexible integrations and customization. As the US market matures, US-based providers need to explore growth opportunities in additional countries and regions. Its efforts toward gradual international expansion will enable Jive to better serve businesses with presence in multiple countries as well as capitalize on a larger addressable market. Conclusion Jive excels in the UCaaS market with a strong focus on the customer experience. Its distributed cloud architecture, holistic approach to supporting customer needs and service delivery, compelling solution bundles and effective business strategy has propelled Jive to become one of the leading providers in the North American UCaaS market. With its strong overall performance, Jive has earned Frost & Sullivan’s 2017 Customer Service Leadership Award.
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Frost & Sullivan 2017 9 “We Accelerate Growth” Significance of Customer Service Leadership Ultimately, growth in any organization depends upon customers purchasing from a company and then making the decision to return time and again. The service experience is, therefore, a critical component of a company’s efforts to retain customers over the long term. Through successful retention, companies enhance their brand, increase demand for their products, and differentiate themselves from the competition. Understanding Customer Service Leadership Customer Service Leadership is defined and measured by two macro-level categories: Quality of Customer Service and Customer Impact. These two sides work together to make customers feel valued and confident in their products’ quality and long shelf life. This dual satisfaction translates into repeat purchases and a high lifetime of customer value.
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Frost & Sullivan 2017 10 “We Accelerate Growth” Key Benchmarking Criteria For the Customer Service Leadership Award, Frost & Sullivan analysts independently evaluated two key factors—Quality of Customer Service and Customer Impact—according to the criteria identified below. Quality of Customer Service Criterion 1: Empowerment Criterion 2: Leverage of Customer Feedback Criterion 3: Speed/Timeliness Criterion 4: Frictionless Interaction Criterion 5: Technological Investment Customer Impact Criterion 1: Price/Performance Value Criterion 2: Customer Purchase Experience Criterion 3: Customer Ownership Experience Criterion 4: Customer Service Experience Criterion 5: Brand Equity Best Practices Award Analysis for Jive Decision Support Scorecard To support its evaluation of best practices across multiple business performance categories, Frost & Sullivan employs a customized Decision Support Scorecard. This tool allows our research and consulting teams to objectively analyze performance, according to the key benchmarking criteria listed in the previous section, and to assign ratings on that basis. The tool follows a 10-point scale that allows for nuances in performance evaluation. Ratings guidelines are illustrated below. RATINGS GUIDELINES The Decision Support Scorecard is organized by Quality of Customer Service and Customer Impact (i.e., These are the overarching categories for all 10 benchmarking criteria; the definitions for each criterion are provided beneath the scorecard.). The research team confirms the veracity of this weighted scorecard through sensitivity analysis, which confirms that small changes to the ratings for a specific criterion do not lead to a significant change in the overall relative rankings of the companies.
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Frost & Sullivan 2017 11 “We Accelerate Growth” The results of this analysis are shown below. To remain unbiased and to protect the interests of all organizations reviewed, we have chosen to refer to the other key participants as Competitor 2 and Competitor 3. Measurement of 1–10 (1 = poor; 10 = excellent) Customer Service Leadership Quality of Customer Service Customer Impact Average Rating Jive 10.0 9.8 9.9 Competitor 2 10.0 9.6 9.8 Competitor 3 9.7 9.6 9.7 Quality of Customer Service Criterion 1: Empowerment Requirement: Service providers are encouraged to take independent, informed, and creative approaches to issue resolution. Criterion 2: Leverage of Customer Feedback Requirement: Customer opinions are continually solicited and monitored, leading to direct changes to product features or the service model. Criterion 3: Speed/Timeliness Requirement: Issues are resolved within a time frame satisfactory to the customer and the provider. Criterion 4: Frictionless Interaction Requirement: Service providers deftly avoid customer conflict by maintaining a friendly, professional demeanor at all times. Criterion 5: Technological Investment Requirement: Investment in best-in-class technologies enhance customer knowledge, accelerate issue resolution, and/or improve the customer experience. Customer Impact Criterion 1: Price/Performance Value Requirement: Products or services offer the best value for the price, compared to similar offerings in the market. Criterion 2: Customer Purchase Experience Requirement: Customers feel they are buying the most optimal solution that addresses both their unique needs and their unique constraints. Criterion 3: Customer Ownership Experience Requirement: Customers are proud to own the company’s product or service and have a positive experience throughout the life of the product or service.
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Frost & Sullivan 2017 12 “We Accelerate Growth” Criterion 4: Customer Service Experience Requirement: Customer service is accessible, fast, stress-free, and of high quality. Criterion 5: Brand Equity Requirement: Customers have a positive view of the brand and exhibit high brand loyalty. Decision Support Matrix Once all companies have been evaluated according to the Decision Support Scorecard, analysts then position the candidates on the matrix shown below, enabling them to visualize which companies are truly breakthrough and which ones are not yet operating at best-in-class levels. High Low Low High CustomerImpact Quality of Customer Service Jive Competitor 2 Competitor 3
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Frost & Sullivan 2017 13 “We Accelerate Growth” Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices Frost & Sullivan analysts follow a 10-step process to evaluate Award candidates and assess their fit with select best practice criteria. The reputation and integrity of the Awards are based on close adherence to this process. STEP OBJECTIVE KEY ACTIVITIES OUTPUT 1 Monitor, target, and screen Identify Award recipient candidates from around the globe • Conduct in-depth industry research • Identify emerging sectors • Scan multiple geographies Pipeline of candidates who potentially meet all best- practice criteria 2 Perform 360-degree research Perform comprehensive, 360-degree research on all candidates in the pipeline • Interview thought leaders and industry practitioners • Assess candidates’ fit with best-practice criteria • Rank all candidates Matrix positioning of all candidates’ performance relative to one another 3 Invite thought leadership in best practices Perform in-depth examination of all candidates • Confirm best-practice criteria • Examine eligibility of all candidates • Identify any information gaps Detailed profiles of all ranked candidates 4 Initiate research director review Conduct an unbiased evaluation of all candidate profiles • Brainstorm ranking options • Invite multiple perspectives on candidates’ performance • Update candidate profiles Final prioritization of all eligible candidates and companion best-practice positioning paper 5 Assemble panel of industry experts Present findings to an expert panel of industry thought leaders • Share findings • Strengthen cases for candidate eligibility • Prioritize candidates Refined list of prioritized Award candidates 6 Conduct global industry review Build consensus on Award candidates’ eligibility • Hold global team meeting to review all candidates • Pressure-test fit with criteria • Confirm inclusion of all eligible candidates Final list of eligible Award candidates, representing success stories worldwide 7 Perform quality check Develop official Award consideration materials • Perform final performance benchmarking activities • Write nominations • Perform quality review High-quality, accurate, and creative presentation of nominees’ successes 8 Reconnect with panel of industry experts Finalize the selection of the best-practice Award recipient • Review analysis with panel • Build consensus • Select recipient Decision on which company performs best against all best-practice criteria 9 Communicate recognition Inform Award recipient of Award recognition • Present Award to the CEO • Inspire the organization for continued success • Celebrate the recipient’s performance Announcement of Award and plan for how recipient can use the Award to enhance the brand 10 Take strategic action Upon licensing, company is able to share Award news with stakeholders and customers • Coordinate media outreach • Design a marketing plan • Assess Award’s role in future strategic planning Widespread awareness of recipient’s Award status among investors, media personnel, and employees
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Frost & Sullivan 2017 14 “We Accelerate Growth” The Intersection between 360-Degree Research and Best Practices Awards Research Methodology Frost & Sullivan’s 360-degree research methodology represents the analytical rigor of our research process. It offers a 360-degree-view of industry challenges, trends, and issues by integrating all 7 of Frost & Sullivan's research methodologies. Too often companies make important growth decisions based on a narrow understanding of their environment, leading to errors of both omission and commission. Successful growth strategies are founded on a thorough understanding of market, technical, economic, financial, customer, best practices, and demographic analyses. The integration of these research disciplines into the 360-degree research methodology provides an evaluation platform for benchmarking industry participants and for identifying those performing at best-in-class levels. About Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages more than 50 years of experience in partnering with Global 1000 companies, emerging businesses, and the investment community from 45 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com. 360-DEGREE RESEARCH: SEEING ORDER IN THE CHAOS
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