Emphasize on Customer Retention
Date: Thursday , January 03, 2013
Pegasystems (NASDAQ: PEGA) is a provider of business process management (BPM) and customer relationship management (CRM) software solutions. Headquartered in Cambridge, MA, the company has a market cap of $846 Million and employs over 2000 employees worldwide with a strong R&D presence in India.
Growing customer demand for personalization
Working with fortune 500 companies is a big challenge as they tend to be very demanding. The primary difference seen in the last your years is the evolution of companies to adapt newer technologies which has put Pegasystems in a pleasant dilemma to constantly innovate. The market preferences keep the leadership positions in the magic quadrants of Forrester & Gartner by being the leader in the BPM, CRM and the case management industries. Hence, customers have become very demanding. Clients today are more focused on retaining customers and increasing revenue unlike old trends where firms were more bent towards new customers.
However the growth of the customer base leads to the need for ecosystem growth. The customers are moving more towards personalization and this required Pegasystems to get Individuals in the industry certified for higher products. The customers want customized solutions to cater to their needs. Hence, the company developed solutions that plug into the data backend and make it function independently, eventually allowing customers to learn industry specific skills. Taking the example of a credit card dispute system, it is necessary that the CSR who picks up the phone should have complete information about the customer. Visa is governed by global visa rules, so the industry wants Pegasystems to give customized solutions for the needs.
The reason why clients buy software from Pegasystems is to provide to end customers. Clients just want information to be continued from one channel to the other channel irrespective of which channel the customers emerge from.
Providing seamless integration
The industry is seeing two large areas where technology companies are in a need for innovation. Firstly, clients demand seamless interaction with the end customers irrespective of the channel. The second is the positioning of analytics to give the best for the end customers. Currently the trend of customer retention is as important as building a new relationship with a new client.
Clouds have always existed within the enterprises for Pegasystems. The firms have moved away from doing a lot of capital investments. There is a state of the art dynamic scaling, where customers want to add a lot of users. The major concern with cloud today is the clients facing difficulty to connect with the internal systems over VPN. So the technology provided by Pegasystems, along with a management console, helps give customers prices at one fifth the traditional costs that other cloud companies offer.
The biggest challenge is to continue the growth rate during the last five years. The company does not believe that new customers are required in the sales force. The other main challenge is to keep innovating. With business needs changing on a very regular basis, organizations today are forced to have a business strategy that does not exceed six months. There is a need to constantly innovate and be cognizant of Mobile space, the Cloud, Social media and other new concepts that have evolved over the years. There is a necessity to keep a birdís eye view in look out for new trends in the industry. Agility and smart quick thinking plays a major role as businesses are constantly changing.
India has a prominent role to play
The three core R&D divisions are situated in Cambridge, Massachusetts Bangalore & Hyderabad in India respectively. India has the distinction of having a lionís share of research and development in comparison to its US counterpart. The firm is currently working on Industry ready sector in the telecom, oil and gas industries. Pegasystems is in the process of developing agile methodologies for entering the Japanese and the European markets. These methods are being invented in such a way as to integrate within the products of clients.
The local markets are growing into a transforming experience. Investments are going to be made with an emphasis on building customer trust. Pegasystems is currently betting on the UI area as it is showing a lot of promise. There are continuous straight recruitments in India to advance the analytical and decision making skills of the company globally.