-- In the third quarter, 2 new deployment contracts were signed
-- To date in the fourth quarter, 1 additional deployment contract has
been signed
Assessment activity in the third quarter, and through the fourth quarter to
date, is as follows:
-- In the third quarter, 3 new assessment contracts were signed
-- To date in the fourth quarter, 4 additional assessment contracts have
been signed
The total value of the potential deployment contracts represented in the 15
active assessments is approximately $60 million.
Assessment Conversion Cycles
The vast majority of eLoyalty's Behavioral Analytics™ engagements begin
with an assessment sold to a senior level business sponsor. The primary
purpose of an assessment is to deliver a detailed business case and a
benefits realization roadmap.
eLoyalty has built a very strong assessment methodology that, in almost
every case, produces a very compelling business case for the business
sponsor. After completing and presenting the business case, we typically
begin contract discussions for full-scale deployment. As Behavioral
Analytics™ is a complex and transformational solution, and our clients
tend to be very large companies, we often experience extended conversion
cycles. We are currently engaged in a number of these conversion
discussions, and we are focused on moving them forward as rapidly as is
practical.
We believe a high percentage of our assessments will convert to deployments
based on the compelling business cases we build, our strong benefits
realization methodology and the high quality customer reference list we
have established.
Business Development Team
We added 2 new business developers to the Behavioral Analytics™ sales
team in the third quarter of 2007, bringing our total to 9. Based on the
compelling benefits associated with Behavioral Analytics™, and the large
available market, strengthening our business development team is an
important factor in the growth of Behavioral Analytics™.
Intellectual Property
In the third quarter of 2007, eLoyalty filed 5 new patent applications for
Behavioral Analytics™ innovations. These new filings bring the number of
Behavioral Analytics™ patent applications on file to 19 in the U.S. and
5 internationally.
Aggregated Data
In October of 2007, we reached several important milestones in terms of
aggregated data. The size of our aggregated database exceeded 100 million
recorded interactions and 30 million analyzed interactions. These totals
are growing at the rate of 5%-10% per month. Growing our set of aggregated
data is an important element in our strategy of building deep industry
expertise and a database of best practices.
We will further discuss the progress and status of Behavioral Analytics™
on our third quarter conference call.
About eLoyalty
eLoyalty helps its customers achieve breakthrough results with
revolutionary analytics and advanced technologies that drive continuous
business improvement. With a long track record of delivering proven
solutions for many of the Fortune 1000, eLoyalty's offerings include
Behavioral Analytics™, Integrated Contact Solutions and Consulting
Services, aligned to enable focused business transformation. For more
information about eLoyalty, visit www.eloyalty.com or call 877-2ELOYAL.
Safe Harbor Statement
Safe Harbor Statement under the Private Securities Act of 1995: Statements
in this news release that are forward-looking statements are subject to
various risks and uncertainties concerning specific factors described in
eLoyalty's Form 10-K and other filings with the U.S. Securities and
Exchange Commission. Such information contained herein represents
management's best judgment as of the date hereof based on information
currently available. eLoyalty does not intend to update this information
and disclaims any legal obligation to the contrary. Historical information
is not necessarily indicative of future performance.
Contact Information: Contact: eLoyalty Corporation Steve Pollema Vice President, Operations and Chief Financial Officer (847) 582-7100