Scient and Harris Interactive Deliver Breakthrough Findings on Customer Advocacy; Scient launches www.advocacy.scient.com to recognize successful eTailers

Business Wire, Oct 3, 2000

Business Editors and Technology Writers

ROCHESTER, N.Y. & SAN FRANCISCO--(BUSINESS WIRE)--Oct. 3, 2000

Scient (Nasdaq:SCNT), The eBusiness Systems Innovator(TM), and Harris Interactive (Nasdaq:HPOL), the global leader in Internet-based market research, today announced critical findings in a study entitled "Breakthroughs in Customer Innovation."

Conducted by Harris Interactive, the findings validate that investing in customers through advocacy programs is the best marketing expenditure a merchant can make due to the tremendous value to be mined from word-of-mouth advocacy.

Scient originally commissioned this study as part of their commitment to understand and therefore to be able to "design-in" the most powerful drivers to customer experiences in an end-to-end eBusiness. "The study showed the most successful eTailers had figured out how to not only create virtual relationships but also how to create a community for customers to connect to each other. Online merchants that go beyond identifying merely loyal customers to recognizing customers who enthusiastically endorse them will win big as online retailing continues to consolidate," advised Charles Warren, director of the study for Scient.

Scient's research finds that an "A3 customer lifecycle" -- attraction, adoption, advocacy -- is the key to maintaining continual relationships with loyal customers. By recognizing, measuring and rewarding customer advocacy, companies will accelerate acquisition and retention of high value customers. EBusinesses that succeed in inspiring their satisfied customers to tout them at the water cooler, or on the sidelines of a soccer game, will enjoy vigorous and sustained revenue growth.

Julia Resnick, Director of research for Harris Interactive, stated: "The results of this study further expand on Harris Interactive's ongoing consumer e-business research and it reinforces that customer satisfaction and loyalty are critical components of successful e-business strategies."

"Loyal customers who serve as a company's advocates are today's best marketing tool. Companies that give priority service to their advocates will recognize the benefits of increased return visitors, word-of-mouth marketing, and increased revenue. Online merchants who have done this successfully, like Netflix and iQVC, gain hundreds of dollars of new revenue on average from each of their advocate-customers," added Warren.

Scient has launched a Web site, located at www.advocacy.scient.com, which details the results of this survey and includes profiles of companies that have demonstrated successful customer advocacy programs. Among the successful companies profiled are Barnes and Noble, L. L. Bean, Amazon, Land's End, QVC and Mary Kay. These companies have demonstrated efforts in rewarding customers who actively recruit new customers. Continuing to measure and manage the effectiveness of customer referrals will help merchants thrive as their categories consolidate and consumers shop more for entertainment than convenience."

"It all starts with treating new customers right from the first visit. The holiday season provides lots of traffic. The opportunity is not to treat these as one-time transactions but as possibilities for long term relationships and referrals. By creating an experience that will satisfy their needs, they will come back and, just as importantly, send their friends. eTailers have the opportunity right now to generate advocacy that will result in lifetime value," said Ed Spangler, General Manager, Global Retail & Consumer Products.

About Scient(R): The eBusiness Systems Innovator(TM)

Scient is the premier firm in systems innovation. Scient delivers electronic businesses to create unassailable market positions for clients. Scient provides:

-- eBusiness strategy.

-- eBusinesses that are rapidly architected, engineered, and delivered.

-- Just-in-time innovations that enhance and extend eBusinesses.

Headquartered in San Francisco with offices in New York, Dallas, Austin, Boston, Chicago, Los Angeles, New Jersey, Silicon Valley, London, Munich, Paris and Singapore, Scient can be reached at www.scient.com or 415/733-8200.

About Harris Interactive

Harris Interactive (Nasdaq:HPOL), the global leader in online market research, uses Internet-based and traditional methodologies to provide its clients with information about the views, experiences, behaviors and attitudes of people worldwide. Known for its Harris Poll, Harris Interactive has over 40 years experience in providing its clients with market research and polling services including custom, multi-client and service bureau research, as well as customer relationship management services. Through its US and Global Network offices, Harris Interactive conducts research in more than 80 different countries, in more than 30 different languages. Harris Interactive uses its proprietary technology to survey its database of more than 7 million online panelists. For more information about Harris Interactive, please visit our Web site at www.harrisinteractive.com. EOE M/F/D/V.