ISP Bets Video Will Boost Net Banking - business - Brief Article

ISP Business, Nov, 2000

When it comes to e-banking, many customers still prefer the human touch. A survey released by Delloite Consulting found that only 22 percent of customers use banks' Web sites. Gus Networks, once a pure ISP, has decided to make a business out of enabling banks to reach customers on-line by helping banks add Web-based video conferencing to their customer service operations.

"Many people still feel insecure using the Internet," said Amber Yu, Gus Networks' vice president of product management. "We feel there's a need for those people to talk to a live representative. With a voiceover-IP product, our customers can talk to a representative any time when they review their account history or complete a transaction."

Real-time on-line customer assistance through VoIP, call-me buttons or text chat like that sold by LivePerson.com is increasingly popular among e-retailers and others trying to overcome the Web's intrinsic customer service problems. The firm offers credit card processing, hosting, Net access, and security services. It builds LANs, WANs, Intranets, and Extranets for clients as well.

Gus Networks hopes to fill the customer service gap in its offering with e4help's e4Video software. Consumers who visit a site fitted with the technology can click on an icon to request help in the form of a pop-up box that shows a real customer service representative who converses with consumers through the speakers on their PCs.

E4help can host the product for clients, charging them a per-seat charge of $50 a month, plus a perminute charge comparable to standard long distance rates. But because Gus Networks plans to host the service for its own clients, the company bought and installed e4Video on its own servers. The software typically costs $900 per seat for companies that host it themselves.

Though video conferencing is still on the fringe of customer relationship management, the ability to actually see an agent is likely to make many consumers more comfortable with the Web, said intelligence analyst Niha Babu of Resource Marketing, a firm that examines e-retail customer service issues.

"I think the trend is definitely going to increase as people demand more live interaction," Babu said.

However, the technology still has its limitations. Consumers using a 56K modem can see the video, but at a lower frame rate. Making the technology more inclusive of dial-up users should become a primary goal of video conferencing vendors, said Babu. "The technology has to reach a majority of users to have an impact," she said.