Bloomberg News

Nice Aims to Boost Sales With Products That Retain Customers

November 17, 2011

Nov. 16 (Bloomberg) -- Nice Systems Ltd., an Israeli company that provides analytical tools for recording service transactions, is targeting higher revenue with new products aimed at helping companies retain customers.

Nice is focusing on a new group of products that monitors and integrates customer-service requests, including inquiries made through social media channels, allowing for quicker responses.

“We view this new release as a key element of our enterprise product offering,” Udi Ziv, vice president and head of enterprise products, said in an Nov. 14 interview at the company’s Ra’anana, Israel headquarters. “We believe it can become a source of growth.” He declined to elaborate on the success of the new products, which were launched in June.

Enterprise products, which also include tools for fraud detection, accounted for about 60 percent of company revenue in 2010, with the majority of sales coming in the U.S. and Europe. Israeli Finance Minister Yuval Steinitz said Nov. 10 that the European debt crisis may be hurting his country’s exports.

“Nice is exposed to the financial sector worldwide,” said Ori Licht, head of research at Israel Brokerage and Investments Ltd. “A slowdown in the economy that could hurt the financial sector could lead to lower investments and slower growth for Nice.”

Nice’s new range of products, including voice-analysis applications for service representatives, are well suited for sales in a tougher environment, Ziv said.

“Companies have a basic need for customer retention especially in times of sharp slowdown,” said Tsahi Avraham, an analyst at Clal Finance Brokerage.

The shares have risen 12 percent in the last 12 months, compared with an 11 percent drop for the benchmark TA-25.

Israeli technology companies raised $522 million in capital during the third quarter of 2011, $47 million less than in the second quarter, according to the Israel Venture Capital-KPMG Quarterly Survey released Oct. 24.

--Editors: Jerrold Colten, Robert Valpuesta

To contact the reporter on this story: Shoshanna Solomon in Tel Aviv at ssolomon22@bloomberg.net; Gwen Ackerman at gackerman@bloomberg.net.

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net


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