Press Release on LRG Founding

Press Release

For more information, please contact:
Diogo Teixeira: 781.431.1100
Diogo.Teixeira@livermore research.com

FOR RELEASE ON OCTOBER 21, 2002

Diogo Teixeira Opens New Research Firm

Unique Online Industry Database

The Internet is a Key Driver in Customer Services.

Retains Industry Experts Pierre duPont, Ray Ferrara and Del Tonguette

Wellesley, MA October 21, 2002.

Diogo Teixeira today announced the formation of a new research firm focused on the future of customer service in retail banking. The firm tracks data and functionality behind user’s passwords on banks’ Web sites.

The new firm, labeled Livermore Research, will begin with a product on credit/charge cards. Livermore has obtained dozens of test accounts at all major issuers and subjects them to rigorous testing. E-statements are captured, online payments are made, and interactive customer service requests are initiated and monitored.

According to Mr. Teixeira, “The rate at which cardholders register their accounts online with their issuer is skyrocketing. Issuers are spending millions building out their sites because they see that their Web sites will grow to be the dominant customer service source over the next three years for their customers.”

The key to the new firm is its database of real transactions. “Behind the password, a lot goes on that only the actual consumer sees,’ says Brian O’Keeffe, VP of Research for Livermore. “Each issuer can see its own site but it can’t see its competitors’ sites. Our database allows us to analyze what’s going on there. The results are very surprising. We find all sorts of good and bad ideas for how to deliver customer service. It’s clear that online customer service is far from mature and that no one really knows how it should be done.”

Mr. Teixeira is well known in the industry as the founder of TowerGroup, a leading financial services technology advisory firm. He led it from its founding in 1993 until selling the firm to Reuters in 1999. From 2000 to 2001, he was a co-founder of vertical search engine Fiducité.

“Livermore is a different type of research than TowerGroup,” he says. “I wanted to focus on customer service for the banking industry, rather than technology. Online customer service offers all sorts of new challenges that have never before been met, and there’s a huge opportunity to provide market intelligence here.”

Livermore Research’s latest Research Report, just published, illustrates this. It delves into the question of how cardholders register to make online payments directly at their card issuer’s site. Credit card issuers are the largest direct-billers and their Web sites offer the only way for a cardholder to make a last-minute payment.

Yet, the study found numerous difficulties and obstructions for cardholders wishing to register. These range from excessive requests for unnecessary information, to limitations on the number, amount and timing of payments. The full study can be previewed at www.livermoreresearch.com.

Mr. Teixeira began studying credit cards early in his career, when he worked at Bank One in their credit card processing department. “Credit cards are the most successful of any new payment product in the last thirty years,” he says. “Most consumers have no idea how they really work,” he adds. “The web site will be the consumer’s view to their payments and it’s vital that the banks get it right.”

Livermore Research will offer a subscription service for its analytical reports, online database, and analyst access, and the reports will also be available for individual purchase. The underlying database records the captured pages behind the password and analyzes the usability of each. Much more is involved than just looking at screens, however. Mr. Teixeira comments that, “Our next report is on e-statements. It was only while doing this report that we noticed many issuers have neglected the ability to save e-statements electronically. Most have a special print function, but there’s every reason to be able to save html or mht files, and only the real innovators allow it.”

Livermore Research plans other products such as deposit products, store cards, commercial credit cards, and small business accounts. It also uniquely collects and monitors paper-based communications, emails, and will shortly begin to analyze mobile phone customer service, VRUs and call center performance. “As long as there’s a password, there will be a need for competitive information and analysis about what goes on behind that password,” said Teixeira. “We aim to satisfy that need.”

Teixeira has recruited and retained several industry experts in preparation for the launch of the new research company. Pierre duPont brings extensive technical expertise and business creation skills to the company. Ray Ferrara has been the CEO of Fiducité and is a well-established data warehousing expert. Del Tonguette has been retained as an industry consultant and will be assisting in the marketing and sales efforts.

###

Return to Livermore Home Page



	Press Release For more information, please contact: Diogo Teixeira: 781.431.1100 Diogo.Teixeira@livermore research.com FOR RELEASE ON OCTOBER 21, 2002 Diogo Teixeira Opens New Research Firm Unique Online Industry Database The Internet is a Key Driver in Customer Services. Retains Industry Experts Pierre duPont, Ray Ferrara and Del Tonguette Wellesley, MA October 21, 2002. Diogo Teixeira today announced the formation of a new research firm focused on the future of customer service in retail banking. The firm tracks data and functionality behind user’s passwords on banks’ Web sites. The new firm, labeled Livermore Research, will begin with a product on credit/charge cards. Livermore has obtained dozens of test accounts at all major issuers and subjects them to rigorous testing. E-statements are captured, online payments are made, and interactive customer service requests are initiated and monitored. According to Mr. Teixeira, “The rate at which cardholders register their accounts online with their issuer is skyrocketing. Issuers are spending millions building out their sites because they see that their Web sites will grow to be the dominant customer service source over the next three years for their customers.” The key to the new firm is its database of real transactions. “Behind the password, a lot goes on that only the actual consumer sees,’ says Brian O’Keeffe, VP of Research for Livermore. “Each issuer can see its own site but it can’t see its competitors’ sites. Our database allows us to analyze what’s going on there. The results are very surprising. We find all sorts of good and bad ideas for how to deliver customer service. It’s clear that online customer service is far from mature and that no one really knows how it should be done.” Mr. Teixeira is well known in the industry as the founder of TowerGroup, a leading financial services technology advisory firm. He led it from its founding in 1993 until selling the firm to Reuters in 1999. From 2000 to 2001, he was a co-founder of vertical search engine Fiducité. “Livermore is a different type of research than TowerGroup,” he says. “I wanted to focus on customer service for the banking industry, rather than technology. Online customer service offers all sorts of new challenges that have never before been met, and there’s a huge opportunity to provide market intelligence here.” Livermore Research’s latest Research Report, just published, illustrates this. It delves into the question of how cardholders register to make online payments directly at their card issuer’s site. Credit card issuers are the largest direct-billers and their Web sites offer the only way for a cardholder to make a last-minute payment. Yet, the study found numerous difficulties and obstructions for cardholders wishing to register. These range from excessive requests for unnecessary information, to limitations on the number, amount and timing of payments. The full study can be previewed at www.livermoreresearch.com. Mr. Teixeira began studying credit cards early in his career, when he worked at Bank One in their credit card processing department. “Credit cards are the most successful of any new payment product in the last thirty years,” he says. “Most consumers have no idea how they really work,” he adds. “The web site will be the consumer’s view to their payments and it’s vital that the banks get it right.” Livermore Research will offer a subscription service for its analytical reports, online database, and analyst access, and the reports will also be available for individual purchase. The underlying database records the captured pages behind the password and analyzes the usability of each. Much more is involved than just looking at screens, however. Mr. Teixeira comments that, “Our next report is on e-statements. It was only while doing this report that we noticed many issuers have neglected the ability to save e-statements electronically. Most have a special print function, but there’s every reason to be able to save html or mht files, and only the real innovators allow it.” Livermore Research plans other products such as deposit products, store cards, commercial credit cards, and small business accounts. It also uniquely collects and monitors paper-based communications, emails, and will shortly begin to analyze mobile phone customer service, VRUs and call center performance. “As long as there’s a password, there will be a need for competitive information and analysis about what goes on behind that password,” said Teixeira. “We aim to satisfy that need.” Teixeira has recruited and retained several industry experts in preparation for the launch of the new research company. Pierre duPont brings extensive technical expertise and business creation skills to the company. Ray Ferrara has been the CEO of Fiducité and is a well-established data warehousing expert. Del Tonguette has been retained as an industry consultant and will be assisting in the marketing and sales efforts. ### Return to Livermore Home Page
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