customer experience

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Yaguara nabs $7.2M seed to help e-commerce companies understand customers better

Yaguara, a Denver-based startup that wants to help e-commerce companies understand their customers better to deliver more meaningful experiences, announced a $7.2 million seed investment today.

The round was led by Foundation Capital with participation from Gradient Ventures, Rainfall Ventures and Zelkova. It also had help from some e-commerce heavy hitters including Warby Parker, Harry’s and Allbirds.

Yaguara CEO Jonathan Smalley was working at an agency building specialized cloud tools for online businesses when he recognized there was a need to pull data together into a single place and help companies understand their customer’s behavior better.

“Yaguara is based on integrating data and having all their data in the right place. For us, it started with several dozen tools from performance marketing to your actual e-commerce data to your fulfillment and unit economic data — bringing that all into one place letting them see their data in real time.”

“Then our platform serves predictive and prescriptive insights and recommendations to individual users across your teams, so they can drive specific outcomes across the organization based on that unified data set,” Smalley explained.

Screenshot: Yaguara

They build that data set by connecting to a variety of popular tools to help understand what’s happening across the customer lifecycle, whether that’s customer acquisition through Facebook or Google ads or understanding shopping cart abandonment data or how often the customer has returned to buy again, all of which help build a better picture of the customer.

While this may sound like a customer data platform (CDP), Smalley says it’s actually more than that. While the CDP provides the pipeline to your data sources like Yaguara, it doesn’t stop there. He says it reduces the complexity of helping front-line marketing personnel access and query that data without having to know SQL or R or have a technical intermediary to understand the data.

While the company is young it already has 250 e-commerce customers using the platform. With the new infusion of cash, it should be able to bring in more employees, build more data connectors and continue working to build out the platform.

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Even in the age of COVID-19, you need to stay focused on the customer

It’s easy to think, as we find ourselves in the midst of a truly unprecedented situation, that the rules of building a successful business have suddenly changed. While the world may be topsy-turvy at the moment, keeping your customer at the center of your business strategy is more important than ever.

That means finding creative ways to engage with your customers and thinking deeply about what they need as the world changes before our eyes.

As a small example on a local level, Pandemonium Books and Games in Cambridge, Mass. has started offering same-day delivery to neighborhoods in the Boston area for a $5 fee and a $20 minimum purchase.

This is taking a difficult situation and finding a way to stay connected with customers, while keeping the business going through difficult times. It’s something that your most loyal customers will certainly remember when we return to some semblance of normalcy — and it’s just a great community service.

When you hear from leaders of the world’s most successful technology companies, whether it’s Jeff Bezos at Amazon or Marc Benioff at Salesforce, these two executives are constantly pushing their organizations to put the customer first.

At Amazon, that manifests itself in the company motto that it’s always Day 1. That motto means they never can become complacent and always place the customer first. In his 2016 Letter to Shareholders, Bezos described what he meant:

There are many ways to center a business. You can be competitor focused, you can be product focused, you can be technology focused, you can be business model focused, and there are more. But in my view, obsessive customer focus is by far the most protective of Day 1 vitality.

Benioff runs his company with a similar world view, and it’s no coincidence that both companies are so wildly successful. In his recent book, Trailblazer, Benioff wrote about the importance of relentless customer focus:

Nothing a company does is more essential than how it engages with customers. In a world where online portals are replacing customer service centers and algorithms are replacing humans on the front lines, companies like ours continually need to show that the personal connections our customers craved were still — and always would be — there.

In our current crisis, that focus becomes ever more important and universal. In his last interview before his death in January, Clayton Christensen, author of the seminal book Innovator’s Dilemma, told MIT Sloan Management Review that while these organizations had other things going for them, customer centricity was certainly a big factor in their success:

They have all built organizations that have put the customers, and their Job to Be Done, at the center. They also have demonstrated the ability to manage emergent strategy well. However, they also have been in the fortunate circumstance where their core businesses have been growing at phenomenal rates, and they have had the presence of the founder to help, to personally get involved in key strategic decisions.

While you don’t want to appear like you are taking advantage of a bad situation, there are ways you can help your customers by thinking of new ways engage and help them in a difficult time. Many companies are offering services for free for the next several months to help customers get through the financial uncertainty we are facing in the near term. Others are posting free content and access to other resources on websites.

While it’s understood that some customers simply won’t have money to spend in the coming months, those that do will have different needs than they did before and you have to be ready to address them, whatever that means to your business.

This virus is going to force us to rethink about a lot of the ways we run our businesses, our society and our lives, but if you keep your customer at the center of all your decisions, even in the midst of such a crisis, you will be setting the foundation for a successful business whenever we return to normal.

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Zendesk’s latest tools designed to give fuller view of the customer

Like many technology companies, Zendesk made the tough decision to cancel its Zendesk Relate customer conference this week in Miami amid COVID-19 health concerns. That doesn’t mean the announcements didn’t happen though, even if the conference didn’t, and today the company announced a major update to its Sunshine development platform.

You may recall that the company, which is widely known for its help desk software, made the move to CRM when it acquired Base in September 2018. A little later that year, it announced the Sunshine platform, which customers could use to build applications on top of the Zendesk platform.

It has been working to integrate the CRM tool more broadly into the platform, and today’s announcement is about giving Zendesk users a broader view of its customers. Zendesk has a great amount of data at its disposal about the customer’s likes and dislikes based on interactions with the help desk side of the house, and Zendesk CEO Mikkel Svane sees the two sides being interconnected. At the same time, he’s embracing the idea of this all taking place in the public cloud on AWS.

“Our vision is really to have all the components, all the infrastructure, all the business logic that you need to build a customer experience, and customer relationship management applications, all on the Sunshine platform, all living natively on AWS,” Svane told TechCrunch.

All of this is in service of giving customers a better experience based on what you know about them. He said that the goal today is to retain and satisfy the customer, and the platform is designed to give them the data they need to help do that.

“In the old days, you went out and you bought a product, and that was kind of the end of the transaction. Today, through the convenience economy, through the subscription economy, it’s more about your long-term engagement with a vendor,” he explained.

He sees the platform helping pull all of this data together, while recognizing and acknowledging the challenges involved here. In fact, he is reluctant to call it a complete picture, calling that a false narrative other vendors are putting out.

“We do want to help our customers extract all the relevant information and to try and create a picture that is helpful across all these different channels, but we also know that the reality of it is that you have so many disparate systems right now,” he said.

He sees his platform with the engagement data on one side and the customer record on the other as a good starting point for this. “I think there’s a lot you can do to collect a lot of information and have an abstraction layer, and that’s what we try to do with Sunshine. We want to have an abstraction layer where you start working and seeing all of this data to get insights into your customer. And I think that’s much better start.”

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Customer feedback is a development opportunity

Kyle Lomeli
Contributor

Kyle Lomeli is the CTO and a founding engineer at CarGurus.com.

Online commerce accounted for nearly $518 billion in revenue in the United States alone last year. The growing number of online marketplaces like Amazon and eBay will command 40% of the global retail market in 2020. As the number of digital offerings — not only marketplaces but also online storefronts and company websites — available to consumers continues to grow, the primary challenge for any online platform lies in setting itself apart.

The central question for how to accomplish this: Where does differentiation matter most?

A customer’s ability to easily (and accurately) find a specific product or service with minimal barriers helps ensure they feel satisfied and confident with their choice of purchase. This ultimately becomes the differentiator that sets an online platform apart. It’s about coupling a stellar product with an exceptional experience. Often, that takes the form of simple, searchable access to a wide variety of products and services. Sometimes, it’s about surfacing a brand that meets an individual consumer’s needs or price point. In both cases, platforms are in a position to help customers avoid having to chase down a product or service through multiple clicks while offering a better way of comparing apples to apples.

To be successful, a company should adopt a consumer-first philosophy that informs its product ideation and development process. A successful consumer-first development resides in a company’s ability to expediently deliver fresh features that customers actually respond to, rather than prioritize the update that seems most profitable. The best way to inform both elements is to consistently collect and learn from customer feedback in a timely way — and sometimes, this will mean making decisions for the benefit of consumers versus what is in the best interest of companies.

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Oto snags $5.3M seed to use AI to understand voice intonation

Oto, a startup spun off from research at SRI International to help customer service operations understand voice intonation, announced a $5.3 million seed round today.

Participants in the round included Firstminute Capital, Fusion Fund, Interlace Ventures, SAP.iO and SRI International . The total includes a previous $1 million seed round, according to the company.

Teo Borschberg, co-founder and CEO at Oto, says the company launched out of SRI International, the same company where Apple’s Siri technology was originally developed. It has been developing intonation data, based originally on SRI research, to help customer service operations respond better to caller’s emotions. The goal is to use this area of artificial intelligence to improve interactions between customer service reps (CSRs) and customers in real time.

As part of the research phase, the company compiled a database of 100,000 utterances from 3,000 speakers, culled from two million sales conversations. From this data, it has built a couple of tools to help customer service operations automate intonation understanding.

The first is a live coaching tool. It’s difficult to have management monitor every call, so only a small percentage gets monitored. With Oto, CSRs can get real-time coaching on every call to raise their energy or to calm a frustrated customer before a problem escalates. “In real time, we’re able to guide the agents on how they sound, how energetic they are, and we can nudge and push them to be more energetic,” Borschberg explained.

He says this has three main advantages: more engaged agents, higher sales conversion rates and better satisfaction scores and cost reduction.

The other product measures the quality of a customer experience and gives a score at the end of each call to help the CSR (and their managers) understand how well they did, simply based on intonation. It displays the score in a dashboard. “We’re building a universal understanding of satisfaction from intonation, where we can learn acoustic signatures that are positive, neutral, negative,” Borschberg said.

He sees a huge market opportunity here, pointing to Qualtrics, which sold to SAP last year for $8 billion. He believes that surveying people is just a part of the story. You can build a better customer experience when you understand intonation of just how well that experience is going, and you put it on a scale so that it makes it easy to understand just how well or how poorly you are doing.

The company has 20 employees today, with offices in New York, Zurich and Lisbon. It has seven customers working with the product so far, but it is still early days.

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Adobe announces GA of customer data platform

The customer data platform (CDP) is the newest tool in the customer experience arsenal as big companies try to help customers deal with data coming from multiple channels. Today, Adobe announced the general availability of its CDP.

The CDP is like a central data warehouse for all the information you have on a single customer. This crosses channels like web, email, text, chat and brick and mortar in-person visits, as well as systems like CRM, e-commerce and point of sale. The idea is to pull all of this data together into a single record to help companies have a deep understanding of the customer at an extremely detailed level. They then hope to leverage that information to deliver highly customized cross-channel experiences.

The idea is to take all of this information and give marketers the tools they need to take advantage of it. “We want to make sure we create an offering that marketers can leverage and makes use of all of that goodness that’s living within Adobe Experience platform,” Nina Caruso, product marketing manager for Adobe Audience Manager, explained.

She said that would involve packaging and presenting the data in such a way to make it easier for marketers to consume, such as dashboards to deliver the data they want to see, while taking advantage of artificial intelligence and machine learning under the hood to help them find the data to populate the dashboards without having to do the heavy lifting.

Beyond that, having access to real-time streaming data in one place under the umbrella of the Adobe Experience Platform should enable marketers to create much more precise market segments. “Part of real-time CDP will be building productized primo maintained integrations for marketers to be able to leverage, so that they can take segmentations and audiences that they’ve built into campaigns and use those across different channels to provide a consistent customer experience across that journey life cycle,” Caruso said.

As you can imagine, bringing all of this information together, while providing a platform for customization for the customer, raises all kinds of security and privacy red flags at the same time. This is especially true in light of GDPR and the upcoming California privacy law. Companies need to be able to enforce data usage rules across the platform.

To that end, the company also announced the availability of Adobe Experience Platform Data Governance, which helps companies define a set of rules around the data usage. This involves “frameworks that help [customers] enforce data usage policies and facilitate the proper use of their data to comply with regulations, obligations and restrictions associated with various data sets,” according to the company.

“We want to make sure that we offer our customers the controls in place to make sure that they have the ability to appropriately govern their data, especially within the evolving landscape that we’re all living in when it comes to privacy and different policies,” Caruso said.

These tools are now available to Adobe customers.

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Freshworks raises $150M Series H on $3.5B valuation

Freshworks, a company that makes a variety of business software tools, from CRM to help-desk software, announced a $150 million Series H investment today from Sequoia Capital, CapitalG (formerly Google Capital) and Accel on a hefty $3.5 billion valuation. The late-stage startup has raised almost $400 million, according to Crunchbase data.

The company has been building an enterprise SaaS platform to give customers a set of integrated business tools, but CEO and co-founder Girish Mathrubootham says they will be investing part of this money in R&D to keep building out the platform.

To that end, the company also announced today a new unified data platform called the “Customer-for-Life Cloud” that runs across all of its tools. “We are actually investing in really bringing all of this together to create the “Customer-for-Life Cloud,” which is how you take marketing, sales, support and customer success — all of the aspects of a customer across the entire life cycle journey and bring them to a common data model where a business that is using Freshworks can see the entire life cycle of the customer,” Mathrubootham explained.

While Mathrubootham was not ready to commit to an IPO, he said they are in the process of hiring a CFO and are looking ahead to one day becoming a public company. “We don’t have a definite timeline. We want to go public at the right time. We are making sure that as a company that we are ready with the right processes and teams and predictability in the business,” he said.

In addition, he says he will continue to look for good acquisition targets, and having this money in the bank will help the company fill in gaps in the product set should the right opportunity arise. “We don’t generally acquire revenue, but we are looking for good technology teams both in terms of talent, as well as technology that would help give us a jumpstart in terms of go-to-market.” It hasn’t been afraid to target small companies in the past, having acquired 12 already.

Freshworks, which launched in 2010, has almost 2,500 employees, a number that’s sure to go up with this new investment. It has 250,00 customers worldwide, including almost 40,000 paying customers. These including Bridgestone Tires, Honda, Hugo Boss, Toshiba and Cisco.

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Salesforce Ventures invested $300M in Automattic while Salesforce was building a CMS

In September, Salesforce Ventures, the venture of arm of Salesforce, announced a hefty $300 million investment in Automattic, the company behind WordPress, the ubiquitous content management system (CMS). At the same time, the company was putting the finishing touches on Salesforce CMS, an in-house project it released last week.

The question is, why did it choose to do both?

One reason could be that WordPress isn’t just well-liked; it’s also the world’s most popular content management system, running 34 percent of the world’s 10 billion websites — including this one — according to the company. With Automattic valued at $3 billion, that gives Salesforce Ventures a 10 percent stake.

Given the substantial investment, you wouldn’t have been irrational to at least consider the idea that Salesforce may have had its eye on this company as an acquisition target. In fact, at the time of the funding, Automattic CEO Matt Mullenweg told TechCrunch’s Romain Dillet that there could be some partnerships and integrations with Salesforce in the future.

Now we have a Salesforce CMS, and a potential partnership with one of the world’s largest web content management (WCM) tools, and it’s possible that the two aren’t necessarily mutually exclusive.

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Salesforce announces new content management system

Salesforce has its fingers in a lot of parts of the customer experience, so why not content management? Today, the company announced a brand new tool called Salesforce Content Management System, which it says is designed from the ground up to deliver a quality customer experience across multiple channels.

The idea is to provide a way for customers to create, manage and deliver more meaningful content across multiple channels from within the Salesforce family of products. The company claims it doesn’t require any kind of deep technical knowledge to do it, meaning marketers and product people should be able to create and deliver content without the help of IT, once the system is properly set up.

Anna Rosenman, Salesforce’s VP of product marketing for Community Cloud, Commerce Cloud and Salesforce CMS, says the company created the new CMS to answer a customer demand. “Our customers have been asking for a dedicated CMS. The systems that they’ve been relying on so far tend to be legacy tools that are hard to use and built for a single-channel or site,” she said.

Photo: Salesforce

While users can create more personalized content based on what they know about the customer based on Salesforce data, Rosenman says the key differentiator here is the ability to connect to third-party systems. “A hybrid CMS provides a native experience channel or touchpoint, but also gives you the flexibility to present content to any touchpoint built on a third-party system,” she explained.

Tony Byrne, founder and principal analyst at Real Story Group, who has followed the Web CMS space for two decades, says this isn’t the first time that Salesforce has tried content management. The previous iteration was called Salesforce Sites. “They made big promises around that platform, got some major customers on board and then dropped it,” Byrne said.

He says it’s a major challenge to build a sophisticated multi-channel CMS. “It’s easy to build a simple CMS. It’s much harder to build an extensible, enterprise platform,” he said. He added, “There’s a lot of work they still need to do to feed other platforms around things like connectors, simulation, tracking, very advanced asset management (e.g., compound assets), object-oriented storage, etc.”

But Rosenman says the system’s built-in flexibility is designed to provide that, and even be used in conjunction with existing legacy tools if need be.

What’s interesting here is that Salesforce decided to build this tool, rather than buying a company and integrating it into the Salesforce family, an approach it has not been afraid to take in the past. In fact, the company pursues an aggressive acquisition strategy. This year alone it spent more than $15 billion to buy Tableau and another $1.35 billion to buy ClickSoftware.

In this case, in the tension between building and buying, it decided to build instead. Time will tell if that was a good decision or not.

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Latest Adobe tool helps marketers work directly with customer journey data

Adobe has a lot going on with Analytics and the Customer Experience Platform, a place to gather data to understand customers better. Today, it announced a new analytics tool that enables employees to work directly with customer journey data to help deliver a better customer experience.

The customer journey involves a lot of different systems, from a company data lake to CRM to point of sale. This tool pulls all of that data together from across multiple systems and various channels and brings it into the data analysis workspace, announced in July.

Nate Smith, group manager for product marketing for Adobe Analytics, says the idea is to give access to this data in a standard way across the organization, whether it’s a data scientist, an analyst with SQL skills or a marketing pro simply looking for insight.

“When you think about organizations that are trying to do omni-channel analysis or trying to get that next channel of data in, they now have the platform to do that, where the data can come in and we standardize it on an academic model,” he said. They then layer this ability to continuously query the data in a visual way to get additional insight they might not have seen.

Adobe screenshot 1

Screenshot: Adobe

Adobe is trying to be as flexible as possible in every step of the process, and openness was a guiding principle here, Smith said. That means that data can come from any source, and users can visualize it using Adobe tools or an external tool like Tableau or Looker. What’s more, they can get data in or out as needed, or even use your their own models, Smith said.

“We recognize that as much as we’d love to have everyone go all in on the Adobe stack, we understand that there is existing significant investment in other tech and that integration and interoperability really needs to happen, as well,” he said.

Ultimately this is about giving marketers access to a full picture of the customer data to deliver the best experience possible based on what you know about them. “Being able to have insight and engagement points to help with the moments that matter and provide great experience is really what we’re aiming to do with this,” he said.

This product will be generally available next month.

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