Skip to main content

How Zendesk moves the needle in customer service

The news

On January 8, 2024, Zendesk announced the acquisition of Klaus, “the industry leading AI-powered quality management platform”. 

With AI driving a rapid increase in customer service interactions it is necessary for customer service teams to become more efficient while maintaining their quality of service. This is accomplished by a combination of digital and human agents across an increasing number of channels. Ensuring good quality requires a QA solution that is capable of scoring 100 percent of customer interactions, which is what Klaus’s AI is capable of. In doing this, it “pinpoints conversations with positive or negative sentiment, identifies outliers, churn risk, escalations, and necessary follow-ups. According to Zendesk, most QA software does handle only one to two percent of all customer interactions.

With workforce enablement management capabilities, Klaus enables the identification of knowledge gaps and coaching opportunities with the goal of improving agent performance and productivity. The result is higher customer satisfaction.

According to Martin Kōiva, CEO and founder of Klaus, “Zendesk and Klaus share a vision of Ai-led, personalized CX with businesses fully anticipating and acting on their customers’ needs. QA software plays a critical role in this, ensuring consistency, assessing both human and digital agent performance and providing actionable insights for strategic planning. As part of Zendesk, we will continue to build and deliver thes crucial capabilities, but now at an even greater scale”.

The bigger picture

Customer service personnel works in a high-pressure environment with lots of turnover; even worse, as frontline workers, they are often the first ones to deal with customers who are already less than amused – equipped with tools that are not helpful, either. At the same time, partly due to the high attrition rates, agents often lack the training and experience to deal with difficult situations and do not have the contacts to find relevant information fast.

What they need is being able to concentrate on the “hard cases”, easy access to the relevant information, ideally without the need to use multiple browser tabs, good training and coaching, and empowerment.

In addition, the increasing need for automation, that is caused by a shortage of available personnel as well as increasing customer demands for availability, leads to an increased proliferation of chatbots. At the same time, customers do not trust into AI, as the last state of the connected customer (registration required) report by Salesforce found out. 

My analysis and point of view

After the acquisition of Tymeshift last year and the provision of “ready-to-run” AI supported bots, Zendesk is continuing on its path to provide a very rounded customer service platform. 

The emphasis on coaching customer service agents is great – and important – to see. Agents are already some of the most monitored and measured workers around, so they will be glad to see some help instead of just feeling surveilled. Especially, as there is so much attrition going on. Businesses that understand that a better trained and enabled team increases agent motivation and therefore in all likelihood the individual and team performance. This has a direct impact on customer satisfaction and with that on business outcomes. Zendesk now can support this better than before.

This is also something that was found in the recent Customer Experience Horizons report by Genesys. 70 percent of respondents will invest into AI-based coaching and training recommendations for their personnel with still almost 60 percent looking into implementing AI-based performance monitoring and evaluation solutions.

Being in times of AI, the ability to also analyze and especially improve the performance of digital agents becomes more and more important. With Klaus, Zendesk is now better able to identify customer service bots’ “knowledge deficiencies”. In my eyes, the next important step from here is to (semi-)automatically reduce these deficiencies, supported by generative AI. This, based on actionable analytics. Why is this important? Because the performance of both, human and digital agents, highly depends on a well-performing knowledge base.  I am interested in seeing how this topic evolves. Embedding Klaus in the fold, certainly should help taking the first steps by helping to find out what the relevant customer and organizational data is, and to initiate steps in improving the state of this data. 

But again, looking at the needs of customer service agents, businesses that pursue helping their agents are now in an even better position when using Zendesk.



 

Comments

Last Year's Top 5 Popular Posts

SAP CRM and SAP Jam - News from CRM evolution

During CRM Evolution 2017 I had the chance of talking with Volker Hildebrand and Anthony Leaper from SAP. Volker is SAP’s Global Vice President SAP Hybris and Anthony is Senior Vice President and Sales GM - Enterprise Social Software at SAP. Topics that we covered were things CRM and collaboration, how and where SAP’s solutions are moving and, of course, the impact that the recent reshuffling in the executive board has. Starting with the latter, there is common agreement, that if at all it is positive as likely to streamline reporting lines and hence decision processes. First things first – after all I am a CRM guy. Having the distinct impression that the SAP Hybris set of solutions is going a good way I was most interested in learning from Volker about how there is going to be a CRM for S4/HANA. SAP’s new generation ERP system is growing at a good clip, and according to the Q1/2017 earnings call, now has 5,800 customers with 400 new customers in the last quarter alone. Many...

How to play the long game Zoho style

The news On February 7 and 8 2024, Zoho held its annual ZohoDay conference, along with a pre-conference get together and an optional visit to SpacX’s not-too-far-away Starbase. Our guide, who went by Chief, and is probably best described as a SpaceX-paparazzi was full of facts and anecdotes, which made the visit very interesting although we couldn’t enter Starbase itself. The event was jam-packed with 125 analysts, 17 customer speakers, and of course Zoho staff for us analysts to talk to. This was a chance we took up eagerly. This time, the event took place in MacAllen, TX, instead of Austin, TX. The reason behind this is once more Zoho’s ruralization strategy, transnational localism.  Which gives also one of the main themes of the event. It was more about understanding Zoho than about individual products, although Zoho disclosed some roadmaps. More about understanding Zoho in a second.  The second main theme was customer success and testimonials. Instead of bombarding us with...

Reflecting on 2023 with gratitude - What caught your interest

A very happy, healthy and prosperous new year to all of you. This is also the time to review my blog and to have a look what your favourite posts of 2023 have been. With 23 posts, I admittedly have been somewhat lazy in 2023. Looking at the top ten read posts in 2023, there is a clear clustering about a few topics, none of them really surprising. There is a genuine interest in CX, ChatGPT, and vendors.  Again, this is not a surprise.  Still, there are a few surprises in the list! So, without further adoo, let’s hear the drumroll for your top five favourite posts on my blog – in ascending order. After all, some suspense cannot harm. The fifth place gets claimed by my review of ZohoDay 2022 – “ Don’t mess with Zoho – A Zohoday 2022 recap ”. Yes, you read that right. This is a 2022 post. The fourth place got claimed by another article on Zoho, almost one year younger: Zoho, how a technology company reimagines business software . It is a reflection on the Zoholics 2023 conference ...

Salesforce stock tanks after earnings report - a snap analysis

The news On May 29, 2024, Salesforce reported its results for the first quarter of the fiscal year 2025. Highlights are a total quarterly revenue of $9.133bn US, resembling a year-over-year growth of 11 percent a current remaining performance obligation of $26.4bn US a remaining performance obligation of $53.9B US an operating margin of 18.7 percent. diluted earnings per share of $1.56 The company reported a revenue guidance of $9.2bn - $9.25bn US for the next quarter and a full year guidance of $37.7bn - $38.0bn US, resembling growth rates of 7 – 8 percent and 8 – 9 percent, respectively. With these numbers, Salesforce ended up at the lower end of last quarter’s guidance on the revenue growth side while exceeding the earnings per share projection and slightly lowered the guidance for the fiscal year 2025. The result: The company’s share price dropped from $272 to bottom out at $212. The bigger picture Salesforce is the big gorilla in the CRM and CX industry. The company has surpassed ...

Zoho - A True Unicorn

End of January Zoho held its 2020 Zoho Days, an analyst summit, which I was happy to attend, along with more than 60 colleagues, as the only analyst from Germany, as it seems. Sadly, it took me quite a while to complete this – Zoho deserves a faster commentare. But hey, let’s look forward and get rolling. Zoho is a privately owned enterprise software company that has quietly evolved from a small software company in 1996 to an ambitious global player that serves the SMB- and enterprise CRM market with cloud applications. The company has a set of 45+ business apps with more than 50 million users, 10 data centres and counting, and is available in 180 countries. The company is profitable and maintained a CAGR of more than 30 percent over the past five years. But why quietly? Because Zoho managed its growth pretty unusually (almost) fully organically with only very minor acquisitions. Crunchbase lists one. Following this unique approach, which defies the tradit...