thomas.wieberneit@aheadcrm.co.nz
The great CCaaS Meltdown: What It Means for Customers and CX

The great CCaaS Meltdown: What It Means for Customers and CX

The past weeks showed quite some interesting activity on the mergers and acquisitions and the partnership frontiers. NiCE acquired the German conversational AI rock star Cognigy for $955M and a short time later announced that the company enhanced its partnership with Salesforce. At nearly the same time, Genesys received an additional funding of $1.5 bn from Salesforce and ServiceNow. Salesforce acquired Waii and Bluebird. VC company Thoma Bravo acquired the still leading CCaaS vendor Verint, to name but a few of the more interesting, and perhaps consequential ones. On top of all this, Avaya seems to have offered all employees a voluntary exit package. What all this shows is that there is significant consolidation going on in the AI-assisted (or should I say, driven?) CCaaS market and that various players are battling to provide – or at least be perceived to provide – the most comprehensive and valuable platform while others fight for survival. Yes, it’s nothing new, but can’t be repeated often enough. The CX market is and always was a high stakes platform game. The stakes got even higher with the advent, the promise and the necessary investments that generative AI and agentic AI require. While one can consider Salesforce’s acquisitions as tuck-ins that help rounding off its Agentforce platform, the other ones are a sign of something bigger going on in the CCaaS and customer service market segments. It is also notable that exactly these sectors get more and more referred to as CX market, whether this is a correct, or only good, attribution, or not. Hint: It isn’t. Not unexpectedly, Salesforce is in the thick...
Does Zendesk enable a true human – AI partnership?

Does Zendesk enable a true human – AI partnership?

The news On October 9, 2024, Zendesk held its AI Summit in New York’s Chelsea Industrial. The AI Summit is an event mainly for customers to inform themselves about what is new at Zendesk but also to network with each other. The event featured an interesting lineup of customer and partner speakers, headlined by New York Times bestselling author and podcast host Kara Swisher. My estimate is that there have been more than 250 customer representatives in attendance who not only could listen to the speakers but also get in-depth demos of Zendesk’s updated offerings, following real-life use cases. True to its name, the event centered around the use of AI, in particular bots, to increase not only efficiency, but also customer- and employee satisfaction. CEO Tom Eggememeier opened the event with an emphasis that Zendesk’s AI is built to support humans by stating that it “is designed for humans”, and Zendesk’s service solution is built to strengthen the human – AI partnership. Kara Swisher talked about the promise and peril of AI, giving the audience some food for thought on the day after Geoffrey E. Hinton, the godfather of machine learning turned AI warner got co-awarded the 2024 Nobel Prize in Physics for his “foundational discoveries and inventions that enable machine learning with artificial neural networks”. While Swisher sees the value that the use of AI can bring, she, too, warned about the hurdles that still need to be overcome, namely the concentration of power that the technology creates and its immense hunger for energy. The tie into the Zendesk story is that customer service is a prime...

Salesforce, Agentic AI, and You

Salesforce told us its agents were coming, and it was still a surprise when the agents arrived.If you’ve been conscious for the past year, you know how much news (or noise) there has been about artificial intelligence. Salesforce billed Dreamforce24 as “the largest AI event in the world.” It caught me a bit off guard when I heard Marc Benioff say it, but it probably shouldn’t have; Salesforce has invested heavily in AI for the past few years, ever since it introduced Salesforce Einstein (now Tableau CRM) in 2016. Its latest effort is Agentforce, and the company is really leaning into it.The topic of AI erputed in 2023 once ChatGPT was unleashed upon the general populace, and it’s only fair that a business would leverage the popularity of the topic. While 2024 seemed poised to be “the Year of the Copilot,” since a number of vendors introduced AI copilot apps—digital assistants that automate routine tasks—the fanfare was to be short-lived. Today, the talk is about agents, or agentic AI—AI that acts on its own to accomplish tasks and achieve goals, reaching into the knowledge stored in linked apps as necessary.Marc Benioff declared, “Agents are the third wave of AI.” It’s hard to argue against this. AI agents have great potential to increase productivity and customer satisfaction, and mark a leap forward in AI capabilities. Benioff stated that one of the goals of this year’s Dreamforce was to get 1,000 customers to deploy Agentforce, a goal which I believe they achieved. It’s too soon for there to be any tangible results that anybody can talk about, so we’ll have to...
How Zendesk builds the future of AI-powered service

How Zendesk builds the future of AI-powered service

The News On April 15 to April 18, 2024, Zendesk held its annual Relate event, including a half day analyst track on April 15. The event was attended by around 1,600 customers, partners and analysts. It was about Zendesk’s strategy, which revolves around – no surprise here – AI to deliver better customer experiences. As part of this strategy, Zendesk also made clear how the past twelve month’s acquisitions of Klaus, Ultimate, and tymeshift get integrated into Zendesk’s customer service offerings, enriching and rounding them off. The company is betting big on AI, working on the assumption that interaction volumes between customers and companies are continuing to increase very fast. As a conclusion of this, service needs to become AI driven to accommodate this scale. Secondly, Zendesk sees AI as the technology underlying the necessary high degree of personalization. Together, this is estimated to increase the market size available to CX solutions that automate CX labor tremendously. At the event, Zendesk had three key announcements. They were AI agents to improve self service solutions, a copilot that helps agents solve incoming tickets faster and provides insight to further optimize the service and a workforce engagement solution that helps improve the productivity of digital and human agents as well as the quality of conversations. Behind all this lies the recognition that customer service is very much conversational. Customers and partners that I talked with had a keen interest in learning more about AI use cases. Many of them had started to use AI but estimated themselves still in early stages.  The bigger picture The customer service software market has become...
How Zendesk moves the needle in customer service

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...