Zendesk acquires Smooch, doubles down on support via messaging apps like WhatsApp

By Ingrid Lunden

One of the bigger developments in customer services has been the impact of social media — both as a place to vent frustration or praise (mostly frustration), and — especially over messaging apps — as a place for businesses to connect with their users.

Now, customer support specialist Zendesk has made an acquisition so that it can make a bigger move into how it works within social media platforms, and specifically messaging apps: it has acquired Smooch, a startup that describes itself as an “omnichannel messaging platform,” which companies’ customer care teams can use to interact with people over messaging platforms like WhatsApp, WeChat, Line and Messenger, as well as SMS and email.

Smooch was in fact one of the first partners for the WhatsApp Business API, alongside VoiceSage, Nexmo, Infobip, Twilio, MessageBird and others are already advertising their services in this area.

It had also been a longtime partner of Zendesk’s, powering the company’s own WhatsApp Business integration and other features. The two already have some customers in common, including Uber. Other Smooch customers include Four Seasons, SXSW, Betterment, Clarabridge, Harry’s, LVMH, Delivery Hero and BarkBox.

Terms of the deal are not being disclosed, but Zendesk SVP class=”il”>Shawna Wolverton said in an interview that that the startup’s entire team of 48, led by co-founder and CEO Warren Levitan, are being offered positions with Zendesk. Smooch is based out of Montreal, Canada — so this represents an expansion for Zendesk into building an office in Canada.

Its backers included iNovia, TA Associates and Real Ventures, who collectively had backed it with less than $10 million (when you leave in inflated hills surrounding Silicon Valley, numbers magically decline). As Zendesk is publicly traded, we may get more of a picture of the price in future quarterly reports. This is the company’s fifth acquisition to date.

The deal underscores the big impact that messaging apps are making in customer service. While phone and internet are massive points of contact, messaging apps is one of the most-requested features Zendesk’s customers are asking for, “because they want to be where their customers are,” with WhatsApp — now at 1.5 billion users — currently at the top of the pile, Wolverton said. (More than half of Zendesk’s revenues are from outside the US, which speaks to why WhatsApp — which is bigger outside the US than it is in it — is a popular request.)

That’s partly a by-product of how popular messaging apps are full-stop, with more than 75 percent of all smartphone users having at least one messaging app in use on their devices.

“We live in a messaging-centric world, and customers expect the convenience and interactivity of messaging to be part of their experiences,” said Mikkel Svane, Zendesk founder, CEO and chairman, in a statement. “As long-time partners with Smooch, we know first hand how much they have advanced the conversational experience to bring together all forms of messaging and create a continuous conversation …read more

Read more here:: https://techcrunch.com/social/

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