Zendesk Releases CX Benchmark Report for Startups Showing the Path to Success is in CX
July 08 2020 - 12:20PM
Business Wire
Research identifies specific actions
fast-growth startups are taking to drive customer loyalty and
growth
Zendesk, Inc. (NYSE: ZEN) today released the Zendesk Startups CX
Benchmark Report, documenting how early-stage startups that invest
in customer experience (CX) outperform their peers. The data shows
that while there is no one-size-fits-all approach, startup success
stories have one thing in common: the ability to provide more
holistic support to customers from the beginning.
The findings feature Zendesk Benchmark data from more than 4,400
early-stage startups from around the world, giving founders and CX
leaders direct insights into this crucial part of their businesses
for the first time.
Most surprisingly, more than 70 percent of startup founders and
decision-makers reported they do not have a formal customer support
strategy in place. This shines a spotlight on how many companies
are missing out on the opportunity to deliver on the customer
experiences that will set them apart from their peers and foster
long-term business success.
According to the report, fast-growing startups—those that have
doubled their customer support agent count (a proxy for employee
growth) in the first two years of using Zendesk and have 18 months
or fewer between publicly disclosed funding rounds—make greater
investments in their CX strategies, and do so more quickly.
In fact, 33 percent of these companies are more likely to add
omnichannel or multi-channel support in their first two years. The
result is shorter resolutions (roughly half the wait time for
customers), better team efficiency and more options for customers
to find the support they are looking for, which all lead to an
overall improved CX.
The report identified six actions companies should focus on to
operate like a fast-growing startup within their first two years,
in order of priority:
- Set up a customer support function that prioritizes speed and
convenience for both your customers and service team
- Add live channels, such as phone and chat, which are faster
alternatives to email and web ticketing
- Launch messaging channels, like social media and WhatsApp, to
reach customers on the channels they use in their day-to-day
lives
- Establish an FAQ or help center, and include at least 30
articles that answer frequently asked questions
- Introduce at least one new app or integration to your customer
support platform every six months to increase support agent
productivity and streamline workflows
- Keep first reply times and resolution times down to three to
eight hours
“It’s natural to prioritize your product at the beginning of
your startup journey, but not to think about how you sell to or
support your customers,” said Kristen Durham, vice president,
startups, Zendesk. “We know CX directly impacts customer loyalty
and retention, and whether you are a first-time founder, serial
entrepreneur, or customer support leader looking to improve
business performance, our data shows that the sooner you put
customers at the center of your plans, the faster you’ll be setting
yourself up for long-term success.”
The report also indicated that faster-growth startups direct
more resources toward self-service and live channels, like phone
and chat, with unicorns—privately held startups valued at over $1
billion—adopting live channels even faster. Unicorns also
prioritize adding self-service features like online help centers 61
percent faster than other startups in their first year.
“Startups that want to rise above the noise should invest in
building a strong foundation in great customer experience right
from the start,” said Jeff Titterton, chief marketing officer,
Zendesk. “Customers have come to expect more out of companies,
regardless of their size, age, or industry. Having differentiated
customer support can be the difference between failing to scale and
becoming a successful, fast-growth startup.”
Additional Resources
- For more information, download the Startups CX Benchmark
Report.
- Check out Sit Down Startup, our
new podcast featuring Zendesk leaders with founders, CEOs, and
makers, sharing their journey and talking about why customer
experience is the secret sauce to long-term success. Listen to the
podcast on Spotify, Google Podcasts, or Apple Podcasts.
- Unicorns and fast-growth startups Loggi and Freshly are using
Zendesk to reach customers on their preferred channels, and getting
out ahead of the competition by infusing the customer perspective
directly into the business which in turn helps fuel product and
service innovation. Check out their stories, and others, on the
Zendesk Library.
Methodology
The Zendesk Benchmark helps companies compare their customer
service performance against their competitors. To better understand
how startups leverage support, we analyzed key metrics around
timing, tools, and results for 4,414 startups
that use Zendesk Support from January 1, 2014 to March 14, 2020.
Startups included in this report have used Zendesk for more than
six months and have raised funding.
About Zendesk
Zendesk is a service-first CRM company that builds support,
sales, and customer engagement software designed to foster better
customer relationships. From large enterprises to startups, we
believe that powerful, innovative customer experiences should be
within reach for every company, no matter the size, industry or
ambition. Zendesk serves more than 160,000 customers across a
multitude of industries in over 30 languages. Zendesk is
headquartered in San Francisco, and operates offices worldwide.
Learn more at www.zendesk.com.
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Erin Lansdown +1 626-898-3471 press@zendesk.com
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