Zendesk Strengths, Domain Expertise, and Key Differentiators
Zendesk, headquartered in San Francisco, California, is an American company specializing in software-as-a-service products associated with customer support, sales, and various customer communication solutions. Established in 2007, the company originated in Copenhagen, Denmark.
Zendesk identifies key competitive differentiators within their market, including:
Facilitating customer communications across various channels. Offering open and flexible solutions. Ensuring swift realization of value through ease of deployment and user-friendly interfaces. Providing self-service options for users. Delivering data-rich analytics and performance recommendations. Supporting mobile and multi-device capabilities. Incorporating proactive outreach tools. Grounding product and platform solutions in a customer-centric experience. Allowing customization and integration with third-party applications. Establishing brand recognition and thought leadership. Considering the total cost of ownership for customers, encompassing software updates, ongoing maintenance, consulting, and system integration fees.
Zendesk Recent Developments
In May of 2023, Zendesk unveiled Zendesk AI, an intelligent layer designed to enhance customer experiences (CX) by providing personalized, efficient, and empathetic interactions for companies of all sizes. This innovative offering amalgamates decades of Zendesk's unique data and insights with cutting-edge AI technologies, including proprietary models and large language models (LLMs). Zendesk AI facilitates immediate improvements in service experiences, time savings, enhanced customer understanding, and the creation of seamless interactions. The solution continuously learns over time, boasts a rapid deployment process, and user-friendly interface, and delivers immediate value without requiring extensive developer teams or prolonged implementation periods.
In September 2022, Zendesk introduced Intelligent Triage and Smart Assist, innovative AI solutions that enable businesses to automatically prioritize and manage customer support requests while accessing valuable data on a large scale. By making these solutions accessible to a broader audience, companies can quickly derive value by discerning intent and sentiment through account-specific, data-driven models tailored to individual use cases, thereby expediting issue resolutions.
In February 2021, Zendesk introduced a comprehensive messaging solution as an integral component of the Zendesk Suite. This consolidated package integrates all of Zendesk's service capabilities, including messaging, into a unified offering, streamlining the enterprise software landscape. The robust messaging tools empower businesses to partake in continuous, convenient, and personalized conversations across various channels, including text, computer chat, WhatsApp, and more. The solution facilitates connected conversational experiences on web, mobile, and social platforms, incorporating out-of-the-box automation and providing scalability to meet the evolving demands of modern enterprises. Advanced features, such as proactive notifications, integration with specialized third-party bots, and direct transaction capabilities within conversations, further augment the effectiveness of Zendesk's messaging solution.
In August 2020, Zendesk unveiled Explore Enterprise as the newest inclusion in its service-centric CRM platform. This solution empowers companies to analyze real-time data, gaining a deeper understanding of evolving needs. With global ticket volumes reaching unprecedented levels, Explore Enterprise enables leaders to swiftly disseminate relevant insights among various teams and departments, expediting decision-making processes to ultimately elevate the overall customer experience.
Zendesk Mergers and Acquisitions (M&A) Activities
In November 2022, Zendesk announced the successful completion of its acquisition by an investor consortium led by Hellman & Friedman and Permira. This transaction, executed entirely in cash, values the company at approximately $10.2 billion.
In October 2021, Zendesk acquired Momentive, inclusive of its renowned SurveyMonkey platform. According to the terms of the transaction, Momentive stockholders are set to receive 0.225 shares of Zendesk stock for each share of Momentive stock. This ratio implies a value of approximately $28 per outstanding share of Momentive stock, based on the 15-day volume weighted average price of Zendesk common stock up to and including October 26, 2021. Zendesk anticipates the combination to contribute to growth in its first full operating year, accelerating Zendesk's revenue plan to $3.5 billion in 2024, one year ahead of its initial target. The substantial customer bases and complementary capabilities of both companies are expected to create significant opportunities for joint product adoption and enhance Momentive's enterprise traction. Zendesk plans to reinvest savings from scale efficiencies into compelling growth prospects to support the combined entity. Following the completion of the transaction, Momentive CEO Zander Lurie will continue to lead Momentive's robust management team.
In 2018, Zendesk acquired Base, a startup that secured over $50 million in funding. Although Base may not be as widely recognized as Salesforce, Microsoft, or Oracle in the CRM industry, it has developed a sophisticated sales force automation platform, complete with its own underlying artificial intelligence capabilities.
Zendesk Customers in ARTW Customer Database
Leveraging a rigorous data-centric research methodology, APPS RUN THE WORLD asks the simple question: Who’s buying Zendesk applications and why? And we provide the answers – supported by decades of research – to our clients around the world. Our Customer database has over 100 data fields that detail company usage of Zendesk and other enterprise apps by function, customer size, industry, location, implementation status, partner involvement, Line of Business Key Stakeholders and IT decision makers contact details. List of Verified Zendesk Support Suite customers.
Zendesk Overview
989 Market Street
San Francisco, CA, 94103, United States
1 415-418-7506
https://www.zendesk.com/
Ownership: - NYSE:ZEN
Number of Employees: 5450
Key Verticals: Aerospace and Defense, Automotive, Banking and Financial Services, Communications, Construction, Real Estate, Consumer Packaged Goods, Distribution, K12, Higher Education, Federal Government, State and Local Government, Public Safety, Healthcare, Life Insurance, P&C Insurance, Specialty Insurance, Leisure and Recreation, Hospitality, Life Sciences, Manufacturing, Media, Faith-Based Nonprofit, Youth and Elderly Care, Special Cause Nonprofit, Oil and Gas, Chemicals, Professional Services, Retail, Transportation, Utilities,
Zendesk Key Enterprise and Cloud Applications
Zendesk Support Suite
Zendesk Revenues, $M:
Type/Year | 2022 | 2023 | YoY Growth, % |
---|---|---|---|
Total Revenues, $M | Subscribe | Subscribe | Subscribe |
Enterprise Applications Revenues, $M | Subscribe | Subscribe | Subscribe |
Cloud Applications Revenues, $M | Subscribe | Subscribe | Subscribe |
* Enterprise Applications Revenues = License + Support & Maintenance + SaaS
** All revenue figures are estimates based on public records, Cloud and Non-Cloud business models in Apps Run The World's vendor database, and annual survey results including vendor feedback.
Zendesk Revenue Breakdown By Type, $M:
Zendesk Enterprise Applications Revenues By Functional Markets, $M:
Zendesk Enterprise Applications Revenues By Verticals, $M:
Zendesk Revenues By Region, $M
Region | % of Total Revenues | 2023 Total Revenues, $M | 2023 Enterprise Applications Revenues, $M | 2023 Cloud Applications Revenues, $M |
---|---|---|---|---|
Americas | Subscribe | Subscribe | Subscribe | Subscribe |
EMEA | Subscribe | Subscribe | Subscribe | Subscribe |
APAC | Subscribe | Subscribe | Subscribe | Subscribe |
Total | Subscribe | Subscribe | Subscribe | Subscribe |
Zendesk Direct vs Indirect sales
Region | Direct Sales | Indirect Sales | Total |
---|---|---|---|
Type % | Subscribe | Subscribe | Subscribe |
Revenues, $M | Subscribe | Subscribe | Subscribe |
Zendesk Customers - Breakdown by Geo, Size, Vertical and Product
List of Verified Zendesk Customers
No. of Zendesk Customers: 173600
No. of Zendesk Enterprise Applications Customers: 173600
No. of Zendesk Cloud Customers: 173600
No. of Zendesk Cloud Subscribers: x
Zendesk serves an aggregate of approximately 173,600 paid customer accounts utilizing its solutions. This comprises roughly 88,100 customer accounts for paid subscription plans for Zendesk Support (excluding the legacy Starter plan) and about 39,000 customer accounts for paid subscription plans of Zendesk Chat. Additionally, Zendesk maintains approximately 46,600 paid customer accounts on its other solutions.
As a part of their business model, Zendesk typically offers prospective customers the opportunity to explore fully-functioning versions of their solutions through a free trial period before committing to a purchase. This approach aligns with their belief that customers should have the chance to evaluate solutions before entering into a subscription. Providing free trial periods not only introduces customers to the Zendesk brand but also establishes a relationship that can foster further adoption as organizations expand and their requirements become more intricate.
Zendesk's customer base spans over 160 countries and territories, encompassing organizations of diverse sizes, industries, and geographical locations.
Noteworthy among Zendesk's clientele are prominent entities such as Alfa-Bank, Yext, Bukalapak, PayJoy, Olala Homes, Azimo, DYME, Stoiximan, Modsy, Mailchimp, University of Louisville, Stanley Black and Decker, Tesco, Vimeo, State of Tennessee, Instacart, Ingersoll Rand, Mediaocean, Starling Bank, Slack, MakeSpace, and others.
Zendesk Market Opportunities, M&A and Geo Expansions
Zendesk is solidifying its position as a leader in customer experience (CX) by becoming a Unity Verified Solutions Partner. As a Verified Solutions Partner (VSP), Zendesk undergoes Unity's verification process to ensure its software development kit (SDK) is finely tuned for the latest version of the Unity editor, delivering a seamless experience for Unity developers. This strategic partnership with Unity, a global leader in real-time 3D content creation, aims to offer integrated customer support functionality within popular games like Angry Birds 2 and Pokemon Go, allowing for quick setup. Zendesk is the inaugural native customer support SDK verified for compatibility and stability with the Unity platform.
In May 2019, Zendesk expanded its capabilities by acquiring Smooch, an omnichannel messaging platform. This acquisition empowers customer care teams to engage with individuals across various messaging platforms such as WhatsApp, WeChat, Line, Messenger, SMS, and email. With a history of partnership, Smooch was integral to Zendesk's WhatsApp Business integration. Shared clients, including Uber, and a diverse customer base, featuring names like Four Seasons, SXSW, Betterment, Clarabridge, Harry’s, LVMH, Delivery Hero, and BarkBox, highlight the reach and influence of this acquisition.
Zendesk further diversified its offerings in October 2019 with the launch of Gather, a product designed to enable companies to provide transparent and trusted customer support through online community forums. This platform fosters customer engagement, allowing them to interact with both fellow customers and company experts, offering insights beyond the scope of a single support agent.
In November 2018, Zendesk introduced Sunshine, a flexible customer relationship management (CRM) platform hosted entirely in the public cloud on Amazon Web Services, Inc. (AWS). Sunshine facilitates the connection and comprehension of customer data across various sources, empowering developers to expedite the creation and deployment of customer apps and services. Built on open standards, Sunshine incorporates the security, scalability, and reliability of AWS into its core.
Earlier in the same year, Zendesk launched The Zendesk Suite in May—a comprehensive omnichannel offering that consolidates popular customer communication channels into a unified package, simplifying pricing and enhancing companies' ability to provide a cohesive and connected customer experience.
Zendesk's growth strategy also included the acquisition of FutureSimple in September 2018, the company behind Base, further expanding its portfolio and reinforcing its position in the customer experience and support landscape.
Zendesk Risks and Challenges
The market for customer engagement software is characterized by a multitude of established and emerging competitors. This sector is fragmented, evolving swiftly, and marked by intense competition, with relatively low entry barriers in certain segments. In the realm of small to midsized organizations, Zendesk frequently contends with general-use computer applications and alternative tools adapted by organizations for customer relationship management. These tools include shared accounts for email communication, phone banks for voice and text communication, shared accounts for social messaging, as well as traditional tools such as pen and paper, text editors, and spreadsheets for tracking and management.
Moreover, Zendesk faces competition from various Software as a Service (SaaS) providers offering specialized applications that directly compete with one or more of Zendesk's product and platform solutions. These competitors may potentially offer their products at a more competitive price due to the focused nature of their applications. In the sphere of larger organizations, Zendesk competes with custom software systems and vendors targeting enterprises, such as Salesforce, Inc. and ServiceNow, Inc. These competitors may possess greater operational flexibility to bundle products and services, potentially offering them at a lower price than Zendesk's current Zendesk Suite offering, thereby impacting Zendesk's competitiveness in that segment.
Further complexities arise as other established SaaS providers, not initially focused on functionalities provided by Zendesk, may expand their services to compete directly. Large enterprise software vendors, equipped with greater financial leverage, may aggressively price their products below typical levels to gain market share, diminishing Zendesk's ability to compete effectively in certain regions. Additionally, some existing and potential customers, especially larger organizations, may choose to develop their own internal customer support software systems. The confluence of pricing pressures and heightened competition raises the potential for reduced sales, narrowed margins, financial losses, or challenges in achieving and sustaining widespread market acceptance for Zendesk's solutions, all of which could adversely impact the business.
Zendesk Ecosystem, Partners, Resellers and SI
In March 2023, Zendesk revealed a comprehensive five-year Strategic Collaboration Agreement (SCA) with Amazon Web Services (AWS) aimed at empowering businesses to deliver personalized customer experiences on a scalable basis, leveraging technology that evolves alongside them.
This strategic collaboration is crafted to enable businesses to offer swift and tailored conversational experiences to customers across various channels. Simultaneously, it seeks to enhance the efficiency of support operations through the implementation of AI-powered tools, bots, and analytics within an open and flexible service framework. Ultimately, by streamlining customer experience (CX) for both customers and agents, Zendesk and AWS aspire to assist businesses in maintaining competitiveness, fostering customer loyalty, and adapting to the dynamically changing market conditions.
Zendesk Cloud Infrastructure Insights
Subscribe to read more about:
- Zendesk Public Cloud and Infrastructure (IaaS)
- Zendesk Platform (PaaS)
- Zendesk Application Delivery
- Zendesk Private Cloud and Data Centers
Research Methodology
Data used in research reports are derived from publicly available documents, continuous surveys of applications vendors, customers, resellers, Independent Software Vendors, systems integrators and other verifiable sources.
Vendor shares and market forecast results are based on a combination of existing databases as well as demand side and supply side research conducted throughout the year with validation from vendors, customers, channel partners and documentations such as earnings releases and 10Q and 10K filings, vertical industry studies, regional and country-level statistics from public and private institutions(i.e. colleges, universities, government agencies and trade associations).
For additional information on our methodologies, here's the link:
https://www.appsruntheworld.com/About Ushttps://www.appsruntheworld.com/taxonomy
https://www.appsruntheworld.com/FAQ