According to Zendesk, the company expects the combination to accelerate its revenue plan to over €3 billion by 2024 – a year ahead of target.
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Zendesk, a leader in customer service, recently announced its definitive agreement with lending feedback brand, Momentive. The acquisition includes the globally visited SurveyMonkey platform.
Mikkel Svane, CEO & Founder of Zendesk spoke out on the decision to invest in this agreement, ‘The SurveyMonkey brand is iconic and we’ve admired their business from afar since the inception of Zendesk. They truly democratised an industry—almost everyone in the world has responded to their surveys at some point.’
As both companies have obtained a large customer following throughout the years, the combination will allow for new opportunities to create a powerful new Customer Intelligence company.
This combination will create a company that can react not only to what customers say and do, but also to how they think and feel.
What are the benefits for existing customers?
As digitalisation continues to dominate the current market, businesses need to provide meaning to their customers. Meaningful interactions require a deep understanding of both the customers themselves and their experiences.
According to Momentive CEO Zander Lurie, who will continue to lead the management team, ‘Zendesk and Momentive share a culture centred around our people, our communities and the customers we serve,’ noting that, ‘We are uniquely positioned to make Customer Intelligence a reality while delivering significant value for our shareholders.’
Becoming “Customer Intelligent”
In today’s digital-first economy, it is imperative to build more meaningful relationships with customers. Meaning comes from a deep understanding of the customer and their experiences. Although businesses often have an infinite supply of customer data, they lack actionable and personalized customer insights. Instead, businesses are left with a picture of the customer that is isolated, one dimensional, impersonal and incomplete.
Zendesk leads with the ability to respond to what customers say and do, making it easier to deliver a much better customer service. Momentive is a leader in capturing how customers think and feel, helping companies make critical decisions quickly and confidently.
With Momentive, Zendesk will create what businesses really need – a customer intelligence company that connects what customers say and do, with how they think and feel. The combination will give businesses the ability to:
- Listen to your customers: Collect critical information about customer experiences, feedback, needs and expectations
- Develop an insightful picture: Bring a customer into focus by combining transactional data with market research and insights to truly understand them
- Create actionable insights: Empower teams to take action with the full understanding of their customers as well as feedback and market insights to enhance customer interactions
The combination will create an unmatched customer service company that will give businesses the ability to listen to their customers, collect valuable information, combine transactional data with market research to focus solely on the customer, and empower sales teams to react quickly and efficiently based on customer insights and interactions.
An endless supply of data combined with emotion-based customer intelligence will give businesses the ability to create dimensional, personal and well-rounded interactions.
‘They can do so by defining the value of their CRM and introducing strategic initiatives as well as precise execution and optimisation techniques.’
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How are shareholders affected?
On a numerical basis, the terms of the agreement have been approved by the boards of directors of both Zendesk and Momentive.
The terms of the transaction provide for Momentive stockholders to receive 0.225 shares of Zendesk stock for each share of Momentive stock.
And when the transaction is closed, Zendesk stockholders will own approximately 78% of the combined company, with Momentive stockholders owning approximately 22%.
Pending approval by both parties’ stockholders, among other customary closing conditions, the transaction is set to close within the first six months of 2022.
Getting to know the brands
Zendesk is a leader in online customer service, providing the ability for businesses to have conversations anytime, anywhere. Today the company has 5,000 employees across the world and connects more than 100,000 brands with hundreds of millions of customers via multiple channels.
Momentive delivers personalised solutions that ‘…bring together the best parts of humanity and technology to redefine AI’. Across its brands, Momentive empowers 345,000 organisations worldwide to make insight-based decisions. The company seeks to improve experiences by giving each customer an individual voice.
Together Zendesk and Momentive will have the ability to create a combined company that enables businesses to build relationships that are more personalised and meaningful.
Here at redk, we are the trusted Zendesk partner for major brands. With our expertise in transformation, we redesign customer service operations to help our clients reimagine their customer experience. We believe that introducing the client-based intelligence of Momentive will help make Zendesk an even more powerful tool for your business. With over 15 years of consulting services expertise, we can help your company implement the new and improved Zendesk today.
Don’t hesitate to book a call to see where redk can take your organisation.
CRM Transformation Practice at redk
Hideki applies over 15 years of experience in the field of CRM and Customer Experience to overcome business challenges in the customer cycle.