Kustomer vs Zendesk

2023. Kustomer, the CRM startup acquired by Meta last year for $1B, spins out



Facebook has officially spun out Kustomer, the CRM startup it acquired last year for around $1 billion. The existence of potential buyers for Kustomer remains uncertain; however, Meta has opted to retain a minority stake in the CRM business. This allows Meta the flexibility to collaborate with Kustomer in further product development and continue servicing any clients acquired during Meta's ownership tenure. With the ongoing race in generative AI and the introduction of new innovations, both Meta and Kustomer have the potential to create and integrate intriguing tools across Meta's platforms. However, the extent of their existing collaborative business remains unclear. Initially, Kustomer aimed to revolutionize CRM by adopting an "omni-channel" approach to customer contact. According to Kustomer, traditional CRMs did not align with how modern consumers and potential customers interact with businesses today.


2022. Zendesk is acquired for $10.2B



Zendesk made a significant decision in February when it rejected a $17 billion acquisition offer, confident in its higher valuation. However, the circumstances have changed, and today the company has been acquired by a consortium of private equity firms for $10.2 billion, considerably lower than the initial proposal. The evolving landscape of the SaaS market in recent months has placed Zendesk amidst a whirlwind of investor drama. In a recent development, the company opted to remain independent, causing a sharp decline in its stock price.


2021. Zendesk acquires AI automation startup Cleverly to advance customer service



Zendesk has recently revealed its acquisition of Cleverly, an early-stage artificial intelligence startup. Cleverly offers an advanced product platform equipped with various AI-powered features. This includes a triage function that automatically assigns relevant tags to incoming service requests, facilitating efficient workflow categorization. Moreover, Cleverly provides AI-powered human augmentation through its agent assist capability, which assists customer service agents in delivering accurate responses to inquiries. Cleverly's technology seamlessly integrates with Zendesk and Salesforce, enabling enhanced customer support experiences for businesses leveraging these platforms.


2020. Facebook buys Kustomer for $1B



Facebook has recently made the decision to acquire Kustomer, a startup that aimed to revolutionize the customer service industry by offering agents enhanced data and a comprehensive overview of users through the integration of various social media and communication channels. This acquisition aligns with Facebook's strategy of expanding its customer service offerings on the platform. The company plans to further strengthen its position by introducing an advanced platform that goes beyond existing capabilities, potentially as a paid service. As Facebook faces increasing competition from platforms like Snapchat and TikTok, having an enhanced product to offer businesses, in addition to its existing services, will enable Facebook to foster stronger ties within the Facebook ecosystem.


2020. Kustomer acquires Reply.ai to enhance chatbots on its customer service CRM



CRM startup Kustomer has announced its acquisition of Reply.ai, a Madrid-based startup. Reply.ai has developed a code-free platform that enables companies to create customized chatbots for efficient handling of customer service inquiries. These chatbots utilize machine learning to continuously improve their responses over time. Reply.ai's impressive client roster includes renowned brands such as Coca-Cola, Starbucks, Samsung, and several prominent retailers, ad agencies, and marketing agencies. By acquiring Reply.ai, Kustomer aims to challenge industry giants like Salesforce, Zendesk, and Oracle in the CRM space. Kustomer's platform empowers human agents to effectively manage inbound omnichannel customer requests, setting it apart as a comprehensive solution.


2020. Zendesk’s latest tools designed to give fuller view of the customer



Two years ago, Zendesk, a well-known provider of help desk software, expanded into CRM with its acquisition of Base. Shortly after, the company introduced the Sunshine platform, enabling customers to develop applications on top of the Zendesk platform. Since then, Zendesk has been actively integrating the CRM tool into its platform, and today's announcement focuses on offering Zendesk users a more comprehensive understanding of their customers. With access to extensive data from customer interactions with the help desk, Zendesk can provide valuable insights into customer preferences and behaviors.


2018. Zendesk launched customer service app builder



Zendesk has introduced Zendesk Sunshine, a new platform designed for developing customer-centric applications utilizing Zendesk's toolset. This platform enables companies to create custom apps, primarily focused on customer experience and relationship management, which are hosted on AWS and have access to a wide range of AWS services. All applications built on the Sunshine platform rely on it for seamless information sharing. The primary goal of this approach is to empower Zendesk customers to leverage the data they collect within Zendesk as a natural outcome of their workflow. While initially targeted towards Zendesk customers, independent developers may also have the opportunity to work on the platform in the future. Zendesk Sunshine aims to enhance customer service capabilities by providing a flexible and scalable platform for building tailored applications and harnessing valuable data within the Zendesk ecosystem.


2018. Zendesk launched enterprise content management platform



Zendesk has introduced Guide Enterprise, a new enterprise content management product specifically designed for large customer service organizations. This solution aims to provide these organizations with a knowledge base and a content management platform for effective editorial planning and review. The primary goal is to empower customer service representatives to document solutions to encountered problems, thus building a robust knowledge base as an integral part of their daily workflow. By accessing their colleagues' notes, representatives can avoid reinventing the wheel and contribute to the permanent knowledge base through editorial review. This way, when customers visit the website or app, they can access solutions to common issues without immediate human assistance. The platform also incorporates reminders to regularly review and update the content, ensuring the knowledge base remains up-to-date while eliminating outdated information.


2016. Zendesk expands beyond the help desk



Zendesk, a customer service app, has introduced a new product called Zendesk Explore, which offers comprehensive analytics for measuring and understanding the entire customer experience. With Zendesk Explore, you gain immediate access to valuable customer analytics, enabling a deeper understanding of both your customers and your business. This tool consolidates data from various sources, including Zendesk's range of tools and third-party systems such as Salesforce for customer data, Shopify for buying history, and Google Analytics for web analytics. By aggregating this information into a centralized location, Zendesk Explore provides a holistic view of the customer, surpassing the limitations of fragmented data trapped within application silos. This empowers users in any role to gain a more comprehensive understanding of their customers.


2016. Zendesk introduced Zendesk Message



The prominent customer support software, Zendesk, has introduced a new feature called "Message." This messaging product enables businesses to actively engage with customers on their preferred messaging platforms. Initially, Zendesk Message integrates with Facebook Messenger. With a user-friendly interface and a focus on messaging, Zendesk Message streamlines the process of handling customer interactions. Recognizing that messaging conversations often occur in brief bursts, we have designed the system to enable agents to swiftly transition from one conversation to another while maintaining the ease of assigning, taking ownership of, and resolving conversations. Additionally, agents will find it effortless to refer to significant events within lengthy conversation streams using features such as the timeline.