Indianapolis-based Malomo raises $2.8 million to turn order tracking into a branded customer experience

Yaw Aning named Malomo, the service he launched for small businesses to turn their order-tracking services into branded customer experiences, as a tribute to his mother, who was a small business owner herself.

Malomo” means flowers in Swahili and it was the name of Aning’s mother’s small soap-making business which she built over the years — even as she was battling the cancer to which she would eventually succumb.

The small Indianapolis startup has just raised $2.8 million to expand its services providing a new marketing channel for the Shopify retailers of the world who can always use more ways to reach new customers, Aning said.

The financing came from the San Francisco-based firm, Base 10, and New York’s Harlem Capital, along with commitments from previous investors Hyde Park and High Alpha.

Aning came to entrepreneurship as an Orr Fellow, an Indiana program that takes 10 graduates and places them in high-growth companies. While Aning worked in corporate finance, he was always interested in the startup world, and started is first company, Pocket Tales, an online reading game for children.

That business was followed by Sticks and Leaves, a web design agency that gave Aning his first view into the opportunity that order tracking presented as a space for a better customer experience.

Along with co-founder Anthony Smith, Aning built a service that connects with a single click to the Shopify platform and creates custom, branded tracking pages for each brand. “It’s a landing page for a brand. They use it like they would use any marketing asset,” Aning said. “The strategy is to build up integrations to the other tools merchants use to create rich experiences leveraging those tools.”

 

SAP continues to build out customer experience business with Emarsys acquisition

SAP seemed to be all in on customer experience when it acquired Qualtrics for $8 billion in 2018. It continued on that journey today when it announced it was acquiring Austrian cloud marketing company Emarsys for an undisclosed amount of money.

Emarsys, which raised over $55 million, according to PitchBook data, gives SAP customer personalization technology. If you talk to any marketing automation vendor over the last several years, the focus has been on using a variety of data and touch points to understand the customer better, and deliver more meaningful online experiences.

With the pandemic closing or limiting access to brick and mortar stores, personalization has taken a new urgency as customers are increasingly shopping online and companies need to meet them where they are.

With Emarsys, the company is getting an omnichannel marketing solution that they say is designed to deliver messages to customers wherever they are including e-mail, mobile, social, SMS, and the web, and deliver that at scale.

When SAP announced it was spinning out Qualtrics a couple of months ago, just 20 months after buying, it left some question about whether SAP was fully committed to customer experience business.

Brent Leary, founder and principal analyst at CRM Essentials says that the acquisition shows that SAP is still very much in the game. “This illustrates that SAP is serious about CX and competing in a highly competitive space. Emarsys adds industry-specific customer engagement capabilities that should help SAP CX customers accelerate their efforts to provide their customers with the experiences they expect as their needs change over time,” Leary told TechCrunch.

As an ERP company at its core, SAP has traditionally focused on back office kind of operations, but Bob Stutz, president, SAP Customer Experience sees this acquisition as a way to continue bringing back office and front office operations together.

“With Emarsys technology, SAP Customer Experience solutions can link commerce signals with the back office and activate the preferred channel of the customer with a relevant and consistently personalized message, allowing customers the freedom to choose their own engagement,” Stutz said in a statement.

The company, which is based in Austria, was founded back in 2000 when marketing was a very different world. It has built a customer base of 1500 companies with 800 employees in 13 offices across the globe. All of this will become part of SAP, of course and come under Stutz’s purview.

As with all transactions of this type it will be subject to regulatory approval, but the deal is expected to close this quarter.

Brands that hyper-personalize will win the next decade

When people reach out to customer service, they’re seeking more than a solution to their immediate problem. They want empathy and understanding. What they’re often met with is a queue.

Nothing frustrates people more than calling customer support and getting stuck in a loop. According to a study by Vonage, 61% of consumers feel interactive voice response (IVR) actively poisons the customer experience — and only 13% found it more helpful than calling a human directly.

Like many solutions, IVR falls short in personalizing the customer experience (CX). A customer calls in for a specific task like paying a bill and instead cycles through a one-size-fits-all menu that in reality fits nobody. Experiences like this clearly indicate to customers a brand doesn’t care about them as a person, only as a case number.

Personalizing the experience is a start, but this isn’t the end. Customers will expect a one-on-one interaction the moment they enter your customer service channel. To make that happen, AI and analytics are creating scalable opportunities to show your customers how much they matter to you. Brands taking advantage of that opportunity can create unrivaled CX that sets them far ahead of their competition.

The personalization buzzword

Personalization has become a popular buzzword in recent years, but true personalization is much harder to attain than many companies realize. That was the case in 2016 when companies first hopped on the chat bandwagon. The potential for a new communication method was there, but the one-size-fits-all approach companies took in developing their interaction platforms created more problems for customers than it solved.

What they missed is how to create digital experiences in which customers converse with automation that adapts based on user context. Information like their product or service history and preferences should be pulled up the moment a customer engages. Data on disposition, tone, sentiment and stated intent should influence how the customer moves through the system and reaches their desired end goal. That navigation should be effortless and go well beyond text-based communications, including immersive UX options like maps, surveys, carousel selections and more — all in a spirit of lowering the cognitive weight for the customer.

Conversational analytics are about to change customer experiences forever

Companies have long relied on web analytics data like click rates, page views and session lengths to gain customer behavior insights.This method looks at how customers react to what is presented to them, reactions driven by design and copy. But traditional web analytics fail to capture customers’ desires accurately. While marketers are pushing into predictive analytics, what about the way companies foster broader customer experience (CX)?

Leaders are increasingly adopting conversational analytics, a new paradigm for CX data. No longer will the emphasis be on how users react to what is presented to them, but rather what “intent” they convey through natural language. Companies able to capture intent data through conversational interfaces can be proactive in customer interactions, deliver hyper-personalized experiences, and position themselves more optimally in the marketplace.

Direct customer experiences based on customer disposition

Conversational AI, which powers these interfaces and automation systems and feeds data into conversational analytics engines, is a market predicted to grow from $4.2 billion in 2019 to $15.7 billion in 2024. As companies “conversationalize” their brands and open up new interfaces to customers, AI can inform CX decisions not only in how customer journeys are architected–such as curated buying experiences and paths to purchase–but also how to evolve overall product and service offerings. This insights edge could become a game-changer and competitive advantage for early adopters.

Today, there is wide variation in the degree of sophistication between conversational solutions from elementary, single-task chatbots to secure, user-centric, scalable AI. To unlock meaningful conversational analytics, companies need to ensure that they have deployed a few critical ingredients beyond the basics of parsing customer intent with natural language understanding (NLU).

While intent data is valuable, companies will up-level their engagements by collecting sentiment and tone data, including via emoji analysis. Such data can enable automation to adapt to a customer’s disposition, so if anger is detected regarding a bill that is overdue, a fast path to resolution can be provided. If a customer expresses joy after a product purchase, AI can respond with an upsell offer and collect more acute and actionable feedback for future customer journeys.

Tap into a multitude of conversational data points

The essential revenue software stack

From working with our 90+ portfolio companies and their customers, as well as from frequent conversations with enterprise leaders, we have observed a set of software services emerge and evolve to become best practice for revenue teams. This set of services — call it the “revenue stack” — is used by sales, marketing and growth teams to identify and manage their prospects and revenue.

The evolution of this revenue stack started long before anyone had ever heard the word coronavirus, but now the stakes are even higher as the pandemic has accelerated this evolution into a race. Revenue teams across the country have been forced to change their tactics and tools in the blink of an eye in order to adapt to this new normal — one in which they needed to learn how to sell in not only an all-digital world but also an all-remote one where teams are dispersed more than ever before. The modern “remote-virtual-digital”-enabled revenue team has a new urgency for modern technology that equips them to be just as — and perhaps even more — productive than their pre-coronavirus baseline. We have seen a core combination of solutions emerge as best-in-class to help these virtual teams be most successful. Winners are being made by the directors of revenue operations, VPs of revenue operations, and chief revenue officers (CROs) who are fast adopters of what we like to call the essential revenue software stack.

In this stack, we see four necessary core capabilities, all critically interconnected. The four core capabilities are:

  1. Revenue enablement.
  2. Sales engagement.
  3. Conversational intelligence.
  4. Revenue operations.

These capabilities run on top of three foundational technologies that most growth-oriented companies already use — agreement management, CRM and communications. We will dive into these core capabilities, the emerging leaders in each and provide general guidance on how to get started.

Revenue enablement

Leverage AI to optimize customer service outcomes

As offices worldwide shift to remote work, our interactions with customers and colleagues have evolved in tandem. Professionals who once relied on face-to-face communication and firm handshakes must now close deals in a world where both are rare. Coworkers we once sat beside every day are now only available over Slack and Zoom, changing the nature of internal communication as well.

While this new reality presents a challenge, the advancement of key technologies allows us to not just adapt, but thrive. We are now on the precipice of the biggest revolution in workplace communication since the invention of the telephone.

It’s not enough to simply accept the new status quo, particularly as the overall economic climate remains tenuous. Artificial intelligence has much to offer in improving the way we speak to one another in the social distance era, and has already seen wide adoption in certain areas. Much of this algorithmic work has gone on behind the scenes of our most-used apps, such as Google Meet’s noise-canceling technology, which uses an AI to mute certain extraneous sounds on video calls. Other advances work in real-time right before our eyes — like Zoom’s myriad virtual backgrounds, or the automatic transcription and translation technology built into most video conferencing apps.

This kind of technology has helped employees realize that, despite the unprecedented shift to remote work, digital conversations do not just strive to recreate the in-person experience — rather, they can improve upon the way we communicate entirely.

It’s estimated that 65% of the workforce will be working remotely within the next five years. With a more hands-on approach to AI — that is, using the technology to actually augment everyday communications — workers can gain insight into concepts, workflows and ideas that would otherwise go unnoticed.

Your customer service experience

Roughly 55% of the data companies collect falls into the category of “dark data”: information that goes completely unused, kept on an internal server until it’s eventually wiped. Any company with a customer service department is invariably growing their stock of dark data with every chat log, email exchange and recorded call.

When a customer phones in with a query or complaint, they’re told early on that their call “may be recorded for quality assurance purposes.” Given how cheap data storage has become, there’s no “maybe” about it. The question is what to do with this data.

SAP decision to spin out Qualtrics 20 months after spending $8B surprises industry watchers

When SAP announced it was spinning out Qualtrics on Sunday, a company it bought less than two years ago for an eye-popping $8 billion, it was enough to make your head spin. At the time, then CEO Bill McDermott saw it as a way to bridge the company’s core operational with customer data, while acquiring a cloud company that could help generate recurring revenue for the ERP giant, and maybe give it a dose of innovation along the way.

But Sunday night the company announced it was spinning out the acquisition, giving its $8 billion baby independence, and essentially handing the company back to founder Ryan Smith, who will become the largest individual shareholder when this all over.

It’s not every day you see founders pull in a windfall like $8 billion, get sucked into the belly of the large corporate beast and come out the other side just 20 months later with the cash, independence and CEO as the largest individual stockholder.

While SAP will own a majority of the stock, much like Dell owns a majority of VMware, the company will operate independently and have its own board. It can acquire other firms and make decisions separately from SAP.

We spoke to a few industry analysts to find out what they think about all this, and while the reasoning behind the move involves a lot of complex pieces, it could be as simple as the deal was done under the previous CEO, and the new one was ready to move on from it.

Bold step

It’s certainly unusual for a company like SAP to spend this kind of money, and then turn around so quickly and spin it off. In fact, Brent Leary, principal analyst at CRM Essentials, says that this was a move he didn’t see coming, and it could be related to that fat purchase price. “To me it could mean that SAP didn’t see the synergies of the acquisition panning out as they had envisioned and are looking to recoup some of their investment,” Leary told TechCrunch.

Holger Mueller, an analyst with Constellation Research agreed with Leary’s assessment, but doesn’t think that means the deal failed. “SAP doesn’t lose anything in regards to their […] data and experience vision, as they still retain [controlling interest in Qualtrics] . It also opens the opportunity for Qualtrics to partner with other ERP vendors [and broaden its overall market],” he said.

Jeanne Bliss, founder and president at CustomerBLISS, a company that helps clients deliver better customer experiences sees this as a positive step forward for Qualtrics. “This spin off enables Qualtrics to focus on its core business and prove its ability to provide essential technology executives are searching for to enable speed of decision making, innovation and customization,” she said.

Show me the money

Patrick Moorhead, founder and principal analyst at Moor Insight & Strategy sees the two companies moving towards a VMware/Dell model where SAP removes the direct link between them, which could then make them more attractive to a broader range of customers than perhaps they would have been as part of the SAP family. “The big play here is all financial. With tech stocks up so high, SAP isn’t seeing the value in its stock. I am expecting a VMware kind of alignment with a strategic collaboration agreement,” he said.

Ultimately though, he says the the move reflects a cultural failure on the part of SAP. It simply couldn’t find a way to co-exist with a younger, more nimble company like Qualtrics. “I believe SAP spinning out Qualtrics is a sign that its close connection to create symbiotic value has failed. The original charter was to bring it in to modernize SAP but apparently the “not invented here” attitudes kicked in and doomed integration,” Moorhead said.

That symbiotic connection would have involved McDermott’s vision of combining operational and customer data, but Leary also suggested that since the deal happened under previous the CEO, that perhaps new CEO Christian Klein wants to start with a clean slate and this simply wasn’t his deal.

Qualtrics for the win

In the end, Qualtrics got all that money, gets to IPO after all, and returns to being an independent company selling to a larger potential customer base. All of the analysts we spoke to agreed the news is a win for Qualtrics itself.

Leary says the motivation for the original deal was to give SAP a company that could sell beyond its existing customer base. “It seems like that was the impetus for the acquisition, and the fact that SAP is spinning it off as an IPO 20 months after acquiring Qualtrics gives me the impression that things didn’t come together as expected,” he said.

Mueller also sees nothing but postivies Qualtrics. “It’s a win […] for Qualtrics, which can now deliver what they wanted [from the start], and it’s a win for customers as Qualtrics can run as fast as they want,” he said.

Regardless, the company moves on, and the Qualtrics IPO moves forward, and it’s almost as though Qualtrics gets a do-over with $8 billion in its pocket for its trouble.

How Adobe shifted a Las Vegas conference to executives’ living rooms in less than 30 days

Adobe was scheduled to hold its annual conference in Las Vegas two weeks ago, but the coronavirus pandemic forced the company to make alternate plans. In less than a month, its events team shifted venues for the massive conference, not once, but twice as the severity of the situation became clear.

This year didn’t just involve Adobe Summit itself. To make things more interesting, it was also hosting Magento Imagine as a separate conference within a conference at the same time. (Adobe bought Magento in 2018 for $1.6 billion.)

Originally, Adobe had more than 500 sessions planned across four venues on the Las Vegas Strip, with more than 23,000 attendees expected. Combining all of the sponsors, partners and Adobe personnel, it involved more than 40,000 hotel rooms.

Once it became clear that such a large event couldn’t happen, the company reimagined the conference as a fully digital experience.

Plan A

VP of Experience Marketing Alex Amado is in charge of planning Adobe Summit, a tall task under normal circumstances.

“Planning Summit is a year-round endeavor,” he said. “Literally within weeks of finishing one of those Las Vegas events we are starting on the next one, and some of the work actually is on an 18 or 24-month cycle because we have those long-term hotel contracts and all of that stuff.

“For the last 12 months, basically, we had people who were working on what we now call Plan A — and we didn’t know that we needed a Plan B and Plan C — and the original event was going to be our biggest yet.”

2019 Adobe Summit stage in Las Vegas. Photo: Ron Miller/TechCrunch

After the team began to wonder in January if the virus would force them to change how they deliver the conference, they started building contingency plans in earnest, Amado said. “As we got into February, things started looking a little scarier, and it very quickly escalated to the point where we were talking really seriously about Plan B.”

Bidet startup Tushy scales up to meet demand amid toilet paper shortage

Business at Tushy is booming.

While the circumstances that led to the boom are sobering, the bidet company needed to adapt its strategy after seeing an uptick in business amid the COVID-19 pandemic. Other companies in this cohort include video conferencing service Zoom, meal kit service Blue Apron and Facebook, thanks to its social network, video hardware Portal and Oculus Quest VR headset. These companies all have something in common — they offer solutions to problems that, until recently, were not all that urgent.

Founded in 2015 by Thinx founder Miki Agrawal, Tushy aims to replace toilet paper, CEO Jason Ojalvo tells TechCrunch. Ojalvo, who joined the company as CEO in 2018, says North America has been a holdout when it comes to bidets. As a result, the nation flushes about 15 million trees down the toilet every year.

Tushy, which has raised $2.9 million since its founding, has been profitable for the last two years. That’s in part thanks to the company’s focus on sustainability — not just from an environmental standpoint, but from a business one, Ojalvo says. That means not over-hiring or spending too much on marketing.

“We’re really careful about doing it in a way so we won’t explode like some other direct-to-consumer companies can do when they raise too much money and they over-hire and then they have to let people go,” Ojalvo says. “That’s just a debacle that I’ve seen first hand and I don’t want to be part of it. Not only do I not want to be part of it but I don’t want to be the leader of the company that does that.”

Prior to the coronavirus pandemic, Tushy saw its growth double year-over-year. Ojalvo says that’s partly been a result of having customers who evangelize on their behalf. Fast-forward to around March 9, when sales really started to double beyond the norm; a few days later, Tushy was having days where it brought in $500,000 in sales.

Yaguara nabs $7.2M seed to help e-commerce companies understand customers better

Yaguara, a Denver-based startup that wants to help e-commerce companies understand their customers better to deliver more meaningful experiences, announced a $7.2 million seed investment today.

The round was led by Foundation Capital with participation from Gradient Ventures, Rainfall Ventures and Zelkova. It also had help from some e-commerce heavy hitters including Warby Parker, Harry’s and Allbirds.

Yaguara CEO Jonathan Smalley was working at an agency building specialized cloud tools for online businesses when he recognized there was a need to pull data together into a single place and help companies understand their customer’s behavior better.

“Yaguara is based on integrating data and having all their data in the right place. For us, it started with several dozen tools from performance marketing to your actual e-commerce data to your fulfillment and unit economic data — bringing that all into one place letting them see their data in real time.”

“Then our platform serves predictive and prescriptive insights and recommendations to individual users across your teams, so they can drive specific outcomes across the organization based on that unified data set,” Smalley explained.

Screenshot: Yaguara

They build that data set by connecting to a variety of popular tools to help understand what’s happening across the customer lifecycle, whether that’s customer acquisition through Facebook or Google ads or understanding shopping cart abandonment data or how often the customer has returned to buy again, all of which help build a better picture of the customer.

While this may sound like a customer data platform (CDP), Smalley says it’s actually more than that. While the CDP provides the pipeline to your data sources like Yaguara, it doesn’t stop there. He says it reduces the complexity of helping front-line marketing personnel access and query that data without having to know SQL or R or have a technical intermediary to understand the data.

While the company is young it already has 250 e-commerce customers using the platform. With the new infusion of cash, it should be able to bring in more employees, build more data connectors and continue working to build out the platform.