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Zendesk Launches CX Benchmark Report for Startups Displaying the Path to Success is in CX

By CIOReview | Tuesday, July 21, 2020

Research identifies particular actions fast-growth startups are taking to drive customer loyalty and growth.

FREMONT, CA: Zendesk, Inc. has released that Zendesk Startups CX Benchmark Report, documenting how early-stage startups that are dedicated to customer experience (CX) outperform their peers. The data showcases 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.

The findings highlight Zendesk Benchmark data from more than 4,400 early-stage startups worldwide, giving founders and CX leaders’ direct insights into the crucial part of their businesses for the very first time.

Most surprisingly, more than 70 percent of the startup founders and decision-makers stated that they do not have a formal customer support strategy in place. This points to how many companies miss 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 more significant investments in their CX strategies, and do so more quickly.

Thirty-three percent of these companies are likely to add omnichannel or multi-channel support in their first two years. The result is a shorter resolution, better team efficiency, and more options for customers to find the help they are looking for, leading to an overall better CX.

“Its 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 youll be setting yourself up for long-term success.”

The report also points out 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 self-service features like online help centers 61 percent faster than others 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.”