Zoom added 200 customers to its contact center install base last quarter as its CCaaS business ramps up.
In total, the enterprise communications stalwart has 700 CCaaS customers – many of which are expanding their relationships with Zoom and leveraging its virtual agents.
Kelly Steckelberg, CFO at Zoom, shared the news on an earnings call, stating:
First, Zoom Phone reached approximately seven million paid seats. Second, Zoom Contact Center reached approximately 700 customers as of quarter-end, while Zoom Virtual Agent customers nearly doubled quarter over quarter.
“These proof points demonstrate our customers’ willingness to entrust us with their critical CX and EX processes and their commitment to grow with us as we expand our platform.”
As they do so, Zoom’s revenues continue to grow. In Q3, they reached $1.137BN – up three percent year-over-year (YoY).
That growth defies many of Zoom’s doubters, who predicted a slump as its consumer business slowed in the post-pandemic world, where people have returned to their pre-COVID routines.
Thankfully, its enterprise growth – also powered by its Zoom ONE bundles, as per Steckelberg – has filled and flowed over the expected revenue void.
Now, as that consumer business levels out, Zoom may return to higher revenue growth, and Eric Yuan, Founder and CEO at Zoom, sees CCaaS as a critical catalyst for the next Zoom boom.
“We are extremely excited about our contact center opportunity,” said Yuan.
“Look at our contact center. It [has a] modern architecture, [it is] extremely scalable, and applies lots of AI features and innovation speed.
I think every customer takes the Zoom Contact Center seriously… [and] the feedback is very consistent, “Wow, I did not realize you guys have such a powerful Contact Center.
Indeed, due to its frenetic speed of innovation, many didn’t initially expect Zoom to provide such depth in its CCaaS platform – as it builds a one-stop shop for communications.
Confirming this aim, Yuan concludes: “Customers want to have one seamless experience for everything: Contact Center, Workforce Management, Virtual Agent, AI features, Quality Management… We are trying to offer all of them. That’s the strategy.”
Room for Continued Contact Center Growth
Zoom has high brand loyalty. Much of this is because of its easy-to-use software prerogative. Yet, that appears to somewhat clash with the complexity and diverse requirements of large-scale contact center operations.
As such, some may question: can Zoom handle the complexity of an enterprise contact center?
Recognizing these doubts, Zoom aims to establish its credibility in the midmarket first, earn that referenceability, and then dive deeper into the enterprise space.
That said, Zoom has already successfully implemented its CCaaS solution across environments with 1,000+ agent seats. Now, as it gains further traction, expect the pace of larger-scale implementation success stories to accelerate.
“We wanted to be a little bit proactive, you know, focus on medium-sized companies, from hundreds to thousands of agents,” said Yuan. “That’s our sweet spot.
But, we are not going to stop here. As I mentioned earlier, large companies already look at our Contact Center solutions seriously. We have confidence we are going to win.
To “win”, Zoom has a much broader UCaaS install base it may wish to pull on.
However, it hasn’t yet doubled down on such cross-selling. Indeed, Matt VanVliet, Director of Equity Research at BTIG, estimated – during the earnings call – that: “In terms of overall customer mix, [Zoom is] below on percent penetration on the contact center.”
Moreover, earlier this year, Zoom revealed that 40 percent of its CCaaS revenues come from net new customers – highlighting how land-and-expand is more of a long-term play.
If Zoom can execute this strategy, it may unlock significant revenue gains, as some of its early CCaaS success stories exemplify.
CCaaS Success Stories
Yuan and Steckelberg shared examples of how it has cross-sold the Zoom Contact Center to big-name brands, highlighting how a land-and-expand strategy may offer a massive engine for future growth.
For instance, Yuan shared its work with Dropbox, a longstanding client that already leveraged Zoom Meetings, Rooms, Phone, and Events. He noted:
In Q3, they selected Zoom Virtual Agent and Zoom Contact Center to provide world-class AI-enabled support to their global user base.
Next, he discussed Amynta Group, a premier insurance services company that initially adopted Zoom Phone and Zoom Contact Center on a limited scale in Q1.
“Seeing how our modern solution offered superior agility, customization for CX flows, and administrative functionality, in Q3, they decided to standardize their customer-facing sales support on the Zoom stack,” added Yuan.
That process included adding Zoom Workforce Management, and – altogether – the business increased its monthly spending with Zoom by five times.
Finally, Steckelberg shared the story of Vensure, a global firm that provides payroll and HR services.
“Last year, they doubled their Zoom Phone seats. [Now,] they’ve doubled their Contact Center seats, and they in the four digits now,” she said.
Also, Vensure adopted the broader Zoom Workforce Engagement suite – to bolster the Zoom Contact Center and its various extensions. “It’s been very exciting to see them grow,” concluded Steckelberg.
Yet, these are just a handful of the 700 Zoom CCaaS customers – and as the vendor continues its fast speed of innovation – expect that number to climb even further.
For more on Zoom and its contact center mission, check out the following articles:
- Zoom Crowned King of UC at UC Awards; Is CCaaS Next?
- What Does Zoom’s Federated AI Mean for its Customers?
- Zoom Unveils Game-Changing Innovations at Zoomtopia 2023