Zoom Chief Executive Eric Yuan believes the vendor’s Contact Center is “ready for prime time” after another significant quarter of growth for its CCaaS offering.
The tech giant sealed 90 agreements with over $100,000 in annual recurring revenue, representing a whopping 246% year-over-year growth.
Key drivers, according to Chief Financial Officer Kelly Steckelberg, were the launch of higher pricing tiers as well as success in larger deals.
Call Centre Helper picks out the highlights from Zoom’s latest financial results.
Prime Time
Yuan was immediately asked to elaborate on what “prime time” looks like for Zoom Contact Center, which was launched as recently as February 2022.
“Look at our quarterly progress,” he said. “Every quarter, we’ve added so many customers. They trust our Contact Center.”
He alluded to a Silicon Valley-based cloud software company and a significant 1,000+ seat contract as examples of customers who transitioned to Zoom from top competitors, citing Zoom’s superior feature set, seamless integrations, greater uptime, and built-in AI as primary reasons for the switch.
“The most important thing is the customer trust of our brand,” he said, adding, “They know that we listen to customers, and we innovate. That’s the reason why – with our Contact Center – we’re making very good progress.”
“We have created a communication and collaboration powerhouse with AI infused natively across the platform.
In March, Fast Company added Zoom to their prestigious list of the World’s Most Innovative Companies of 2024, further validating our dedication to providing our customers with a high-quality, open-collaboration platform powered by AI that just works.” Eric Yuan
Unanticipated Growth
While undoubtedly delighted with the continuous growth Zoom Contact Center is witnessing, Yuan concedes it has not developed quite how he expected.
“When we started, we looked at the quarterly Contact Center deals we won and thought most of the customers would be existing Meeting or Phone customers. However, that’s not right.”
“Quite often, some customers are not Meeting or Phone customers, but they became the first to deploy the Zoom Contact Center.
This means we have a lot of opportunities within our existing installed base. We are going to double down on that because the product already works very well. And plus, buyers are different.”
Yuan also highlighted the importance of channel partnerships in their strategy: “That’s the reason why we invested more in our channel partnership. I think more and more of our existing installed base, after they heard about our Contact Center success story, will drive the acceleration of our Contact Center business growth.”
Other Developments
- Zoom received FedRAMP moderate authorization for its essentials and premium SKUs, allowing US government agencies and entities doing business with them to leverage Zoom Contact Center.
- The CCaaS platform now supports PCI compliance, opening the door for customers that have payment processing in their workflows.
- Yuan on Zoom’s recently announced partnership with Avaya: “We are very excited about that partnership and about that transition. Avaya has many very large enterprise customers who deployed both UCaaS and CCaaS solutions. These large enterprise customers are not fully ready to migrate everything to the cloud. However, we want to leverage a lot of innovative AI features. The Zoom Workplace client has a lot of rich features that they can leverage, and it seamlessly integrates with Avaya on-prem future servers. I think that is a win-win partnership, benefiting us, Avaya, and especially the very large, very complicated enterprise customers.”
What Does This Mean for Your Contact Centre?
The recent advancements and growth in Zoom’s Contact Center offerings present significant benefits for end users.
The increased trust and adoption of Zoom Contact Center, highlighted by a substantial year-over-year growth and high-value contracts, indicate a robust and reliable platform that can handle diverse and complex needs.
With the inclusion of advanced AI features, seamless integration capabilities, and enhanced uptime, contact centres can expect improved efficiency and customer satisfaction.
The FedRAMP authorisation and PCI compliance open up new possibilities for secure and compliant operations, particularly for those in sensitive industries like government and finance.
Additionally, the strategic partnership with Avaya ensures that even large enterprises with on-premise setups can smoothly transition and benefit from Zoom’s innovative features.
Zoom’s ongoing innovations and strategic moves promise a powerful, flexible, and future-ready contact centre solution.
If you are interested in comparing this to past commentary on Zoom’s financial earnings calls, read this next:
Author: James Groves
Reviewed by: Xander Freeman
Published On: 5th Jun 2024 - Last modified: 19th Jun 2024
Read more about - Latest News, James Groves, Zoom
