Zoom Secures Largest-Ever Contact Centre Deal

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Zoom has rapidly evolved from a video conferencing platform into a comprehensive AI and customer experience powerhouse.

In their recent Q2 earnings call, Founder and CEO Eric Yuan, along with CFO Kelly Steckelberg, highlighted Zoom’s expanding capabilities across AI, contact centres, and workplace productivity.

With new innovations in AI, an ever-growing customer base for Zoom contact centre, and a broadening platform strategy, Zoom is positioning itself as a leader in the next phase of customer experience transformation.

A Record-Breaking Deal

Zoom Contact Centre saw significant momentum in Q2, with Yuan announcing the company’s largest deal to date for the service. Though he did not name the company in question, it was revealed that it selected Zoom’s top-tier Elite CCaaS package coupled with Zoom Phone.

Yuan highlighted that all of Zoom’s top ten contact centre wins in Q2 were displacements of major vendors, with 40% of those migrations coming from first-generation cloud solutions. “These metrics highlight how well our Contact Centre meets the needs of customers and prospects,” Yuan said.

Zoom’s “better together” strategy is central to this growth. Yuan explained that many of the contact centre wins came from existing Zoom Workplace customers who saw value in adding on Zoom Contact Centre, further cementing the idea that a unified platform offers superior functionality and efficiency.

In the Q&A session, Yuan further elaborated on how Zoom Contact Centre is resonating with large enterprises. “We are seeing increased adoption of our advanced Contact Centre packages as customers seek to utilise our AI capabilities to enhance agent performance,” Yuan noted.

AI at the Heart of Zoom’s Platform Strategy

Unsurprisingly, Zoom’s focus on AI was again a central theme of this latest earnings call. Yuan emphasised the role of Zoom AI Companion: “Today, AI Companion enhances an employee’s capabilities using generative AI… but we have only scratched the surface,” Yuan stated, keenly underscoring that AI is deeply integrated into Zoom’s platform rather than a stand-alone feature.

This AI integration is already widespread; Yuan revealed that Zoom AI Companion is now enabled on over 1.2 million accounts.

Moving forward, Zoom’s AI Companion will transition into what Yuan described as “Phase 2.0”, where it will go beyond augmenting skills to simplify workdays, provide contextual insights, and perform tasks on users’ behalf. This move aims to streamline daily workflows and drive productivity across organisations.

“I really appreciate our AI team’s great effort, and focus on the quality, cost reduction, and so on,” said Yuan. “I think that’s the reason some customers look at our offering – you look at the total cost of ownership in terms of the support cost, AI cost, and also in the product stress, customers realise, wow, better double down on Zoom deployment. And that’s the reason we are going to continue winning.”

Customer Adoption and AI’s Role in CX

One analyst asked about Zoom’s strategy for large enterprise customers and whether Zoom is seeing more initial large-scale deals or smaller deals that expand over time.

Eric Yuan explained that Zoom is witnessing both scenarios. “We are seeing bigger deals… as you hinted, the fact that we have such a wide portfolio means that customers either adopt the wider portfolio on day one or expand over time.

Yuan highlighted AI as a significant factor in Zoom’s success in winning cloud transformation deals. Customers are increasingly choosing Zoom not just for its cloud capabilities, but for the advanced AI solutions that come with the platform.

Another question focused on the potential for AI to drive long-term growth in margins, particularly given Zoom’s significant investments in AI development.

Steckelberg addressed this, explaining that while AI is a priority, Zoom has already made substantial investments in developing AI solutions, which are now paying off.

We have great operating leverage in our business… and you can see that playing out consistently quarter after quarter,” she said. Steckelberg emphasised that AI is integrated into Zoom’s overall platform strategy, contributing to its profitability without dragging down margins.

Looking Ahead: AI-Driven Customer Service

Looking forward, Zoom’s strategy revolves around deepening its AI capabilities and expanding its platform across more touchpoints.

Yuan hinted at more to come during Zoomtopia in October, where the company will unveil the next phase of its AI strategy.

This will focus on further integrating AI into everyday workflows, simplifying tasks, and providing contextual insights.

As AI becomes more embedded in Zoom’s platform, the opportunities for contact centres are clear. AI-driven features such as automated meeting summaries, real-time translations, and performance-enhancing tools for agents will continue to improve customer service outcomes.

For contact centres, adopting Zoom’s technology could lead to more efficient operations, better customer interactions, and long-term cost savings.

What Does This Mean For Your Contact Centre?

For contact centres, Zoom’s integration of AI tools and communication services offers a compelling opportunity to modernise operations.

As businesses continue to shift towards AI-driven solutions, Zoom’s platform undoubtedly provides the flexibility and scalability needed to stay ahead in a competitive marketplace.

Zoom’s innovations in AI and contact centres are not just about improving individual tools – they’re about creating a unified platform that enhances both employee productivity and customer satisfaction.

As the landscape of customer service evolves, Zoom is clearly at the forefront of shaping the future of work and customer experience.

Author: James Groves
Reviewed by: Xander Freeman

Published On: 23rd Aug 2024 - Last modified: 28th Aug 2024
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