The ability to understand how your customers and your employees feel and then act on that data is just golden.
If so, this should be a Gilded Age for Qualtrics, where CEO Zig Serafin claims a ten-year lead for the Experience Management specialist in the competition:
Experience Management is becoming as critical to business success as any CRM or HR system … In a world where it is easier for customers to switch service providers and where employees are leaving their work at record rates, the experiences provided by companies have never been more. important.
The company provided full-year figures for fiscal 2021, its first as a public company, with total revenue of $ 1,075.7 million, up 41% year-over-year and a net loss of $ 1059.1 million. Subscription revenue was $ 870.7 million compared to $ 575.4 million last year, an increase of 51% year-over-year. Other record statistics from call to earnings:
- 143 customers spend $ 1 million or more annually, up 93% year-over-year.
- 3000 customers added in 2021.
- Customer base of 16,750 organizations using Qualtrics.
- More than 275 integrations with third parties, including SAP, Salesforce, Zendesk and ServiceNow, nearly 3x more than last year.
The last data point is particularly important as a competitive distinction, Serafin says:
What matters is not just that we have a larger growing vendor universe of companies connecting us or, for example, those companies that end up enabling implementations or developing strategy and consulting around our system; the important thing is they go deeper. So the nature of, for example, the aggregation that can take place for an employee-facing use case and employee-facing systems creates, for example, more time and communication-sensitive methods. interact with enabling an experience or making a correction. So, those are paths towards becoming a deeper part of the way companies operate. The fact that customers, our customers, are pulling at these other vendors and saying, ‘Hey, you need to integrate Qualtrics’, is also an important sign of the fact that we’re doing this platform right .
Deeper
Serafin also argues that customers are deepening their relationships with Qualtrics:
They bring the solutions together to the point. At the same time, what is happening is that C levels, including CEOs, are participating in making Qualtrics an integral part of their overall approach to understanding their customer, especially in understanding the 360 view of the customer. and how they serve. the customer on different channels, whether digital; whether it is the experience inside the store; whether it is people working in the field who serve another business, for example; if it’s call center activity-just combine all of that and standardize into one system. And of course, they combine that with the capability set around the product, the product experience and our entire Employee Experience suite, which is another very important aspect of the difference we make as a company.
The so -called Great Resignation boosts the corporate interest in the Employee Experience, Serafin said, citing the example of Southwest Airlines to make his point:
As travel resets, Southwest Airlines has an ambitious goal to add a large number of employees to its workforce by 2022 which is a challenge for any company in this labor market. Southwest has expanded its relationship with Qualtrics and invested in our Candidate Experience solution. So from the interview process, to onboarding they will understand and act on the most important moments in a candidate’s journey to the company.
This past quarter Qualtrics also saw the acquisition of omni-channel conversational analytics provider Clarabridge. Serafin said:
Clarabridge is adding a critical new layer to our platform that helps organizations discover everything their customers and employees are saying wherever they say it, including it on social media, email, support calls, chat and reviews. of the product. Our customers design the services and product experiences that their customers want next by leveraging on customer feedback from anywhere. And they design new ways of working by listening to their employees.
He pointed to a particular use case of how the Clarabridge addition helps Qualtrics:
Barclays has been using Qualtrics for many years. Nasa [fourth] quarter, they added Clarabridge technology to enable the analysis of unstructured customer feedback for their retail bank. So now Barclays will have a single system to get a 360-degree view of everything customers are saying, whether it’s on social, in the call center, wherever they’re saying it. This will help them discover opportunities in all aspects of finance and ultimately strengthen their digital or whatever experience they provide as a driver for growth and efficiency.
He added:
Part of it is actually broader speaking where customers have previously used point -to -point solutions for social media tracking, for example, or to do voice analytics in the call center or to check the chat stream. What we are doing now is we are creating the ability to, first, save cost with the combination of solution points that we bring together today, but second, more importantly, create a powerful source of data on what customers want. an organization that must know, in order to make more rigid decisions on a day-to-day basis, no matter what they do. So now you’re aggregating social data, call center data, chat data, product review data. You combine that with structured information and you put that into Experience ID as part of a single customer understanding repository.
What I take
Ultimately, what results in what unique value is produced for customers.
OK, the net loss isn’t a happy number right now, but it’s been a solid first year as a public company for Qualtrics, a company that was clearly in the right place at the right time. Wall Street seems to agree, with the share price increase of 14% behind the company’s stable and confident forecast. It is difficult to argue at this point that there is anything other than an upward trajectory underway here.
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