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Zendesk reports growth in Brazil

Business in the country expands over global average as local firms focus on customer experience.

Software firm Zendesk has reported strong results for Brazil in the second quarter of 2018, as local businesses invest in enhancing their customer experience strategies.

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The company has reported growth of 60 percent for Brazil compared to the same period in 2017, while the average global expansion rate was 39 percent. Brazil is the fifth largest market for the firm in the world and the largest in Latin America, where half of its 12,000 clients in the region are based.

According to Zendesk, the positive results can also be attributed to the fact that segments such as startups are sharpening their focus on omnichannel and customer experience. In Brazil, clients include logistics startup Loggi and financial services fintech Nubank.

The company held its annual customer event in São Paulo yesterday (1), aimed at educating local buyers about the omnichannel approach to customer services. It also presented a study on adoption of the model, where Brazil ranks tenth on a list of 14 countries, with only 3.5 percent of 2,000 local organizations surveyed offering omnichannel support. This compares to the US, where 6 percent of 18.243 companies polled use the approach.

Finance and retail organizations in Brazil, on average, offer more than four integrated contact points, according to the study. Other segments, such as hospitality and consulting, offer an average of three integrated channels.

The service channels seen more frequently in Brazil are e-mail, website, phone, API, chat, Twitter, Facebook,mobile, SDK, SMS and others. According to the study, e-mail is still the the most significant channel, representing 43 percent of consumer requests, followed by API platforms, websites, chat and Facebook.

"Brazil is a market that has enormous potential for digital transformation and it's currently going through a period in which it is developing in maturity," said managing director at Zendesk Brazil, Tatiana Piloto.

"Understanding that their customers should be at the center of the business and that they need to be served how and when they want and in the channel they want, without repetition or friction, will be crucial to us when it comes to raising the level of customer service in the country," Piloto added.

Overall revenue for Zendesk was $141.9 million for the quarter ended June 30, 2018. Total paid customer accounts reached 130,300, up 5,200 since the end of the first quarter, and up 22,900 year on year. For the full year, the company expects to report revenue in the range of $582 - 586 million.