3Commas, Koos, Jobbatical and now Klaus! Estonian startups are on fire this September in terms of grabbing some good funding rounds!
Klaus is an AI-powered platform aimed at putting an end to poor customer service, has raised €12M in Series A equity funding led by Acton Capital. Previous investors Icebreaker, Creandum, and Global Founders Capital participated in the round.
95% of consumers, according to research commissioned by Microsoft, believe that brand loyalty depends on customer service, and more than 60% say they have abandoned a brand in favour of a rival due to subpar service. The effects of bad service on a company can be catastrophic because customer reviews are becoming more and more crucial for sales. Over a million conversations are routinely handled by 2,000 or more agents in large companies with omnichannel contact centres. The vast majority of customer conversations are a black hole due to the sheer volume, making it nearly impossible to get a true overview. It takes a lot of time to review even 1% of all interactions using manual review processes.
Estonia-based Klaus has attracted global enterprise customers, including household names like Glovo, SoundCloud, and Epic Games. The new round of funding will allow Klaus to focus more on product and engineering teams while also expanding into sales and marketing.
The Tallinn-headquartered company was founded in 2017 by co-founders Martin Kõiva and Kair Käsper in response to a pain point they encountered while working together at Pipedrive, a leading CRM startup. While Kõiva was the Global Head of Customer Support at Pipedrive, Käsper was the Director of Product Marketing.
How does it function?
The AI-powered review automation platform analyses and covers all customer interactions. It generates insights that can be relied on to bring radical service improvements to large and growing organisations that are struggling to maintain consistent service quality. Klaus is currently analysing over two million conversations per day from its customers, the majority of whom are large corporations.
It organises this data into searchable, trackable information, bringing relevant highlights to light before they become problems. Klaus’ user interface is highly customizable, industry-agnostic, and is delivered via a cloud-based SaaS model. Klaus’ offering has always included ‘feedback scorecards’ that rate and track conversation quality.
Martin Kõiva, co-founder and CEO of Klaus, said, “The Series A funding means we can now scale our growth to the next level. To do that, we are seeking the best sales and marketing talent as well as adding to our team of PhD’d, data-science aces. As we hope to almost double our team in the next six months, we are excited that we have the resources to really find the best people.”
Kair Käsper, co-founder and CRO of Klaus, said, “We started with a simple idea that great conversations can turn customer service into a core revenue driver. We’ve now seen first hand how hundreds of Klaus’ customers have dramatically improved customer satisfaction scores (CSAT) and lowered first contact resolution times resulting in higher referral rates and more repeat business.”
Julius Lühr of Acton Capital, the lead investor in this current series A round, said, “Especially in times of rising customer acquisition costs across the board, a loyal customer base sets the best companies apart in every industry. Klaus has developed the perfect tool to help companies stop flying blind and implement strategic customer support as a core differentiator. Emerging from Estonia, Klaus’ beautiful yet uniquely powerful product shares the DNA of the region’s great success stories.”
All of the popular contact centre platforms, including Zendesk, Salesforce, and Intercom, are supported by the software. It collects every text and audio customer interaction, considers dozens of potentially problematic factors, and identifies all outlier conversations that require further investigation. These conversations may be longer than most, contain a negative tone of voice, or depict a customer waiting for an extended period of time. Because Klaus examines the entire data set rather than random anomalies that may or may not be indicative of a trend, structured feedback enables managers to provide useful support to their agents, even for the most complex customer contact operations.