AI-driven voice assistant PolyAI raises $14M round led by Khosla Ventures

“Conversational AI” startup PolyAI, based out of London, has raised $14 million in a funding round led by Silicon Valley’s Khosla Ventures, with participation from existing investors (Point72 Ventures, Amadeus Capital, Sands Capital Ventures, Passion Capital and Entrepreneur First). This follows their $12m Series A, and will provide resources for further US expansion beyond its existing US team. The startup has now raised $28m to date.

PolyAI builds and deploys voice assistants for automating customer services, which, claims the startup, sound like real humans. This helps companies get an infinite and cheaper supply of their best human voice operators, which reduces customer waiting times, and increases customer satisfaction and retention, says the company.

Co-founder Dr Nikola Mrkšić said: “The technical term for our technology is ‘multi-turn conversational AI’, but all the caller has to do is talk to it, like they would to a human. Compared to existing call centers, our assistants can boost customer satisfaction (CSAT) scores by up to 40% and reduce handling times by up to five minutes.”

“We build these systems very quickly (relative to the competition) — we get experiences like these up and running in 2-4 weeks thanks to our transformer-based language understanding models and the underlying dialog management platform,” he added.

In a statement, Vinod Khosla said: “PolyAI is one of the first AI companies using the newest generation of large pre-trained deep learning models (akin to BERT and GPT-3) in a real-world enterprise product. This means they can deploy automated AI agents in as little as two weeks, where incumbent providers of voice assistants would take up to six months to deploy an older version of this technology.”

A spinout from the University of Cambridge, PolyAI says it is is effectively ’pushing at an open door’ as the pandemic has led to staffing shortages in call centers, driving more companies to deploy smart voice assistants, which appear not to have been replaced chatbots at all, as consumer generally prefer to speak than type.

“We were expecting the system to handle 40% of calls, but at launch it handled 80%, and within two weeks it was up to 87%,” said Brian Jeppesen of Landry’s Golden Nugget Hotels & Casinos. “Callers think the AI agent is human”, Jeppesen continued, “which is great because the voice assistant never has a bad day, and is on 24/7. I wish I could hire more agents like that!”

Competitors include Nuance (recently acquired by Microsoft), IPSoft, Interactions, SmartAction, and Replicant. But PolyAI says its voice assistant can be turned live more quickly, in more languages, and charges on a per-minute basis.

Founded by Nikola Mrkšić (CEO), Tsung-Hsien Wen (CTO), Pei-Hao Su (Engineering Director), the three met while doing PhDs with Professor Steve Young, a leader in spoken dialog systems who pioneered many technologies that underpin voice assistants like Siri, Google Assistant, and Alexa.

Recent PolyAI clients include Landry’s Entertainment, Greene King, Starling Bank, and Viasat. 

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Customer experience startup Clootrack raises $4M, helps brands see through their customers’ eyes

Getting inside the mind of customers is a challenge as behaviors and demands shift, but Clootrack believes it has cracked the code in helping brands figure out how to do that.

It announced $4 million in Series A funding, led by Inventus Capital India, and included existing investors Unicorn India Ventures, IAN Fund and Salamander Excubator Angel Fund, as well as individual investment from Jiffy.ai CEO Babu Sivadasan. In total, the company raised $4.6 million, co-founder Shameel Abdulla told TechCrunch.

Clootrack is a real-time customer experience analytics platform that helps brands understand why customers stay or churn. Shameel Abdulla and Subbakrishna Rao, who both come from IT backgrounds, founded the company in 2017 after meeting years prior at Jiffstore, Abdulla’s second company that was acquired in 2015.

Clootrack team. Image Credits: Clootrack

Business-to-consumer and consumer brands often use customer satisfaction metrics like Net Promoter Score to understand the customer experience, but Abdulla said current methods don’t provide the “why” of those experiences and are slow, expensive and error-prone.

“The number of channels has increased, which means customers are talking to you, expressing their feedback and what they think in multiple places,” he added. “Word of mouth has gone digital, and you basically have to master the art of selling online.”

Clootrack turns the customer experience data from all of those first-party and third-party touchpoints — website feedback, chat bots, etc. — into granular, qualitative insights that give brands a look at drivers of the experience in hours rather than months so that they can stay on top of fast-moving trends.

Abdulla points to data that show a customer’s biggest driver of brand switch is the experience they receive. And, that if brands can reduce churns by 5%, they could be looking at an increase in profits of between 25% and 95%.

Most of the new funding will go to product development so that all data aggregations are gathered from all possible touchpoints. His ultimate goal is to be “the single platform for B2C firms.”

The company is currently working with over 150 customers in the areas of retail, direct-to-consumer, banking, automotive, travel and mobile app-based services. It is growing nine times year over year in revenue. It is mainly operating in India, but Clootrack is also onboarding companies in the U.S. and Europe.

Parag Dhol, managing director of Inventus, said he has known Abdulla for over five years. He had looked at one of Abdulla’s companies for investment, but had decided against it due to his firm being a Series A investor.

Dhol said market research needs an overhaul in India, where this type of technology is lagging behind the U.S.

“Clootrack has a very complementary team with Shameel being a complete CEO in terms of being a sales guy and serial entrepreneur who has learned his lessons, and Subbu, who is good at technology,” he added. “As CMOs realize the value in their unstructured data inside of their own database of the customer reviews and move to real-time feedback, these guys could make a serious dent in the space.”

 

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4 proven approaches to CX strategy that make customers feel loved

Customers have been “experiencing” business since the ancient Romans browsed the Forum for produce, pottery and leather goods. But digitization has radically recalibrated the buyer-seller dynamic, fueling the rise of one of the most talked-about industry acronyms: CX (customer experience).

Part paradigm, part category and part multibillion-dollar market, CX is a broad term used across a myriad of contexts. But great CX boils down to delighting every customer on an emotional level, anytime and anywhere a business interaction takes place.

Great CX boils down to delighting every customer on an emotional level, anytime and anywhere a business interaction takes place.

Optimizing CX requires a sophisticated tool stack. Customer behavior should be tracked, their needs must be understood, and opportunities to engage proactively must be identified. Wall Street, for one, is taking note: Qualtrics, the creator of “XM” (experience management) as a category, was spun-out from SAP and IPO’d in January, and Sprinklr, a social media listening solution that has expanded into a “Digital CXM” platform, recently filed to go public.

Thinking critically about customer experience is hardly a new concept, but a few factors are spurring an inflection point in investment by enterprises and VCs.

Firstly, brands are now expected to create a consistent, cohesive experience across multiple channels, both online and offline, with an ever-increasing focus on the former. Customer experience and the digital customer experience are rapidly becoming synonymous.

The sheer volume of customer data has also reached new heights. As a McKinsey report put it, “Today, companies can regularly, lawfully, and seamlessly collect smartphone and interaction data from across their customer, financial, and operations systems, yielding deep insights about their customers … These companies can better understand their interactions with customers and even preempt problems in customer journeys. Their customers are reaping benefits: Think quick compensation for a flight delay, or outreach from an insurance company when a patient is having trouble resolving a problem.”

Moreover, the app economy continues to raise the bar on user experience, and end users have less patience than ever before. Each time Netflix displays just the right movie, Instagram recommends just the right shoes, or TikTok plays just the right dog video, people are being trained to demand just a bit more magic.

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