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January 22, 2014 05:30 pm GMT

Intercom Raises Another $23M For Its New, More Social Approach To CRM

Screen Shot 2014-01-22 at 12.06.07Intercom, a platform for companies to provide personalised customer responses online, is today announcing that it has raised another $23 million — funding that it will use to continue to develop its product and expand its marketing to compete against bigger players like Oracle, SAP and Salesforce (the behemoth that even uses ‘CRM’ as its stock ticker on the NYSE). The Series B round was led by Bessemer Venture Partners, and includes participation from previous investorsSocial+Capital Partnership. The company, which was originally incubated at 500 Startups, also counts the likes of Biz Stone and Huddle co-founderAndy McLoughlin as investors. This round brings the total raised by Intercom to $30 million. Intercom is among a new wave of companies that are generally called “social CRM” providers. The idea here is that everyone in your organisation should be able to communicate his/her knowledge to customers when and if it is needed. The theory is that thismeans not only better engagement from your employees in the bigger team effort, but also more satisfying responses for users. The evolution of CRM comes at a time of growth but also maturation of the internet: consumers expect better and more personalised responses. It’s a space ripe for change, saysIntercom’s co-founder and CEOEoghan McCabe (who hails, along with the other three co-founders, from Dublin), but it also speaks to a wider trend we’re experiencing, where innovation is happening not at the core of prodcuts, but around how they are delivered. (You could argue that the same is happening in areas like mobile technology, too, where we are seeing more incremental rather than massive shifts at the moment.) “CRM companieshaven’t innovated in over ten years. Many of them are just ticketing systems. But what’s happening is that customer service is at the leading edge of great competitive online businesses,” he tells me. “In past, leadership was based on top engineering and good design. But today, the real leaders are those like Zappos people spend more there because they know they get to deal with a human.” Since coming out of beta 18 months ago, Intercom has picked up 2,000 paying businesses, among them Heroku, Hootsuite, Yahoo!, Perfect Audience, Rackspace, and Visual.ly.

Original Link: http://feedproxy.google.com/~r/Techcrunch/~3/7sYA2woTwYU/

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