I spoke with Verint and Vovici execs today about Verint’s acquisition of Vovici for an estimated $76 million. For those of you who don’t know these vendors, Verint provides workforce management, call recording, and analytical capabilities targeted at contact centers. Vovici is an Enterprise Feedback Management (EFM) vendor (I consider EFM an outdated term) that provides voice of the customer (VoC) software and services. It appears that Vovici will continue to operate somewhat independently as “A Verint Company.”
My take: First of all, kudos to Verint. It’s a good extension to its offering and the price tag seems fair (although I don’t get too involved in valuations). And, they can share all of the company towels that have a “V” monogram. 🙂 This is a natural evolution in the market, and is consistent with the M&A activity I’ve expected and have been writing about for a while. Here are some things that I think we can learn from this acquisition:
- The contact center is a VoC goldmine. There’s a ton of insights about customers that remain locked inside of contact centers. Companies can learn a lot by blending their contact center interactions into their voice of the customer programs.
- Unstructured data is critical. Vovici grew up as a survey vendor which is the heritage of most of the “EFM” firms. But there’s a ton of lost insight in unstructured content such as social media conversations, call center interactions, sales notes, etc. That’s why “unstructured data appreciation” is one of our 8 customer experience megatrends. Vovici will be able to tap into Verint’s voice analytics to offer compelling capabilities around things like mobile voice feedback.
- Look for a NICE next move. Verint’s largest competitor, Israel-based Nice Systems, needs to make a move. With a ton of “EFM” vendors around, there are a lot to choose from (including Allegiance, Medallia, Mindshare, and even another Israeli firm, Ransys, to name just a few of the many vendors).
- The big boys will awaken. Verint’s acquisition of a major player in this market will accelerate the moves by large software players such as SAP, Oracle, SAS, and IBM. I’ve discussed that this market was heading away from “EFM” vendors towards what I’ve called “Customer Insight And Action (CIA) Platforms.” These vendors are evolving into other categories like CRM, BI, analytics, contact center, and BPM in which much larger vendors play.
- Voice of the customer programs are evolving. All of these vendor moves will make it easier for companies to develop actionable insights from a variety of data sources. That’s why firms must continue to update and evolve their VoC programs.
The bottom line: This is the start of a busy M&A season.
P.S. Check out our Voice Of The Customer Topic Page