Experience management software giant Qualtrics has acquired Usermind, a Seattle-based marketing startup that helps businesses acquire, retain and serve customers.
Founded in 2013, Usermind is a market leader in Journey Orchestration, which includes companies that help clients analyze customer relationships and facilitate relevant personalized communication.
Qualtrics is somewhat similar. Businesses use its platform to collect data on how customers, employees and others perceive their products and services, taking action based on the results.
Qualtrics went public in January and raised $ 1.55 billion, more than two years after its $ 8 billion acquisition from SAP. It will use Usermind to strengthen its “Qualtrics XM Directory” which tracks customer interactions.
Usermind has around 40 employees, according to LinkedIn.
“We created Usermind because we believe businesses need to know exactly where customers are on their journey, know when things go wrong, and be able to proactively guide customers to the best possible experience,” said Michel Feaster, CEO of Usermind, in a blog post.
Qualtrics is headquartered in Seattle, where it has approximately 800 of its 3,300 employees, and had sales of $ 763 million in 2020.
Feaster noted that “like us, they believe that building legendary software companies outside of Silicon Valley is essential to spreading economic opportunities more widely across the United States.”
The deal, announced on Tuesday, marks the final chapter in what has been a bit of a roller coaster for Usermind in recent years. The company laid off 15 employees (25% of its staff) in March at the start of last year’s pandemic. But then demand grew as businesses accelerated their digital adoption. Usermind raised $ 14 million in January to support its growth.
“Tracking customer satisfaction every moment, across every channel, has evolved from a best practice to a core capability as businesses innovate digitally to survive,” said Feaster.
The deal is also part of a hot market for IPOs, venture capital and acquisitions in the tech industry and in Seattle.
Usermind had raised a total of $ 60 million from investors such as WestRiver Group, Andreessen Horowitz, Menlo Ventures, Charles River Ventures and others.
Feaster co-founded the startup eight years ago with Przemek Pardyak, who left the company in 2016 and is now at Google. Feaster previously worked at Apptio and HP Software.