Escale buys Cobmax, proving CX is more important than ever

Contxto – Customer acquisitions startup, Escale, acquired customer-acquiring Cobmax (say that three times fast) and made the announcement last Monday (25). While the parties did not disclose the value of the transaction, Escale’s co-Founder, Matthew Kligerman said it cost “a couple tens of millions of reais.”

• Related article: Escale lands a US$22.6 million deal co-led by QED and Invus

Sources at Valor state that the transaction was completed thanks to the investment round Brazilian Escale raised for US$22.6 million last year.

Escale wants to continue scaling customer experience

American-born Matt Kligerman and Ken Diamond co-founded Escale in 2014 as an SEO agency. But it’s evolved into a full marketing funnel platform.

Escale and its 400-person team use data analysis to generate sales leads, enhance the customer journey, and ultimately keep firms’ customer portfolios full.

The startup’s sweet spot is improving shopping experiences for telecom companies and health insurers. However, Escale has also been exploring expansions into other industries like education and finance.

Rightly so, there’s still a big place in the world for startups that make the customer experience (CX) a more memorable one.

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Market opportunity

If Covid-19 has taught us anything is that as humans, we crave meaningful interactions. Whether that’s when talking to a loved one via Zoom or reading a feel-good message on an e-commerce site is irrelevant. We’re increasingly drawn to businesses that appeal to our emotions and understand our specific needs. 

Because of this, customer experience is more important than ever. Businesses must connect with customers in an appealing way that goes beyond “buy my stuff.”

Scaling more with less

This same principle applies to the entrepreneurs who’ve ventured into their first online businesses, courtesy of Covid-19.

They too will have to adapt and find ways to generate sales and retain customers through great experiences. Although given their limited funds for hiring third-party marketing firms, startups that tender to this segment will find a large and untapped market.

The challenge is to develop tech that’s accessible enough for small business owners, but profitable enough for a startup. 

In any case, they help level the playing field for small-sized e-businsesses vis-à-vis large marketplaces.

Related articles: Tech and startups from Brazil!

-ML