British mathematician Clive Humby is famous for exclaiming, "data is the new oil". Humby was clearly on to something. As we've seen the growth in the technology industry over the past few decades, reams of data have been created for brands to harness.
Sprinklr Inc (CXM -0.59%), is one of the more recent nods at Professor Humby’s claim. Sprinklr specializes in digital data analysis and offers actionable insights for its customers. In other words, Sprinklr provides a way for companies to better harness their data and meet customers where they are with a better experience. Sprinkler recently IPOed with a $4 billion valuation, is the stock worth investing in?
What exactly does Sprinklr do?
When you think of customer experience management ("CXM"), most people think about long cell phone waits and poor service quality. While this is a major pain point that Sprinklr sets out to fix, improving business-to-customer service is only a part of its story.
Sprinklr offers four main products: Modern Research, Modern Care, Modern Sales & Engagement, and Modern Marketing. Modern Research takes us back to our very first quote. Sprinklr uses AI and machine learning to analyze petabytes of information across all major social media channels. This proprietary tech specializes in converting data into actionable insights for Sprinklr’s clients, which include over half of the Fortune 100.
Modern Care is the umbrella for things like improving customer calls, chats, question automation, and other touchpoints to reduce headaches for both customers and the company. As a unified platform, Sprinklr can leverage these Modern Care services to create a complete view of channels (social media platforms), content, and strategies that make unique, actionable insights that other CXM firms lack.
Modern Sales and Engagement and Modern Marketing go hand in hand. These products allow Sprinklr’s customers to engage with their customers as effectively as possible and with personalized ads. Here again, Sprinklr leverages its research wing to listen and learn from the market and customers in real-time to create the most impactful campaigns.
Simply put, Sprinklr extracts and synthesis data into actionable insights that feed into its toolkit of CXM offerings. From automating Twitter responses to selecting the most appropriate website to market on, Sprinklr lets companies do it all.
Image Source: Getty Images.
The value proposition for customers
Sprinklr is pioneering unified customer experience management in a highly fragmented industry. Traditionally, the market has consisted of siloed “point-solutions” that help with only one part of the problem. By offering an all-in-one solution, Sprinklr attempts to reduce massive headaches and excessive spending that comes from integrating dozens of companies into your tech stack. Unifying the back-end system streamlines a company's operations and leads to cost savings for Spriklr's corporate clients.
For the end-user, a more streamlined customer service operation generally results in a better customer experience. End-customers will be better served with quicker response times on inquiries and more ways to interact (phone, email, social media). Therefore, Sprinklr not only saves companies money but also improves their customer outcomes.
Is Sprinklr a buy?
Sprinklr has been succeeding in its mission to provide a new and more connected way for businesses to handle their customers, marketing, and the near-endless amount of data on the web. Sprinklr has been ramping up its marketing, spending nearly 60 cents on every dollar it makes trying to acquire new enterprise customers in the second quarter.
Investors should watch closely to see if Sprinklr is able to continue successfully acquiring customers, as this is critical for the companies success and justifying the stock's valuation. Overall Sprinklr looks like an attractive software company with solid growth prospects.
