Ragy Thomas: Got it. Got it. Got it. We I don’t know when and what to expect in reality. So we have two sets of buyers, right? We have a set of buyers that is used as to social customer service and is expanding to digital maybe as a next step. We have a bunch of those. The exciting development there, Michael, is our conversational AI capability. And that’s becoming really, really good. And so, and it’s becoming more human-like. I’m not going to name the customer, but we have one customer where are bought and a case that’s closed by a bot as a higher NPS than a case that’s closed by a human. So I think that speaks to the progress we’ve made in technology. So that’s sort of the Class A digital customer service and mitigation of direction and call volume, when it just saves you money.
And the other one is where we are actually in a CCaaS replacement RFP. I can tell you this is anecdotally because we don’t have enough data to be specific here. Our win rate when we are seriously considered is pretty high. And you have this, no one ever got fired for buying IBM syndrome is the only reason why someone sees it and believes it and test it and kind of maybe says, I’m going to give it more time. So we know we have a very differentiated product. We know that the opportunities we are in, we’re seeing very good win rates. We have to develop that muscle across the company. And that muscle development takes time. The good news is the parts of the world where that muscle seems to have developed quickly, either through hiring salespeople who have been at other CCaaS companies or leaders embracing CCaaS.
They’re doing really well. And so it’s inconsistent at this point across the company. And one of our big goals for next year is to make that really consistent around the world.
Michael Berg: Helpful. Thank you.
Ragy Thomas: Thank you, Michael.
Operator: Question comes from the line of Michael Turits with KeyBanc Capital Markets. Please proceed with your question.
Michael Vidovic: Hi, this is Michael Vidovic on for Michael Turits. Thanks for taking my question. On the headwinds you talked about seeing this quarter with the over rotation on the downsell pressure. I guess, were you not seeing those same dynamics in Q2 and Q3 and like a similar frequency? Or is that still relatively new for this quarter? Thanks.
Ragy Thomas: It’s kind of consistent, right? But because as Manish said, we have a much bigger base coming up in Q4. So we’re not seeing the macro environment get better or get worse, and so I wouldn’t characterize it something changed in Q4.
Manish Sarin: Yeah. So let me clarify that. I think what Ragy is getting at is the level of downsells that we are beginning or we saw in Q3 and then we expect here in Q4 is much sharper than what we saw in the first half of the year. But to also add to what he said, when we look at the, how the sales teams were organized, of course, a lot of this was things that we had wanted to do in terms of our focus on CCaaS, which was very successful. But I think that whole sequence of moving the sales teams around, we probably didn’t see at least till now that we were not getting the level of market momentum in our core products or traction in the core products that we should have had. So I think that’s a bit of a new element.
Ragy Thomas: But I would, again, to reconcile the two, right? The macro, we don’t think is what’s changing. It’s really our over-rotation that’s causing the change that, where Manish as articulated.
Michael Vidovic: Great. And then just on that over rotation you called out, I guess, how significant on like a dollar or a resource standpoint? Are you reallocating away from CCaaS. I guess I’m just trying to figure out, are you far enough along in the CCaaS expansion or growth that you can continue to like push into that market and grow the business despite that reallocation?
Manish Sarin: I think the short answer is, yes. We have had several quarters here of looking at not just win rates, but the go-to-market model for CCaaS, what is working in the market as Ragy was mentioning earlier, we’ve been successful in onboarding partners in that segment. So we now have I’d say, enough of a science around what it’s going to take for us to succeed in that segment. And I think this would be the appropriate time for us to refocus on all of our product suites, not just CCaaS.
Ragy Thomas: And I would just say, though, I would, again, give ourselves the explanation for all of this is we’ll probably need another quarter or two before the partner enablement, the scaling of that completely new product suite is just brought to the world, right? So now we’re implementing these early partners working with that. So it’s just, we’re in the process of templatizing it and being able to do it with much less heavy lifting.
Michael Vidovic: Great. Thanks guys.
Operator: [Operator Instructions] Our next question comes from the line of Brian Schwartz with Oppenheimer. Please proceed with your question.
Ari Friedman: Hey, this is Ari Friedman sitting in for Brian Schwartz. Thanks for taking my question. I’m just wondering like in the quarter, if you saw any strength in certain verticals or weakness? Our research suggests that there’s been like some softness in like insurance and auto and tax and financials. Wondering if you’re seeing the same thing or something different? Thanks.
Ragy Thomas: I mean I don’t think there’s anything super noticeable. If you like want to interpret it a certain way, I’d say maybe the media sector, right, media publishing channels who have been customers, we’re seeing some sort of — can interpret that there’s some extra softness there. There’s been the streaming wars that have been going on has come down. So these social networks are in a very different place than they used to be, and as you know, there are some, these are all like onetime things that we, for us, it’s just unfortunately, timing they’re coming together at the same time. But I’d say that’s probably one way to interpret it.
Ari Friedman: Yeah, thank you. That’s very helpful.
Ragy Thomas: Yeah. Thank you.
Operator: Thank you. Our next question comes from the line of Austin Cole with JMP Securities. Please proceed with your question.
