Ecommerce optimization company Granify has raised $1.5 million in seed funding to reduce shopping cart abandonment on big retailers’ sites.
Granify uses big data analysis — and what it calls artificial intelligence — to identify the danger points for retailers when customers are about to leave a transaction, and offers contextually-relevant messages and offers when it appears that the retailer might be about to lose a sale.
“We’re able to analyze the entire firehose of data — over 400 data points per second — to determine which shoppers won’t buy, the reason and how to change their mind,” said Jeff Lawrence, co- founder & CEO of Granify. “Most online stores … analyze only a handful of data points about shoppers … after they’ve already left your site.”
For instance, a free shipping offer might entice a buyer to consummate a purchase that otherwise he or she wouldn’t. This helps online stores “earn significantly more money,” Granify promises. And, at a significantly lower cost than it would take to develop similar technology in-house.
Editor’s note: Our upcoming DataBeat/Data Science Summit, Dec. 4-Dec. 5 in Redwood City, will focus on the most compelling opportunities for businesses in the area of big data analytics and data science. Register today!
“Granify is empowering every e-commerce company to achieve the same conversion performance as the Amazons of the world,” Kevin Swan, principal at one of the investors, iNovia Capital, said in a statement.
The young startup is already processing 5.3 billion data points a month, apparently.
Interestingly, it offers essentially a money-back guarantee — the company has a pay-for-performance revenue model and offers a two-week free trial period for testing.
“Granify is solving a key problem for a trillion dollar industry. They have pent up demand for their product, are already driving a ton of value for their customers and this is just the tip of the iceberg,” said James Fitzgerald, a partner at Valar Ventures, and a Granify investor.
Investors include Peter Thiel’s Valar Ventures, BDC, Extreme Startups, and numerous angel investors. Granify is based in Edmonton, Alberta.
VentureBeat’s VB Insight team is studying marketing and personalization...
Chime in here, and we’ll share the results