MoEngage, an AI customer engagement platform, today announced it has raised $32.5 million in a round led by Multiples Alternate Asset Management, with participation from Eight Roads Ventures, F-Prime Capital, and Matrix Partners. The San Francisco-based company says the new capital, which brings its total raised to over $72 million, will be used to support its global growth strategy and strengthen its AI and predictive capabilities.
Generally speaking, a positive customer experience translates to high customer spend. Eighty-six percent of buyers are willing to pay more for a great customer experience, according to one source. In fact, the Temkin Group found companies that earn $1 billion annually can expect to yield, on average, an additional $700 million within three years of investing in customer experience. Software-as-a-service providers, in particular, can anticipate a revenue uptick of around $1 billion.
Founded in 2014 by Raviteja Dodda and Yashwanth Kumar, MoEngage is an “insights-led” customer engagement platform that enables personalization across channels, including mobile push, email, SMS, web push, on-site messaging, in-app messaging, cards, and connectors to other technologies. Leveraging AI-powered automation and optimization, the platform aims to help brands analyze audience behavior and engage consumers with communication at multiple touchpoints.
AI-powered customer engagement
MoEngage can map the steps in a customer’s journey and identify where they might be dropping off down to the demographic, location, device type, and acquisition channel level. An AI-driven segmentation engine automatically splits customers into micro-groups based on their preferences, behavior, demographics, interests, transactions, and more, identifying customers most likely to respond to promotions. Using MoEngage, companies can automate, create, and visualize customer lifecycle campaigns and workflows that use email, text, push notifications, WhatsApp, and retargeting channels. Beyond this, they can let the platform’s AI engine automatically identify the right message — as well as the right time to send it.
MoEngage competes with a number of companies looking to inject customer engagement with AI and machine learning. 6Sense, for example, captures intent signals from known and anonymous sources, including the web, creating customer segments by account, behavioral intent, or a combination of those factors. Meanwhile, Punchh integrates with existing point-of-sale and ecommerce systems, employing AI to generate targeted marketing campaigns and offers with the goal of promoting loyalty.
Marketers now see automation as essential to bolstering the outreach of campaigns, in part because of its ability to better target customer communications. According to a recent HubSpot survey, email automation campaigns are among the top three tactics used by marketers to improve performance. And in 2017, Salesforce reported that 67% of sales leaders used a marketing automation platform.
MoEngage, which has a workforce of more than 375 people, says its platform is currently processing over 1 trillion data points, 50 billion messages, and 1 billion emails per month. Notable clients include McAfee, Nestle, Domino’s, Deutsche Telekom, Travelodge, and Ally Financial. The company claims its customer base and recurring revenue doubled in the last 12 months and that business growth in the U.S. and Europe tripled in the first half of 2021 compared with the second half of 2020. After adding over 250 new customers in the past year, MoEngage plans to open offices in New York City and Boston sometime this year.
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