Retention Science said Thursday that it has raised over $750,000 in funding from Forerunner Ventures. According to the company, the capital will be used for product development and to expand its sales teams. In conjunction with the funding, Kirsten Green, founding partner of Forerunner Ventures, will join Retention Science’s board of directors. Based in Santa Monica, Calif., Retention Science is a provider of big data analytics for online retailers.
Retention Science Receives Additional Funding from Forerunner Ventures to Keep Pace with Rapidly Growing Demand
On the heels of several major customer wins and rampant demand for its customer retention platform, Retention Science, a company using big data to help online retailers maximize customer lifetime value and retention, has raised additional funding from Forerunner Ventures, an early-stage venture capital firm specializing in digital commerce. The new funds, totaling more than $750,000, are in addition to the company’s July 2012 $1.3 million seed round led by Baroda Ventures.
The new financing will enable Retention Science to immediately expand its product development and sales teams. Retention Science’s customer retention platform uses big data to analyze and predict consumer behaviors and, based on this data, creates personalized campaigns to help online retailers re-engage customers. Customer retention is an unsung hero of the retailing world, as research shows 80 percent of future profits will come from 20 percent of existing customers. Existing Retention Science customers, such as CafePress, The Honest Company, Chrome Industries and multiple recognizable national retailers, have seen up to 133 percent increases in customer spending and 15 percent in business margin improvements.
“After receiving and evaluating over 20 inbound requests from potential investors, we decided to partner with Forerunner – based on its unparalleled expertise in the e-commerce space and early investments in successful companies like Birchbox, Warby Parker and Bonobos,” said Jerry Jao, CEO of Retention Science. “Forerunner has the knowledge and expertise to help us scale quickly, ensuring we can effectively capitalize on the enormous opportunity in front of us and solidify our position as the leader in customer retention and big data for retail.”
Kirsten Green, founding partner of Forerunner Ventures, will join Retention Science’s board of directors. Green, who was featured in the 2013 Forbes Midas List Hot Prospect, has supported and invested capital in excess of $50 million in dozens of innovative product and commerce companies. Before founding Forerunner Ventures, Green worked at Banc of America Securities (Montgomery Securities), covering the specialty retail sector.
“We look for companies that are poised to disrupt, advance and transform the digital commerce experience, and Retention Science hits that high bar,” said Green. “Never before have retailers had such insight into what consumers want, how they want it and when they want it. Retention Science is leveraging this information to ensure online retailers keep their customers coming back, as repeat customers spend an average of 33 percent more than existing ones. This degree of tangible ROI is hard to come by in the world of digital commerce.”
About Retention Science
Retention Science is the first Retention Automation Platform that turns Big Data analytics and predictive algorithms into actionable retention marketing campaigns. Its Customer Profiling Engine analyzes the customer lifecycle and optimizes the time periods to re-engage customers with individually-tailored offers. Based in Santa Monica, Retention Science is named a Top 10 new Big Data company by CRN, a Top 10 Software Company in Southern California by SocalTech and an “Innovation Agent” by Fast Company.