Retention Science, a Santa Monica, Calif-based retention marketing firm, has raised $7 million in Series A financing. Upfront Ventures led the round with participation from investors that included Baroda Ventures, Forerunner Ventures and Mohr Davidow Ventures. In conjunction with the funding, the firm has appointed Greg Bettinelli of Upfront Ventures and Kirsten Green of Forerunner Ventures to its board of directors.
Santa Monica, Calif., Aug. 6, 2014 –Retention Science, a global leader in retention marketing, has secured $7 million in Series A financing, bringing its total funding to $9 million. Upfront Ventures led the oversubscribed round, with participation from existing investors Baroda Ventures, Forerunner Ventures and Mohr Davidow Ventures. Four strategic angel investors – Brian Lee, founder of The Honest Company, Michael Dubin, founder of Dollar Shave Club, Tamim Mourad, founder of PriceGrabber.com and eSalon.com and Andy Dunn, founder of Bonobos – also contributed to the round.
Additionally, Retention Science is adding e-commerce veteran and Upfront Ventures partner Greg Bettinelli and Forerunner Ventures founder Kirsten Green to its board of directors.
The new funds will be used by Retention Science to accelerate hiring with the intention of doubling its employee base by the end of the year. The company will also strengthen its sales and marketing team, a process that began with the recent hiring of Scott Schnaars, former general manager at Badgeville, as the company’s new head of global sales and marketing.
“I have witnessed firsthand the opportunity for even the world’s largest brands to better nurture their customer relationships and drive more and incremental business,” said Greg Bettinelli partner at Upfront Ventures and previously the CMO of HauteLook, a leading e-commerce business acquired by Nordstrom. “Retention Science provides powerful retention marketing solutions that deliver meaningful results, and I look forward to partnering with Jerry and his team to expand upon their strong market position.”
Using big data analytics and predictive algorithms, Retention Science’s retention marketing platform helps online retailers re-engage customers by profiling their behavior and creating timely and relevant retention campaigns for each individual, resulting in increased loyalty and customer lifetime value. The company’s clients have seen up to a 133 percent increase in customer spending as a result of their personalized retention campaigns.
“Customer retention often takes a back seat to acquisition, despite the fact that it costs more to attract new customers and keep them,” said Jerry Jao, CEO of Retention Science. “Knowing this, we have created a solution that keeps existing customers engaged and delivers tangible ROI through repeat sales, increased order value and stronger brand loyalty. Our success is validated by the fact that several of our clients asked to invest in Retention Science – they’ve seen the results and want to play a role in our future growth.”
The Series A financing builds upon a remarkable year of growth for Retention Science, which expanded its client-base six fold, added several marquee retail clients and made significant product enhancements. With a team that’s 70 percent comprised of world-class engineers and data scientists, Retention Science is able to stay on the forefront of predictive technology and consistently deliver innovations that empower its clients.
Fast Company magazine has recognized Jao as an Innovation Agent, and Ernst & Young named co-founder Andrew Waage an Entrepreneur of the Year Rising Star.
About Retention Science
Retention Science is a leader and innovator in retention marketing, delivering increased order value and frequency for online brands such as CafePress, Neiman Marcus, The Honest Company and Vitamin Shoppe. Retention Science is based in Santa Monica, Calif., and is backed by industry-leading investors, including Baroda Ventures, Double M Partners, Forerunner Ventures, Mohr Davidow Ventures, Mucker Capital, Pritzker Group and Upfront Ventures. For more information, visit www.retentionscience.com