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.
“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.