The Transform Technology Summits start October 13th with Low-Code/No Code: Enabling Enterprise Agility. Register now!
Optimove, a customer relationship management (CRM) software provider, today announced that it raised $75 million in a funding round led by Summit Partners with participation from existing investors. The company says the capital will be put toward supporting strategic mergers and acquisitions, product R&D, and hiring, with the goal of doubling the company’s 180-person headcount over the next two years.
CRM software is among the biggest software market in the world — and the growth isn’t slowing down. According to Globe Newswire, the CRM industry is anticipated to be worth $113.46 billion by 2027. A LinkedIn survey found that 65% of enterprise sales professionals use a CRM, and 97% consider the sales technology “very important” or “important.” Reasons for the increasing adoption include meeting scheduling, content delivery, and contract generation automation.
Optimove, which was founded in 2012 by Pini Yakuel, develops CRM software primarily for business-to-consumer brands. The company’s platform leverages AI to discover customer segments and orchestrate CRM journeys, facilitating the management of marketing communications with up to hundreds of segments.
“The pandemic has accelerated digital consumption, resulting in more consumers buying online, more businesses offering goods online, and decreased customer loyalty,” CEO Yakuel told VentureBeat via email. “This further inflated customer acquisition costs, growing brands’ urgency to invest in their existing customers to foster loyalty and grow customer engagement. These changes have positioned Optimove as the ideal solution for brands who are looking to scale their investment in their customers and their CRM marketing operation.”
Optimove employs AI models to organize customers into “microsegments” and monitor their migration between microsegments as their behaviors change. Using these models, Optimove customers can forecast customer future value and the likelihood to convert or churn, as well as the impact of interactions they have with the brand.
“At any given time, each customer is eligible for several campaigns. For example, it might be their birthday week, they just returned an order, and they also qualify for a discount on items from the new season’s collection,” Yakuel said. “Optimove evaluates which campaign the customer is eligible for and serves the customer that campaign, via the channels that they’re most likely to respond through.”
Optimove claims that its software is used by more than 2,200 marketers from over 500 brands in ecommerce, gaming, retail, quick service restaurant, telecommunications, and financial services segments. The company, which has offices across Tel Aviv, New York, and London, grew revenue 40% over the the past year.
“The modern customer doesn’t tolerate mass marketing. They don’t look to get direct value from any interaction they have with a brand,” Yakuel said. “To meet such demanding expectations, brands must have the ability to scale their personalized communications and manage a framework of thousands of campaigns delivered to hundreds of customer segments. Brands challenge to scale to such volume, and that is where Optimove comes in — helping marketers get access to their customer data, build campaigns and segments, and send them via email, mobile, and other marketing channels, all while AI assures each customer receives the optimal treatment in terms of impact on their customer lifetime value.”
Optimove has raised $95 million in venture capital to date, following a $20 million series A that closed in 2016.
VentureBeat’s mission is to be a digital town square for technical decision-makers to gain knowledge about transformative technology and transact.
Our site delivers essential information on data technologies and strategies to guide you as you lead your organizations. We invite you to become a member of our community, to access:
- up-to-date information on the subjects of interest to you
- our newsletters
- gated thought-leader content and discounted access to our prized events, such as Transform 2021: Learn More
- networking features, and more