Brightback, a startup offering customer retention automation software to subscription businesses, has been launched with $11 million in Series A funding.
The funding round was led by Index Ventures, and included participation from existing investors Point Nine Capital, Matrix Partners, and Rembrandt Venture Partners.
The firm’s automation capabilities can fuel email alerts that can lead to a better customer experience, and drive reports that tag intent to leave, it says.
“Businesses aren't sharing that they typically see 30% to 60% of their customers cancel every year, which is eating away at growth,” states Guy Marion, CEO and co-founder of Brightback.
Marion says Brightback can help firms avoid “the acquisition-at-all-costs mentality” and put the focus on retention. He is a veteran of such software-as-a-service companies like Zendesk and Autopilot.
According to Brightback, the system components include: Personalized cancel experiences based on product usage or data insights; customer segmentation and automation and integration with customer engagement tools such as support tickets in Zendesk, live chats in Intercom and enriched Slack; and dashboards and reports that will help managers engage accounts based on intent to cancel, the reason for leaving, and the competitor.
In addition, Brightback’s software flags customers who intend to cancel and those who signal concern but have not yet left. It then intervenes automatically with targeted and contextual experiences, it says.
Pilot customers approve of the new service.
“With Brightback, we deflect one in four cancellation requests,” states Suneet Bhatt, general manager at Crazy Egg. “More powerfully, we segmented all churn events and found that 40% are preventable.”