Data Startup Launches Customer Retention ToolTuesday, February 5, 2013
Retention Sciences plans to go big – big data that is.
The startup, which graduated last year from accelerator MuckerLab’s spring class, has been building a business that uses data analytics to help e-commerce websites retain customers.
The company announced Tuesday that it has launched the Retention Score, a tool for letting its clients know how they’re faring at keeping customers.
Jerry Jao, co-founder and chief executive of Retention Science, said the Retention Score simplifies what can be a confusing process of keeping customers engaged.
“We got a lot of feedback from customers asking for us to just tell them how they’re doing,” he said. “They said, ‘let me know what I need to do and how to do it.’”
The Retention Score, which can be downloaded for free from the company’s website, analyzes customer churn rates, engagement, sentiment and repeat purchase rate.
Retention Science, which charges clients to license its technology for more accurately predicting customers’ purchasing habits, has worked with some large e-commerce companies.
Jao would not give specifics, but said the company has worked with a large American sports league, which can now predict with 75 percent accuracy when customers will stop paying for online video services.
Using Retention Science’s analytics, online retailers can decide when to send coupons to customers or when to pull back on email marketing.
Retention Science is one of the few companies in Los Angeles working in the data analytics space. Jao and co-founder Andrew Waage considered opening up offices in Silicon Valley, but ultimately settled in Los Angeles to take part in MuckerLab’s first class.
“I think we are very uniquely positioned because there aren’t as many data companies in Los Angeles,” Jao said. “I’m very excited about being a very technical company here."
Retention Science raised a round of seed funding after it graduated from MuckerLab last spring. Active angel investor Paige Craig is one of its backers.