Optimove, a provider of customer relationship management (CRM) software, announced today that it has raised $75 million in a fundraising round headed by Summit Partners, with existing investors participating.
The funds will be used to support strategic mergers and acquisitions, product R&D, and hiring, with the goal of doubling the business’s 180-person headcount in the next two years, according to the company.
CRM software is one of the world’s largest software markets, with no signs of slowing down. The CRM sector is expected to be valued at $113.46 billion by 2027, according to Globe Newswire. According to a LinkedIn survey, 65 percent of enterprise sales professionals use a CRM, and 97 percent think it’s “extremely important” or “important.” Meeting schedules, content delivery, and contract generating automation are all reasons for increased adoption.
Pini Yakuel created Optimove in 2012 to provide CRM software primarily for business-to-consumer firms. The company’s software uses artificial intelligence to detect customer segments and arrange CRM journeys, making marketing communications with hundreds of segments easier to handle.
“The pandemic has increased digital consumption, leading in more people shopping online, more firms offering things online, and lower customer loyalty,” said CEO Yakuel in an email to VentureBeat. “This increased the desire for firms to invest in their existing customers in order to build loyalty and increase customer engagement. Optimove has been positioned as the right option for organizations wishing to scale their investment in their customers and CRM marketing operations as a result of these changes.”
Science of data
Customers are divided into “microsegments” by Optimove, which uses AI models to track their movement across microsegments as their behaviors change. Customers of Optimove may anticipate future value and the possibility of conversion or churn, as well as the impact of interactions with the brand, using these models.
“Each consumer is eligible for many campaigns at any one moment. It may be their birthday week, they’ve recently returned order, and they’re also eligible for a discount on products from the new season’s collection,” Yakuel explained. “Optimove determines which campaign the client is eligible for and serves that campaign to the customer through the channels that are available.
More than 2,200 marketers from over 500 businesses utilize Optimove’s software in the eCommerce, gaming, retail, quick service restaurant, telecoms, and financial services areas, according to the company. The company, which has offices in Tel Aviv, New York, and London, increased its sales by 40% in the previous year.
“Today’s customer isn’t tolerant of mass marketing. They don’t expect direct value from any engagement with a brand, according to Yakuel. “To satisfy these high standards, organizations must be able to expand their tailored communications and manage a framework of thousands of ads sent to hundreds of client segments. Optimove assists marketers in gaining access to their customer data, creating campaigns and segments, and sending them via email, mobile, and other marketing channels, all while AI ensures that each customer receives the best treatment in terms of impact on their customer lifetime value.”
Following a $20 million series A round in 2016, Optimove has raised a total of $95 million in venture funding.
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