Reflektion, an innovator in retail analytics, today announced that it raised $8 million in a Series B funding round led by Intel Capital as well as NIKE, Inc. and several private investors. Reflektion provides a predictive analytics platform for retailers and brands through a SaaS model. The company plans to use the funding to support its customers—including Converse, Inc., which is currently piloting the technology, O’Neill, A.M. Leonard and RealTruck—and to launch broadly its e-commerce and business intelligence solutions in the market. The resources will also be used for additional product development, plus expanded sales and marketing activities.
Reflektion’s platform detects trends and predicts in real-time what each customer is likely to buy next, enabling companies to drive significantly higher sales and customer engagement. Its cloud-based applications apply patented algorithms and technology that reduce computational overhead by hundreds of times. Its e-commerce solution enables immediate modeling at the individual level for real-time recommendations, visual site-search, responsive messaging, dynamic discounting and mobile optimization. As such, its e-commerce customers have achieved increases in sales conversion rates and customer acquisitions, especially with non-registered guests and anonymous visitors.
One of Reflektion’s first customers, beach clothing retailer O’Neill, began working with Reflektion in July 2013. Installed in just a few days, O’Neill saw an immediate uptick in revenue per visit, conversion rate, average order size and page views compared to traffic not going through Reflektion’s platform. By October, O’Neill’s conversion rates through Reflektion sustained an increase of 50 percent, convincing O’Neill to deploy fully the Reflektion platform during the last holiday season.
What we wanted was the ability to treat each online customer like an individual, as we do in our stores, but we were really limited in what we could do,” said Daniel Neukomm, CEO of O’Neill. “With Reflektion, we are able to offer each visitor an individualized product assortment, and the sales results are dramatic. We gain greater insight into customers and product trends without a large capital expenditure or a large investment of time. We consider Reflektion strategic to our overall business.”
Retailers and brands have a tremendous amount of data that they need to process and analyze. Reflektion’s platform processes huge data sets and delivers a new type of business insight, using machine learning to discover and evaluate millions of attributes of customers, products and channels.
This is like the game-changing “Moneyball” story of advanced analytics being brought to retail. Reflektion offers sophisticated new technologies for retailers and brands to compete better – and with little incremental investment,” said Sean Moran, president and CEO of Reflektion. “We process large datasets in real time and apply patented machine-learning techniques to yield measurable results. We deploy our solutions from the cloud and work seamlessly with current ecommerce systems. Consistent, exciting, real-world results achieved by retailers and big brands quickly proved to our new strategic investors that Reflektion can be a game changer across the retail industry.”
Sign up for the free insideBIGDATA newsletter.