Reflektion, a retail analytics firm, has raised $8 million in a Series B funding round led by Intel Capital and including NIKE, Inc. as well as several private investors.
Reflektion provides a predictive analytics platform for retailers and brands through an easily deployable Software-as-a-Service (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 ecommerce 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 ecommerce 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 ecommerce 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 datasets and delivers a new type of business insight, using machine learning to discover and evaluate millions of attributes of customers, products and channels.
Sean Moran serves as president and CEO of Reflektion. Prior to joining Reflektion, Sean was focused on growing Monsoon Commerce's ecommerce software and services revenues. Monsoon Commerce supports the multi-channel retail businesses of more than 20,000 online merchants with SaaS pricing and order management tools. He also worked closely on merchant programs with Amazon, eBay and Rakuten.
Prior to Monsoon, Sean was the chief executive of the new-media division of Technicolor, with a leadership position in digital-media segments in a dozen countries. Sean was instrumental in developing PRN, an international, in-store marketing and merchandising platform focused on driving shopping behavior at the point of purchase. PRN worked with Walmart, BestBuy, Costco and other leading global retailers and consumer brands.
Amar Chokhawala is the founder of Reflektion and serves as its CTO. Amar began his career at Oracle in software development and was an early Google employee. His 11-year career at Google included key leadership roles in several successful businesses and platforms. He was an original member of the Adsense team, designing and developing core technologies that are critical to its widespread use today.
Amar was also one of the founding engineers for Google Books, which is now part of Google Play. He did foundational work on Gmail user modeling, using semantic learning and other advanced technologies to improve search results and other applications for millions of users. Amar is an expert in distributed systems and large-scale computing.