Y-Combinator Toronto based startup Canopy Labs has just raised $1.5 million dollars to help further their company that helps mid-sized businesses build predictive customer models. These models help identify high value customers that can lead to repeat business.
While big businesses typically outsource he development of lead optimization tools, medium sized businesses that may still have over 10,000 customers often don’t have the money to hire a company to build a specific tool. Canopy Labs offers those companies a self serve tool for a fraction of the cost.
To some that may not be the best model in the world but Canopy Labs founder Wojciech Gryc, told TechCrunch in August that their target customers may not need “the most accurate, the best model ever built” instead they need something that’s “actionable and quick”
Gryc is a Rhodes Scholar who is applying his Master of Science Degrees in Mathematical Modeling and Social Science to create the Canopy labs platform.
“We offer our clients insights into their customer data that marketing or sales analysts can understand and use right away to make customers happier and increase their sales. We’ve launched analytics capabilities for our clients in under 24 hours.” Gryc said in a statement.
Canopy Labs helps consumer and retail enterprises with a large customer base prioritize efforts and deliver different marketing messages to different customers. This results in a more personalized sales experience and higher revenue. Customer modeling case studies have shown that the Canopy Labs platform is capable of processing three million records within minutes, increase sales leads by 25%, and increase sales conversions by 200%.
Canopy Labs’ self-serve platform creates customer models by importing all of the interactions that a business has with its customers. Everything from email, social media, voicemail and call center recordings are analyzed with the products that customers buy and how much they paid for these products. Canopy Labs clients are then provided recommended actions for each customer without a sales rep having to reflect upon each customer, thus saving time for the company while decreasing customer churn and increasing customer spend.
“Many analytics companies say they can solve tough problems but most IT projects in enterprises fail or end up stagnating,” said Ron Warburton, managing partner at the BDC Venture Capital IT Fund. “Canopy Labs has found a way to address a very clear problem for enterprises that don’t want to hire consultants or create customized customer modeling programs – streamlining their analytics process and delivering smart, usable data in a very short timeframe.
Canopy Labs $1.5 million dollar round was led by BDC Venture Capital IT Fund. Peter Thiel’s Valar Ventures and a number of other angel investors participated in the deal.