Amsterdam-based Crobox, a startup specialized in conversion rate optimization in e-commerce, raised a 1.1 million euro seed investment round led by Dutch VC Keadyn.
Next to Keadyn, French VC Ventech and several other angel investors participated.
You might know Crobox as Sagent, which launched in 2014. The company changed its name earlier this year because the new name does a better job in telling what it does: conversion rate optimization. It's also better SEO wise of course.
The psychology of persuasion
The team of 20 consists of a mix of developers, data scientists and psychologists. The psychologists define emotional triggers which lead to (online) purchases. With the help of machine learning they create personal profiles of consumers. Therefore the technology knows exactly which persuasion tactic does, and doesn’t, work for every individual.
For instance, person X might be more keen to buy when a product label is based on the term 'scarcity' (discount!). Person Y however is more likely to hit that buy button when exposed to social proof (bestseller!). The startup cleverly markets this as 'Persuasion-as-a-Service'.
Crobox API and expansion
Currently, the company has over 20 global customers, among them are Vodafone, Rakuten, T-Mobile and Under Armour. It has several big retailers in The Netherlands as clients as well.
The money from the investment will be used to further develop the tech of the platform. This means improving the labels, notifications and exit intents on the platform, as well as investing in machine learning. The most interesting part: Crobox will develop its API so that it can use its profile data on other platforms. This allows the company to move beyond webshops and e-commerce, CEO Rodger Buyvoets told StartupJuncture. For instance, advertising. "It's something our clients have been asking for."
The company is also looking to expand abroad. Right now the startup has hired someone in London – the next step will be an office there. Buyvoets is exploring Germany as well. Eventually he wants to make Crobox big throughout Europe.
Martijn Don, managing partner of Keadyn said: "The platform of Crobox has shown awesome traction after it was launched last year. More importantly Crobox has an experienced and great team with the ambition and ability to build the leading player in this space. We are proud to be able to contribute to the further roll out and international expansion."