One of the biggest headaches eCommerce companies face is the tendency of consumers to go through their websites, go to the motion of shopping and all of a sudden, they abandon their shopping carts. One of the saddest metrics of any eCommerce operation is the statistic of people loading the order form and abandoning the site. There seems to be something getting in the way of a person working out their credit card and paying for the item that they obviously eagerly shop for. It’s a very frustrating situation because eCommerce sites work hard to drum up traffic. They work hard to create an online brand and establish a community around their content. In other words, they work hard to put up a solid and viable online business.
Unfortunately, out of one hundred “buyers”, maybe a small fraction go through all the way to the payment process. One company that is looking to optimize eCommerce websites’ sales performance , Granify, is working on technology to reduce the tendency of eCommerce site visitors to abandon shopping carts. This is a big problem that if seen, it can make somebody a lot of money. This is a serious problem and the thing is this problem is not just for little mom and pop eCommerce sites but giant retailers as well.
The reason Granify got funding is that it uses the analysis of big data to map out possible scenarios where consumers would abandon the transaction as well as if they work on sending up a context-sensitive fix to this problem. It’s all about messaging and getting the right offer to the right people at the right time. If Granify is able to solve this problem, it can be a huge help to the bottom lines of eCommerce companies. Imagine if you are losing ten percent of your sales due to shopping cart abandonments and you are generating a hundred million every month, that’s ten million in lost sales. If Granify’s process can reduce the lost worth by even two percent, that’s still two million that you now have which you didn’t have before.
It’s easy to see why Granify got funded. They are working on the right problem and they appear to be using the right solution which is a big data analysis. It’s a very big field to go into and it’s also a very sexy field— it’s business to business. No wonder the company hasn’t just gotten funded by serious venture firms like BDC and Valar Ventures. If Valar Ventures sounds familiar to you, it should, after all it is Peter Thiel’s company. Peter Thiel, as you are probably aware, also invested in Facebook.