Getting to the minds of customers is a challenge as behavior and demand change, but Clutrac believes it has cracked the code to help brands figure out how to do that.
It announced $4 million in Series A funding, led by Inventus Capital India, and included existing investors Unicorn India Ventures, IAN Fund and Salamander Xcubator Angel Fund as well as individual investments from Jiffy.AI CEO Babu Sivadasan. In total, the company raised $4.6 million, co-founder Shameel Abdullah told .
Clutrac is a real-time customer experience analysis platform that helps brands understand why customers stay or churn. Shameel Abdullah and Subbakrishna Rao, who both come from IT backgrounds, founded the company in 2017, after meeting years earlier at GifStore, Abdullah’s second company that was acquired in 2015.
Business-to-consumer and consumer brands often use customer satisfaction metrics such as Net Promoter Score to understand customer experience, but Abdullah said current methods do not provide the “why” of those experiences and are slow, costly and error-prone. – are prone.
“The number of channels has increased, which means customers are talking to you, expressing their feedback and what they think in many places,” he said. “Word of mouth has gone digital, and you basically have to master the art of selling online.”
Clutrac turns customer experience data from all those first-party and third-party touchpoints – website feedback, chat bots, and more – into fine, qualitative insights that give brands a look at the drivers of the experience in hours rather than months so that they Stay on top of fast-moving trends.
Abdullah points to data that shows the biggest driver of a customer’s brand switch is the experience they receive. And, if brands can reduce churn by 5%, they can see an increase in profits by between 25% and 95%.
The majority of the new funding will go to product development so that all data aggregation is aggregated from all possible touchpoints. Their ultimate goal is to be a “single platform for B2C firms”.
The company currently works with over 150 customers in the retail, direct-to-consumer, banking, automotive, travel and mobile app-based services sectors. It is growing nine times year on year in revenue. It is primarily operating in India, but Cloutrac is also adding companies to the US and Europe.
Inventus Managing Director Parag Dhol said he has known Abdullah for more than five years. He had looked at one of Abdullah’s companies for investment, but decided against it as his firm was a Series A investor.
Dhol said market research needs to be changed in India, where this type of technology is lagging behind the US.
“Clutrac has a very complementary team, with Shamil being a sales man and serial entrepreneur who has learned his lessons, and Subbu, who is good at technology,” he said. “As CMOs realize the value in their unstructured data inside their database of customer reviews and turn to real-time feedback, these people can make a serious dent in the space.”