Teams dedicated to increasing customer acquisition, retention, and sales may not necessarily have the time or tools to use their insights effectively. In a survey conducted in 2019, NewVantage partners stated that the percentage of companies that identify as data-driven has fallen in each of the past three years, and more than half admit they are not competing on data and analytics.
That’s why Ariel Maislos, who sold semiconductor startup Anobit to Apple in 2012 for $400 million, teamed up with Itamar Falcon and Michael Ehrlich to launch Coho AI, a product-based revenue optimization platform designed to help businesses—in software as a service (SaaS) – access detailed information on additional sales and development.
Coho AI announced today that it has raised $8.5 million in a seed funding round led by Eight Roads, TechAviv and angel investors. Falcon’s CEO says the capital will go towards research and product development and expanding the Coho AI team, which currently has 17 people.
“Coho AI has developed a unique data consolidation platform that models the business value of a software-as-a-service company and maps it to real-time customer behavior using machine learning and advanced analytics,” Falcon told TechCrunch. email interview. “Coho AI behavioral modeling enables you to create personalized customer journeys that improve conversion rates and help revenue teams, from sales and customer success, along with product teams, achieve higher growth and sales efficiency.”
The target audience for Coho AI are sales departments, customer success and product teams in business-to-business (B2B) SaaS companies. The platform provides AI models to discover what makes a product “sticky” and what drives users to upgrade to a paid B2B SaaS subscription plan, as well as real-time usage models to highlight upsell opportunities and reject risk and segmentation models to identify different users based on their behavior.
Falcon says all models are trained using anonymous data from Coho Ai’s customer base. “In this way, we create a network effect whereby each of our clients benefits from a larger dataset, resulting in a more accurate model,” he added.
In addition to AI-powered features, Coho AI provides a single source of truth from which sales, product, and customer success teams can pull both user and account data. An observability dashboard enables development teams to identify where users are in the customer journey and tailor a specific experience to reduce churn, while real-time triggers highlight development opportunities including “free-to-play? and upselling.
“There is skepticism among SaaS leaders about whether an external tool can model their unique product value and turn it into actionable insights for teams going to market,” said Falcon. “[But] Coho AI really helps companies improve metrics like net revenue retention rate and sales efficiency, which have become more important in the current economic climate.”
Coho AI competes with startups including Correlated and Endgame, but Falcon says the company already has “dozens” of customers and partners. However, he declined to provide income data.