E-commerce grew 20% for Costco in fiscal 2015—20 times faster than store sales.
The company says it will use the capital to further develop and market its analytics technology, which is designed to help companies like horticultural and landscaping products wholesaler A.M. Leonard better predict customer demand.
Reflection, a provider of web analytics designed to help online companies predict customer demand and present online shoppers with pertinent online merchandising and online marketing, has received $8 million in a second round of venture capital. Leading the funding round are sportswear brand Nike Inc. and Intel Capital, the investment arm of computer chip maker Intel Corp.
San Francisco-based Reflektion will use the funds to continue developing and marketing its analytics technology. So far, it has received a total of $11.3 million in venture capital, a spokeswoman says.
Clients access Reflection's software via the web under a software-as-a-service model. Reflektion says its pricing varies by how often a customer uses its technology but runs approximately $8,000 per month.
Clients use Reflektion’s software to learn customer buying habits to predict which merchandising and marketing content—including in site search results, product and promotional displays on web sites and mobile devices, dynamic online pricing, and e-mail and mobile messages—that customers will be most likely to interact with to make a purchase. “We process large datasets in real time and apply patented machine-learning techniques to yield measurable results,” Reflektion CEO Sean Moran says.
Reflektion was founded in 2012 by Amar Chokhawala, its chief technology officer, who is a former software developer for search engine company Google Inc. and Oracle Corp., a provider of business software applications.
Moran is a former executive of e-commerce technology company Monsoon Commerce. Prior to Monsoon, Moran was CEO of the new media division of video technology and services company Technicolor, where he worked on in-store marketing and merchandising technology for consumer brands and such retailers as Wal-Mart Stores Inc., Best Buy Co. Inc. and Costco Wholesale Corp. Wal-Mart is No. 4 in the Internet Retailer Top 500, a ranking of companies by their annual e-commerce sales; Best Buy is No. 10 and Costco is No. 16.
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