Oct 30 2014, Reading, Berkshire: Customer Experience Management (CEM) software startup, User Replay has closed a Series A round worth $3.25m.
Led by Episode 1 and involving existing investors EC1 Capital and the FSE Group, as well as some of the company’s previous angel investors, the funding will be used to further develop User Replay’s new cloud-based solution, expand in Europe and open an office in the US to support its growing customer base there.
User Replay provides a digital Customer Experience Management (CEM) software solution that enables e-commerce sites to identify technical, usability and navigation problems in order to improve conversion rates.
The company’s UserReplay product acts as a black-box recorder for e-commerce sites, tracking customer journeys so clients can see exactly what each customer has done. As well as identifying barriers to conversion, it also enables these barriers to be prioritised by analysing their impact on sales. Additionally, clients can use the platform to resolve customer disputes, re-market to abandoned baskets and prevent fraud.
User Replay is also announcing the launch its full CEM solution as a Software as a Service (SaaS) offering. It doesn’t require any hardware to be installed at the client’s end, removing one of the most significant barriers for adoption for CEM.
“Historically, one of the biggest barriers to the adoption of CEM has been that the only choice was to install the software on-premise, behind the firewall, requiring assistance from the IT function and often an external hosting provider which added time, cost and complexity,” said John Thompson, CEO of User Replay.
“Now CEM is available on demand customers can try it without investing in hardware, and we have found that significant and previously unknown conversion barriers can usually be identified and fixed within two weeks. One of our first SaaS customers, for instance, discovered a significant and growing conversion problem for customers on iOS 8 – this would have been found much later and after much greater lost revenue if it was not for the early warning provided by UserReplay SaaS”.
“Episode 1 Ventures was very quick to spot User Replay’s potential, backing it up with a significant investment. We’re delighted that EC1 Capital and the FSE Group have both made further investments in the company too and feel that we have a set of backers whose experience and knowledge will help us achieve the ambitions we have set ourselves,” Thompson continued.
The Series A round brings the total funding raised by the company to date to $5.9m. The company also received a $400,000 grant from the Technology Strategy Board.
“User Replay is solving a significant problem for all transaction-based websites so it is an enormous market but it also has a very experienced team and is already showing excellent traction,” said Adrian Lloyd, a founding partner at Episode 1 Ventures. “This is also a space we know and like, having previously invested in an e-commerce-enabling business, so it didn’t take long to make our decision”.
Julian Carter, Founding Partner and MD of EC1 Capital said: “Since we invested in User Replay over 14 months ago there was the promise of developing a SaaS version of the on-premise solution. Though a difficult challenge, it is now here and being successfully used in the field which means this is an entire game changer for User Replay and its scalability for international growth”.
Julie Silvester, Head of Equity at FSE said: “We are delighted with the progress made by User Replay since the last investment, leading to increased sales in Europe and the US and a significant rise in employment opportunities for skilled workers in the Thames Valley area”.
UserReplay’s customer experience analytics solution enables businesses to discover the truth about their customers’ digital experience. It combines replay of customer journeys with sophisticated analytics that identify customer struggles and monetizes their impact. This helps improve conversion, resolve technical and usability issues more quickly, recover lost customers and prevent fraud. Aimed at medium to large enterprises with digital channels, UserReplay has the flexibility to be deployed as SaaS or installed software. Leading brands all over the world rely on UserReplay to improve the quality of the website experience for their customers and increase revenue from their digital channel. The company has raised over $10M in funding to date from EC1 Capital Ltd, Episode 1 and others.