CustomerSuccessBox, an ‘actionable’ customer success platform for B2B SaaS (Software as-a-Service) startups announced on Monday that it had raised $1 million in pre-Series A funding led by pi Ventures with participation from Axilor Ventures. It will utilise the funding raised to drive growth and product innovation. CustomerSuccessBox is also one of the 20 startups of Axilor Venture's sixth accelerator cohort.
Story so far
CustomerSuccessBox was founded in 2016 by Puneet Kataria (Founder & CEO), who comes with over 16 years of marketing, sales and customer success experience, and Amritpal Singh (Co-founder & CTO), who comes with over five years of new product development experience.
CustomerSuccessBox is a customer success platform which helps B2B SaaS companies reduce, churn and grow their recurring revenue. It applies artificial intelligence (AI) and machine learning (ML) to automate customer on-boarding, product usage analysis and user communication.
Thus enabling success managers to deliver a superior customer onboarding experience, retain customers, drive, upsell and improve monthly recurring revenue (MRR) and life-time value (LTV) for SaaS businesses.
Puneet Kataria, Founder & CEO, CustomerSuccessBox, says,
B2B SaaS businesses bleed, churn and struggle with customer retention. Customer churn is the biggest blocker of growth; it’s like trying fill up a leaky bucket. B2B SaaS and subscription businesses cannot continue to operate with the old ‘reactive’ support model. CustomerSuccessBox was built from a clear need for a solution that could deliver ‘proactive’ customer success.
pi Ventures is India’s first applied artificial intelligence, machine learning & IoT focused early-stage venture fund. It focusses on sectors like healthcare, logistics, retail, fintech and enterprise sectors. Abishek Surendran, Partner, pi Ventures, says,
The focus of SaaS companies has shifted from customer acquisition to reducing churn. The founding team’s extensive understanding of the customer success space has helped build a world-class product that we have no doubt can help SaaS companies retain customers. The product is a natural fit for AI and ML to automatically calculate customer health.
Sector overview and future plans
Gartner predicts that by 2020, more than 80 percent of software providers will have shifted to subscription-based business models. And as per another report, the Subscription Economy Index (SEI) study, SaaS businesses suffer from 27 percent annual customer churn on an average. However, companies pioneering in customer success are able to achieve up to 129 percent MRR retention rates.
On the global front, some well-known names in the customer success space are Totango and Intercom. In November 2017, Salesforce, the American cloud computing company, launched a more personalised customer success platform to help startups re-orient their entire business around a smarter, always-on and more connected customers.
CustomerSuccessBox noted that their platform is being used by success managers at global B2B software companies including XebiaLabs, WizIQ, Synup and WoowUp. Its patent-pending technology has processed over 30 million data points from over 100,000 end users to calculate account health scores.