Startup Bounce Exchange, which helps companies deploy strategic advertising through the analysis of consumer behavior, has garnered nearly $6.5 million in new financing, adding to its previous $1.5 million raised in seed funding.
TechCrunch reported Monday (Aug. 10) that the funding via a Series A-1 came from a consortium of investors, with a roster that includes 500Friends Founder Justin Yoshimura and participants such as Contour Venture Partners, baseball player Alex Rodriguez of the New York Yankees and Primary Venture Partners.
TechCrunch reported that Ryan Urban, the BounceX founder and chief executive officer, has likened current strategies of converting website visitors into buyers is akin to “attacking people” via pop-up ads and not really about selling them items they need.
“Clients have goals they have to hit, and they want to be super aggressive with visitors,” Urban told TechCrunch in an interview. “But not everyone wants to buy a subscription, and you shouldn’t be asking every single person to join your email list.”
Urban told the site that his three-year-old company monitors user behaviors at an individual level — tracking progress from when users first encounter the site, the time actually spent on the site and even what they may be sharing with other users. BounceX is able to adjust marketing efforts in real time. The company has said it has 800 companies in its client base, ranging from startups to media giants such as CNBC and Time Inc.
“If you want to improve your online business, whether you’re Amazon or a growing startup, you can either increase traffic, or you can increase the rate at which that traffic converts,” Urban told TechCrunch. For eCommerce, TechCrunch noted, sites see an “average add-to-cart rate” of 8 percent and a conversion rate that averages about 2 percent.
“There are all of these micro-conversion behaviors that you do on an e-commerce product page, whether you filter by size, style or color,” Urban added. “The problem right now is that the site is the same for every visitor, so instead we’re optimizing for certain behavioral patterns to recommend categories that are actually interesting to you.”
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