DURHAM, NC – Spring Metrics, a company that helps e-businesses understand what drives their revenue online, has secured a $635,000 seed round from LaunchBox Digital, CBC New Media GRoup, Zelkova Ventures and Steve Vanderwoude and Lee Buck.
Founded in August 2010, the company is focused on helping e-commerce businesses understand the DNA of their conversions. By breaking conversions down into their fundamental components, then showing exactly how they fit together, e-commerce companies can clearly see what drives revenue and how they can actively generate more conversions over time.
Co-founder and CEO Doug Kaufman tells us the five person firm “Came from scratching my own itch. I was running a different company, sold part of it and was doing online work with a education site I had started. It sold study guides and other products and I was having a hard time understanding why some people were buying and some weren’t.”
He searched for a software product to help provide the information he wanted. “I couldn’t find it, so I said, ‘Let’s build one.’ ”
Among the types of things Spring Metrics helps e-retailers spot are “the wrong types of traffic.” For instance, he said, “If someone found my old site, Alleydog, designed for college psychology students, they would not buy from me if they found it by searching for dogs.”
That could mean a marketing campaign is not on target.
Spring Metrics shows users how people get to a site, what key words they searched for, and which page they landed on, but more importantly, it puts all the data points together “To tell a story about the user buying from you,” says Kaufman. “We call think of that as the DNA of your conversions,” he adds.
The company says that traditionally, analytics tools are too complicated, produce overwhelming amounts of data, and leave users to figure out what it all means. As a result, it‘s been said that 90 percent of a company’s website analytics budget should be spent on people to make sense of the data that the tools spit out.
By breaking conversions down into their fundamental components, then showing exactly how they fit together, e-commerce companies can clearly see what drives revenue and how they can actively generate more conversions over time.
“Our early customers have raved about the Spring Box, and described the real-time dashboard as highly addictive,” said Kaufman. “They love the fact that the exact information they used to hunt for in other analytics packages is presented to them in a concise, and actionable format.”
“Small Businesses today face numerous challenges when trying to understand exactly what drives their online revenue growth,” said Lee Buck, Partner at LaunchBox Digital.
“Spring Metrics’ unique model brings sophisticated, automated online marketing intelligence to small and medium businesses that lack the resources to interpret the onslaught of analytics data. The company’s progress to date has been impressive, and we are excited to work closely with such a talented team.”
Buck will join Spring Metrics’ Board of Directors, which includes Steve Vanderwoude and Jimmy Goodmon. — Allan Maurer
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Tags: CBC New Media Group, Doug Kaufman, financing, LauchBox Digital, Lee Buck, Spring Metrics, Steve Vanderwoude, Zelkova Ventures
