Custora, the new e-marketing start-up, is promoting its predictive software as a cost-effective tool to improve customer retention for online retailers.
The company, which is backed by startup funder Y Combinator, uses its custom software to increase customer retention and provide top end marketing solutions.
Jon Pospischil, co-founder of Custora said: “Our software analyses transaction patterns to get a pulse on how different customers behave.
“Using that understanding, we give individual predictions about what we expect from each customer over the next two years.
“Also, understanding those patterns, as new customers come in, we can match them up to the patterns we have already seen and project what we expect to get out of that new customer over the next few years.”
Using this method, Pospischil said the company can provide nearly all of the services of the most expensive marketing firms.
This includes tracking individual customers buying behaviour and re-engaging them if they have been idle for too long, rating customers to allow companies to focus on their most valued clients and identifying where a business’s most important clients are coming from.
Despite the fact they have yet to complete its three month start-up period with Y Combinator, Custora is already providing its services to about 12 companies with many more businesses making use of a trial membership.
So far the company claims it has had impressive results. When compared to a simple marketing approach, Custora said it has been able to provide 100 times more accurate predictions.
The company added it even produces results when stacked up against more sophisticated marketing strategies like the RFM (recency frequency and monetary) approach.
Over a month, Custora said it was able to produce predictions that were nine times more accurate than RFM. It is hoping to provide their pin point predicting services to companies that do not have budget for larger more expensive agencies.
Pospischil said there was no limit to how big the company can get. He said it is already capable of taking years worth of data and turn it into accurate predictions in under 30 minutes.
With this fast accurate approach, Pospischil hopes Custora will become a real contender in the world of marketing.