Copenhagen-based Lift has raised $3 million in a new funding round. The startup, which splits operations between Denmark and South Carolina in the US, offers an AI-based service that can predict the risks and opportunities of losing or growing client relationships with 95% accuracy, according to the company. The new capital will be used to rapidly scale customer acquisition, and an aggressive recruitment drive targeting over 40 new hires is planned to support this campaign. Prior to this round, Lift was bootstrapped.
Let’s face facts: churn happens. Whether we like it or not, as the old saying goes, “You can’t please all the people all the time.” However, what if you could employ a massive dataset that provides real-time recommendations on how to manage client risks and/or opportunities? Well, that’s exactly the thinking behind what Lift is cooking up in the kitchen.
Now of course this information isn’t news to anyone working in sales, as the department developed the Net Promoter Score mechanism long ago. However, the vast majority of this information is based on historic satisfaction, and, with a number of variables, can at times provide misleading or inaccurate predictions. Let’s just say it’s not an exact science, something sales pros have had to discover and re-discover time and time again.
Again, nothing groundbreaking here. SO what’s a company to do? Well, a bit like the A-Team, if you can find them, and you can afford them, you can hire an outside consultancy, yes, I’m looking at your PwC, to compile a yearly report on customer sentiment and suggested plan of actions. In addition to looking at a hefty price tag, you might also be thinking, annual report? What I liked in July might not necessarily tickle my fancy in December.
And enter stage left, Lift.
Founded in 2015, Lift has been developing an AI-based engine specifically targeted at removing, or at least using these variables to an advantage, and reports a 30% on average reduction in client churn year-on-year. The company has been focused primarily on the marketing and advertising vertical but plans to branch out into other professional services in the near future.
“When we launched Lift, the majority of “client health metrics” in B2B were too simple in nature and didn’t really move the needle, especially in B2B. NPS was the standard many companies had adopted without really noticing whether it made a difference or not. Again and again, we realized that NPS just doesn’t work in B2B if your goal is to reduce client churn or organically grow existing clients. So we co-created a methodology with some of the most forward-thinking companies in the US, building a unique methodology that predicts what will happen with your client relationships in the next 3 months, and thereby you have an opportunity to affect the relationship in time before it's too late to manage,” explained Lift CEO, Dan Hestbaek.
Lift’s $3 million in funding was provided by Seed Capital.
‘’All customer success software platforms and consulting services employ NPS as a key metric for measuring customer health,” commented Seed Capital’s Niels Vejrup Carlsen. “However, in the huge professional services market, this metric is almost useless. We believe that the Lift Score is a game-changer within customer success. We’ve been impressed with the team and their bootstrapped international traction.”