Thanx is receiving major financial assistance to provide data to brick-and-mortar merchants.
The retail data company received a $17.1M Series B financing from Series A investor Sequoia Capital, Icon Ventures and Javelin Venture Partners. Thanx will utilize the funding to boost sales and deliver its retention tools to U.S. retailers.
“Thanx’s ability to move merchants away from blanket, untargeted discounting to mass personalization is really impressive,” Icon Partners managing general partner Joe Horowitz said. He added, “Thanx offers, without question, the most elegant and seamless solution we have seen for collecting and using customer data to drive real revenue.”
Some brick-and-mortar merchants find it difficult to access customer purchase data, despite innovations in the current retail IT market. Thanx removes hardware and on-site integrations that are problematic for retailers’ data access. Direct data partnerships with American Express, Mastercard and Visa enable Thanx to generate world-class retention marketing with return on investment up to 4000 percent. From almost any point-of-sale, Thanx ingests item-level purchase data. This new feature will be available to enterprise customers in 2017.
“The top quartile of customers often drive as much as 70 percent of a merchant’s revenue,” Thanx CEO and founder Zach Goldstein said. “Identifying, engaging and retaining these loyalists is fundamental to growth.”
Last year, only 40 percent of the three billion loyalty memberships in the U.S. were active. Compared to this statistic, almost all (98 percent) of Thanx members remain active in their memberships. This improved retention rate is due to Thanx’s seamless consumer experience.
“Investment in online marketing has grown dramatically due, in part, to directly attributable results,” said Sequoia partner and Thanx board member Bryan Schreier. “Thanx brings this ROI focus to brick-and-mortar marketing and has already demonstrated meaningful revenue increases for customers.”