July 20, 2015
This week New York based StellaService announced the completion of a Series C venture round of $15M, more than two years after the completion of its Series B of $15M. In total, the company has raised $37M in funding across 6 different rounds. Founded in 2009, StellaService is customer service analytics dashboard used by online e-commerce and retailers such as Zappos and Walmart. The company is said to use this round of funding to expand its team and further meet the market’s demand for better customer insights. This will include expanding their products, services, and team.
“StellaService has become the go-to source for insight into customer care and fulfillment operations at a time when the end-to-end customer experience has become an even more impactful piece of the e-commerce stack,” StellaService Chief Executive Jordy Leiser said. “Savvy retailers have realized that the service experience is the differentiator, and we’re excited to continue expanding the window into the metrics that drive sales and loyalty.”
Similar to how secret shoppers have worked in the past, StellaService helps companies objectively identify missed opportunities based on their current processes. This is completed by StellaService’s team of shoppers who pose as customers, testing and analyzing the purchase and return processes. For companies like Zappos, each interaction is important, especially for gaining repeat customers, which makes customer service insights a necessity. Currently the company only focuses on online shopping experiences, but plans to expand to in store purchases as well.
According to a recent interview with Leiser, “Stella generates additional revenue by licensing data to Google, which uses it in the five-star rating system that shows up in AdWords ads for Google product search results.” However, the company is not yet profitable.
The series C round is led by Comcast Ventures, with the addition of new investors Battery Ventures, Gotham Ventures, Norwest Venture Partners – NVP, Novel TMT Ventures, RRE Ventures, and Toba Capital. As a result of the funding, two new people will be joining their board of directors, Doug Lebda and Sam Landman. Lebda is the founder and Chief Executive and Chairman of LendingTree, and Landman is the Managing Director at Comcast Ventures. Landman will be joining as an observer, a non-voting party who advises the board.
“StellaService’s pioneering approach to customer service data aggregation has enabled the company to build a new industry standard used to measure a customer’s journey and improve upon the customer experience,” said Landman. “As customer service becomes a critical competitive vector for all companies, StellaService is uniquely positioned to help their partners succeed.
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