For the past couple of years B2B marketing has seen a significant shift due to the shift from lead generation to revenue marketing and has seen the emergence of several go-to-market models such as inbound marketing, account-based marketing, and product-driven growth.
To help customers make better campaign decisions and improve their return on marketing investments, Srikrishna Swaminathan, Praveen Das and Aravind Murthy Founded Factors.AI in March 2020. The SaaS startup is an AI-powered, verticalized self-service analytics product that focuses on B2B marketing.
the Bengaluru and US-based startup brings together the customer journey via advertising platforms, websites, MAP (Marketing Automation Platform) and CRM (Customer Relationship Management) at the contact and account level.
Speaking of founding YourStory, co-founders say, “We’ve seen market leaders like Freshworks, Palo Alto Networks, Coupa, and MongoDB invest significant engineering resources internally to shape the customer journey, generate actionable insights, and drive agile execution campaigns. These investments result in faster time to market, personalized customer experiences, and capturing a majority share of the market. The up-front costs for such internal solutions would be between 500,000 and 1 million US dollars for a medium-sized company with ongoing maintenance. “
How it works
To explain how it works, Srikrishna says:
“We have developed a proprietary AI engine that evaluates customer data and recommends measures to the marketing team to achieve higher conversions, faster and with a higher ACV (annual contract value).”
In addition, the startup has a self-service analytics interface along with pre-defined checklists that provide instant insights for everyone – eliminating dependencies on data experts.
“Our customers are able to link marketing investments with revenue, optimize their marketing mix and have real-time visibility into the go-to-market funnel through marketing, sales and customer success,” added Srikrishna.
The team and the USP
Srikrishna and Praveen were part of the leadership team at InMobi and worked together for seven years. Aravind is a former Google engineer who previously worked at Freshworks after the latter acquired Chatimity, an AI-based social chat platform, in 2016. Srikrishna and Aravind were classmates at the RV College of Engineering in Bangalore. Factors.AI has a team of 25th Members currently.
According to Srikrishna, the startup’s USP is its proprietary AI engine specifically designed for B2B marketing use cases. The AI engine can automatically analyze customer journeys at the user and account level and identify anomalies and root causes for any outcome or KPI.
“This is a very unique approach that is not available in other B2B marketing analytics solutions. Our closest competitors include Bizible (Adobe), FullCircle Insights and Thoughtspot in the BI (business intelligence) space, he says.
The business and plans for the future
Based on estimates from investor presentations from publicly traded company Hubspot, global enterprise analytics marketing is valued at $ 30 billion, of which marketing analytics is $ 10 billion, says Srikrishna.
The startup serves the Marketing Operations and Analytics community SMAC, an invite-only Slack group of over 300 marketing practitioners and executives from companies like Freshworks, Chargebee, Hey Digital, etc. Members will have access to resources and a forum to connect through peer learning, to engage and grow.
Factors.AI recently raised $ 2 million from Height capital and Emerging ventures, apart from angels like the founders of InMobi, Girish Mathrubootham from Freshworks, Krish Subramanian and Rajaraman Santhanam from Chargebee and Ramakant Sharma from Livspace.
“We charge our customers usage-based pricing based on the number of users tracked on the website each month and the number of CRM contacts. Our current customers have an average contract value of $ 10,000 to $ 24,000, and as we expand our GTM and product capabilities, we will move to higher contract values, ”says Srikrishna.
The startup’s private beta went live in April 2021, is currently working with 12 paying design partners and has a strong pipeline. Early design partners include Chargebee, Plivo, Hiver, Slintel, DesignCafe, YourStory, Livspace, AdPushup, and course.
“The buyer persona for our product is the CMO and the user persona is the marketing operations team in B2B / SaaS companies. Our goal is to have 50 customers on board by the end of the year and generate recurring revenue of $ 1 million, ”added Srikrishna.