EnquireLabs wants to pull back the curtain on consumer behavior – TechCrunch

EnquireLabs wants to move from standard customer surveys to bring speed and scale to zero-party data, which is just a fancy way of saying data that customers give directly to brands.

CEO Matt Bahr and Curt Hasselschwert got the idea for the company in 2018 while helping e-commerce brands solve marketing failures by saying “how did you hear about us?” questions after the customer has made a purchase.

They spent the next two years at EnquireLabs as a side project, but as they began to see e-commerce brands start looking at their reliance on third-party data, particularly with internet cookies, they started to see some traction.

“I think people just got really hungry for data,” Bahr told TechCrunch. “Historically, brands we work with have been so dependent on Facebook that they didn’t necessarily need to know their customer too well, because Facebook would start looking for that ideal customer profile for them. By removing third-party cookies, Apple essentially made it much harder for brands to attract conversions and make this kind of post-flywheel work.”

Then Bahr and Hasselschwert began to focus on customer churn. In 2021, the New York-based company raised just under half a million dollars to scale up its technology to allow customers to ask multiple questions.

What they started building turned into the Question Stream product, which includes a chronological campaign of questions, each served via programmable rules and context throughout the customer journey.

The InquireLabs question engine determines when questions are asked based on variables. The technology knows who to request based on unique identifiers based on information such as email or phone number. This is a major focus of R&D for the company and one of the drivers for eventually moving beyond commerce into different vertical markets.

As Bahr described it, EnquireLabs separates questions from each other so that they can be asked over time, after the purchase. This is where he says the differentiator sits between his company and the incumbents, such as Momentive/SurveyMonkey or Typeform, who focus more on the research space, while EnquireLabs focuses on how to use the data in real time. Typeform recently raised $135 million in new funding for its “conversational data collection” approach.

The company partners with about 2,000 brands, including Allbirds, Figs, and Skims, and got just over 30 million responses last year, and survey completion rates are over 50%, which Bahr said was another differentiator from the peers. from InquireLabs, where the average response rate is 10%.

When asked how the company came up with that kind of answer, Bahr explained that the main reason is that EnquireLabs provides context to the questions being asked, leading to a level of personalization.

“Based on our data, we know who hates answering certain kinds of questions, so we’re not going to ask those kinds of questions because we know they’ll never answer,” he added. “The idea is to build from the ground up who the customer is and what we want to learn from them. This is different from the research side where they look at what the problems are and who the customer is.”

Those responses are funneled into insights that customers can access from their dashboard and can leverage those insights into their existing marketing stack to send unique emails that better highlight the brand.

Previously available exclusively to Shopify brands, EnquireLabs started receiving incoming requests from new verticals such as mobile apps, insurance and fintech, so it has now launched its software development kit beta program to expand into new verticals, backed by $4. 5 million in start-up financing.

The round was led by True Ventures, with participation from V1.VC, FiDi Ventures, Hawke Ventures, Silicon Ventures and a group of angel investors including Chubbies founders Ted Wang, Harris Barton, Daphne Carmeli and Casey Armstrong.

Bahr expects to put the bulk of the money toward recruiting, primarily to expand the technical and product side of the organization. EnquireLabs was a meager team of two before July last year, and after doubling sales in the past 12 months, Bahr said he’s ready to “put some gas on the fire.”

“Given the volume we are doing, we are very excited to expand the technical side of the business and continue to innovate in that area,” he added. “Our roadmap goes well beyond a year as far as we want to do with Question Stream. Plus, the more powerful our internal query engine gets, the better. That is certainly our focus for the coming year.”

This post EnquireLabs wants to pull back the curtain on consumer behavior – TechCrunch was original published at “https://techcrunch.com/2022/03/28/enquirelabs-aims-to-pull-back-the-curtain-on-consumer-behavior/”

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