Predicting customers' purchasing patterns is easier said than done. Over the course of months (or years) it is necessary to collect huge amounts of data. And that's only the start – sussing out the corpora's key metrics requires purpose-built sophisticated, scalable analytics tools.
Former BioWare senior systems architect Mike Babineau and Electronic Arts analytics product manager Lillian Chou were inspired to tackle the problem while working at game developer and publisher Rumble Entertainment, where they engineered large-scale infrastructure and pipelines to query data. Their work with complex datasets laid the groundwork for Second Measure, a San Mateo-based Y Combinator alumnus developing a self-service "data exploration" platform that supports both daily and real-time transactional tracking.
Second Measure has already attracted customers like Postmates, Domino's, Spotify, Lime, DoorDash, and Ancestry.com, and it's setting its sights on expansion. The startup today announced that it has secured $ 20 million in series A co-led financing by Bessemer and Goldman Sachs, with participation from Citi Ventures.
It comes after a $ 5.3 million seed round in April 201
Image Credit: Second Measure
"Traditional market research is typically slow to deliver that is often static, biased, and based on small sample sizes, "he said.
Second Measure's platform ingests and interprets billions of anonymous credit card transactions from millions of shoppers over time (more than 2 pecent of all US consumer spending), building a record of what its learning algorithms glean insights. Those insights are collated in an online dashboard from where they can be read and broken out by geography or time window.
Its behavioral tracking tools let users dig deeper by highlighting customers' lifetime values, the other places they shop, and they work. Babineau says that Second Measures tools showed the sales impact immediately – and which restaurants customers chose to visit instead of the aftermath.
Uniquely, Second Measure does not restrict its analysis to a client's own data. It draws on "strategic partners" for the purpose of metrics from thousands of private and public companies, enabling investors to obtain an aggregate value of consumer purchase data, retention, cohort analysis, and revenue growth
Financial firms like Greylock Partners and Neuberger Berman use Second Measure's suite to identify fast-growing companies and benchmark competitors, Babineau says, as Bloomberg, CNBC, Recode, and Wall Street Journal.