Predictive marketing startup Reflektion raises $12M for international expansion

Reflektion, a marketing startup that uses predictive analytics to increase conversion rates on e-commerce sites, has raised $12 million to support its international expansion plans. The new funding is an extended Series B round led by Hasso Plattner, with participation from returning investors Battery Ventures and Clear Ventures.

Reflektion has now raised $41.3 million since it was founded in 2012 by chief technology officer Amar Chokhawala, a former Google engineer who was one of the earliest members of the AdSense team.

The company claims that its software, which is now used by 70 brands including TOMS, Ann Taylor and Sur La Table, can result in double-digit increases in conversion rates and average order value by customizing the search results and product recommendations that shoppers see.

Its new capital will be used to improve tools including site search, photo search and automated emails based on each customer’s shopping behavior, and grow its business in Europe, the Middle East and Africa. The region currently accounts for 10% of Reflektion’s revenue and its clients there include Hepsiburada, the largest e-commerce platform in Turkey. Chief marketing officer Kurt Heinemann says Reflektion’s growth markets are the United Kingdom, France and Germany, and it is also targeting new clients in Japan and Australia.

Reflektion is one of several marketing startups, including Dynamic Yield and AntVoice, that use machine learning to help e-commerce companies leverage increasingly massive amounts of customer data. Its tools build customer profiles by mapping their preferences and shopping behavior, while adding more attributes and data points to product files so they are better suited to features such as natural language processing and photo searches.

Heinemann says some of Reflektion’s success stories include boosting chocolate brand Godiva’s sitewide conversion rate by 24% and increasing surfwear brand O’Neill’s conversion rate by 26% and its overall pageviews by 62%.