SAN FRANCISCO — Thanx, which empowers merchants to grow their business through deeper customer loyalty, has secured a $17.1M Series B financing led by Icon Ventures and Series A investor Sequoia Capital, with participation from Javelin Venture Partners. Thanx will use the capital to grow its sales and engineering teams and deliver its personalization and retention tools to national retailers.
Unique in the retail IT market, Thanx eliminates the technical burden of hardware or on-site integrations which have previously made it difficult for brick-and-mortar merchants to access and act on customer purchase data. Through direct data partnerships with Visa, Mastercard and American Express, Thanx delivers world-class retention marketing and engagement campaigns with demonstrable return on investment as high as 4000%. Thanx now also ingests item-level purchase data from almost any point-of-sale. Currently in pilot, the enhancement will be rolled out to enterprise customers throughout 2017.
“The top quartile of customers often drive as much as 70 percent of a merchant’s revenue. Identifying, engaging and retaining these loyalists is fundamental to growth,” said Zach Goldstein, Founder and CEO of Thanx. “Thanx is, on the one hand, the easiest way to acquire this data. On the other hand, it’s a robust suite of automated, revenue-generating marketing tools that act on that data.”
“Thanx’s ability to move merchants away from blanket, untargeted discounting to mass personalization is really impressive,” said Joe Horowitz, Managing General Partner at Icon Ventures, who joined the board of directors. “Thanx offers, without question, the most elegant and seamless solution we have seen for collecting and using customer data to drive real revenue.”
Of the three billion loyalty memberships in the United States, only 40% were active in the last year. By comparison, 98% of Thanx members remain active. The markedly-better retention rate can be attributed to a seamless consumer experience, as simple as paying with any credit card.
Mixt, a health-focused fast-casual restaurant chain, has doubled its location count since launching as an early Thanx customer. “Of all our marketing channels, Thanx is most directly tied to measurable increases in revenue and customer satisfaction,” said co-founder David Silverglide. “Our Thanx customers are happier and visit 25% more often.”