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Strategic investors fund predictive engine of consumer behavior
NEW YORK - September 16, 2008 - Proclivity Systems, the developer of the premier platform that provides predictive insight into consumer shopping and purchasing behavior for advanced target marketing and merchandising, today announced the closing of a $5.5 million Series B financing. The financing was led by Fung Capital USA Fund (II) L.P. and includes co-investors WPP and Pilot Group. In addition to these three new strategic investors, the majority of Proclivity's initial private investors, from the company's Series A funding, have also participated in the new financing round. Proceeds from these funds will be used to enhance Proclivity's technology platform, add incremental management and expand sales efforts into new markets.
Proclivity Systems' advanced revenue optimization platform, Proclivity®, gives online marketers and merchandisers foresight into what their customers will buy at particular points in time and at particular price-points while enabling high-performance targeting across numerous channels. Proclivity provides clients with a new corporate asset: the Consumer Behavior Bank®. The Bank provides clients with a novel platform for immediate execution of optimal campaigns across various marketing communication channels based on predictive insights identified by Proclivity. Proclivity incorporates dynamic shopping interests, purchasing likelihoods, and expenditure levels of consumers into recommendations to drive any potential marketing offer being considered. It can then forecast revenue lift and provide accurate targeting to allow clients to achieve immediate, significant increases in revenues and conversion which reducing customer turnover.
"We have already proven the efficacy of the Proclivity platform with some of the world's leading online retailers," said Proclivity Founder and CEO Sheldon Gilbert. "Proclivity's predictive engine has demonstrated an unparalleled ability to drive revenue and generate sales by monetizing, for the first time, the massive amounts of data that are rapidly being generated by consumers both online and offline. Retailers have been collecting this data for years but have never fully utilized or benefited from insights into the data or been able to drive targeted, timely campaigns based on behavioral analysis. Our strategic investors have unique insight into the entire value chain of our clients from upstream supply chain and procurement logistics to downstream marketing optimization and demand forecasting."
"Many companies claim that they can increase a retailer's profitability, but Proclivity has proven its ability to increase retailer's profitability through a better understanding of their customers," said John Seung, Partner, Fung Capital USA Investments, Inc. "We look forward to assisting Sheldon and the team in transforming consumer marketing through the use of Proclivity's behavior modeling."
"Most digital marketers, and e-commerce merchants in particular, have more data than they know what to do with," said Mark Read, CEO of WPP Digital. "The Proclivity platform enables them to extract insights from their data that can dramatically improve the effectiveness of marketing programs across any number of channels by combining complex algorithms with clear interfaces so that marketers can develop campaigns simply and effectively."
About the Investors
Fung Capital USA Fund (II) L.P. is the private investment arm of Victor and William Fung who are the controlling shareholders of the Li & Fung Group of companies. This investment is unrelated to any of the listed companies of the Li & Fung Group. Fung Capital makes investments in supply-chain related technologies as well as in consumer product companies primarily in the apparel, fashion accessories, home furnishings, gifts, health and beauty industries.
WPP (NASDAQ: WPPGY) is one of the world's leading communications services groups, providing national, multinational and global clients with advertising; media investment management; information, insight and consultancy; public relations and public affairs; branding and identity, healthcare communications, direct, digital, promotion and relationship marketing. Collectively, WPP employs 110,000 people, including associates, in over 2,000 offices in 106 countries.
Pilot Group is a non-traditional private investment firm founded in 2003 by a group of operating executives who have worked together for more than 20 years in a variety of consumer-focused companies. The members of Pilot Group have had success in building, operating and relaunching a series of internationally-recognized branded businesses, including MTV, America Online, CENTURY 21 Real Estate, DailyCandy and Six Flags Theme Parks.
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