Can Customer Churn Be Good for a B2B SaaS Business? Sometimes...
Customer churn tends to be viewed negatively by SaaS companies, and for good reason. However, in specific scenarios, it can actually be, dare we say, a positive.
Vitally, a leading Customer Success platform, today announced it has raised $9 million in a Series A funding in a round led by Andreessen Horowitz. Designed for high-growth B2B SaaS businesses, Vitally’s customers include industry-leaders such as Segment, Productboard and Calendly.
Brooklyn, NY, July 21, 2021—Vitally, a leading Customer Success platform, today announced it has raised $9 million in a Series A funding in a round led by Andreessen Horowitz. Designed for high-growth B2B SaaS businesses, Vitally’s customers include industry-leaders such as Segment, Productboard and Calendly.
Vitally intends to use the funds to expand operations, including marketing and product development.
Founded in 2017, Vitally is a TechStars company with a Customer Success platform designed for B2B SaaS companies to help reduce churn, improve account expansion, and facilitate top-line revenue growth. Vitally helps Customer Success teams do their jobs more effectively with the help of best-in-class integrations, powerful automation and intuitive reporting.
With Vitally, businesses programmatically identify opportunities for support and expansion based on the state of users within specific accounts. Vitally's data-driven solution enables Customer Success Managers (CSMs) to intelligently navigate and support thousands of accounts through powerful automation and reporting.
“We’re on a mission to radically improve customer relationships with our customer success platform, delivering the best possible customer experience with the least effort,” said Jamie Davidson, CEO of Vitally. “This additional funding is a huge milestone for Vitally and validates both our vision for customer success and our groundbreaking solution.”
“We’re excited to lead Vitally's Series A and help them deliver on their vision of making customer success a science. Customer success automation is a crucial piece of scaling any SaaS business and Vitally is in the best position to win the space,” said David Ulevitch, General Partner of Andreessen Horowitz. “As more companies move operations online in a post-COVID world and adopt more SaaS products, and as SaaS companies themselves orient go-to-market strategies around product-led growth, customer success automation represents a massive market need and opportunity."
“Over the past year we have been fortunate to really improve our retention rate, and a lot of those insights are from the data we have been able to gather from Vitally and examine those core business questions," said John Henwood, Senior Director of Customer Success of Productboard. “We reduced gross churn by 50% throughout the year."
Andreessen Horowitz fully-funded the Series A round, and David Ulevitch will be joining the Vitally board. Prior funding includes participation from Founder Collective, 2048 Ventures, Zelkova Ventures and TechStars.
Vitally is a customer success platform that helps businesses drive the best possible customer experience with the least effort. Vitally is built specifically for high growth, modern teams and is used by industry leaders such as Segment, Calendly and Productboard. A TechStars New York City 2017 company, Vitally is backed by world class venture capital firm Andreessen Horowitz (a16z).
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