User feedback is valuable information for a company to learn what motivates its customers to sign up for more information, engage in certain content, and remain loyal to their favorite product.
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While gathering that data is not always easy, UserLeap has designed a platform aimed at allowing product managers to personalize customer surveys and present them at the right time. The San Francisco-based company raised $38 million in Series B funding from Andreessen Horowitz, First Round Capital, Accel and Lenny Rachitsky.
The new investment comes six months after UserLeap announced $16 million in Series A funding, led by Accel, to give it a total of $58 million in venture capital funding since the company’s inception in 2018, according to Crunchbase data.
Co-founder and CEO Ryan Glasgow’s background as a product manager at various companies, including local activity finder Vurb, showed him that the success and failure of companies centers around understanding the customer.
“Companies don’t survive without customers,” he told Crunchbase News. “There is much time spent thinking through what was working and what was not. Now that companies ship out products faster, our rate of learning is not keeping up with how fast products are changing, and legacy technology was not allowing for changes in real-time.”
While on UserLeap’s platform, product managers choose from more than 75 research templates featuring questions about anything from product market fit to how to improve the product, solve complex business problems, or just get to know their audience, Glasgow said.
These micro surveys typically appear at the bottom of an app and are often triggered by a certain event, then uses artificial intelligence to read and understand the questions and answers to provide analysis on why a customer clicked on a certain button or didn’t finish setting up the account.
According to Glasgow, the average response rate for email surveys is approximately 2 percent, but UserLeap clients can see up to a 33 percent response rate.
“When someone completes an action, they are asked a question in a pop-up format, enabling companies to ask questions as they come up and spread them out across the user base, which provides a much better response rate,” he added.
The company charges based on the number of monthly tracked visitors, with a free version for up to 5,000 end users, and then $79 per month for up to 100,000 end users.
Following UserLeap’s Series A, Glasgow said the company saw an opportunity to quickly grow and scale. Customer demand has led to more than 10 billion API integrations per month and a client base of more than 500 companies, including Square, Chipper Cash and Dropbox. In addition, revenue has increased 300 percent since the beginning of the year, he said.
The new funding is the result of a continued conversation with Andreessen Horowitz, with General Partner Kristina Shen in particular. The firm was looking at dedicated efforts around user research and product research and was introduced to UserLeap.
Shen said that for product-led growth, companies have to collect feedback to find out what customers care about in order to make a better product. The concept around collecting customer feedback is not new, with survey companies taking a nod from the market research world. Traditionally, the feedback comes from long-form surveys, but UserLeap is taking a different approach with product research, she said.
“Product research is different — it has to be directly embedded in the product so you can see what the user does and then ask for feedback in a way that does not impact the user’s experience,” Shen said in an interview. “Then you can sample and collect from different formats and use machine learning to analyze it so it is usable and companies can understand. UserLeap is doing this in a way never seen before.”
Meanwhile, Glasgow intends to use the new investment to accelerate UserLeap’s roadmap, hire across all functions, and expand product development. The company has 40 employees currently, and he expects to be up to 85 by the end of the year to support demand.
“This is the tool that I wanted in my previous roles,” he added. “We aim to stay ahead and expand our product into a larger platform to serve research needs and have several innovative ways to tackle this that will come out later this year.”
Illustration: Li-Anne Dias
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