Stop guessing your KPIs; Varos shows e-commerce and SaaS companies how you stack up against your peers – TechCrunch

When a public company in a certain industry reports a tough quarter, other companies in the industry tend to see a decline in share price. However, for private companies, it is difficult to know exactly why there was a cost increase last week – was it due to company performance or everyone else too.

Varos, based in San Francisco and Tel Aviv, sheds light on how companies compare to their peers in terms of key performance indicators, such as customer acquisition costs.

CEO Yarden Shaked founded Varos in 2021 with CTO Lior Chen and his father, Gil Shaked and was part of Y Combinator’s 2021 summer batch. They created a data sharing tool that aggregates data through API integrations with its customers’ technology stack. The data is extracted in real time and requires no maintenance from customers, according to Chen.

E-commerce companies are data-driven, but typically only have their own historical data, Yarden Shaked told TechCrunch.

“You’re flying blind – you don’t know if you’re performing well or not, and you can’t answer if your KPIs are good or bad, so you don’t know what levers to pull because you don’t know what the problem is. is,” he added. “On the other side are the trends. If your customer acquisition costs are going up, it could be a market trend. We step in and provide that solution through the data cooperation. People feed the data, we anonymize it and send it back to you for insights.”

With Varos, everything is self-service. Customers connect their data, it is placed in different verticals and labeled in different ways. Users get a dashboard where they can compare, for example, a clothing company spending $100,000 per month on digital marketing with average order values ​​of a certain amount and get a graph of the change over time .

Varos founders, left to right, Gil Shaked, Yarden Shaked and Lior Chen. Picture credits: Varos

One of the big hits is Varos’ Monday morning trend report, where users see their weekly data against weekly benchmarks. This is a new category of data analysis that helps users understand their own performance against their direct competitors, added Yarden Shaked.

He says this type of data collaboration is happening in other industries, including late-stage agriculture, travel and investing, where valuation is based on competitive data, but is relatively new to e-commerce and SaaS spaces. And it’s already gaining momentum since its soft launch last August: over 250 users are feeding marketing data to Varos to see how they stack up against their peers.

Varos is a free service as it grows its data marketplace, but also has several paying customers. To meet demand, the company raised $4 million in seed funding, led by Ibex Investors, which also included Y Combinator and a group of individual investors including Tom Glocer, former CEO of Thomson Reuters; Andy Dunn, co-founder of Bonobos; Amol Deshpande, co-founder of Farmers Business Network; Bob Moore, CEO of Crossbeam; and John Jersin, co-founder of Connectifier.

Varos, which officially launched on Wednesday, started with marketing KPIs, but doesn’t want to stop there. The company is not only adding Shopify, Google and TikTok integrations and others around revenue growth and conversion rates, but will also expand into other areas, such as finance, product and sales, said Yarden Shaked.

Until a month ago, there were just three founders, but the company now has a team of seven, mostly in product and design. The goal is to double the workforce by the end of the year.

“We’re glad our hypothesis works,” Yarden Shaked said. “The trend was that without Varos, if something sniffed or changed, there was a learning period to figure out where it wasn’t working well. Now with Varos, we’re saying you can focus on creating, but in depending on what you see.

Source link

Comments are closed.