{"id":61850,"date":"2021-01-07T19:09:53","date_gmt":"2021-01-07T14:09:53","guid":{"rendered":"https:\/\/venturebeat.com\/?p=2660952"},"modified":"2021-01-07T19:09:53","modified_gmt":"2021-01-07T14:09:53","slug":"quantum-metric-raises-200-million-to-help-enterprises-build-digital-products-faster","status":"publish","type":"post","link":"https:\/\/www.technologyforyou.org\/quantum-metric-raises-200-million-to-help-enterprises-build-digital-products-faster\/","title":{"rendered":"Quantum Metric raises $200 million to help enterprises build digital products faster"},"content":{"rendered":"

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Quantum Metric<\/a>, a platform that helps companies improve their websites and apps by gleaning continuous real-time feedback from end users, has raised $200 million in a series B round of funding led by Insight Partners. This gives the Colorado Springs-based company a valuation of \u201cjust above\u201d $1 billion.<\/p>\n

Founded in 2015, Quantum Metric uses what it calls a \u201ccontinuous product design\u201d (CPD) approach to enable businesses to iterate and \u201cbuild digital products faster.\u201d The philosophy borrows somewhat from established agile development<\/a> and design processes that focus on improving efficiency through adopting continual, flexible responses to change.<\/p>\n

A data play<\/h2>\n

Working with myriad enterprises spanning retail, insurance, financial services, telecommunications, travel, and more, Quantum Metric captures data at the session level, enabling it to \u201creplay\u201d individual customer interactions and see exactly what they experienced and how they reacted. This can give valuable insights into areas that need to be addressed, revealing where there may have been an API failure, slow pages, error messages, or issues adding items to a cart.<\/p>\n

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Above: Quantum Metric replay<\/p>\n<\/div>\n<\/div>\n

Quantum Metric can also track behavioral metrics to automatically pinpoint design issues that are specific to a particular platform, where there might not be any particular \u201ctechnical\u201d flaw. If users are rapidly scrolling through a badly designed date-picker, or if they\u2019re \u201crage-clicking\u201d an element that they mistakenly believe to be a button to make a payment, Quantum Metric can determine that these behaviors are notably higher for Safari users on iPhone, for example. But more than that, it can also show that the reason comes down to the user force-reloading the page due to a confusing design.<\/p>\n

\u201cBy automating this process, we\u2019ve reduced the time to identify and resolve the issue from days or weeks to minutes,\u201d Quantum Metric CEO Mario Ciabarra told VentureBeat.<\/p>\n

At its core, Quantum Metric is ultimately about applying machine intelligence to big data with a view toward identifying important, actionable insights. \u201cThe problem we\u2019re solving is that there\u2019s too much data in large organizations and every team has their preferred tool, data set, and view of the data,\u201d Ciabarra said. \u201cThe data structure across all of these tools is so variable that teams can\u2019t even agree on the basics, like entries, bounce rates, or conversion. For example, many of our customers come to us and already have tools for web analytics, session replay, application performance monitoring, and customer surveys. However, using these tools does not mean that teams are proactive about finding and addressing issues on their site.\u201d<\/p>\n

Quantum Metric uses Google BigQuery<\/a> to store and analyze customer data, allowing it to query petabytes of information to derive insights. This enables companies to track key performance indicators (KPIs) after each new feature or product release, for example, and even calculate how much money a business may have lost due to issues with a website. Slow pages could lead customers to bail out at the checkout stage.<\/p>\n

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Above: Quantum Metric: Page performance costs<\/p>\n<\/div>\n<\/div>\n

Busy space<\/h2>\n

Quantum Metric had previously raised $51 million, including a $25 million series A round<\/a> led by Insight Partners back in 2018 and $25 million in debt financing<\/a> last year. Beside Insight Partners, Quantum Metrics\u2019 seed investor Uncorrelated Ventures also participated in the series B round.<\/p>\n

There are a number of similar players operating in Quantum Metric\u2019s space, including VC-backed FullStory<\/a>, which raised $10 million<\/a>; Contentsquare, which raised a chunky $190 million<\/a>; and Decibel, which secured $40 million<\/a> \u2014 all three companies announced their fresh funding rounds during the heart of the pandemic in May 2020. As a side point, Contentsquare revealed last year that it had filed a patent infringement complaint<\/a> against both Quantum Metric and Decibel, alleging unauthorized use<\/a> of patented technologies including session replays and heatmaps. That case is still in its early stages, with Contentsquare seeking a jury trial.<\/p>\n

What is most clear from this flurry of activity, however, is that the digital UX analytics space is hot, with businesses across the spectrum doubling down on their digital strategies as customers rush to ecommerce.<\/p>\n

\u201cThe pandemic had a tremendous impact on so many of our customers\u2019 operations, as they had to quickly pivot their attention and resources to meeting demand for digital channels,\u201d Ciabarra explained. \u201cIt also exposed a lot of issues and frustration among customers who might have been turning to digital for their first time. As digital became the primary \u2014 and at times, the only \u2014 channel, optimizing digital experiences went from a nice-to-have to must-have.\u201d<\/p>\n

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