SheerID, whose software quickly verifies a person’s status as a member of a particular consumer “tribe” like teachers or students, has raised $64 million in an equity round led by CVC Growth Partners.
SheerID defined identity marketing as “a new form of personalization focused on winning over consumer tribes that align with the brand’s promise.” Clients include Target, Amazon, Lowe’s, Comcast, Google, T-Mobile and Urban Outfitters
As part of the equity round, CVC Growth will join SheerID’s board alongside Centana Growth Partners and Voyager Capital, which led earlier financing rounds in 2017 and 2015.
Bill Schneider, SheerID’s Vice President of Product Marketing, said T-Mobile’s Magenta identity marketing campaign targeting active duty and former military was supported by SheerID. It promises the company will hire 10,000 veterans and military spouses and use SheerID to determine eligibility for the military discount.
“It’s a great example of how a brand like T-Mobile is doing more to create a deeper connection with its customers,” Schneider said.
The identity marketing process begins with brands creating a program, offer or promotion personalized for a tribe, such as Target offering discounts to teachers, or Xfinity offering specific deals to students. Social channels and streaming media are prime placements for such campaigns.
“It gives a person a sense of belonging, and drives interest and intent,” Schneider said. “People in the tribes learn about offers from other folks in the group. There’s liberal sharing, so there’s a very strong word-of-mouth effect.”
When a tribe member chooses to opt in for an offer, SheerID’s software helps brands close the transaction. Each brand offer page has a verification section where customers voluntarily enter basic information, such as school attended.
The verification process, which takes less than a minute, has enabled Lowe’s, for example, to enroll millions of military personnel and veterans in a loyalty program.
SheerID never shares or sells customer data. Retailers and brands buy access to the platform, giving them the ability to create an offer, and also pay verification costs.
The new funding follows 450% revenue growth over the last three years, SheerID said, which resulting in it coming in at number 243 on this year’s Deloitte Fast 500. Its customer count is over 200.
SheerID will use the funding primarily to expand into new markets; it has recently opened offices in Paris, London and Mexico City. It will also be used for engineering and platform investments.