Appcues Raises $32.1M for User Onboarding Analytics & No-Code Tools

The Ongoing Challenge of User Onboarding

Successfully onboarding users has consistently presented a significant hurdle for application developers. These professionals frequently encounter limitations stemming from both design considerations and technical constraints. Publishers and end-users often possess differing expectations regarding service engagement, and the dynamic nature of service content further complicates matters. Ultimately, individual user experiences invariably differ.

Appcues Secures $32.1 Million in Series B Funding

Appcues, a company specializing in technologies designed to pinpoint onboarding deficiencies and deliver swift, low-code solutions, has announced a $32.1 million Series B funding round. This investment underscores both the growing demand for tools addressing these challenges and Appcues’ demonstrated success in the market.

Delivering Product Experience Improvements Rapidly

“Exceptional product experience is paramount in today’s digital landscape,” stated Jackson Noel, co-founder and CEO of Appcues. “However, implementing changes within a product can often take weeks. Our tools empower customers to gain valuable insights and resolve user onboarding issues in a matter of hours.”

Funding Details and Future Plans

NewSpring spearheaded the Series B round, with participation from Columbia Partners, Sierra Ventures, and Accomplice. Boston-based Appcues intends to allocate the funds towards product development and international expansion. To date, the company has raised nearly $48 million, with a valuation estimated between $200 million and $300 million.

Significant Growth and Customer Base

Appcues is experiencing substantial growth, currently serving approximately 1,500 customers. Notable clients include Freshworks, FullStory, Lyft, Zapier, Kaplan, Hopin, Pluralsight, and Vidyard. The company’s cloud-based platform has facilitated nearly 2 billion user experiences for over 200 million individuals.

Evolving from Marketing Toolset to Comprehensive Platform

Founded in 2014, Appcues initially emerged as a SaaS toolset enabling marketers to create rapid prompts on websites without requiring developer involvement, with a primary focus on user onboarding. The product has since expanded to encompass flows for enhancing feature adoption, soliciting feedback through surveys, and disseminating announcements. However, it remains rooted in the core principle of empowering non-technical users to refine digital interface interactions.

How Appcues Works: The Role of the SDK

The process begins with a Software Development Kit (SDK) that can be integrated into an application’s codebase via a single line of code or through Segment integration. This SDK tracks user events on the site, forming the foundation for the platform’s functionality.

A Native and Integrated Experience

According to Noel, the SDK is central to Appcues’ approach. “It provides a seamless, native extension, rather than feeling like an external application,” he explained. “Our focus is on strengthening this aspect to help users create optimal product experiences.” This approach also distinguishes Appcues from competitors concentrating on areas like application flows or employee training.

Data-Driven Insights and Customizable Flows

Appcues’ users – including UX professionals, product managers, marketing specialists, and developers – can leverage a Chrome extension to assess the effectiveness of their applications and websites. They can then construct new events and flows based on these insights. These flows and events can be tailored to specific user segments, considering their origin or existing application usage.

The Increasing Importance of User Experience

User experience is arguably more critical now than ever before. Shorter attention spans and an abundance of digital alternatives demand seamless interactions. Companies increasingly rely on their digital platforms for customer engagement, making a negative experience potentially detrimental to their business.

A Competitive Landscape

Numerous companies are developing technologies to address user experience challenges, representing a substantial market opportunity. Key players include WalkMe, Pendo, Whatfix, and a growing number of other providers.

Analytics and Non-Technical Focus: Appcues’ Strengths

Appcues differentiates itself through its focus on both non-technical users and robust analytics. This combination provides users with a clearer understanding of potential issues and the effectiveness of their solutions.

The Enduring Need for User Onboarding Solutions

Despite advancements in tools and technologies, the fundamental need for effective user onboarding remains constant and is becoming increasingly vital.

Investment Reflects the Value of Product Experience

“We’ve observed a significant shift over the past five years, where a software company’s product experience has become the primary driver of business success,” noted Marc Lederman, co-founder and general partner at NewSpring. “We are confident in the impact Appcues delivers to its customers and are excited to support Jackson and the Appcues team in their continued growth.”