Dan spent eight years working on customer analytics for two of Europe's largest startups - Qype and Songkick - before founding Peakon four years ago. The idea for Peakon was born out of Dan’s experience working on customer analytics.
Over the last decade or two, data-driven marketers realised that retention and customer lifetime value - or CLV - is one of the main drivers of success. First and foremost, it serves as strong confirmation that customers love your product or service. It also means lower acquisition cost, because if customers love you, they do your sales and marketing for you via word of mouth. As a result of this focus on lifetime value, there was a massive explosion of venture capital investment in marketing, sales, and customer experience technology; products such as Intercom, Marketo, Salesforce, and Zendesk.
However, when it came to managing and retaining employees in a data-driven way, there was very little market attention. All the same benefits of high customer lifetime value also apply to employees; building a company people actually enjoy working for, lower hiring costs, and faster growth. So in 2015, Peakon was founded with the vision of taking a data-driven approach to employee retention.
"I think HR Analytics will end up being larger than customer analytics, and there are literally hundreds of customer analytics startups. Why? Simply because employees are more important to focus on than your customers. If you get your employee management right, they will look after your customers. But it doesn't work the other way around."