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CoolBeez

High conversion leads for online shops through word-of-mouth

Germany
Market: Internet and IT, Services
Stage of the project: Operating business

Date of last change: 09.03.2021
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Idea

If someone recommends you a great product, chances are you will search it on Google or Amazon, instead of buying it in the original online shop that sold it to your friend. We put such individual online shops back into the recommendation loop.

Current Status

Onboarding online shops since August 2020, paying customers, 7% shop visit-to-purchase conversion vs industry average of 1%, 8 months CAC recovery time.

Market

Online shops with $5k-500k in monthly sales. The total global market of $5b annually and fast growing.

Problem or Opportunity

if someone recommends you a great product, chances are you will search it on Google or Amazon, instead of buying it in the original online shop that sold it to your friend. For the original shop, the recommendation does not provide any economic value. Our solution helps bring the original shop back into the recommendation loop.

Solution (product or service)

For the participating shop, connection only requires installing our app from Shopify app store (in case of Shopify), or generating API access keys (WooCommerce, Shopware, Prestashop, BigCommerce, etc).

From the customer prospective - a couple of weeks after they buy something from a connected shop, they get a message: "Thanks for buying from us. If you liked what you bought, why don't you recommend it to friends, here is a link with your recommendation that you can share with one click. If they buy as well, you will get a discount code for your next purchase from us."

Competitors

Referral programs

Advantages or differentiators

Recommendations of a product AND shop are more effective than recommendations of shops.

CoolBeez is performance based, which is more cost effective for connected shops.

Finance

Revenues: payments from connected online shops

Costs: Software engineers, sales team & business development, admin, marketing

Business model

Business model: commissions on sales via CoolBeez + subscriptions in some cases.

Channels: cold calling, affiliate program for software and marketing agencies who work with online shops, partnerships with affiliate networks, digital marketing.

Metrics: current customer acquisition cost - €200 vs. est. €300 in annual revenues per average connected shop.

Money will be spent on

Business development
Technical improvements
Marketing

Offer for investor

Convertible note: €2.65 valuation cap, 3 years, 1.5% interest rate, conversion trigger - equity financing round of at least €100k or expiration.

Team or Management

Incubation/Acceleration programs accomplishment

Founder Institute Berlin Winter 2019

Product Video

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Idea
Current Status
Market
Problem or Opportunity
Solution (product or service)
Competitors
Advantages or differentiators
Finance
Invested in previous rounds, $
Business model
Money will be spent on
Offer for investor
Team or Management
Mentors & Advisors
Lead investor
Risks
Incubation/Acceleration programs accomplishment
Won the competition and other awards
Invention/Patent
Photos
Product Video