CoolBeez

People recommend things to each other all the time, but if I recommend you something I bought online, the default reaction is to google or go directly to Amazon – my recommendation will most likely not benefit the online shop that sold me what I recommended. CoolBeez brings individual online shops back into the recommendations loop by plugging into the shop’s engine, automatically analyzing existing order information, identifying most likely recommenders, and sending out suggestions to recommend purchased products to friends in exchange for discounts on next purchases or donations to charity.

Close to 100 shops connected to CoolBeez. Visitors of online shops from CoolBeez recommendations have a 15% chance of becoming customers - industry average is between 1% and 3%. Confirmed profitability of the initial go-to-market channel (200 euros per client, with about 8 months customer acquisition cost recovery time) - scaling this and testing new customer acquisition channels.

Smaller to medium online shops. Over 4 billion potential annual market.

People recommend things to each other all the time, but if I recommend you something I bought online, your default reaction is to google or go directly to Amazon – my recommendation will most likely not benefit the online shop that sold me what I recommended.

CoolBeez brings individual online shops back into the recommendations loop by plugging into the shop’s engine, automatically analyzing existing order information, identifying most likely recommenders, and sending out suggestions to recommend purchased products to friends in exchange for discounts on future purchases. While we rely on word-of-mouth communication, we focus on recommendations of product experience rather than shops or brands, as opposed to referral programs, our main competition.

Referral programs.

Standard referrals focus on the brand. CoolBeez focuses on recommendations of product AND brand, which brings higher conversions.

Performance commissions paid by online shops, subscription for added-value features. Cost: product development, sales team, customer support, marketing.

Sales commission + subscription. Customer acquisition channels: cold calling, affiliate program, partnerships. Confirmed customer acquisition cost of 200 euros.

Product development, business development.

Convertible note, 1.5% interest rate, 2.65m euros valuation cap.

Low customer adaption.

Founder Institute Berlin Winter 2019

Featured app by Shopify.