Photo - CoolBeez
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CoolBeez

Word-of-mouth for online shopping

Germany
Market: Internet and IT, Information and media, Another
Stage of the project: Prototype or product is ready

Date of last change: 11.05.2021
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Idea

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.

Current Status

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.

Market

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

Problem or Opportunity

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.

Solution (product or service)

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.

Competitors

Referral programs.

Advantages or differentiators

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

Finance

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

Business model

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

Money will be spent on

Product development, business development.

Offer for investor

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

Team or Management

Risks

Low customer adaption.

Incubation/Acceleration programs accomplishment

Founder Institute Berlin Winter 2019

Won the competition and other awards

Featured app by Shopify.

Photos

Photo 1 - Word-of-mouth for online shopping

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