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Pairzon AI

AI for Marketing Solution for Retailers

Israel
Market: Information and media, Another, Artificial Intelligence
Stage of the project: Operating business

Date of last change: 06.06.2021
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Idea

Pairzon enables the use of online and offline customer data along with AI concepts such as machine learning, natural language processing, social intelligence in order to predict audiences’ future actions and create campaigns that will convert and engage

Current Status

The company was founded in Feb 2020
Completed year one with 15 Customers and 150 K USD ARR
Currently running at 50K MRR and expecting to close the year with 699K USD ARR
25 Customers
Selected by Plug&Play brand and Retail Silicon valley and NVIDIA inception program for start-ups
Scale-up into US and EUROPE
Design partner Worldwide
Strategic partnerships in Europe and the USA
Recruiting 3MM USD Seed, whereas 600K safe

Market

1 - Physical retailers
Apparel & fashion
Cosmetics & beauty
DIY & Furniture
Consumer electronics

2 - Niche Markets
Hotels
Movie
Automotive

3 - Brand/CPGs/FCM - Who are in desperate solutions for D2C

Problem or Opportunity

Despite the rise in e-commerce, still 86% of total retail sales takes place in physical stores. Yet, most consumer’s online identity stays disconnected
1 - physical retailers lack the ability to use their own first-party data to target their own customers
2 - Physical retailers MUST remove the dependency on third-party tools to create audiences and campaigns
3 - Physical retailers cannot measure the ROI in-Store of a digital campaign
4 - Physical retailers have a huge difficulty in dealing with Anonymous customers
5 - Lack of ability to measure online campaigns effectiveness on in-store purchases
6 - Remarketing budget spent unwisely for users who purchased in-store
Unused marketing opportunities based on potential online & offline connected user data
7 - Lack of an adequate personalization strategy in marketing campaigns

A successful journey from brick-and-mortar to omnichannel will require bridging digital and offline experiences,defining personalization engagement strategies and enabling an accurate in-store ROI measurement

Solution (product or service)

Pairzon enables the use of online and offline customer data along with AI concepts such as machine learning, natural language processing, social intelligence in order to predict audiences’ future actions and create campaigns that will convert and engage

Pairzon is a data-driven customer-centric solution for personalization and interaction, enabling companies a one-on-one communication approach across channels. Combining in-depth behavioral analytics and advanced machine learning with data from existing sources.

Pairzon Customer experience platform combines data intelligence customer-centric, personalization, and actionable AI. Pairzon places the customer firmly at the center of every aspect of the product.

Pairzon aims to lead in the field of Artificial Intelligence for Marketing and consumer data analysis.

1. Connecting digital and physical touchpoints
2. Data Intelligence engine using Machine Learning techniques
3. Pairzon Recommendation Engine / Smart-Predictions
4. AI for Marketing (Pairzon offline marketing and Pairzon lookalike audiences

Competitors

The market of AI for marketing is estimated at 23Bn USD by the year 2027.

Players that could potentially provide an end-to-end solution like Pairzon could come from the CDP market (CDP Players) or the Marketing automation market. Although we haven't seen yet any of such players dealing with Offline & online for marketing

Advantages or differentiators

Pairzon is the only solution at the moment that empowers retailers to Use of online and offline customer data along with AI concepts such as machine learning, natural language processing, social intelligence in order to predict audiences’ future actions and create campaigns that will convert and engage

At the heart of our data intelligence platform,Our machine learning engine written from Scratch is able to unificy customer profiles from all sources, classify it, enrich the data and create smart predictions in real-time

Finance

1 - Physical retailers: Fixed price MRR x number of stores
2 - Physical retailer's e-commerce: Fixed price MRR x number of transactions
3 - Brand / CPGs: Rev.Share with a retailer based on Fixed MRR per product category

Our Business Plan forecast is the following:
Y1 - 150KUSD Done
Y2 - 699KUSD in process
Y3 - 4,881KUSD
Y4 - 12,468 KUSD
Y5 - 35,000 KUSD

Business model

Pairzon Busines model is to provide a Saas tool for marketers to create audiences, digital campaigns, and measure ROI in-store. Al in real-time
We charge a monthly fee for unlimited usage
In using Pairzon the following metrics can and will be achieved

For an International retail fashion chain, Pairzon was able to increase the revenue per campaign by 50% and up by targeting using Pairzon’s personalized lookalike audiences.
 5% lift in total revenue per customer
 90% increase in CTR was by using the Pairzon’s audience within three months.
 40% lift in conversion

With Pairzon, the Retailer was able to manage a smaller budget, and bring 10X more people to the stores who spend 10X more money par campaign and multiply X3 times the number of users who joined the loyalty program

Shooting campaigns on Pairzon’s audiences increased purchasing volume by 5% compared to the chain regular methods.

Money will be spent on

3MM USD investment will be used as following:

1MM USD - Marketing & Sales (Scale-up into USA and Europe)
1.7MM USD - Continuous development
300K - G&A

Offer for investor

To be discussed in private upon interest in the business and signature of NDA sensitive info can be disclosed

Team or Management

Risks

Up to now, within 25 deployments we haven't seen any major issues or customers leaving the platform.
Actually, the risk associated is the fact the retailer has so much data in its advantage that something doesn't understand how to use it to its benefit. Then is where Pairzon expertise can add huge value.

Incubation/Acceleration programs accomplishment

NVIDIA inception program for Microsoft
Part of Oracle Start-up ecosystem
Graduated in Plug&Play brand and Retail West Coast, USA
Lean Launchpad Program Merage Institute

Won the competition and other awards

N/A

Photos

Photo 1 - AI for Marketing Solution for Retailers

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