Smartrr Raises Another $10M for Shopify’s Subscription Technology App – AlleyWatch

Economic headwinds are creating uncertainty for businesses of all kinds, and businesses must be strategically positioned to weather the impending storm. For ecommerce businesses, one of the most effective mechanisms to normalize revenue streams and increase customer lifetime value is to implement subscriptions to generate predictable, recurring revenue. smart is Shopify’s subscription app that enables ecommerce merchants to seamlessly integrate powerful subscription options into their stores. The app offers bundles, sequential subscriptions, gift subscriptions, and flexible subscriptions through a feature-rich customer account portal designed to be frictionless for customers while driving retention with automated reminders, rewards, and referrals. support a period of time. Merchants are provided with an advanced analytics platform to track subscribers, revenue, retention, cohort analysis, and other key metrics. Smartrr is designed to support influencer, creator, and community-based campaigns, as social commerce is an additional channel that brands must consider. Apps start at $99/month with an additional charge of 1% of the total merchandise value of the subscription. Brands using Smartrr see a 5x increase in lifetime value.

alley watch Catch up with the Founder and CEO of Smartrr Gabriella Tegen To learn more about the business, the company’s strategic plans, the latest funding round ($17 million in total company funding), and more…

Who are your investors and how much did you raise?

Led by a $10M Series A canvas ventureswith the participation of lead seed investors, expa and Nika.

What products or services does Smartrr offer?

Smartrr is the leading next generation subscription app for the Shopify brand. Built with the end customer in mind, Smartrr turns one-time buyers into long-term brand champions. Using Smartrr’s comprehensive solution, Shopify brands offer customizable subscriptions, bundles, loyalty programs, rewards, early access to new products, and discounts to delight customers and increase recurring revenue. can be maintained. Preferred by high-growth brands such as Slate Milk, Neuro, Starface, Stix and Jolie, they average more than five times the lifetime sales of their subscribers.

What inspired the start of Smartrr?

As brick-and-mortar brands began to move to e-commerce after the pandemic, we conducted market research interviews to uncover the white space in the Shopify ecosystem. According to 98% of the founders I spoke with, subscriptions were their biggest pain point. In that moment of realization, Smartrr was born.

How is Smartrr different?

Smartrr’s key differentiators are its customizable subscription program, a superior customer account portal built to increase brand LTV, and unparalleled customer support. These three services can help differentiate you from your competitors in subscription space. Philosophically, Smartrr has always built with the end consumer in mind. Our thought process is that if we can turn buyers into brand advocates rather than just “subscribers,” our brands win. Our primary goal is to improve the post-purchase customer experience, enabling brands to develop deeper relationships with their loyal subscribers.

What is Smartrr’s target market and size?

Smartrr is now targeting the $30 billion Shopify subscription market. Smartrr is focused on increasing his LTV for brands, thus expanding his audience to a larger group of repeat purchases he is valued at $100 billion.

what is your business model?

Smartrr is a B2B SaaS company that offers three different price tiers with varying monthly fees and a 1% GMV fee.

How are you preparing for a potential economic slowdown?

D2C brands face many challenges, from rising acquisition costs to a potential economic slowdown. Smartrr’s offerings help ecommerce brands prepare for both and, more importantly, survive both. Smartrr enables D2C brands to get closer to their loyal customers than ever before, improving retention and ultimately increasing customer lifetime value. Smartrr has evolved from a subscription app to become the first and most wanted comprehensive LTV platform in the Shopify ecosystem.

What was the fundraising process like?

It may seem obvious, but the fundraising environment has changed dramatically over the past year. We’ve found that investors are more thoughtful in their due diligence than ever before, delving into our products, talking to brands, and becoming true experts in their field. , and ultimately couldn’t find a better partner, so the process was very rewarding.

What was the biggest challenge you faced in raising capital?

Pregnancy during this pay raise had its own challenges and controversial issues, but the biggest challenge we faced was introducing a new category on LTV. Given the economic climate, investors are very critical and not used to open-ended questions, making it a difficult time to introduce new concepts. , helped shape the story. “We go beyond subscriptions”. However, having to prove there was a market for his comprehensive LTV tool, he had to provide more supporting evidence than originally expected.

What factors in your business are driving investors to write you checks?

One of their hottest categories at Canvas is GTM software that helps businesses sell, understand, or engage their customers in new and more thoughtful ways. Smartrr got its start in subscription management, but we believe Smartrr is the leader in emerging “post-purchase operating systems” for D2C brands. Beyond subscriptions, Smartrr can power branded loyalty rewards, upsells, gifts, and referrals. By integrating these various product modules, Smartrr helps brands reduce and save churn at key moments in their relationship with their customers.

What milestones do you plan to achieve in the next six months?

Milestones we’re looking forward to in the next six months include doubling our customer base, launching new membership features, and expanding our team.

What advice can you give to New York companies that haven’t injected fresh capital into their banks?

First and foremost, fueling a company is not easy regardless of your path. That said, VC roots are not the only source of funding. There is an all-or-nothing perception in the startup ecosystem of winning a VC round or exiting. This simply isn’t the case. There are alternative financing providers such as Capchase, business loans available through traditional banks, private equity options and the often overlooked bootstrap route. As the leader of your organization, consider all options and decide what makes the most sense for your organization.

When it comes to advice, we tell brands exactly what we tell them. Look out for your most loyal customers. Focus on retaining existing customers, aiming to grow the business outward from the existing customer base. Treat them like VIPs, get referrals and reviews, make sure they’re getting success from your products and services, and try to keep them longer. Leaning into our most loyal customer base and staying very focused can put us in an advantageous position over wasting money on net new customer acquisition to survive.

Look out for your most loyal customers. Focus on retaining existing customers, aiming to grow the business outward from the existing customer base. Treat them like VIPs, get referrals and reviews, make sure they’re getting success from your products and services, and try to keep them longer. Leaning into our most loyal customer base and staying very focused can put us in an advantageous position over wasting money on net new customer acquisition to survive.

Where do you see the company going now in the near future?

We now have the product that revolutionized the e-commerce post-purchase subscription experience. Brands using Smartrr see revenue increase 5x over a subscriber’s lifetime. Everything we have built so far has proven to deepen the relationship between customers and brands, increasing subscription revenue, AOV and ongoing retention. We’ve raised the bar on the standard subscription experience to make it feel more like an exclusive VIP experience. We are therefore an organic fit to expand our offerings beyond subscriptions to memberships. Especially at a time when the brand is looking for new ways to focus on its loyal customer base and combat his rising CAC costs. By adding Membership to this powerful lineup of features, Smartrr has evolved into the first comprehensive LTV platform in the Shopify ecosystem, and is needed to build lasting, long-term relationships with loyal customers. We provide brands with everything they need.

What is your favorite restaurant in the city?

This is an impossible question to answer, but I’ll put my Bird Dog hat on it!

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