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DESCRIPTION
Splitzee is an online social commerce platform that helps people buy things with a group: Kickstarter for anything friends buy together.
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We buy things as groups all the time…
Travel• School trips• Group vacations
Gifts• Baby showers• Office gifts
Events• Shared meals• Parties
… but it can be painful
Juggling payments
Chasing people down
Managing contributions ?
We provide an easy way for groups of
friends to collect money
online.
The Splitzee Solution
Setup
Share
Collect
Purchase
SetupCreate a custom Collection Page for a product, service or cash.
ShareInvite friends to contribute via email & social networks
CollectFriends contribute online via PayPal, credit or debit card
PurchaseUse the collected funds to buy the product directly from a retailer
How Splitzee works
1
2
3
4
Customers love it
“I’ve never seen a service like this. It makes total sense and I will definitely be using it in the future.”
– Customer Marchelle Lien, February 2013
500%Compared to a solo customer
Purchasing power of a group:
via seamless integrationsAPIs/web services/widgets/buttons
The Splitzee Mission:
Bring the power of group purchasingto online retailers
Online retail market potential
Online retail marketplace
$231 billion
Online registries
$14 billion
Online retailers over$100K annual sales
21,000Source: referralcandy.com
Online retailers withgroup-buying potential
5,000
“If I were to guess, I’d say the next thing to blow up would be social commerce.”
- Mark Zuckerberg
Online wedding registriesOnline baby giftsOnline group travel
$7 billion$4 billion$3 billion
Revenue Sources
5%
15%
10%
20%
Contribution Fees: 3.5%
TargetedIndividual
Promotions
5-15%
Cashout to Cash
1.5%
Cashout to Purchase
(Partner-originated)
10%
Cashout to Purchase
(Splitzee-originated)
15%
BONUSAccruing interest
on general fund
Per collection
Solid customer acquisition results to dateAs of April 30 2013
• Users 544– CTA (cost to acquire) $22– ARPU (average revenue per user/year) $73.50– User LTV (lifetime value) $220
• Contributors 1105– Average contribution: $56– Contributors/collection: 11
• Collections (since Nov 2012): 947– Average collection size: $358.34– Invitees/contributors creating collections: 14%– Users with multiple collections: 21%
Online retailer interest2Q 2013
Related social commerce solutions
Social shopping Cost sharing Group giftingCrowdfunding
Brands
Issues • Focused on product selection, not purchases
• No direct transactions
• No integration capabilities
• No direct transactions
• Narrow gift focus
• Limited integration capabilities
• Focused on projects, not purchases
• No direct transactions
Social Money:: Where value, exchange, and obligationsare measured in the context of groups –
not from the perspective of the individual.
Every approach moving gradually towards a significant paradigm shift:
Milestones
Product: Website soft launchFinancing: friends-and-family round
Product: Mobile soft launchAcquisition: Organic marketing trialsUsers: 200
Product: online retailer buttons & widgetsUsers: 400
Online retailer outreachUsers: 600
Financing: Seed RoundPublic launch
November
December
January
March-April
May
Financial Summary
Collections
2013: 8,000
2014: 53,000
2017: 92,000
Dollars collected (Revenue)
2013: $2.8M
2014: $19.5M
2017: $33.6M
Cashflow positive in 2Q 2014
Key assumptions
• Estimated collectionsper user per year: 3
• Estimated customer lifespan (years): 3• Average revenue per collection:$24.50• Estimated customer LTV: $220
Users
2013: 71,000
2014: 340,000
2017: 590,000
Fees and commissions (Gross Margin)
2013: $191K
2014: $1.7M
2017: $3.7M
Users
2013 2014 2015 2016 2017
CollectionsDollars Collected
Gross Margin
The Team
Michael SattlerCEO - Product + technologyEndurance International, Cauzoom
Luke PetersonBusiness developmentFirst Republic Bank
Wendy SavageSupport and general counselGoodwin Procter, Liberty Mutual
Patricia SulickOperationsDynasil, MIT Sloan
Tim KilroyMarketing advisorKarmaloop, Wayfair
Rinus StrydomMarketing advisorHubwoo
Daryan DehghanpishehBusiness advisorNYSE Euronext, Intel
Nathan WoodmanAdvertising – Retargeting Digilant, Havas, Google
• Thanks for your time!
splitzee.com
info@splitzee.com
facebook.com/splitzee
@gosplitzee
Organic
Retailer partnerships
Existing user base
Pay-Per-Click
SEO
Partnerintegrations
Promotions bypartners
Promotions bySplitzee
to partners’customers
Bloggerreferrals
PR
Repeatusage
Extensions(contributors creating their
own collections)
Onsitepromotions
Internal Marketing
Where Splitzee’s users and collections come from
Proven Growing Future
Product roadmap
B2B
B2C
Splitzee.com
SplitzeeMobile
SplitzeeButton
RegistrySolutions
Abandoned CartSolutions
DirectPromotions
PredictiveAnalytics
CollectionIntegrations
Market Drivers• People increasingly manage their social lives online• Coveted gifts are increasingly expensive• We all rely more and more on cash-less commerce
Market Stats
• 2012 E-Retail sales: $231B• 48% growth in online gifting sales
• 5% average sales boost for retailers using social commerce
• 8/10 people have pooled funds to buy a gift or service
• 46% of companies believe social media drives revenue
• Only 25% of companies are satisfied with their social media
ROI
The rise of group gifting
Product 1Group purchasing on registries and wish lists
Why retailers like it:Splitzee lets a retailer solve a social problem for its customers, preserves the customer relationship, and dramatically increases average order sizes
• Splitzee widget integrated with partner commerce platforms on registry sections
• Registry owners ask friends to fund SHARES of items… without ever leaving the retailer’s site.
Online retailers with gift registries
Online retailers are searching for ways to increase gift registry sales
22%
Retailers satisfied withgift registryperformance
One reason:… big-ticket items are too expensive for individual purchase
Product 2Group purchasing on product pages
Why retailers like it:Retailers can capture bouncing customers, reduce shopping cart abandonment, and increase sales
• Splitzee button integrated into product listings
• Shoppers choose to purchase items with friends
• Splitzee returns the shopper to the partner site with funds in hand
Product page views
Splitzee finds buyers from within existing B2B platforms who want a product but don’t have the money to buy it alone.
Conversions (before Splitzee)
5/day
Conversions (after Splitzee)
6/day
Sales increase:
20%
Online retailers are searching for ways to reduce bounce rates and abandoned carts
A defined niche in the social commerce landscape
Focused on group purchasemanagement
Focused on product selection
Standalonewebsites
Embeddedintegrations
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