More Related Content
What's hot
What's hot (20)
Similar to Splitzee
Similar to Splitzee (20)
Recently uploaded
Recently uploaded (20)
Splitzee
- 2. We buy things as groups all the time… Travel • School trips • Group vacations Gifts • Baby showers • Office gifts Events • Shared meals • Parties
- 3. … but it can be painful Juggling payments Chasing people down Managing contributions ?
- 4. We provide an easy way for groups of friends to collect money online. The Splitzee Solution
- 5. Setup Share Collect Purchase Setup Create a custom Collection Page for a product, service or cash. Share Invite friends to contribute via email & social networks Collect Friends contribute online via PayPal, credit or debit card Purchase Use the collected funds to buy the product directly from a retailer How Splitzee works 1 2 3 4
- 6. 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
- 7. 500% Compared to a solo customer Purchasing power of a group:
- 8. via seamless integrations APIs/web services/widgets/buttons The Splitzee Mission: Bring the power of group purchasing to online retailers
- 9. Online retail market potential Online retail marketplace $231 billion Online registries $14 billion Online retailers over $100K annual sales 21,000 Source: referralcandy.com Online retailers with group-buying potential 5,000 Online wedding registries Online baby gifts Online group travel $7 billion $4 billion $3 billion
- 10. Revenue Sources 5% 15% 10% 20% Contribution Fees: 3.5% Targeted Individual Promotions 5-15% Cashout to Cash 1.5% Cashout to Purchase (Partner- originated) 10% Cashout to Purchase (Splitzee- originated) 15% BONUS Accruing interest on general fund Per collection
- 11. Solid customer acquisition results to date As 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%
- 12. Online retailer interest 2Q 2013
- 13. 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
- 14. Social Money :: Where value, exchange, and obligations are measured in the context of groups – not from the perspective of the individual. Every approach moving gradually towards a significant paradigm shift:
- 15. Milestones Product: Website soft launch Financing: friends-and-family round Product: Mobile soft launch Acquisition: Organic marketing trials Users: 200 Product: online retailer buttons & widgets Users: 400 Online retailer outreach Users: 600 Financing: Seed Round Public launch November December January March-April May
- 16. 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 collections per 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
- 17. The Team Michael Sattler CEO - Product + technology Endurance International, Cauzoom Luke Peterson Business development First Republic Bank Wendy Savage Support and general counsel Goodwin Procter, Liberty Mutual Patricia Sulick Operations Dynasil, MIT Sloan Tim Kilroy Marketing advisor Karmaloop, Wayfair Rinus Strydom Marketing advisor Hubwoo Daryan Dehghanpisheh Business advisor NYSE Euronext, Intel Nathan Woodman Advertising – Retargeting Digilant, Havas, Google
- 18. • Thanks for your time! splitzee.com info@splitzee.com facebook.com/splitzee @gosplitzee
- 19. Organic Retailer partnerships Existing user base Pay-Per-Click SEO Partner integrations Promotions by partners Promotions by Splitzee to partners’ customers Blogger referrals PR Repeat usage Extensions (contributors creating their own collections) Onsite promotions Internal Marketing Where Splitzee’s users and collections come from Proven Growing Future
- 21. 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
- 22. Product 1 Group 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.
- 23. Online retailers with gift registries Online retailers are searching for ways to increase gift registry sales 22% Retailers satisfied with gift registry performance One reason: … big-ticket items are too expensive for individual purchase
- 24. Product 2 Group 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
- 25. 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
- 26. A defined niche in the social commerce landscape Focused on group purchase management Focused on product selection Standalone websites Embedded integrations