Repeat raises $ 6 million Series A for service that makes it easier to rearrange favorite products – TechCrunch



Subscriptions have become a popular way to pay for digital services, like Netflix or Spotify, but they have yet to take off as a way to revamp your everyday items or other household essentials. Retailers, including Amazon, have tried to shift consumers to a subscription model for these types of purchases, even offering discounts. Still, consumers have largely balked at the idea of ​​a forced restocking on a set schedule. A startup called Repeat thinks they’ve found a better solution. Instead of trying to lock consumers into subscriptions, Repeat analyzes consumer buying behavior to entice customers to reorder. It then provides them with a personalized shopping cart to make the restocking experience quick and painless.

This service is now used by 67 companies in the consumer packaged goods (CPG) market, including brands such as By Humankind (personal care), Jot (coffee), Vegamour (hair care), Youth to the People (hair care), skin), Osea (skin care), hydrant (sachets of rapid hydration), Twice (toothpaste), lemon perfect (flavored water), and many others.

Today, Repeat announces its $ 6 million Series A, led by Battery Ventures. Seed investors Mucker Capital and Harlem Capital also invested in the round. With the round closing, Battery general partner Neeraj Agrawal, whose background is in software-as-a-service companies, joins Repeat’s board of directors.

Repeat co-founders Sarah Wissel (L) and Kim Stiefel (R)

The idea to tackle the e-commerce replenishment problem arose after Repeat co-founders Kim Stiefel and Sarah Wissel attempted to launch their own direct-to-consumer clothing brand, UNDR, focused on refreshment. basic items, such as socks, t-shirts and underwear. Having spent their careers in the world of marketing and advertising technology, they believed that they would be able to use their experience to develop their new business.

After launching a quarterly subscription for t-shirts, the founders quickly discovered not only how difficult it was to launch a whole new brand, but also how even more difficult it was to get customers to check out. engage in ongoing purchases. From feedback from their customers, the founders learned that most consumers don’t really like the experience of re-ordering housewares. Customers have told them that it doesn’t always make sense to rearrange products on a set schedule.

Unlike Netflix, where you pay for the rights to a large catalog on an ongoing basis, there are times when you will use your household products faster or slower. This means that sometimes you will end up receiving items too early when you order them on subscription. It is not ideal; it is not very ecological either. Other times, you may miss your scheduled delivery before the arrival. It is also a problem.

“We should have known that,” admits Stiefel, now CEO of Repeat, after hearing that customers don’t like subscriptions. “We asked ourselves if we actually subscribe to products, and the answer turned out to be ‘no’. ”

The founders decided to abandon their subscription in favor of a new idea. Instead of forcing consumers to subscribe on a schedule, they would “trick” customers into placing a new order during what they felt was the perfect window, based on past order history.

Image credits: Repeat

After experimenting for a year with personalized recalls for their own brand, Stiebel and Wissel decided to pivot their startup so that they could offer this service to any e-commerce CPG company.

Today, any brand that sells a replenishment or consumable product can use Repeat to turn their single shopper into a repeat customer. To do this, Repeat uses a combination of logics, where it analyzes all of the company’s pay-per-view buying behavior to make sense of the overall SKU replenishment intervals. He then exploits that logic to entice customers to place a new order by sending an email or text with a link to what Repeat calls his “replenishment basket”. The customer can choose to repeat the reminder or click to checkout.

This replenishment basket is a special basket personalized for each customer and pre-filled with the product (s) they need to repurchase, as well as other suggestions. But unlike a typical checkout experience, the customer can adjust the merchandise in the shopping cart, such as opting for a different flavor or scent for their product, or opting for a larger size, among others.

As the customer continues to interact with Repeat’s reminders and cart, the service becomes smarter at understanding that customer’s unique replenishment intervals, so their nudges become smarter as well. Over time, Repeat plans to offer a universal shopping cart where customers can reorder from their favorite CPG brands in one place.

Image credits: Repeat

“There is a lot of logic in making this cart experience work as well as it does,” notes Stiebel. “For example, the cart converts on average at about 25%. Some brands are seeing a 40% or 45% conversion on that cart, and we’re finding that people often check out in less than 15 seconds on that cart. And I think that’s really the underlying magic – which, in combination with the logic, is the underlying magic of Repeat, ”she adds.

There is, of course, the challenge of getting his nudges exactly. If Repeat contacts customers at the wrong time, it could be perceived as an annoyance and customers could opt out of notifications.

Repeat currently generates revenue through a monthly SaaS (Software as a Subscription) fee and as a percentage of the revenue generated by its shopping cart. For brands that generate less than 2,000 non-subscription pay-per-view orders per month, Repeat would charge $ 99 per month plus 5% of revenue generated. And for brands that generate over 10,000 pay-per-view, subscription-free orders per month, Repeat charges $ 499 per month, plus 5% of revenue generated. However, the company does not disclose its own revenue figures.

Los Angeles-based company Repeat said it plans to use the new funds to hire in all roles, including engineering, products, sales, marketing and growth. The startup started the year with just 3 employees, but hopes to be around 15-20 by the end of the year by expanding its team across the United States.

The business will also use the capital to work on expanding the business. For example, it recently launched QR codes that allow anyone to be redirected to a repeat cart, even new buyers who discover a brand through a friend and scan the product to order it. one of theirs.

Over time, Repeat believes this may change how CPG subscriptions work.

“The problem with the subscription today is that it’s fixed, time-based, and rigid, and not rooted in any kind of actual consumption cadence,” says Stiebel.

“Because Repeat is focused on this à la carte reorganization experience, and because we are looking at repeat behavior across individual product SKUs, we know a great deal about consumer behavior within each CPG category. I think what you’ll see from us in the future is being able to leverage that data to deliver more flexible, dynamic subscription experiences, ”she says.



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