As an eCommerce company, what is your user retention/acquisition strategy? What sets you apart from firms working in a similar segment, providing similar products? To acquire customers, eCommerce platforms rained heavy discounts on their users, ending up burning ton loads of cash. Still, the user loyalty was with discounts instead of the company.
At the same time, subscription commerce companies like Fab Bag, Avishkar Box etc. carved a niche for themselves, by promoting repeat buying. By subscribing to a product, the user will get it on a recurring basis. A retailer can offer discounts over the recurring period (monthly or yearly). In turn, the user gets hooked for a long time, and for all that, one just needs to provide a good experience. To empower subscription-based eCommerce in India RecurRex came into being.
About & Services
RecurRex is a product of NPM technologies. Founded by brothers Mathieu Desmarais and Alex Desmarais late 2014, it is a Bangalore-based startup that allows new and existing eCommerce websites with current or prospective subscription potential to automate recurring billing and payments. It also provides tools and actionable data for subscription marketing and delivery management.
Mathieu is a web entrepreneur with strong interest and passionate about eCommerce as well as new, innovative web and mobile technologies. He started doing international business at the age of 18, importing sports gears from the US and selling them in Canadian sports stores. While Alex completed his bachelor’s degree, with a specialization in Finance at Sherbrooke University in Canada. He then joined NPM Technologies in Bangalore in fall 2014 as its Finance Director, and co founded RecurRex with his brother, Mathieu.
“Our first interaction with subscription eCommerce happened in early 2014, when NPM Technologies, our parent company, was hired by a group of Miami-based French entrepreneurs to develop a special kind of eCommerce website. Later that year, following a brainstorming session, RecurRex came to life,” said Louis Vincent Ledoux, Director of Customer Experience.
What problems are they solving?
Most of the eCommerce platforms have relied on complex and manual processes, which very often involved Excel spreadsheets. As soon as they tried scaling their operations to more than 100 subscribers, the amount of errors became unbearable: payments, deliveries, credits and refunds, etc, stated Vincent.
He further added, “Their customers requested a more transparent way of managing their orders and deliveries. Subscribers can postpone or cancel deliveries, and notifications are sent to them for all important events such as expirations, cancellations and late or failed payments; Apart from its installation, RecurRex is a monthly variable cost per active user, furthermore reducing the risk and initial investment.”
Monetisation & Traction
As the company is providing a SaaS product, they monetise on active users per month basis. Regardless of how you acquire prospects, the key to any business success is converting prospects into paying customers.
Though these people had been working on the product for long but Vince stated they commercially launched the product in February. Currently, the startup claims to have Café Noir and a NGO using this for recurring donations.
What Differentiates Them From Other Players in the Market?
“Our competitors typically focus on the payment processing and recurring billing aspects of subscription commerce only. While RecurRex does cover this very important aspect of subscription commerce, Indian subscription businesses have special needs that other subscription platforms are unable to meet; delivery and recurring payments management being the two most important.” says the team
The company raised seed funding in October last year and is looking to raise $400,000 of angel investment. “We’ll use 60% in research and development of the product, 25% in sales and marketing and the rest 15% in administration,” said Vince.
With income gauging, less instability, settled clients and low stock upkeep cost, subscription eCommerce has an extraordinary potential. Regardless of being new in India, creative entrepreneurs and innovators can make it the next big thing of Indian eCommerce Industry.