Cloud.IQ enables brands and retailers to reduce site abandonment and improve conversion rates in the online sales process through sophisticated remarketing of consumers and data analytics.
The two tools the Company uses are cartRecovery and exitCapture. cartRecovery aims to reduce lost sales through the generation of highly personalized emails to consumers to address the reasons why they abandoned, meanwhile exitCapture predicts when a customer is going to abandon a site millisecond before they close down a browser session. Subsequently, exitCapture serves up relevant content to help a consumer complete a purchase before abandoning the site.
The Company has other two products, which are in beta phase, that aim to personalize the site to Cloud.IQ’s profile record for the consumer, increasing relevance and creating greater levels of urgency to close the sale.
The Company sells primarily to enterprise online retailers on a SaaS basis while most alternative suppliers work on a CPA (cost per acquisition) business model.
Over the last 8 years, the sales conversion rates for online stores have dropped from 8-10% to 2-4% (IMRG/CapGemini) as a result of increased competition. In the future, the Directors assume that every online retailer will have a solution in their marketing tool kit which optimises online sales conversion rates and they are confident that Cloud.IQ is well placed to become a market leader.
Case studies demonstrate that Cloud.IQ has increased online retailers’ revenues by between 7% and 12% and this is planned to increase to an average of 12% by the year end with new product developments. The Company has received accolades from most of its customers, many of whom have told Directors that Cloud.IQ is their best performing marketing ‘channel’ in terms of ROI.
61% of target customers that demo Cloud.IQ go on to buy its product and over the past 18 months Cloud.IQ has attracted 266 customers in 16 countries. Key reference customers include, Tui/Thomson, Ocado, Wowcher, Boots and EE.
The Company has a new business pipeline of 300 customers/£1.9m in annualized recurring revenues for 2016 and have signed a reseller agreement with PayPal who have direct relationships with 89% of the Company’s target market, with 800,000+ online merchants.
What is the Offer and how will Cloud.IQ use the funds?
Cloud.IQ is raising a total of between £750k and £2m in exchange for 9.02% -to 20.92% equity to accelerate sales and marketing.
The Company anticipates raising a further “A” round of financing in 2017, which may dilute investors in this round.
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