Customers abandon their online shopping carts all the time, and among those who subscribe to monthly product deliveries, some 17% ended up canceling Around the time the next payment is due.
Serial e-commerce entrepreneurs Gina Perrelli, Pierson Krass co-founded e-commerce agency Lunar Solar Group and Taylor Cawiezell founded stay in love 2021 (then called Retextion) helped Shopify brands build subscription plans, reduce customer cancellations and increase customer lifetime value.
Prior to Stay Ai, Perrelli and Krass launched three commerce enablement tools, two venture-backed applications, and their self-funded data platform, KnoCommerce. quit Entering Wechat Business in 2022.
Here’s how it works: Stay Ai has developed a revolving business enablement platform for subscriptions, clubs and memberships, offering loyalty tools including SMS chatbots, surveys and rewards programs to help brands increase customer lifetime value. It is currently deployed in the Shopify ecosystem.
All of this is managed by its ExperienceEngine, an AI-powered system where merchants can perform marketing programs like A/B testing, and then leverage predictive analytics and machine learning models to make better decisions about how to deploy them.For example, Olipop, one of Stay Ai’s clients, was able to User revenue increased by 35% Within 90 days of starting to use the Stay Ai tool.
“Typically, the most canceled orders happen between order 1 and order 2,” CEO Perrelli told TechCrunch. “So how do we get that number down so we can actually turn a profit? It can be as simple as telling customers in an upcoming notification that they’re going to receive a gift, which gets them an extra order, which is often where brands make money on subscription purchases. Getting them to beat that is a huge game changer.”
Since launching a year ago, Stay Ai is now used by about 300 Shopify merchants, including Vita Coco, Momofuku and Snow, and revenue will grow 10-fold starting in 2022, Perrelli said. The company charges users $500 a month, then charges 1 percent and 19 cents on all subscription transactions.
Building on Shopify has been popular lately, with startups like Polar Analytics, Triple Whale, Replo, Postscript, Shop Circle, and Popup attracting venture capital interest over the past year for their tools for merchants in the marketplace. Stay Ai is the latest company to join the list, announcing a $15.1 million Series A round to fuel its growth. The investment included $8.6 million led by Telescope Partners with participation from Boulder Food Group, Riverpark Ventures and Vanterra Capital, and a previously undisclosed $7.5 million led by individuals including Watchfire Ventures and Sharma Brands founder Nik Sharma and Postscript founder Adam Turner.
Stay Ai intends to use the new funds to expand its 50-person team, accelerate its innovation roadmap and make additional acquisitions.In the past year, including Acquired churn reduction app RetentionEngine.
“By acquiring Bellwethr, we’re incorporating more machine learning into our tools,” Perrelli said. “For some average A/B tests, our churn rate has dropped by about 20%, sometimes 30%. When you add upsells, it starts to add up.”