Connectly Taps Automation to Nudge Shoppers into Completing Purchases

January 24, 2025February 6, 2025 moneymetrics.org_admin Technology

Consumers interact with e-commerce brands through various channels, including social media, text messages, and email. Brands often use these channels to reach out with promotions and discounts, but the engagement and read rates tend to be low. In fact, according to a recent study by Gartner, brands risk losing 38% of customers due to poor marketing personalization efforts.

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The Solution: Algorithm-Driven Marketing

Stefanos Loukakos, the former head of Meta’s business-focused Messenger division, believed that the solution might lie in algorithms that drive marketing at the right time and to the right person. To test this theory, Loukakos founded Connectly, a platform that hosts messaging campaigns and automates conversations with customers across various messaging apps.

The Benefits of Messaging Campaigns

Connectly allows brands to create campaigns and chatbots to automate text message conversations with customers. Loukakos pitches it as a way for brands to capture customers who might otherwise fall through the cracks. The platform can tailor suggestions to ensure customers discover products they’ll love, as well as help companies gain a deeper understanding of their customers.

How Connectly Works

For example, if a customer abandons a cart on a brand’s website, Connectly can detect this and send them a message asking why they didn’t make a purchase. If the customer is "high value," Connectly can offer to extend them a discount or lower-cost shipping.

On the back end, Connectly’s AI attempts to figure out which products customers are most interested in and build audience segments, which it displays to brands in a unified dashboard. Connectly provides a real-time pane of glass that connects the dots between messages and sales.

The Importance of Personalization

The stakes are high to get personalization right. According to a recent survey of around 1,200 SMS users, nearly half reported being "annoyed" by text message marketing, with 28% saying that they’d abandoned at least one brand out of irritation. Connectly appears to have had some success, though, with a customer base hovering around 200 brands and annual recurring revenue just eclipsing $3.5 million.

The Future of Messaging Campaigns

Despite competition from incumbents like Twilio and startups such as MessageBird and Attentive, the company is well-positioned for growth, Loukakos asserts. With plans to grow headcount from 35 employees to close to 40 by year-end 2023, Connectly is set to revolutionize the way brands interact with customers.

Connectly’s Success Story

To date, Connectly has raised $7.85 million in a Series A round led by Volpe Capital with participation from RX Ventures and DST Global managing partner Saurabh Gupta. This brings the startup’s total raised to $17.25 million. With its innovative approach to personalization and AI-driven marketing, Connectly is poised to take the e-commerce industry by storm.

The Importance of Innovation in E-commerce

Innovation is key to staying ahead in the e-commerce game. As consumers become increasingly digital-savvy, brands must adapt and evolve to meet their changing needs. With messaging campaigns and AI-driven marketing, Connectly has found a way to bridge the gap between brands and customers.

Conclusion

Personalization is no longer just a nicety; it’s a necessity in e-commerce. Brands that fail to adapt risk losing out on sales and customer loyalty. Connectly’s innovative approach to personalization offers a solution for brands looking to stay ahead of the curve. As the industry continues to evolve, one thing is clear: messaging campaigns will play a crucial role in shaping the future of e-commerce.

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