SaaS firm joins TinySeed accelerator to help merchants sell products through SMS
TextRetailer, an Iowa City-based tech firm that created a conversational commerce platform to sell products through text messages, announced today it raised $150,000 from the TinySeed accelerator program.
The funding and TinySeed’s collaborative mentor network will aid TextRetailer in its mission to provide a simplified shopping experience for consumers.
“Shopping behaviors are changing and the pandemic has accelerated that change,” said Sam Schrup, founder of TextRetailer. “Consumers are seeking convenience. Shopping by text is the ultimate convenience. A curated product offer is sent to your phone from a brand you love. If you like what you see, simply reply “yes” and a few days later it’s on your doorstep. TinySeed will help us provide our text-to-order technology to more merchants and their customers.”
Think of TextRetailer as bringing Amazon’s 1-click checkout to text messages. The platform securely captures credit card and shipping information before a customer’s first purchase. Merchants send product offers in a text message to their opted-in subscriber list.
Recipients can then buy the product by replying “yes” or with a quantity desired. The transaction is processed and the merchant receives the order information so it can be fulfilled. If the customer is not interested in the offer, they simply ignore the text until the next offer is sent.
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In addition to increasing sales, TextRetailer can be used as a communication tool between customers and merchants. Two-way conversations over text provide a modern customer service experience as merchants can quickly answer customer questions and ask for feedback.
“The TextRetailer team has combined two growing trends: online shopping and text messaging,” said Rob Walling, General Partner at TinySeed. “They provide merchants with the tools to create a magical shopping experience and by doing so increase their revenue.”
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TextRetailer’s technology has been particularly helpful for businesses looking for a better way to communicate with their customers. Roughly 98 percent of text messages are opened by the consumer — compared to only 20 percent of emails.
The effectiveness of text messages has led to a boom in sales for TextRetailer’s merchant clients.
“I’ve seen a single text message generate over $40,000 in sales within a couple of hours,” Schrup said. “Our top merchants have sold hundreds of thousands of dollars worth of products. It’s clear that consumers are drawn to the convenience of shopping by text.”
