How This Female Founder Is Making A Splash In The Subscription Ecommerce Space

75% of DTC brands plan to have subscription-based offerings this year. It’s wise to jump into the digital subscription economy early, considering the industry is predicted to reach a market size of $1.5 billion by 2025.

Therefore, it comes as no surprise that Smartrr, Shopify’s first-of-its-kind subscription app, is receiving attention from Shopify users. DTC brands can choose from Smartrr’s options for a program tailored to their brand and products while tapping into customizable subscription programs, a branded customer account portal, and more.

Gabriella Tegen, Smartrr’s Co-Founder and CEO, grew up immersed in her family’s real estate business. However, while living in Tel Aviv, she became fascinated with the city’s flourishing startup culture. Eventually, she found a way to combine her experience and interests, working in the prop-tech sector as a media and sales coordinator.

In this role, she developed a network of commercial real estate professionals, giving her an insight into crisis-related business challenges when the pandemic rolled around. Additionally, she noticed what was happening with the small businesses in her neighborhood in Manhattan.

With lockdowns crippling brick-and-mortar businesses, Gaby wanted to find a solution. A combination of these factors, as well as an increased interest in eCommerce, led Gaby to Smartrr.

She was drawn to the Shopify ecosystem and its community of passionate DTC founders and interviewed hundreds of the platform’s merchants to determine their biggest concerns. Nearly all had the same concern: managing subscriptions.

Leaning into subscriptions helps brands in a healthy economy, even more so in recessions. Returning customers spend on average 67% more than new customers, making them 22 times more valuable.

By focusing on subscriptions, ecommerce brands also lower operating costs, a significant advantage during times of economic hardship. Studies indicate that a 5% increase in customer retention can increase revenue by 25%. In contrast, acquiring new customers typically costs eCommerce businesses $45 to $50 per customer.

With Smartrr’s tech, online retailers can acquire and retain subscribers more efficiently. By providing exceptional post-purchase experiences, one-time buyers can become brand enthusiasts. LTV-boosting features, such as loyalty rewards, referrals, member-only benefits, and community and influencer campaigns, can motivate these new subscribers to stay on board.

Brand loyalty is central to Smartrr’ strategy. “Feeling a connection with the brand—and feeling like the brand has a connection to you—drives long-term sales more than anything else a brand can provide stacked upon a subscription.”

It’s not just a company line. Their data shows that within 60 days of switching to Smartrr, businesses see a 2.5X increase in subscription revenue and a 5X increase in lifetime sales.

As it turned out, investors also understood the value subscriptions bring to the table. Gaby managed to raise $10 million in funding while nine months pregnant despite a steep decline in investments in North American startups in the fourth quarter of last year, with women-founded startups accounting for just 1.9% of venture capital raised by 2022.

While initially concerned investors would view her in a less favorable light if she announced she was expecting, Gaby stood firm and was honest and open about her pregnancy throughout the process.

Her pitches instead shed light on Smartrr’s continuous growth. Highlighting the company’s plans to integrate a GTM software to help users understand, connect, and communicate with their customers more efficiently, investors saw Smarttr as a frontrunner for post-purchase software for DTC brands.

Furthermore, she underscored the impressive team behind the company’s steady progress. “Success is rarely achieved alone, and I made it a point to assure investors that Smartrr is no different,” Gaby said. “We ultimately closed our series A a week after I gave birth to my baby girl.”

With its series A funding, Smartrr is bolstering its team with talent. Recruiting across all departments is currently a top priority. On the business front, Smartrr plans to expand beyond subscriptions and add memberships. This development will become the first comprehensive LTV platform in the Shopify ecosystem.

In addition, the company is doubling down on its efforts to redefine its subscriber experience. With new options like expedited deliveries if products run out, or gifting the next order to a friend, Smartrr offers subscribers options beyond simply pausing, skipping, or canceling an order.

“We’ve made a promise to ourselves and to our merchants to never lose sight of the end customer’s experience,” Gaby said. This ethos continues to guide the company toward innovation and differentiation within its niche.

With the team’s continued growth, the company will be able to provide its customers with a greater level of support and develop more sophisticated subscription features and membership options going forward.