Retail data platform CloudTags has raised $2 million in a Series A funding round. The software helps retailers merge the physical shopping experience with the benefits of shopping online through the use of Near Field Communication (NFC) beacons to digitize a retailer’s entire catalog. When shopping in-store, customers can use tablets provided by the retailer to access items from the catalog just as they would online, doing research, adding items to lists, and even opting in for email communications.
This latest round of funding brings the total amount raised to $3.2 million. TechStars’ Brad Feld participated in the company’s previous round in late 2014. Investors in this round include Idea Fund Partners, Alerion Ventures, Knoll Ventures, and returning supporter Hallett Capital. The capital will be used to launch a new program called In-Store Remarketing. This service will enable retailers to follow up with shoppers via personalized email and display information. CloudTags also plans to increase sales and marketing efforts to continue its growth.
Heal’s, a contemporary furnishings retailer in London, has been the first retailer to use the new platform, and Oliver White, the company’s ecommerce director said they’ve seen “astonishing results.” He continued,
The idea that customers who have physical product experiences in the store are willing to spend more than those who have online-only product experiences makes sense. The fact they are over 10 times more likely to engage with our in-store driven ads ensures we’re having the right conversations with our most valuable customers.
CEO James Yancey sees big strides ahead for omnichannel efforts like CloudTags’.
With the increased awareness of NFC through experiences like Apple Pay, there will be more ways people can use their personal devices in stores interactively. We are still on the cusp of what’s possible related to digital interactions with physical things.
"[#omnichannel] it is the new basis for maximizing sales and profitability in the #retail environment." http://t.co/DzpCvMQhUa
— CloudTags (@cloudtags) February 27, 2015
The company has offices in Atlanta, London, New York, and Bangalore, and its service is available currently in both U.S. and U.K. stores.
In an email, Yancey said, “The funding environment is still generally lacking in the Southeast for early companies, but we are a very global company with offices in the U.S., U.K. and India and have met with funds from all over the world.”
Atlanta is a natural choice for a hub because of the presence of retail technology leader NCR and brands like Macy’s and Carter’s are headquartered here.
CloudTags claims that implementation of their product can be completed in fewer than 30 days due to the use of what the company calls smart technology. It also says that POS integration is not required.
Photo Credit: Image by Walter Lim via Flickr under CC 2.0
