Simon Terbovšek, the founder of CartFox.io, has developed a solution for a common e-commerce problem: abandoned shopping carts. He identified this issue in his own online store and created a tool that now serves 110 paying customers.
CartFox.io helps online stores recover potential sales from customers who add items to their cart but leave without completing the purchase. In 10 months, Simon has grown this idea into a business generating $1500 in monthly recurring revenue.
Simon's experience with CartFox.io provides a practical look at launching a Software as a Service (SaaS) product in the e-commerce space. It took nearly a year to acquire the first 50 customers, and Simon has plans for future growth through content marketing and strategic partnerships.
By examining Simon's journey with CartFox.io, we can learn about creating a product that solves a specific business problem, the difficulties of finding customers, and how to adapt and improve a startup over time.
Simon Terbovsek
What is CartFox.io?
CartFox.io is an online tool designed to help e-commerce businesses solve a common problem: customers who don't finish their purchases. When people shop online, they often add items to their cart but then leave the website without buying anything. This is called "cart abandonment," and it's a big issue for online stores because it means lost sales.
CartFox.io works by tracking these abandoned carts and then trying to bring the customers back to complete their purchases. It's like a digital shop assistant that notices when someone has left items in their cart and then gently reminds them to come back and finish shopping.
The tool is not just for one type of online store. It can be used by small businesses selling a few products or large companies with thousands of items. CartFox.io is what's known as a "Software as a Service" (SaaS) product. This means that store owners don't need to install anything on their computers. Instead, they can access CartFox.io through the internet, making it easy to use and update.
Why Simon started CartFox.io
Simon's journey to creating CartFox.io began with his own experience as an online store owner. He was running an e-commerce business and noticed a frustrating pattern: many potential customers would add items to their cart but then leave without buying.
This problem wasn't unique to Simon's store. In fact, it's a common issue in the world of online shopping. Studies show that about 70% of online shoppers abandon their carts, which means a lot of potential sales are lost.
Simon and his team decided to tackle this problem for their own store. They started by researching why people abandon their carts. They found various reasons:
- Unexpected shipping costs
- Complicated checkout process
- Website errors
- Customers just browsing with no intention to buy immediately
With this knowledge, they developed a system to try and recover these lost sales. They created personalized email reminders, offered discounts to encourage purchases, and made their checkout process smoother.
As they worked on this solution, Simon had a realization: if this was helping their store, it could probably help other online stores too. He saw an opportunity to turn their internal tool into a product that could benefit the wider e-commerce community.
This realization was the spark that led to the creation of CartFox.io. Simon took the system they had developed for their own store and began adapting it into a tool that any online store could use.
What CartFox.io does
CartFox.io offers a range of features to help online stores recover abandoned carts and increase their sales. Here's a detailed look at what it does:
1. Email reminders: When a customer leaves items in their cart without buying, CartFox.io can automatically send them an email reminder. These aren't just generic messages. The system creates personalized emails that include details about the specific items the customer left behind. This personal touch can be more effective in bringing customers back.
2. Discount offers: Sometimes, a little incentive can make a big difference. CartFox.io can offer special discounts to customers who abandoned their carts. For example, it might send an email offering 10% off if the customer completes their purchase within 24 hours. This creates a sense of urgency and gives the customer an extra reason to buy.
3. Free shipping offers: High shipping costs are a common reason for cart abandonment. CartFox.io can automatically offer free shipping to customers who left items in their cart, if the store owner chooses to enable this feature.
4. Exit-intent popups: These are messages that appear when a customer is about to leave the website. CartFox.io can show a popup with a special offer or a reminder about the items in the cart, giving the customer one last chance to complete their purchase.
5. Checkout optimization: The tool helps store owners make their checkout process simpler and faster. This might include offering multiple payment options or reducing the number of steps needed to complete a purchase.
6. Clear policy display: CartFox.io can help stores display their shipping and return policies more clearly. This builds trust with customers and can reduce cart abandonment due to uncertainty about these policies.
7. Data analytics: The system collects and analyzes data about customer behavior. This includes information like which products are often left in carts, at what point customers usually abandon their carts, and which recovery tactics work best. Store owners can use this data to make informed decisions about their products and marketing strategies.
8. Automated workflows: CartFox.io can set up automated sequences of actions. For example, it might send an email reminder after 1 hour, then offer a discount after 24 hours if the customer hasn't returned.
9. A/B testing: This feature allows store owners to test different versions of their recovery emails or popups to see which ones work best.
How Simon got his first customers
Getting the first customers for CartFox.io wasn't easy for Simon. It took almost a year to get the first 50 customers. This shows that even good ideas can take time to catch on. Here's how Simon went about finding his first customers:
1. Cold outreach: This means Simon directly contacted potential customers who didn't know about CartFox.io before. He likely made a list of online store owners who might benefit from his tool. Then, he reached out to them through email or phone calls to introduce CartFox.io. This method takes a lot of time and effort, but it allowed Simon to personally explain how CartFox.io could help each business.
2. LinkedIn: Simon used this professional networking site to find and connect with potential customers. LinkedIn is useful because it allows you to search for people based on their job titles or the type of business they run. Simon probably looked for e-commerce store owners or managers and sent them messages about CartFox.io. He might have also shared posts about cart abandonment and how CartFox.io solves this problem.
3. Paid advertising: Simon tried using paid ads to get customers, but this didn't work well for him. Paid ads are when you pay to have your product shown on websites or in search results. While this can sometimes bring quick results, it can also be expensive, especially if you're not reaching the right people. The fact that this didn't work for Simon shows that sometimes traditional advertising isn't the best way to get customers for a new product.
It's worth noting that getting these first customers took a lot of time and effort. Simon didn't give up when things were slow at the start. This persistence is often necessary when starting a new business.
Plans for getting more customers
After getting his first customers, Simon started thinking about how to grow CartFox.io even more. He has several plans for attracting new customers:
1. Content marketing: This involves creating helpful information related to e-commerce and cart abandonment. Simon plans to write blog posts, create detailed guides (called whitepapers), share real examples of how CartFox.io has helped businesses (case studies), and host online seminars (webinars). The idea is to provide valuable information that attracts potential customers to the CartFox.io website. When people find this content helpful, they're more likely to trust and try CartFox.io.
2. Search Engine Optimization (SEO): This is about making the CartFox.io website show up higher in search results when people look for solutions to cart abandonment. Simon will likely use specific words and phrases related to e-commerce and abandoned carts throughout the CartFox.io website. This helps search engines like Google understand what CartFox.io is about and show it to people looking for such tools.
3. Strategic partnerships: Simon plans to work with other businesses that serve e-commerce stores but don't compete directly with CartFox.io. For example, he might partner with companies that provide shipping services or payment processing for online stores. These partnerships could involve recommending each other's services to their customers.
4. Affiliate program: This is a way of getting other people to promote CartFox.io. In an affiliate program, individuals or companies (called affiliates) promote CartFox.io to their own audience. If someone signs up for CartFox.io through an affiliate's link, that affiliate gets a commission. This can be a good way to reach new potential customers through people they already trust.
5. Social media marketing: While not explicitly mentioned, Simon will likely use social media platforms to share content, engage with potential customers, and build awareness about CartFox.io.
These plans show that Simon is thinking about long-term, sustainable ways to grow his customer base, rather than relying only on direct outreach or paid advertising.
How CartFox.io is built
Simon built CartFox.io using two main technologies: PHP and MySQL. Let's break down what these are and why Simon chose them:
1. PHP: This stands for Hypertext Preprocessor. It's a programming language that's often used for building websites and web applications. PHP is popular because it's relatively easy to learn and use, and it works well for creating dynamic web pages (pages that can change based on user input or other factors).
2. MySQL: This is a type of database. You can think of a database as a digital filing cabinet where all the information for CartFox.io is stored. This includes data about customers, their abandoned carts, email sequences, and more. MySQL is known for being reliable and able to handle large amounts of data efficiently.
Simon mentioned that there are no significant limitations with this technology stack. This means that PHP and MySQL are capable of doing everything he needs for CartFox.io. Here are some advantages of using PHP and MySQL:
- Developer productivity: Simon said that developers are productive with this stack. This likely means that it's quick and straightforward for programmers to write code and make changes to CartFox.io.
- Scalability: Simon mentioned that they can "scale horizontally." In simple terms, this means that as CartFox.io gets more customers and needs to handle more data and traffic, they can add more servers to share the workload, rather than needing to buy more powerful (and expensive) single servers.
- Large community: Both PHP and MySQL have been around for a long time and have large communities of developers. This means it's usually easy to find solutions to problems or hire developers who know these technologies.
- Cost-effective: PHP and MySQL are open-source, which means they're free to use. This can help keep costs down, especially for a new business.
- Flexibility: These technologies can be used to build a wide variety of web applications, giving Simon the flexibility to add new features to CartFox.io as needed.
Tools Simon uses for his business
Running a business like CartFox.io requires more than just the technology it's built on. Simon uses several tools to manage different aspects of his business:
1. Google workspace: This is a set of tools made by Google for businesses. It includes:
- Gmail for business emails
- Google Drive for storing and sharing files
- Google Docs, Sheets, and Slides for creating documents, spreadsheets, and presentations
- Google Meet for video calls
Simon likely uses Google Workspace to communicate with his team, store important documents, and collaborate on projects. It's useful because everyone can work on the same documents at the same time, even if they're in different places.
2. Skype: This is a tool for making voice and video calls over the internet. Simon probably uses Skype to talk with his team members, especially if some of them work remotely. It's also useful for having calls with customers or partners who might be in different parts of the world.
3. ChatGPT: This is an artificial intelligence tool that can understand and generate human-like text. Simon might use ChatGPT for various purposes:
- Writing initial drafts of emails or marketing content
- Generating ideas for blog posts or social media updates
- Helping with customer support by drafting responses to common questions
While ChatGPT can be a helpful tool, it's important to note that its outputs should always be reviewed and edited by humans to ensure accuracy and appropriateness.
These tools show that Simon values efficient communication, collaboration, and is open to using new technologies to improve his business operations.
What Simon learned from starting CartFox.io
Starting and running CartFox.io has taught Simon several lessons:
1. Customer retention is easier than acquisition: Simon discovered that it's easier to keep existing customers than to find new ones. This is why CartFox.io focuses on making it simple for businesses to reconnect with customers who have already shown interest by adding items to their cart. This lesson likely influences how Simon balances his efforts between finding new customers and keeping current ones happy.
2. Passion and perseverance: Building a business isn't always easy. Simon learned that having a strong belief in your idea and the determination to keep going, even when things are tough, is essential for success. There were probably times when growth was slow or problems arose, but Simon's passion for solving the cart abandonment problem kept him going.
3. Building a strong team is important: Simon realized that having a diverse group of skilled people who share the same vision is key to executing business ideas effectively. This might have led him to carefully choose team members with different skills and experiences who could contribute to CartFox.io's growth.
4. Adaptability: The business world, especially in technology, changes quickly. Simon learned that being able to adjust to new market conditions, customer needs, and technologies is vital for a business to grow and survive. This might explain why he's always looking for new ways to improve CartFox.io and reach customers.
5. Networking and relationships matter: Simon found that building good relationships with mentors, investors, partners, and customers can open up new opportunities for success. This could be why he values platforms like LinkedIn for connecting with potential customers and partners.
Growth and customer acquisition of CartFox.io
CartFox.io has seen significant growth since its launch:
1. Time to first 50 customers: It took Simon almost a year to get the first 50 customers. This shows that the initial growth was slow, which is common for many new businesses.
2. Current status: After 10 months (which might overlap with the first year), CartFox.io had reached 110 paying customers. This suggests that growth accelerated after the initial slow period.
3. Monthly recurring revenue (MRR): CartFox.io is now making $1500 per month. In the software-as-a-service (SaaS) world, MRR is an important metric as it shows steady, predictable income.
4. Customer acquisition methods:
- Cold outreach was one of the main ways Simon got his first customers.
- LinkedIn proved to be a good platform for finding customers.
- Paid ads were tried but weren't successful.
5. Future growth plans:
- Content marketing: Creating helpful content to attract potential customers.
- SEO: Improving CartFox.io's visibility in search engine results.
- Strategic partnerships: Working with other businesses in the e-commerce space.
- Affiliate program: Getting others to promote CartFox.io for a commission.
Challenges Simon Faced
Starting and growing CartFox.io wasn't without its difficulties. Simon encountered several challenges:
1. Slow initial growth: It took almost a year to get the first 50 customers. This slow start could have been discouraging, but Simon persevered. It likely required patience and continuous effort to keep pushing forward when results weren't immediate.
2. Ineffective paid advertising: Simon tried using paid ads to attract customers, but this strategy didn't work well. This challenge taught him that not all marketing methods work for every business, and it's important to be willing to try different approaches.
3. Standing out in a competitive market: The e-commerce tool market is crowded, with many solutions available. Simon had to find ways to make CartFox.io unique and valuable to potential customers. This likely involved clearly communicating CartFox.io's benefits and how it differs from other tools.
4. Building trust with potential customers: As a new product, CartFox.io had to prove its worth to potential customers. Simon likely had to overcome skepticism and show how CartFox.io could provide real value to e-commerce businesses.
5. Balancing feature development with customer acquisition: Simon had to decide how to split his time and resources between improving CartFox.io's features and finding new customers. This balance is crucial for young businesses to grow while also satisfying existing customers.
6. Adapting to market changes: The e-commerce world changes rapidly. Simon had to keep CartFox.io relevant by adapting to new trends, technologies, and customer needs.
These challenges highlight the complexities of starting a new business, especially in the competitive world of e-commerce tools. Simon's ability to overcome these obstacles has been key to CartFox.io's growth and success.
How CartFox.io helps different sized stores
CartFox.io is designed to be useful for online stores of all sizes, from small businesses just starting out to large companies with many products. For small businesses, where every sale counts, CartFox.io provides an affordable solution to recover lost sales. It offers easy-to-use tools that don't require technical knowledge, automating email reminders to save time for busy store owners who often handle multiple tasks. The system also gives insights into customer behavior, helping small stores understand their customers better, and offers pre-made email templates so store owners don't need to write marketing emails from scratch.
As stores grow and face new challenges, CartFox.io scales its services to handle more customers and products. Medium-sized stores benefit from more detailed analytics to help make data-driven decisions. The platform offers customization options to match the store's branding and integrates with other e-commerce tools the store might be using. Features like A/B testing help optimize recovery strategies for these growing businesses.
Big online stores have complex needs, and CartFox.io supports them by handling large volumes of data and transactions. It offers advanced segmentation to target different customer groups and provides robust reporting features for in-depth analysis. Large stores can take advantage of high levels of customization to fit specific business processes, and they receive dedicated support to help with complex setups or issues.
Regardless of store size, CartFox.io constantly updates its system to address new challenges in e-commerce. It provides customer support to help store owners use the tool effectively and offers educational resources about cart abandonment and e-commerce best practices. By catering to stores of all sizes, CartFox.io has positioned itself as a versatile tool in the e-commerce market, allowing the business to grow alongside its customers, from small startups to large enterprises.
Conclusion
Simon had to try different ways to find customers and keep improving his product. What worked for CartFox.io was focusing on keeping current customers happy and building a tool that could help both small and large online stores. While there's still room to grow, Simon's experience offers a realistic look at what it takes to turn a good idea into a working business.
