They want to help brick-and-mortar retailers by collecting customer data. Munich-based RetailQuant has developed a special sensor for this purpose, which can be used to create analyses and reports that provide retailers and restaurateurs with important information about their customers. In our 7 questions, founders Gordan and Jens explain their business idea.
1. Who are you and what do you do? Please introduce yourselves briefly!
Jens is originally from Cologne and wanted to continue his academic career after completing his master's degree in 2017. Some of the doctoral positions offered to him were in Bavaria, so he planned to come to Munich. By chance, Gordan contacted him via the startup platform Founderio.com the week before the trip, and they met in Munich. The chemistry was right. A week later, Jens promptly moved to Munich and lived on Gordan's living room couch for the first three months. During this time, the first prototypes for RetailQuant were created, and the idea developed into a serious project.
Throughout his career in retail, Gordan repeatedly encountered the same problem: a lack of customer data. The fact is, today's retailers and restaurateurs always know what, where, and when they're selling. Unfortunately, one of the most important ingredients for making good decisions is often missing: who they're selling to. Without this information, customer-centric action is difficult, and strategic decisions can often be made based solely on gut feeling. This can quickly lead to costly mistakes and is a major disadvantage compared to data-driven online retail.
Cost-effective digitalization solution
For this reason, we have created the first cost-effective digitalization solution that enables retailers and restaurateurs of all sizes to automatically collect, analyze, and interpret demographic customer data. Our unique sensor can be installed at the checkout in just a few minutes. There, it detects the age, gender, origin, and satisfaction of customers during the payment process at the checkout, completely anonymously and in compliance with strict German data protection guidelines. You can imagine it as if an employee estimates the age group of a person paying and notes down this estimate. Our sensor has the advantage that it doesn't get tired and is therefore many times more accurate.
In the next step, analysis, the collected information is enhanced with the receipt. This allows us to automatically provide the retailer with detailed reports and active recommendations for action. This helps brick-and-mortar businesses make customer-focused decisions in the areas of marketing, promotion, product range optimization, and much more without great effort. Our mission is to offset the knowledge advantage of online retailers and thus strengthen the competitive edge of brick-and-mortar retail and restaurants.
2. But that's been around for a long time!
In retail, for example, customer data is currently collected either through loyalty cards or manually. Both methods are very costly, and the collected data is often inaccurate. Loyalty cards, for example, are often forgotten, shared, or lost. In addition to the high costs of implementing such a system, customers often become accustomed to discounts, which directly impact sales.
With RetailQuant, it's now easy for brick-and-mortar retailers to automatically capture, process, and analyze customer data. We capture over 98% of all purchases and thus automatically generate highly detailed reports.
TNT — Team, Network & Timing
3. What are the three main ingredients for your recipe for success?
Team, network and timing:
- Team – both founders are quite different in terms of knowledge, experience, and personality. What unites us, however, is our vision and perseverance.
- Network – we have many supporters who advise us in the background, introduce us to customers, and connect us with the right people. Of particular note are the networks of UnternehmerTUM, the LMU Entrepreneurship Center and that of METRO Accelerators powered by Techstars based in Berlin.
- Timing – Through our experience, we understand the market's problems and the lack of good, practical solutions. We developed RetailQuant in collaboration with retailers, industry experts, and consultancies. We wanted to ensure that we were addressing current needs and pressing problems directly. Especially now, as brick-and-mortar retailers are increasingly under pressure from online commerce, there is ideal momentum for solutions that provide brick-and-mortar retailers with actionable insights and help them put the customer back at the center.
4. Let’s get down to business: How is business going?
We founded our company four months ago. Since then, we've managed to get projects up and running throughout the DACH region. Our clients include several international brands, medium-sized franchisors, and several local stores.
Munich: Innovation magnet, but not exactly cheap
5. What does Munich mean to you?
Munich is currently experiencing a boom as a location. This is particularly advantageous for B2B companies, as the region is home to a large number of industries, including some of the most well-known global corporations. Furthermore, with two strong universities, Munich is a magnet for innovation. The only factors that could pose some challenges for startups are the location costs (office and living costs) and the associated availability of potential employees. Personally, we value the high quality of life in Munich. Both the lakes and the mountains are nearby, the location in the heart of Europe is ideal for travel, and the infrastructure is excellent.
6. How will your startup become the next unicorn? Or will we see you soon at Epic Fail Night?
Our business model finally enables companies of all sizes to use more professional, customer-centric data analysis in decision-making. Our experience has taught us that we're on the right track and using new technology to solve an acute problem that has so far remained largely untouched. This is confirmed by the inquiries we receive from a wide range of sectors, including consultancies, brands, retailers, and franchises.
7. Hiking or beer garden?
Gordan: Hiking, although I can often be found in the beer garden.
