The Munich startup Socialwave offers Wi-Fi hotspot devices for business owners of cafes, hotels, doctor's offices, etc., with a modular marketing solution. We spoke with Felix Schönfelder, one of the founders of Socialwave.
Munich Startup: 1. Who are you and what do you do?
Felix Schönfelder: Socialwave was founded in 2013 and has since been working to deliver added value to businesses with a stationary business model and their customers alike. By connecting a professional Wi-Fi hotspots With Socialwave, business owners can not only provide their customers with free Wi-Fi, but also have the opportunity to conduct digital marketing using this technical infrastructure. A key component of Socialwave's marketing kit is an automated feedback management tool that helps companies collect positive online reviews for Google and industry-specific review portals such as Yelp, Tripadvisor, or Jameda, significantly improving their reputation and, above all, their Google ranking. This increases the visibility of shops, doctor's offices, hotels, and restaurants, and increases traffic.
2. But that's been around for a long time!
That's right: Providers of free hotspots in stores have been around for a long time and there are many of them. But the Socialwave concept goes far beyond that. Our solution delivers greater variety and significant advantages in marketing options. We address the customer's need for a fast internet connection and use this to generate sustainable touchpoints for every business owner. We don't expect our clients to have marketing expertise or to invest an additional budget. With our Wi-Fi marketing tools, even marketing novices like doctors, hairdressers, or restaurant owners can efficiently place advertising messages that can also compete graphically with agency results.
Automated marketing tool
Our hotspots are also plug-and-play devices. This means they can be used immediately after connecting, without any installation effort. Our customers' end users—such as restaurant guests, patients in waiting rooms, or gym members—log in to the Socialwave hotspot using a social media channel or email. The registration process is child's play. Upon login, the end user must agree to the terms and conditions and can optionally choose the advertising opt-in, which allows the customer to conduct marketing via Socialwave. A restaurant or hotel owner can then conduct automated email marketing, request Google reviews, search for employees via pop-up windows, send birthday greetings, or invite them to the next event.
This range of services and adaptability make Socialwave hotspots unique from other hotspot providers. We tailor the product perfectly to individual customer requirements.
3. What has been your biggest challenge so far?
Probably the biggest challenge for Socialwave is team growth. When you launch as a startup, you begin without a real hierarchy or strategic allocation of tasks, as you initially want to control and be responsible for everything yourself. However, as a customer base grows, the startup eventually reaches a size that can no longer be managed by the founders in the same way as was the case in the initial phase. The introduction of hierarchical structures, for example, requires a great deal of sensitivity to avoid excessive friction.
4. Let’s get down to business: How is business going?
Socialwave currently has around 20 employees at its Munich location. Including field staff, our Berlin office, and IT, Socialwave has approximately 35 employees.
In 2018, Socialwave generated sales of approximately €1.5 million, which is expected to rise to €3 million in 2019. Even if we can maintain this growth rate, it's important to us that team spirit doesn't fall by the wayside.
Perfect conditions for founders
5. What does Munich mean to you?
Munich is home to us. Even though we founders aren't native Munich residents, it has become a part of our hometown. Whether it's action or relaxation, the city offers us everything we could wish for. The conditions are also perfect for building our own business, apart from the rent, of course.
6. How will your startup become the next unicorn? Or will we see you soon at Epic Fail Night?
Our business hits a nerve because we help businesses with an originally analogue business reach their target audiences digitally without having to devote too much attention to the topic. The demand is enormous. That's why we're more likely to call it a unicorn!
In the coming years, Socialwave will evolve into a marketing platform for business customers. In the future, our services will make it possible to centrally manage, maintain, and monitor various social media presences, as well as initiate comprehensive campaigns. The most important thing is that the customer has the option to switch to "autopilot" at any time. If they want, they don't have to worry about anything anymore, because their marketing will then be managed fully automatically by us.
7. Isar or English Garden?
Clearly: the Isar. The English Garden is at least as beautiful, but the Isar is less crowded and less touristy. That's why we prefer to relax on the Isar after a long day at the office rather than going to the English Garden. To clear our heads and simply wind down after work in true Munich style, the Isar is a better alternative.
