Accumulating consumer suggestions provides corporations a brand new technique to step again and see the product by way of the eyes of its customers. For product corporations, that is typically completed at residence by way of what’s referred to as in-home utilization exams (IHUT). Falling beneath market analysis, this usually entails a market analysis firm, that’s contracted by the model, to work collectively to ship product samples to customers to gather reactions to scents, tastes, effectiveness, and even packaging. Nevertheless, not like different types of market surveys, this section hasn’t adopted a lot expertise or digitized and this hinders manufacturers from making knowledgeable and well timed product choices. Spotlight is a bodily product intelligence platform that permits manufacturers to conduct end-to-end in-home product testing platform. The tech-enabled platform handles all aspects of the method together with take a look at design, recruitment, logistics, suggestions assortment, and related evaluation. By modernizing the method with consideration to software program and design, the platform differentiates itself by providing extra refined focusing on, streamlining the method by decreasing the time wanted for testing and evaluation, and by rising completion charges (90%). Shopper manufacturers are additionally in a position to get to market quicker with extra confidence and Spotlight has already labored with main shopper manufacturers like Estee Lauder, Pepsi, P&G, Nestle, Mondelez, Sakara, Church and Dwight, and Colgate, offering them with an elevated analysis expertise.
AlleyWatch caught up with Spotlight Founder and CEO Dana Kim and Cofounder and CPTO Ethan Kellough to study extra in regards to the enterprise, the corporate’s strategic plans, newest spherical of funding, and far, rather more…
Who have been your buyers and the way a lot did you increase?
This was our Sequence A, co-led by Acre Enterprise Companions and HearstLab with participation from Ingeborg Investments and GS Futures, and 10+ powerhouse angels together with Jag Tub (former CEO of Favor, which offered to HEB) and Ryan Nece (managing director of Subsequent Legacy Ventures). This brings our complete raised thus far to over $30M.
Inform us in regards to the services or products that Spotlight provides.
Spotlight is an end-to-end bodily product testing resolution. Our platform facilitates all elements of the analysis course of–from recruit to logistics, recording suggestions, and producing insightful information.
Spotlight has now helped a whole bunch of manufacturers — together with Nestle, Estee Lauder, P&G, Goal, Sakara, and Hanes — take a look at 1000’s of merchandise. Listed below are only a handful of examples of how corporations have used Spotlight to get their merchandise into the arms of shoppers for trustworthy suggestions at scale:
- VERB Power proved their caffeinated bar superiority to win extra retail shelf area.
- Georgia Pacific ran massive scale testing of whole paper items classes for quicker benchmark information.
- Cupboard Well being gathered product and packaging information to make sure the success of a large retail rollout.
- Youthforia examined magnificence merchandise for shopper claims forward of a Shark Tank pitch.
What impressed the beginning of Spotlight?
We began this firm just below three years in the past with the assumption that bodily product intelligence is important to success in at present’s hyper-competitive market. However bodily product corporations face many challenges to understanding buyer wants and accumulating vital suggestions to create distinctive, enduring merchandise. We’ve felt the ache firsthand — spending far too many hours recruiting particular audiences, combing by way of fraudulent panelist lists, programming and reprogramming surveys, making certain the meeting and supply of shipments, and manually managing this clunky course of from end-to-end. There needed to be a greater approach.
How is Spotlight totally different?
Spotlight revolutionizes the IHUT course of by seamlessly integrating expertise, streamlining the end-to-end workflow. In stark distinction to the complexity and fragmented nature of conventional IHUTs, all project-related information for a model is consolidated and simply accessible by way of a single, user-friendly platform.
Gone are the times of grappling with numerous emails to provoke a product take a look at; now, customers can swiftly arrange a mission inside minutes on the platform, observing real-time information stream into dynamic dashboards inside a matter of days. Leveraging Spotlight’s unique, rigorously screened, and numerous group, researchers can purchase the invaluable, high-quality insights they search from their goal shoppers.
Whether or not the main target is on discerning suggestions from cat-owning millennials or pinpointing preferences of girls above 50 in California with oily pores and skin and a penchant for retinol merchandise, Spotlight provides unparalleled entry to those distinct viewers segments. Furthermore, manufacturers may even take a look at their merchandise with the youngest of individuals, with parental involvement making certain a complete perspective.
Lastly, Spotlight empowers manufacturers to confidently take a look at a wide selection of merchandise that have been beforehand difficult and even deemed unfeasible, together with frozen items, blinded gadgets, and alcoholic drinks.
What market does Spotlight goal and the way huge is it?
30,000 merchandise are launched yearly, and someplace between 80-95% of them fail, relying on who you ask. We intention to gradual the speed of failure and increase our prospects’ confidence in every launch, regardless of this aggressive actuality. So significant product testing is vital to corporations of all levels and sizes, and we’re proud to companion with
- Main manufacturers together with Nestle, P&G, Estee Lauder, Georgia Pacific, Hanes, CVS, and Goal.
- We additionally work with some development stage manufacturers like Sakara, Harry’s, and Bombas
- And smaller manufacturers like Lemmelive, Love Corn, Cupboard, and Starday Meals.
You’ll discover that these span classes – we do style testing for meals and bev, put on testing for attire, aggressive testing throughout SKUs for retailers, and extra. We actually intention to democratize entry to this information for manufacturers of all styles and sizes,and are after the $24bn spent yearly by shopper product corporations, right here within the US, on Knowledge & Analytics at present.
What’s your online business mannequin?
Spotlight operates on a usage-based mannequin that permits prospects to flexibly purchase and use credit in keeping with their utilization ranges and quantity expectations.
How are you making ready for a possible financial slowdown?
Luckily for us, we’re in an business that doesn’t cease in occasions of slowdown – realizing your shopper and testing your merchandise is a must have irrespective of the financial setting. As a company, we’re relentlessly centered on persevering with to drive worth for our customers who use Spotlight’s information to guard their core companies – so they’re constructing and sustaining sturdy merchandise that thrive even in troublesome financial occasions. Moreover, from an ROI perspective, Spotlight is a worth product, so we proceed to make sure cost-benefit for our prospects is a no brainer.
What was the funding course of like?
Spotlight was very intentional with the choice to fundraise and what extra capital would yield by way of creating enterprise worth and hitting key milestones as a company. With that intentionality, and the drive to companion with hands-on, values-aligned buyers, our management staff was very considerate in conversations and centered on making certain a constructive final result not simply fiscally, however by way of staff and companions.
What are the most important challenges that you simply confronted whereas elevating capital?
COVID-19 modified the best way through which we fundraise, making the default for ‘attending to know you’ calls distant and over Zoom, fairly than in-person. We have been intentional about discovering methods to satisfy our buyers in particular person given the significance we positioned on having clear, real conversations and actual relationships with our buyers, regardless of of us being primarily based throughout.
What components about your online business led your buyers to write down the examine?
“There’s a lot conjecture and imposition of opinion in our world at present, and there’s energy in leveraging true information from actual individuals to create higher, enduring merchandise. It’s empowering to construct from fact, and Spotlight’s mission and platform allow manufacturers of all sizes and classes to be proactive in creating significant product benefits.” –Lucas Mann, Acre Enterprise Companions
“We consider in making change. We consider in driving significant impression grounded by information and intentionality. And that’s precisely what Spotlight does. We’re immensely impressed by their outcomes thus far and excited to be part of their journey.” –Lucas Mann, Acre Enterprise Companions
“We’re proud to be an early and persevering with investor in Spotlight…We over-index on founder-fit and cherished Dana and Ethan from the beginning…we recognize the chance to leverage expertise and automate an age-old observe. Traction to-date proves that there’s an actual want within the business…and now we have all the arrogance within the firm’s continued success” – Beth Devin, Hearst Lab
What are the milestones you intend to realize within the subsequent six months?
- Speed up our product roadmap + broaden our attain.
As our prospects take a look at extra merchandise, Spotlight turns into a system of report for his or her owned and benchmarked product information. We’re centered on constructing instruments that capitalize on that information. With the addition of templates and wizards, expert-led testing greatest practices throughout verticals, and a really DIY expertise, we’ll proceed to make vital product information extra highly effective and accessible to groups of all sizes.
- Elevate the bar for the Highlighter group expertise.
We pleasure ourselves on the energy and engagement of our group of Highlighters, who’re captivated with giving suggestions to make sure manufacturers can construct higher merchandise.
We’re working to broaden this group and improve their consumer expertise to make sure it’s much more seamless and fascinating.
We started increasing our staff this 12 months and proceed to hunt passionate people who share our imaginative and prescient for constructing higher merchandise. We’re hiring! Try our Careers web page for open roles.
What recommendation are you able to provide corporations in New York that shouldn’t have a recent injection of capital within the financial institution?
As is the recommendation throughout a lot of the early-stage ecosystem on this time: proceed to give attention to enterprise effectivity – not simply relentless topline development – to make sure the core enterprise is stable and your unit economics are robust sufficient to can help you have management of your financials and runway.
As is the recommendation throughout a lot of the early-stage ecosystem on this time: proceed to give attention to enterprise effectivity – not simply relentless topline development – to make sure the core enterprise is stable and your unit economics are robust sufficient to can help you have management of your financials and runway.
The place do you see the corporate going now over the close to time period?
Spotlight is on a mission to construct higher merchandise for individuals and the planet. With a purpose to impression actual change, we’re constructing an unimaginable product intelligence platform to offer product builders and entrepreneurs the instruments and information they should succeed. Beginning by making in-home utilization testing simpler, quicker, and extra collaborative, Spotlight is constant to evolve the definition of product intelligence.
What’s your favourite summer season vacation spot in and across the metropolis?
Our Spotlight staff loves South Soho Bar, and La Compagnie des Vins Surnaturels is a private favourite. We’re each fortunate to have household in Connecticut and New Jersey, and love exploring the entire NY space.
