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Tyler Tate. He\\u2019s the CEO of Crema.co, the coffee market place. Previously, he co-founded TwigKit, which is an enterprise search software and was the first design lead at Nutshell, which is a SaaS CRM platform. In each case, he used product strategy and design thinking to play its part in envisioning, designing and building products from the ground up. He\\u2019s also co-authored the book called Designing the Search Experience which Morgan Kaufmann published in 2013. He\\u2019s spoken at numerous conferences. While at TwigKit, he consulted for organizations such as The Financial Times, Thomson-Reuters, Qualcomm, Vodafone, ITV, Rolls-Royce, BASF and Gemalto, helping them design search-driven applications. He\\u2019s originally from Alabama, went to University of Kentucky, and spent 7 years in UK. He\\u2019s also lived in Seattle and currently resides in the San Francisco Bay area.

Famous Five:

• Favorite Book? \\u2013 Tyler prefers reading blogs at the moment
• What CEO do you follow? \\u2013 Michael Dubin
• Favorite online tool? \\u2014 Trello
• Do you get 8 hours of sleep?\\u2014 7
• If you could let your 20-year old self, know one thing, what would it be? \\u2013 Tyler wished he realized earlier how important a network is

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Time Stamped Show Notes:

• 01:35 \\u2013 Nathan introduces Tyler to the show
• 02:41 \\u2013 In TwigKit, Tyler was selling an expensive software product to large companies
• 03:00 \\u2013 Tyler learned that he\\u2019d rather do something that is more marketing-driven than sales-driven\\u2014something that is more consumer-driven than enterprise
• 03:14 \\u2013 Tyler\\u2019s realization in switching to a coffee company from a SaaS business
• 03:28 \\u2013 At Nutshell, Tyler was the first design hire
• • 03:33 \\u2013 Nutshell has 3 founders and a CTO
  • 03:53 \\u2013 Tyler, together with the whole team, was able to build something from the ground up
  • 04:01 \\u2013 Tyler had some equity in the business
• 04:38 \\u2013 Tyler had put in $15K to Crema
• 05:05 \\u2013 Tyler sold his equities back to TwigKit and Nutshell
• 06:03 \\u2013 Tyler started working with Crema early 2015
• • 06:08 \\u2013 Tyler did a Kickstarter campaign and made $25K
  • 06:19 \\u2013 Tyler closed and had an Angel round
  • 06:25 \\u2013 A total of $325K was raised and $150K came from 500 startups
  • 06:48 \\u2013 500 startups had a deal of $150K for 6% which is a standard deal
• 07:21 \\u2013 Crema is a marketplace for coffee drinkers to subscribe to roast-to-order beans
• • 07:35 \\u2013 Crema has a platform fee on every order
  • 07:43 \\u2013 When you buy $18 worth of coffee, Crema takes a $9 platform fee and the other $9 goes to the roaster
  • 07:58 \\u2013 The price that you pay is almost similar to retail price and the roaster price is above their typical wholesale price
  • 08:15 \\u2013 The total price includes shipping and other fees
  • 09:00 \\u2013 $9 is a flat fee no matter the order size
  • 09:46 \\u2013 Crema\\u2019s concept is a single-origin emphasis
  • 10:12 \\u2013 Crema does the co-production for the roasters
  • 10:24 \\u2013 Crema has a storytelling team that write journalistic write-ups for their website
• 10:43 \\u2013 Team size
• 11:06 \\u2013 Crema currently has 15 roasters
• • 11:11 \\u2013 With a total of 60 types of coffee beans
• 11:27 \\u2013 Crema had 750 customers in\\xa0 January 2017
• • 11:30 \\u2013 Generated $17K\\xa0 on the platform
• 11:44 \\u2013 Crema\\u2019s growth is 28% month over month
• • 11:48 \\u2013 \\u201cWe\\u2019re targeting something like 10x growth\\u201d
  • 12:07 \\u2013 Crema\\u2019s growth metric is based on GMV and revenue
• 13:55 \\u2013 Average cart value is $17 for a typical purchase
• 14:08 \\u2013 Each box of coffee is shipped individually
• 14:43 \\u2013 A customer spends an average of $23 a month on the website
• 15:05 \\u2013 Crema started in Kickstarter in October
• • 15:13 \\u2013 Crema has been generating organic traffic since then
• 15:48 \\u2013 Crema has spent $5K for Facebook paid ads
• • 16:06 \\u2013 CAC is around $20-25 to convert website visitors to subscribers
• 17:02 \\u2013 Crema ran surveys about people\\u2019s coffee drinking preferences
• 17:29 \\u2013 Crema had sample packs for new customers allowing them to try 4 different types of coffee
• 20:15 \\u2013 The Famous Five

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3 Key Points:

• Shifting from B2B to B2C is a breeze when you really know who you want to target.
• Great storytelling can engage consumers and connect them to the product.
• Do not hesitate to meet people, move around, and build a network for yourself.

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Resources Mentioned:

• The Top Inbox\\xa0 \\u2013 The site Nathan uses to schedule emails to be sent later, set reminders in inbox, track opens, and follow-up with email sequences
• Organifi \\u2013 The juice was Nathan\\u2019s life saver during his trip in Southeast Asia
• Klipfolio \\u2013 Track your business performance across all departments for FREE
• Acuity Scheduling \\u2013 Nathan uses Acuity to schedule his podcast interviews and appointments
• Host Gator\\xa0\\u2013 The site Nathan uses to buy his domain names and hosting for the cheapest price possible
• Audible\\xa0\\u2013 Nathan uses Audible when he\\u2019s driving from Austin to San Antonio (1.5-hour drive) to listen to audio books
• Freshbooks \\u2013 Nathan doesn\\u2019t waste time so he uses Freshbooks to send out invoices and collect his money. Get your free month NOW
• Show Notes provided by Mallard Creatives