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A Video Conversation with Luke Cooper, CEO of Fixt on Measuring Success- Part 4

Click here for Part 1, Part 2Part 3 Revolutionizing the mobile phone and tablet replacement process luke cooperLuke Cooper is the founder and CEO of Fixt, which he calls the “Uber for device replacement.” When a smartphone, tablet, or other device stops working, Fixt allows users to push a button and receive offsite repair in 30 minutes, onsite repair in 1 hour, or a full replacement in 12 hours. The platform also offers detailed device repair analytics and enterprise-level cybersecurity. The company aims to change how consumers and businesses think about retail insurance. Formerly known as Peach, Fixt changed its name last month, November, 2015. How are customers using the service? Can you share a case study with us? LUKE COOPER: Holly Poultry is a great case study. As a matter of fact, it’s on our website. They’re an incredible company by their own right: about a $150 million organization doing a lot of different kinds of things in the meat processing industry that haven’t been done before. They pride themselves on being the Amazon of the chicken business. We think we give them that extra firepower that they need to deliver their service very effectively to their customers. They have a lot of salespeople who are out in the field selling for them. They have lots of people in their operation that worked and used mobile devices to maintain a certain level of productivity, and they have tremendous cost associated with that both from an insurance perspective—when they’re paying a high monthly premium to get that protection—and then also from a loss productivity perspective, when bad things happen and that person has got to go and fix it. We deliver a service to them that helps them keep their employees productive, keep their business moving, and keep executing on their promise to deliver their service as the Amazon of the chicken business. How do you measure success? We really measure our traction in a couple of different ways. One way, obviously, is revenue: how much revenue are we able to generate? We don’t get into specifics about our revenue, but we’re doing very well as a company. Our pipeline is tremendously robust. You’ve got lots of companies that are we’re either in negotiation with right now on final pricing or that we’re doing a lot of testing and piloting with. So, we’re very confident in that pipeline. We’re confident that we’ll be able to convert a lot of those clients into long-term, happy customers. On the consumer side, we still do a lot of consumer things as well, just because we learned so much from individual users. We’ve got about 15,000 users on our platform right now. They’re downloading the app. The great thing about that user base isn’t the number—I mean, I think we’re probably very close to where marketplace-type apps like Uber and Lyft were at this point in their growth as a company—but I think the cool thing about it is that the users that come on the platform are using us right away. They see immediate value there, and they begin to engage the application almost immediately and get the help they need. Then, in turn, they’re referring us to one of their friends or someone else who has that same need. So, we’re creating a lasting impression in the minds of users, which is really cool. Outside of that, there are some other metrics we monitor such as the number of transactions per user—how many times are they coming back to the platform for another device issue, or how many people they are referring? What’s your revenue model? How do we get paid? On the enterprise sales, we primarily get paid in two ways for margin apprises. When they sign up on the platform, they’re deploying our application to all of their users that have mobile devices, and so we get paid on the front end of that by charging a very low SaaS based transaction fee, essentially $1 to $2 per month—which, when you compare it to traditional insurance or the traditional IT infrastructure costs—it’s about a 90% savings on a monthly basis. After that, we’re charging a standard, flat fee for any repair or replacement the user needs. So, right away, when one of their employees has an issue, we’re going to repair or replace the device in about four hours. We get the device back, we get a standard fixed fee for that repair or replacement. The appeal in that business model to large corporate enterprises is that it delivers simplicity and efficiency. The great thing about those two things is that it ties directly to immediate cost savings. Lot of those enterprise customers experience immediate cost savings when they sign up on our platform.


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