Using E-Commerce for Targeted Market Brings Growing Success and Investor Capital to Young Company
New companies that use electronic commerce are successful when targeting a narrow clientele because their reach is so broad. Illustrating this is Citrus Lane, which sells $25 per month subscriptions to mothers with small children.
Every month, the company sends the mommies a box with four to five hand-selected baby products or parent aids. The business spotlights healthy family-focused items. Citrus Lane gathers information from subscribers and then renders a personal shopper service. Product providers don’t pay for placement because Citrus Lane promotes itself for sending only brands the customers are certain to like. A new theme is devised each month. Selections are adjusted for the season and changes in the child’s age. Customer feedback also enhances item assortment.
Company co-founder and CEO, Mauria Finley, established Citrus Lane to deliver convenience plus an exciting way for mothers to uncover new useful items for themselves and their babies. Combining simplicity and discovery in the shopping experience has resulted in a sound system for starting the new business. Citrus Lane launched in early 2011. The company’s development has not been without complications. Frequent revisions and improvements were implemented to the platform for gathering such basic information as the ages of children.
Citrus Lane just raised $5.1 million of new capital in April 2012, which brings total outside funding since inception to $13.1 million. The company aims to increase its staff of 14 and further expand its technology.
As it grows, Citrus Lane is continuing to retain its concentration on locating great products. This requires knowledge of customer preferences about items that are practical additions to family lifestyles. The company must also target products with proven tested appeal.
Despite the recent start in business for Citrus Lane, the company has enjoyed considerable success. In addition to Findley’s leadership, co-founder Clair Hough brought experience from executive positions at eBay, PayPal, and NexTag. They report that revenue at Citrus Lane is double the level from the first month of 2012.