The Founders Edition, Episode 5 - Eli Finkelshteyn - Build a Need to Have!

The Journey of a Founding Entrepreneur: Leveraging Experience and Data to Build a Successful E-commerce Solution Background and Motivation Eli Finkelshteyn, CEO and founder of Constructor, has a background in computational linguistics and data science, which led him to work in search technology. His experience in search algorithms and his observation of e-commerce companies re-reinventing the wheel sparked the idea to build a specialized search solution for e-commerce. The Founding Journey Finkelshteyn saved for years and gained industry understanding before starting his company. He spent three months building the product before starting testing in different environments. The early stages of the business were a rollercoaster, but he remained driven to prove the value of his solution. Product-Market Fit and ROI The company's goal is to provide a search technology that ecommerce businesses can use to improve their customer experience and increase revenue. Finkelshteyn emphasizes the importance of finding product-market fit, creating a compelling event that customers need, and mapping that to a clear return on investment. Case Study: Solving a Problem for a Client The company's co-founder shares the story of how they founded their company by solving a problem for a client. The company started by solving a problem for an e-commerce company, focusing on metrics that the business cared about, such as revenue, conversions, and profit. The product improved the search functionality for the client, leading to a 2% increase in conversions and a significant return on investment. Overcoming Sales Challenges Eli emphasizes how the focus was on building a product that solved a problem which in turn enabled them to rely on the data to speak for itself. They would convince a customer to try their product and demonstrate the value of their product by showcasing the results in the customer's own data. Revenue Growth and Partnerships The company has seen significant growth, with data showing that they are generating an additional $10-20 million in revenue due to their product. The speaker notes that they are working with big companies and that even a small percentage lift in revenue can result in significant gains. The company has also partnered with Bernd Mahrlein, a respected expert in the field, to improve their marketing and sales approach. Unique Sales Process The company's sales process is focused on providing proof to customers within their own data before they pay. They use a unique process that involves installing two lines of JavaScript on a customer's website to collect anonymized clickstream data. This data is then used to identify areas where the customer's product discovery is falling down and where customers are not finding what they are looking for. Actionable Insights 1. Focus on data-driven decision making: Rely on your product's capabilities to speak for themselves, rather than relying solely on sales and marketing efforts. 2. Focus on solving a specific problem: Identify a specific problem that your product solves and tailor your marketing and sales efforts to that specific need. 3. Collaborate with industry experts: Partner with respected experts in your field to improve your marketing and sales approach. 4. Focus on ROI: Emphasize the clear return on investment that your product provides to customers. By following these actionable insights, entrepreneurs can learn from Eli Finkelshteyn's journey and gain valuable insights into building a successful e-commerce solution.