Daniela Corrente On Shopping Debt-Free | How I Built This with Guy Raz | NPR

Transcript

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Summary

In this episode of "How I Built This: Resilience Edition," the host interviews Daniela Corente, the CEO and co-founder of Real. Real is a digital platform that helps people save money for expensive purchases by providing a goal-oriented and user-friendly savings experience. Daniela discusses the inspiration behind Real, the unique features of the platform, the impact of the pandemic on their business, and their strategies for reaching new customers.

Questions & Answers

Q: What is Real and how does it work?

Real is a digital platform designed to help people save money for expensive purchases. It provides a goal-oriented savings experience by allowing users to set a specific amount they want to save and then automatically deducting money from their bank account towards that goal. Real offers reinforcement and encouragement throughout the saving process, notifies users of any deals or discounts on their desired item, and facilitates the purchase once the savings goal is reached.

Q: What was the inspiration behind Real?

The inspiration for Real came from Daniela's fascination with consumer psychology and her observation that consumer behavior has evolved over time. She realized that people are often driven by emotions when it comes to spending decisions and that there are limited options for savings that take this emotional aspect into account. Real aims to provide a relatable and emotionally-driven savings experience, highlighting the potential of users' cash flow and helping them achieve their goals without unnecessary debt.

Q: How is Real different from traditional savings accounts?

While traditional savings accounts have been around for a long time, Real offers a more personalized and lifestyle-driven approach to saving. It goes beyond just tracking numbers and provides a comprehensive experience that helps users visualize and work towards their specific goals. Real takes care of all the logistics and reminders, making saving effortless and rewarding for the users. It also offers transparency and customization, allowing users to choose their desired items to save for and providing a gamified experience that enhances engagement.

Q: How does Real make money?

Real monetizes its platform in a couple of ways. Firstly, it earns interest on the money it holds on behalf of users. Additionally, Real generates revenue through partnerships with retailers who benefit from the traffic and conversions the platform drives to their websites.

Q: What has been the financial impact of the pandemic on Real's business?

The pandemic has had a significant impact on Real's business, with an increase in the amount of money transacted on the platform. As people started saving more due to travel restrictions and other lifestyle changes, Real benefited from expanding into new verticals and attracting a broader customer base. While there was a temporary delay in purchases during the initial phase of the pandemic, the overall trend has been positive, with customers transferring savings to different items and achieving their goals.

Q: How does Real reach new customers and raise awareness of its platform?

Real utilizes a combination of organic marketing strategies and paid advertising to reach new customers. They promote their product on social media platforms like Instagram and Facebook, leveraging the aspirational lifestyle aspect of their brand. Additionally, Real relies on email marketing, word-of-mouth recommendations, and partnerships with influencers and retailers to expand its reach. They are also exploring new distribution channels in collaboration with other brands to further increase awareness.

Q: Has Real faced any challenges in fundraising?

Like many startups, Real faced challenges in fundraising, with more rejections than acceptances. However, they were able to secure funding by demonstrating the need in the market and the potential of their product through data and consumer behavior insights. While it took time and required constant refinement of their pitch, Real managed to raise around $5 million to support their growth and development.

Q: How did Real respond to consumer demand during the pandemic?

Real responded to consumer demand by expanding into new product categories, responding to the changing preferences of their customers. By offering savings options for electronics, furniture, and travel, Real provided users with alternative goals to save for during a time when some items, like fashion, were less in demand. This strategy resulted in a 360-degree view of their customers' purchasing behavior and boosted engagement on the platform.

Q: How does Real stand out from other savings platforms like traditional banks or robo-advisors?

Real distinguishes itself from traditional savings platforms by providing a more user-friendly and goal-oriented experience. While savings accounts may require manual tracking and lack the motivational elements, Real automates the savings process and offers reinforcement and encouragement throughout. They optimize the savings experience by leveraging technology and a deep understanding of consumer psychology. Additionally, Real aligns with the lifestyle-driven aspirations of the younger generation, making saving more personalized and relatable.

Q: How does Real leverage its customers to spread awareness?

Real places importance on organic loops and customer referrals to expand its user base. They encourage their satisfied customers to spread the word and recommend the platform to others. By cultivating trust and satisfaction among users, Real aims to create a ripple effect of positive testimonials and word-of-mouth marketing.

Takeaways

Real provides a goal-oriented and emotionally-driven savings experience that distinguishes itself from traditional savings platforms. It offers a user-friendly interface, automated savings transfers, reinforcement and encouragement, and a comprehensive approach to achieving savings goals. The pandemic has presented opportunities for Real to expand into new verticals and attract more customers. By capitalizing on organic loops, leveraging social media, and forming partnerships, Real aims to raise awareness and acquire new users. The company's adaptability, focus on customer needs, and understanding of consumer behavior have been key to its success.