On this episode of PWTA, We talk the business of babies. 

Wait…

That sounded wrong!  More like the business of baby tech. 

Owlet and Nanit square off as we put the two leaders of the baby monitor world against each. We break down their social media strategy, conversion techniques and give our thoughts on who reigns supreme in the baby tech world. So hold onto your diapers cause this is gonna get good! 

FULL TRANSCRIPT

RT: welcome to Products Worth Talking About We’re talking about, I’m RT, this is Tyler and today we’re talking about baby monitors and how awesome they are.

Tyler: Yeah, I mean I don’t know why we chose this. Well I think we figured it out. I guess we talked about this before we started is that we’re thinking about disruptive products or products that have changed our lives. Yup. And when you have a baby it gets crazy like right. Yeah. Then you got to figure out how to, how to figure it out, right. How do you have to find things and how to keep it alive as sleep. Yeah. I had to,

RT: you know, just, just survive a day without sleep. And any tool that can help you do that is going to be huge. Yeah. If you get an extra hour of sleep as a new dad changes your life and a, an extra hour of sleep as a new mom probably makes you want to kill the new dad a little bit less. Yeah.

Tyler: So yeah, all things are good just to Smith’s. Yeah. So this one changed my life. I told you about it. I think you’ve had a great experience with all of these. All of it. Um, so it popped her head and we’re like, let’s get after, let’s figure out this industry. Let’s talk about these businesses, these companies, like we don’t really know anything about the business behind the brand or the behind the, the product. So let’s figure it out. Yeah. Here we are.

RT: And you know, it was kind of like w we haven’t done all the research. So these are not necessarily what I would call the best baby minders. You know, we didn’t, we, we didn’t review a hundred of them. These are just the two that we both happened to have experience with and both really love.

Tyler: But I think you can probably agree that they’ve been disruptive in terms of like how they approached this industry. I mean, this is super cool. Yeah, no, I mean it’s like a problem of hearing their child being scared all the time. Your child’s gonna roll over and get something over his head or, you know, stop breathing and solve it. I mean, there’s nothing bigger than taking that problem and finding a solution for it.

RT: Absolutely. And I’m just being a modern parent and wanting to be able to have a monitor that is in a whole separate device or you know, a radio with crackly, whatever, and just being what I have an app on my phone that lets me know that my kid’s okay when I’m sitting in another room. Yup.

Tyler: So let’s get after it. Let’s figure out this industry. Let’s talk about, I guess the market in general.

RT: Let’s talk about the it. Oh, let’s do first. Right? So this guy is basically how it sits in my son Soyers room. So this is sat, uh, basically behind the crib. If the table that we have here is the crib, this thing’s shoot straight down camera. Um, we’ll show you what your child’s doing underneath it. And for me, you know, the game changer for this specific thing was the fact that I can have the audio on in the background of my phone. So once you open the Nana app, you can say turn background audio on and it’s gonna play that audio over any other apps that you have open. So you can be scrolling Instagram, you know, checking your email, whatever, but you can still hear what the camera hears. And so, you know, sorry I was crying or um, you know, wanting something. I would still hear that just like a traditional baby monitor and I could click back. It would, it would alert me. The other thing that I thought was cool was it would alert me if he moved. Like if there is significant movement in the crib, it would send me an alert. So I could click on the alert, it would switch to that app and I could see what’s going on to the camera right away.

Tyler: And that’s great insight because the reason we did not buy this was just what you told me. I didn’t realize it did that. So like I was concerned I’d have like, you know, get on my phone or whatever and I’d miss, you know, our baby crying or something. Um, but now that you told me that, I’m like, man, I wish they would’ve translated that better I think on the sales page. Because even after you told me that a little bit ago, I looked at their sales page and stuff and it really wasn’t that clear. So some, there’s some insight, right?

RT: The background audio is, is huge. You don’t have to have like a separate device or a separate phone, you know, just for the, just for the monitor, it can just kind of be on in the background while you’re doing other stuff. So, and that was their first product. Yeah, that was their first product. That’s the nanny. Now they have this really cool vest that does kind of what we’ll get to the outlet here in a second, but kind of like what the ALIT SOC does and the vast has these pixels on it that using the camera technology, it tells you if you’re a baby is his breathing and how how much they’re breathing and can monitor basically how healthy your baby is. Well just laying in the crib. And so it kind of alleviates that same stress that the outlet sock does in the sense of like, everything’s okay. Yes, he’s breathing. I don’t have to stress, I can get an extra hour of sleep.

Tyler: Yeah, and this is fascinating because I love the business behind this because what happened was, you know, Nanak came out with the camera first and they went to the vest where ally was the opposite, you know, so they came out. So you can tell these, these companies are really side by side or now I’m like, they’re paying attention to each other. They’re definitely direct competitors. Who knows? There could be an acquisition down, down the down the road. But it’s very interesting to watch them kind of grow and kind of watch each other, you know, develop and.

RT: solve the same problems in a different totally different way. It’s not like man, it just came out with a sock and said, Hey, cool, we now we do the same thing. It’s like, no, we’re going to actually use our camera technology to monitor instead of, you know, some of this technology that LA uses.

Tyler: Yeah. Innovation. That’s best. So, um, the outlet, honestly, you know, like we talked about changed our life because our baby would not sleep unless he was on a stomach, which is unbelievably, it’s no, no. Right. Yeah. So like in it started probably three months in, so it wasn’t like he was an infant, but you know, three months in he just would not sleep unless he’s on his stomach and was just freaking us out. We cannot sleep. Like he kept rolling around like it was, it was a nightmare. So one night we just did some research, we went to target and pick this up. It was amazing. After that. Yeah. Like literally like we slept, he slept, everybody was good. And uh, it was, it was life changing.

RT: Yeah. And, and for us, you know, we decided to get the outlet for, uh, our second son who’s now three weeks old. And you know, it was just one of those things that it seemed to make sense. One, we already have the nanny, I wasn’t sure. I think you can have multiple kids on one Nan it app, but I was like, you know what, I might as well have two separate apps for the two kids so I can keep them separate and it’s easier. And I just wanted, you know, based on your recommendation, I wanted to check it out and, and it seriously does just peace of mind, you know, it’s just when she put the sock on, um, I know, I know Wesley’s okay. I know his, his oxygen level is good and his heart rate is good. And then those are the two things that monitor.

Tyler: Yeah. So how this works is it just goes on its foot. There’s two sensors here and then just wraps around his foot. It’s not going to come off. Uh, there’s different size socks. Yup. So you, you know, as they grow, you can grow. I think it probably goes up to what, maybe a year and a half or so. It probably seems like one year old. The sizes of the sacks. Yeah. Um, so really cool. And then it has a base right here that sit next to your bed and then also has an app. So you can, you know, if you can, don’t have a smart phone, you could technically use this. Um, if you do, you can use both of them and they both kind of work with each other.

RT: Yeah. And it’s important to note. I think that both of these, all of this, it’s all based on wifi. So, um, you know, obviously you have to have decent wifi in your house and as soon as you leave the, the wifi, um, you know, some of these might not work as as well as they should. So, um, I experienced that. We took a, a little vacation to a cabin last week and there was no wifi. Um, you know, first world problem. My SAC didn’t work. So first robot, yeah,

Tyler: my grandparents would just think this stuff’s crazy. Like they’re still around.

RT: Like somebody who’s watching this right now, it’d be like when she gave it a little radio, you know, but outlet also has a camera. So I think, you know, like you said that they kind of did reverse order. This outlet camera can be mounted to the wall just like Nan it. Um, and, and we have this over, um, my other son’s crib, um, right now and it works almost exactly the same way.

Tyler: Cool. So these companies are, they’re our babies, right? They’re, they’re new companies, you know, in the realm of the business world.

RT: Um, nanny, when was it started, Nan? It was, uh, looks like 2013. Um, Oh, I’m sorry, 2015. So Nan, it was started in 2015 and um, it looks like they didn’t ship their first product till 2016 founded by a three different guys. And I’m 45 employees on LinkedIn, what I could find located in New York city. And it looks like they’ve done three rounds of funding, including to Crunchbase, $28 million that they’ve raised in total. The most recent round was about a year ago, may of 2018 they raised $14 million. So, um, that was all the kind of stuff I could find about the background of them. One fun fact, they were the most innovative company in their category by fast company, uh, this year. So obviously they’re, they’re making some headway.

Tyler: Well, similar with Ellis, so fairly new company in 2013, they shipped their first product in 2015. Obviously there’s some R and D that goes to the back end of this. So I’m sure they had, uh, a little bit of a runway there. Um, they’ve got a four founders, um, 124 employees on LinkedIn. It doesn’t mean this is twice the size of Nana, but you know, what we see with our data is Al, it’s growing very quickly. Yeah, I’m located in Utah recording. Uh, we’ve got five rounds of funding, 48 million total, um, the last round of the series B at 24 million.

RT: Yeah. And they have a 124 employees versus what 45 from, from Nan it. So I mean at least from an, from a head count, you know, drastically larger. Interesting.

Tyler: And the fun fact there is you actually have some intertwining investors here.

RT:

Tyler: So Techstars wasn’t involved with these guys. Yeah. So Techstars help to help Dalet let get off the ground and I think they did, you know, one of those, uh, programs that Techstars does and um, I’m also involved in Techstars, so, um, hopefully that can be the connection then maybe I can meet one of them. There you go. So market overview, um, in terms of the sizes market, it’s huge. Yeah, it’s crazy.

RT: Massive. So 800,000 monthly searches for the term baby monitors and Amazon spends $30 million a month advertising just baby monitors nuts. Crazy.

Tyler: So, you know, this is, that’s why we’re talking about what’s the interesting industry too, because you know, it’s massive. Everybody has children, right? But then you get in a situation where like, you can’t stay with the child forever because these products kind of work, they have the chorus right? So maybe like 24 months. So your life cycle of your, of your customer is kind of small. I forgot a way to sell more stuff down the road, which is easy for Amazon. We talked about they spend so much money cause they want to know when you have a baby, we need when it triggers, Hey Amazon, you know, this person is about a baby monitor, does a good chance they have a baby, then they know they can sell yourself to next diaper. Yeah.

RT: And I bought, I bought the alphabet on Amazon. I’m, I mean constant diaper ads and baby formula. And I mean they just, yeah, they know I have an Amazon knows I have a two year old and a three week old.

Tyler: It’s unbelievable for Amazon. Crazy. Um, so in terms of, uh, analytics and data, I mean we dug into these websites, we looked at their social media. Uh, we did our famous scorecards here. Um, so in terms of, I guess we tackle social media, it was interesting because there’s a couple of different approaches. So I think as a whole, both are social media as a probably. Okay. Like I would give them like a, like a B minus grade. Um, but one has a lot more followers, which is on Instagram. Yeah. Which is interesting because they’re, you know, Allah has 205,000 followers on Instagram versus Nana is 25,000. Yeah. 10, 10 times as many followers. Outlet has 10 times as many followers as Nana. And I mean, what do you think? Well interesting because engagement is super low on both these companies. So like that goes back to what we just talked about with the life cycle where, you know, if maybe you’re pregnant, you know, and you follow allied or you’re going to be assumed to be dad, you follow them, that kind of, you know, see what kind of products they have or whatever. And then you have the baby. Yeah. And maybe after a year you’re like, eh, I’m not really engaging with this brand. So I think the engagement was mindblowingly low on these, both of these companies that, you know,

RT: I’m just scrolling through both Instagrams right now. And I would say on both 75 to 80% of these posts are advertisements. You know, they’re not lifestyle. I mean there’s, there’s some lifestyle pictures in here. There’s obviously pictures of cute babies, there’s pictures of products, but you know, every other post is quite literally like text in the picture. It’s an ad. Yeah.

Tyler: Really. I mean, there’s a great opportunity for both of these companies for a user content, right? I mean, all you have to do for this company in terms of like having great images is take pictures of beautiful babies. Right? This is a great opportunity for them to feature these babies and do some cool stuff.

RT: And it looks like they do that. I think a missed opportunity for both of them. I mean, if I scroll back through my phone and I’ll, I’ll put some here in the video cause they’re just adorable, but I have some screenshots from Nantucket of Sawyer, like, you know, making buzz Lightyear fly and like hi camera. Yep. And like, yeah, there’s probably some really good content out there, um, that maybe I could just send Nan it, you know, hook me up.

Tyler: Right. But, um, perfect story content for Instagram. That’s a great thing you want in your stories. Um, you know, and you touched on something too, like I think outlet started to kind of get into this, but humor, you know, like yeah, this is an area where you want, you’re solving a problem that’s lifesaving, but you can definitely add some humor in there because kids are are funny, right? Yeah. And what parents go through during the stage is also funny. So I think that it’s,

RT: it’s like so stressful that like you’re thinking about it and everyone can relate to the new parents stress. Um, and comedy off of that I think is hilarious. And I think the ad you’re talking about was.

Tyler: outlet outlet and they did a couple of other things to this. They had a great ad then I think it was kind of interesting. They targeted probably towards men because it looks like Alice doing a lot more paid traffic on Facebook and social media. Um, it looks like they were targeting probably males with that, with that ad. But it was comedy. It was, it was funny.

RT: dude with a huge mustache making jokes about how like, you could get extra sleep with this or you’d have extra time for other things and then, you know, sits down next to his wife and she’s like, yeah. Other things like sleep punting. Cause like, I haven’t been tired. It’s not going to happen. And, and it’s, it’s hilarious and it’s, it’s just like the ads from a dr Squatch yeah. From the soap episode, you know, using that humor, um, and putting a, you know, an actor in there just randomly. The dude has just a massive mustache that just doesn’t make sense at all. But I’m now talking about it. So it worked. Right. Yeah. It’s interesting.

Tyler: And two other things too. There’s a great opportunity here. Once again, going back to humor, but I’m, Allen does something really cool when they crash baby showers and this is a great idea. Um, and they should be doing it weekly because what’s gonna happen is you’ll get that engagement and say, Hey, who should we crash? Go crash them. You know, even if you have to stay within, you know, maybe a hundred miles of their home base. Like that’s huge for them because so through the roof, um, it was a great idea. It was funny. It was really, really cool.

RT: Yeah. Um, let’s take a break cause the light just turned out 10 minutes.

RT: So another thing that I noticed about just like the social media and especially the ads of both these companies, you know, it’s one thing to have boring, you know, Instagram accounts was mostly at mostly ads on them, but a lot of the advertisements themselves were boring. I mean we had that one anecdote about the one funny ad from Elat, but I think that was the only ad that I liked out of. I mean we scrolled along. Yeah. There was a couple and I think it’s that fine line. I think they struggle with that and I, I’ll touch on that with a website. It’s like,

Tyler: it feels like they’re, they’re dealing with baby’s health, right? Keeping them safe. So they’re, they want to be serious. It’s a serious product, but like in the same breath, I think they’re missing a huge opportunity because of what we talked about. Like there’s a huge opportunity to add some humor, enlightenment. Um, you know, you’re not gonna catch people’s attention by just showing, you know, these boring ads. You know, they’re, they’re burning through cash. And I think that if they look at their ad spend, they’re probably not getting the return they want.

RT: And just, you know, looking at their website and comparing them, adding that in warn missed opportunity, in my opinion, is testimonials. I mean, they have to have, you know, thousands if not millions of very happy customers like me and you who would gladly, you know, lay in their child’s crib and wave up to the Nanna and say, this is the coolest thing ever. Um, and sure you can put that on social, like, yeah, I just think that’s a huge missed opportunity.

Tyler: Yeah. There could be a caveat here because when we get into the other sales data, we find out that they are selling a lot on Amazon, right? So it may not even matter. So like we’ll get into that a little bit advertising that, I mean they may just view a, their own website and social as like a secondary or a third option here. So, um, from what we S we found on the, on the data on the scorecard for, for sales, the traffic and their website, I Amazon is pretty impressive. So, um, Nana is about 140,000 visits a month. Wow. Um, Alice 200,000, that traffic is coming from a lot. It appears a lot of it’s coming from searches, so it looks like that brand awareness is coming from somewhere. So they’re doing a good job. I think probably with their PR, with getting some other things out there. Maybe in trade magazines or just different magazines or like printed out all kinds of different stuff. It looks like there’s their target here is just brand awareness and getting that out there and then drawing them in from there.

RT: Yeah, there was a ton of PR just as I was Googling them and trying to, you know, find other similar companies in the industry to compare them against, you know, there was a lot of different stories by very reputable publications. I’m quoting doctors and pediatricians, you know, and it’s you, I mean certainly they get a lot of organic traffic and SEO from those things.

Tyler: Yeah. And this data is coming from, you know, we use spy Fu, which is a partner of ours. I’m not your analytics, which they also own [inaudible] owns and that not your analytics, but it allows us to tap into their Google analytics and take a look via estimates on some of those data. So unfortunately I could only get data on outlet. It was just, it wasn’t in a nacho analytics yet. But the interesting thing is their bounce rate was only 11% on their website, which is mindblowingly small. Interesting. You know, a lot of people like to sneak under, we’ll lower the better. But I, you know, there’s a lot of websites are 50 60 70% there are 11% which is unbelievable. So that was really interesting for me. Um, the other interesting thing I found was that Nana is like getting no conversions off their emails. So that was super low. Um, where outlet was doing a decent job with their, with their email campaigns it looks like.

RT: Yeah. So once it looks like gal that’s doing a lot more by percentage, um, sales through social. Yeah. Um, which could be from, I mean, I would think it’s from that funny ad, like that’s probably working. Yeah, absolutely. But yeah, no, it’s, it’s interesting. And, and what you said about like the bounce rate, I’m just scrolling through outlet’s website right now. I actually never went to their website and went straight to Amazon. Sorry. But, um, now that I’m here, if I was shopping for this and if I, like I have, right now I have Nan and outlet both websites right here. I, you know, this is a really important purchase. Then I’m probably gonna like read every word on this website and watch these videos and just really understand like, okay, this is a couple of few hundred dollars, you know, is it the right one? And, um, how exactly does it work? And especially if you’re a new parent and you’ve never used anything like this before and you’ve never actually been a parent yet that yeah, you’re, you’re reading this and instead of what to expect when you’re expecting half.

Tyler: So that’s a great point. I mean, they’re probably even, you don’t buy the product you’re going through these sites, you’re going through the site and you’re looking at these pages because they do a great job. I think with our website. I mean it’s definitely a top to your website. Not confusing, not cluttered. They explain the product really well. Um, where Nana, I think that’s where they missed the Mark. They didn’t do a great job explaining the product very well where ally does a phenomenal job. Absolutely. Um, so with that said, you know, we estimated, you know, based on what I had, it looks like outlets do an almost a million a month off their website based on, based on conversions on conversion. We use a 2% conversion rate. I did not have the conversion rate accessible through nacho analytics. It looks like there, you know, even if we do a 2% conversion rate, 900,000 to a million dollars, um, their average ticket, I had a two 25 off their website. They have it’s expensive items. Right. You know, so, um, I think that’s probably written a ballpark, a Nana doing really well too with a website. About seven 70 is where I was at. I had their average ticket a little bit higher because their products are actually with the way they bundle in a little more expensive. Yep. Um, so I think that’s other, both doing great author website now using jungle scout, which is a Chrome extension and also, um, some, uh, an app that you can buy. Um, we, we look at Amazon, so it gives us the estimated sales volume on Amazon. Uh, so outlet about a million bucks a month on Amazon. Crazy. I think it’s probably than, yeah, I mean it’s probably higher than that, but that’s great. And you could tell by their listing the reviews, like everything is perfect. So if they’re doing a very good job and he goes, Oh yeah,

RT: they sold this on, they sold me. And yeah, I think I got it on a, it was either like the father’s day sale or something like on Amazon. It was extra 50 bucks or something like that off. And I was like, yep, cool. Yeah, that’s perfect.

Tyler: Um, whereas Nana is still doing well on Amazon, 600,000 a month is what the estimate comes out on, on jungle scout. That’s pretty good. Yeah. Yeah. That’s solid. Yeah. 600, 600 a month, you know, but you know, to be fair, if they have 50 and 120 ish employees each, you know, you gotta be making millions of dollars to have that much overhead. So I guess those, those numbers make sense. Um, as far as their, their overhead, their staffing, you know, um, you, you kind of need to hit those numbers if you want to grow to that rate.

Tyler: Yep. So that brings us to the beer scorecard. Absolutely. In the beer scorecard is basically our subjective look at these companies. Yep. So kind of rating each components. So the website, so on and so forth, the winner of the beer score, which is the cumulative score is the person we’re going to try to interview.

RT: Absolutely. And try to find to try to track down, um, both of them. Both of these companies have like three or four founders. So hopefully that makes it easier to find at least one that’ll talk to us.

Tyler: So going through the category, so a trust factor. Um, I, I mean I trust these companies. I actually had both at 10, because I really believe what they’re doing. They’ve, they’ve obviously solved a problem and they believe very strongly in it. I, I 10 for both of them. Yeah. And um, you know, just under you on both of them. Um, I think I trust, um, outlet just a little bit more based on, um, how clean their Amazon page was and their Amazon products were. And um, you know, just scrolling through their social media, it was a little less advertisement. Um, a little bit more humor. Yeah.

RT: You know, I just wasn’t comfortable I think with, with Al, let’s brand the Nana’s brand.

Tyler: And you said that’s because of that humor, Kevin involvement and like how they interact with I think so. Cause you made a good point earlier. Like it’s this, these are very,

RT: this is a very serious thing. Like you’re trying to keep, you try to live like this. Like you’re trying to get more sleep. It’s a baby monitor. It’s, it’s your most important asset, right? It’s your kid. But um, if you’re so confident in your brand and your product that you can add a little humor. I think that again, just makes me trust it a little more. I agree. I agree. A website. So I mean I think they both have pretty good websites. I really do like Albert’s website. I think it’s the tell the story, which is so important.

Tyler: It’s that is that storytelling that happens. And I think it’s just so clear where, and this is a technology product, right? So it can be confusing for me, you know? So I think allied is a great job. I’m going to give them the nod. I think I’m going to rank that at nine.

RT: Yup. And I’m, I’m right there with you. The, the, the thing I’ll say about neonates website that I love is right on the homepage. They have this parallax feature on the right side of the page that changes a slider on the left side of the page. And so the right side of the page is like lifestyle, telling you a story, walking you through somebody’s day. And then the left side is showing you screenshots from the app. So it’s just like, you know, it really gives you a feeling of what it might be like to use the app right there on the homepage of the website. Um, haven’t looked at this on mobile yet cause I don’t know how you would do this on mobile, but on desktop it’s really clean and um, yeah, this would be really good sales feature I would think. Yep. So, um, so next one is a marketing and advertising. What did you think about that?

Tyler: I mean, I’m critical, you know, so this is my jam. So like for me, I’m, I think they’re doing an okay job. I think Allis definitely got the nod. Um, doing some of the stuff they’re doing with their website. Amazon of social media is definitely a little bit better. Um, you tell just put together a little bit better. I think they’ve probably got a better team of, of marketing people. Probably it would be my suggestion just looking at it. It would be kind of where I’m at. Um, but I think they’re doing a little better job. So I gave him a seven.

RT: Yeah. And I’m kind of, you know, I’m right there with ya. Um, definitely a little bit lower on, on Nana’s side than outlet. Um, just because, you know, I, I’m using the humor I think with outlet was, was huge. Um, and I just, I feel like I related more to, um, the posts that outlet was doing. Um, it was a lot cleaner and um, I feel like I would follow them, um, are more, might be more likely to follow them, especially cause I mean quite honestly if I’m comparing it to Elliott has 10 times as many followers and whether they’re real followers or not. Like that’s a thing that people really look at as far as the trust factor. Um, so that’s interesting.

Tyler: Yeah. Social’s there because it’s entertainment, right. At the end of the day, like a brand that understands that is going to get the most value out of social media because it is entertainment. So you’re competing with mom, with grandma, you competing with your sister, you just had a baby, like all these things on social media. You’ve got to really stand out and tell that story and be humorous, be entertaining. And I think that’s huge for any brand that understands that they’re going to Excel in social media.

RT: Yeah, I agree. And then, you know, advertising also is on Amazon, you know, what is your Amazon sales page look like? And um, I think alphabet takes a nod on that one as well. Yep.

Tyler: User experience. Um, all, you know, they’re, they’re good. I mean, I have an eight for, for, uh, outlet and seven for Nina.

RT: Yeah. And, and for me, um, I’m actually a nine on Nana because I mean, I’ve used Nana for two years now. Um, it’s just really, really easy to use. I love the background audio feature of the camera. Um, I haven’t used the VASH that’s, that’s new, that would do the same thing into the SOC. Um, but I’ve, I’ve used similar products like that as far as putting something on. Um, it is kind of annoying to put a sock on, um, when your baby’s flailing and flinging around and you’re, I imagine some babies might not like a shock on their foot. Um, versus like a vest. I would think that would also be part of like swaddling and that might also help in other ways. So when you compare those things as far as who’s the user, the user is actually my son, you know, I mean I’m thinking user experience on my phone for the app, but also like comfort level for my children. Um, that’s what I was factor that in. Yeah.

Tyler: So social, um, you know, I think we’ve kind of already touched on this quite a bit. I think the ads that is more, it’s more of a paid traffic. It’s not really social, but I think that Al is doing a much better job. I think overall, you know, Alice doing a much better job with the social media strategy. Yup.

RT: Yeah, I agree. I think we can move on to a product design. I think we, we’d beat the beat the social worse. So what do you think? Um, first of all, I mean we, we talk about packaging later cause that outlet blew my mind. But product design, I mean outlet is just everything about it is beautiful. Even the SOC is really well designed. This little thing looks like a coaster that sits on your nightstand. You know, the camera doesn’t even really look like a camera. It has a magnet that holds it under the wall. So if you want to take it off or just move the angle, it’s really, really easy to use a nanny. You know, when you compare it, this thing is, you know, this, this floor stand is really nice. Um, cause it, it remains really firm. But I kind of like how outlet just literally like command strips to the wall. Um, I’m sure there’s a downside to that if your kid just grabs that from the wall. Yeah. Um, which, so here’s definitely pulled on this thing and hasn’t, it hasn’t budged, but, um, this, this thing is very um, stiff, like you can’t really move this around and get a good angle as much as you can on the outlet. So, um, I guess those are my pros and cons, uh, from a real user. Yeah.

Tyler: I mean, great experience for me. Um, the sock, I mean that’s probably the issue. One issue with the sock was just, it kind of came up, came out sometimes or like if food come out sometimes or become loose. Um, but overall the design’s amazing. I mean I think they’ve done a very good job in like what we saw from inception to like deliver on the product. It took them a couple of years to get this thing figured out. I think they did a great job.

RT: And both of them, I mean, part of their product, both of these companies is the app. Um, and that’s really the thing that you interacted with the most. And both the apps are phenomenal. I mean, just real clean outlet has like videos embedded in the app that show you how to put the sock on, which just blew my mind and I’m just like, how do I do this for my company? I don’t even have an app. And now I want one just so I can put like user videos in it. It’s crazy. Um, and nanny, like I said with the background audio, um, it’s those simple features that you don’t really think about until you get the product. They’re like, dang, you know, I dunno how I’d live without this.

Tyler: Yeah. So overall real good. I think, um, you know, we both had, I guess we tied with with, uh, let’s see. Yeah, I guess I had them both at eight [inaudible] and you had Ella just a little bit higher. Yup. Yeah, exactly. And then,

RT: I mean, just rolling into packaging. Um, I actually have where I put it, outlet packaging over here, this thing, I mean, this is like my Mac book, right? I mean, this thing I did a, I did an unboxing and maybe we can show that. Um, but it’s for outlet. It’s just perfect. I mean, everything about this package blew my mind. Um, it was very clean, very organized, all the instructions were really easy. Um, unboxing the outlet was amazing and to be totally honest, I don’t really fully remember unboxing the Nanay. That was probably like three days into being a dad for the first time. Um, but I do remember it being a long, skinny box. It was really easy to take out. Um, and assembly, even though there’s a fair amount of parts here was, was pretty quick. It didn’t stress me out and that’s why I think, why I don’t remember.

Tyler: Yeah, yeah, I agree with you. I mean, this is beautiful packaging. Like I remember getting this home and being like, okay, I’m exhausted and I’m like trying to find a solution here. And I remember just how easy everything was and we had it on them and probably, I don’t know, maybe maybe 10 minutes, you know, like start to finish. Like everything is ready to go on 10 to 15 minutes. And I remember thinking in my head at that time, like, this is so easy and such a great concept. Yeah.

RT: Oh, I mean, just the fact that you can literally find out about this product, drive to target, grab it from Amazon and you know, have it on your baby’s foot, uh, within the day is, is phenomenal. Yeah. So, yeah.

Tyler: So kudos the packaging with Gus. Absolutely. Um, so, you know, the last category is disruptive level and this is why we do this podcast so that we can learn from great companies so we can figure out how to implement this stuff into our companies. Um, I mean, they’re both great. Like, honestly, at the end of the day, you know, if it was just the camera, I think that they would’ve got a lower score for me, but now that they’ve really evolved and they have different products, I gave him a fairly high score. Um, but dude, they’re keeping kids safe, right? Like they were taught as business owners like find a problem, make a solution, and deliver it in the most efficient way possible. That customer and they outlets done it flawlessly. Yes. Problem solution. Here you go.

RT: Yup. And, and both of them I think have effectively solved those problems done in a really beautiful way from a product and packaging design standpoint. But as far as like fully disruptive, um, I think outlet takes the cake on that cause the first thing that they came out with was the sock and that was truly disruptive. Put this thing on your baby’s foot and it tells you how they’re doing and, uh, tells you that they’re still breathing and makes you be able to sleep a little bit more. That was their first product. That’s what they launched to market. It’s amazing. It works. And then they were like, Hey, we could probably have a camera that comes with it. Wouldn’t that be cool? You know, versus Nana. Um, not to say that that they started with the easier thing, but they started with the easier thing, which is the camera and now they’re, you know, they got into the vest. So, um, that said, what I’ve read about that vast, that technology is extremely disruptive because they’re using a camera to visually determine if there’s breathing, which I just blows my mind. I don’t really understand. This is like the same in the outlet sock is like the same technology as your Apple watch. So that just makes sense to me. Um, the camera thing from the internet is truly disrupting,

Tyler: we can learn some because we, you know, we did a business plan course actually, and we talked about y’all starting with a very simple product and basically skilling from there versus spending years trying to figure out a complex problem. Maybe you can fund it with a cheaper product or an easier product to overcome.

RT: Yeah. Well, and I was thinking about this the other day. I got the outlet, you know, because I just wanted to try something different. But if I didn’t know if it didn’t exist, I didn’t know they existed. Um, I would’ve seen Nan it, you know, new technology. I already have a camera, you know, they, they upgraded the software, so I could’ve just bought the vest and they would’ve got me as a, as a, basically a repeat customer for my second child. So that’s kind of cool from a, you know, keeping the customer for longer standpoint. Cool.

Tyler: So, um, I guess w what are your takeaways? So like, tell me about what your takeaways are on these companies, companies and the products.

RT: Yeah, so for me, um, the company is really cool. Both companies, their mission is to make parents sleep better, make parents now have to stress as much about some of the most stressful things, you know, being a parent, which is those, those first few nights, those first few months of nights, um, where you’re just making sure everything’s all right and constantly waking up to every little noise. Um, so from a mission and like the problem they’re trying to solve, I, I just think it’s wonderful. Um, they’re both doing it like basically, like we talked about in different ways, started with different things. Um, but my big takeaway is just I guess understanding that if you want to make a physical product like this, it’s not just enough to have the physical product work and function and be beautiful and cool. You also need an app and a huge amount of technology to work with this in order for it to function. So this is not just a physical product, these are both tech companies. I mean they want to at CCS. So merging the digital and physical and both of them are just knocking out of the park. So kudos to to that. And that’s really what I’ve taken away is if you have a beautiful physical product and you’re crushing it on the tech side, that’s how you make millions of dollars.

Tyler: Cool. So what’s one thing you think you could implement to your company right now you’ve learned?

RT: Yeah, so, um, from Nana’s homepage, I love how they’re doing, not just a full page parallax, but they’re also like showing you what’s happening on the product. I, I’m, I’m currently redoing our product page and I wanted to, um, have like a landing page at the top that has like an exploded view of a watch. And as you scroll down, like parts come off and it shows you how each part is made. That’s kind of intense if it’s full screen, but maybe I can do like the switch screen that they have and just kind of like highlight the part on the left side with the fully built watch and then show you the video in the description of how that part’s made on the other side. And that’s cool. Um, I want to see how they do it on mobile. I’m gonna check that out, but you know, stealing those ideas for sure.

Tyler: Yeah. Yeah. Awesome. Um, I mean it might take away, it was I guess the end of the day, like a lot of what you said. I mean it’s just a very well executed concept. Um, I think what I could apply to my business, um, it’s probably more down the road because we, we did talk about is how, you know, they’re selling e-commerce, Amazon, but the retail footprint is huge. Yeah. You know, so like if you want to be that $100 million company, 200 or $300 million company, um, in revenue, like you’ve got to have multiple distribution and what’s that look like? How’s it all work together? And so by seeing kind of like these bigger companies who have scaled so quickly, you know how they’ve approached those different revenue models. I mean, that’s something that I think we can both probably say, Hey, like we need to get to that point at some point.

RT: Yeah, for sure. It’s not just enough to have a beautiful website and sell direct to consumer. You know, you’ve got to have your Amazon business, right. If you can get into target like they did, obviously that’s where you got it. So they’re definitely making money through that spread in those sales channels out and reaching new customers that way. It’s here. Yeah. Yeah. So that was products we’re talking about the business of baby monitors and ANet versus outlet. We hope you enjoyed it. Let us know if you’re a customer of one of these companies already hit a separate your experience in the comments. Let us know if we miss any really cool features that we should have mentioned. And I’m, if you’re not a customer of these companies yet and you are a new parent, definitely check them out. We’ll put Amazon links to both of these products in the notes and, uh, on our social media and our website so you can find it. Um, so you can find all of that Uproxx worth talking about.com on Instagram. Facebook obviously is hosted on YouTube, and we hope you like it. We hope you check it out. And finally, as always, this episode and all of our episodes are sponsored by us, our small business and, um, business plan course, which can help you learn how to do, hopefully with these companies are doing. So, check it out. That’s proximately talking about, see you next time.

Speaker 3: [inaudible].

 

FULL TRANSCRIPT

RT: welcome to Products Worth Talking About We’re talking about, I’m RT, this is Tyler and today we’re talking about baby monitors and how awesome they are.

Tyler: Yeah, I mean I don’t know why we chose this. Well I think we figured it out. I guess we talked about this before we started is that we’re thinking about disruptive products or products that have changed our lives. Yup. And when you have a baby it gets crazy like right. Yeah. Then you got to figure out how to, how to figure it out, right. How do you have to find things and how to keep it alive as sleep. Yeah. I had to,

RT: you know, just, just survive a day without sleep. And any tool that can help you do that is going to be huge. Yeah. If you get an extra hour of sleep as a new dad changes your life and a, an extra hour of sleep as a new mom probably makes you want to kill the new dad a little bit less. Yeah.

Tyler: So yeah, all things are good just to Smith’s. Yeah. So this one changed my life. I told you about it. I think you’ve had a great experience with all of these. All of it. Um, so it popped her head and we’re like, let’s get after, let’s figure out this industry. Let’s talk about these businesses, these companies, like we don’t really know anything about the business behind the brand or the behind the, the product. So let’s figure it out. Yeah. Here we are.

RT: And you know, it was kind of like w we haven’t done all the research. So these are not necessarily what I would call the best baby minders. You know, we didn’t, we, we didn’t review a hundred of them. These are just the two that we both happened to have experience with and both really love.

Tyler: But I think you can probably agree that they’ve been disruptive in terms of like how they approached this industry. I mean, this is super cool. Yeah, no, I mean it’s like a problem of hearing their child being scared all the time. Your child’s gonna roll over and get something over his head or, you know, stop breathing and solve it. I mean, there’s nothing bigger than taking that problem and finding a solution for it.

RT: Absolutely. And I’m just being a modern parent and wanting to be able to have a monitor that is in a whole separate device or you know, a radio with crackly, whatever, and just being what I have an app on my phone that lets me know that my kid’s okay when I’m sitting in another room. Yup.

Tyler: So let’s get after it. Let’s figure out this industry. Let’s talk about, I guess the market in general.

RT: Let’s talk about the it. Oh, let’s do first. Right? So this guy is basically how it sits in my son Soyers room. So this is sat, uh, basically behind the crib. If the table that we have here is the crib, this thing’s shoot straight down camera. Um, we’ll show you what your child’s doing underneath it. And for me, you know, the game changer for this specific thing was the fact that I can have the audio on in the background of my phone. So once you open the Nana app, you can say turn background audio on and it’s gonna play that audio over any other apps that you have open. So you can be scrolling Instagram, you know, checking your email, whatever, but you can still hear what the camera hears. And so, you know, sorry I was crying or um, you know, wanting something. I would still hear that just like a traditional baby monitor and I could click back. It would, it would alert me. The other thing that I thought was cool was it would alert me if he moved. Like if there is significant movement in the crib, it would send me an alert. So I could click on the alert, it would switch to that app and I could see what’s going on to the camera right away.

Tyler: And that’s great insight because the reason we did not buy this was just what you told me. I didn’t realize it did that. So like I was concerned I’d have like, you know, get on my phone or whatever and I’d miss, you know, our baby crying or something. Um, but now that you told me that, I’m like, man, I wish they would’ve translated that better I think on the sales page. Because even after you told me that a little bit ago, I looked at their sales page and stuff and it really wasn’t that clear. So some, there’s some insight, right?

RT: The background audio is, is huge. You don’t have to have like a separate device or a separate phone, you know, just for the, just for the monitor, it can just kind of be on in the background while you’re doing other stuff. So, and that was their first product. Yeah, that was their first product. That’s the nanny. Now they have this really cool vest that does kind of what we’ll get to the outlet here in a second, but kind of like what the ALIT SOC does and the vast has these pixels on it that using the camera technology, it tells you if you’re a baby is his breathing and how how much they’re breathing and can monitor basically how healthy your baby is. Well just laying in the crib. And so it kind of alleviates that same stress that the outlet sock does in the sense of like, everything’s okay. Yes, he’s breathing. I don’t have to stress, I can get an extra hour of sleep.

Tyler: Yeah, and this is fascinating because I love the business behind this because what happened was, you know, Nanak came out with the camera first and they went to the vest where ally was the opposite, you know, so they came out. So you can tell these, these companies are really side by side or now I’m like, they’re paying attention to each other. They’re definitely direct competitors. Who knows? There could be an acquisition down, down the down the road. But it’s very interesting to watch them kind of grow and kind of watch each other, you know, develop and.

RT: solve the same problems in a different totally different way. It’s not like man, it just came out with a sock and said, Hey, cool, we now we do the same thing. It’s like, no, we’re going to actually use our camera technology to monitor instead of, you know, some of this technology that LA uses.

Tyler: Yeah. Innovation. That’s best. So, um, the outlet, honestly, you know, like we talked about changed our life because our baby would not sleep unless he was on a stomach, which is unbelievably, it’s no, no. Right. Yeah. So like in it started probably three months in, so it wasn’t like he was an infant, but you know, three months in he just would not sleep unless he’s on his stomach and was just freaking us out. We cannot sleep. Like he kept rolling around like it was, it was a nightmare. So one night we just did some research, we went to target and pick this up. It was amazing. After that. Yeah. Like literally like we slept, he slept, everybody was good. And uh, it was, it was life changing.

RT: Yeah. And, and for us, you know, we decided to get the outlet for, uh, our second son who’s now three weeks old. And you know, it was just one of those things that it seemed to make sense. One, we already have the nanny, I wasn’t sure. I think you can have multiple kids on one Nan it app, but I was like, you know what, I might as well have two separate apps for the two kids so I can keep them separate and it’s easier. And I just wanted, you know, based on your recommendation, I wanted to check it out and, and it seriously does just peace of mind, you know, it’s just when she put the sock on, um, I know, I know Wesley’s okay. I know his, his oxygen level is good and his heart rate is good. And then those are the two things that monitor.

Tyler: Yeah. So how this works is it just goes on its foot. There’s two sensors here and then just wraps around his foot. It’s not going to come off. Uh, there’s different size socks. Yup. So you, you know, as they grow, you can grow. I think it probably goes up to what, maybe a year and a half or so. It probably seems like one year old. The sizes of the sacks. Yeah. Um, so really cool. And then it has a base right here that sit next to your bed and then also has an app. So you can, you know, if you can, don’t have a smart phone, you could technically use this. Um, if you do, you can use both of them and they both kind of work with each other.

RT: Yeah. And it’s important to note. I think that both of these, all of this, it’s all based on wifi. So, um, you know, obviously you have to have decent wifi in your house and as soon as you leave the, the wifi, um, you know, some of these might not work as as well as they should. So, um, I experienced that. We took a, a little vacation to a cabin last week and there was no wifi. Um, you know, first world problem. My SAC didn’t work. So first robot, yeah,

Tyler: my grandparents would just think this stuff’s crazy. Like they’re still around.

RT: Like somebody who’s watching this right now, it’d be like when she gave it a little radio, you know, but outlet also has a camera. So I think, you know, like you said that they kind of did reverse order. This outlet camera can be mounted to the wall just like Nan it. Um, and, and we have this over, um, my other son’s crib, um, right now and it works almost exactly the same way.

Tyler: Cool. So these companies are, they’re our babies, right? They’re, they’re new companies, you know, in the realm of the business world.

RT: Um, nanny, when was it started, Nan? It was, uh, looks like 2013. Um, Oh, I’m sorry, 2015. So Nan, it was started in 2015 and um, it looks like they didn’t ship their first product till 2016 founded by a three different guys. And I’m 45 employees on LinkedIn, what I could find located in New York city. And it looks like they’ve done three rounds of funding, including to Crunchbase, $28 million that they’ve raised in total. The most recent round was about a year ago, may of 2018 they raised $14 million. So, um, that was all the kind of stuff I could find about the background of them. One fun fact, they were the most innovative company in their category by fast company, uh, this year. So obviously they’re, they’re making some headway.

Tyler: Well, similar with Ellis, so fairly new company in 2013, they shipped their first product in 2015. Obviously there’s some R and D that goes to the back end of this. So I’m sure they had, uh, a little bit of a runway there. Um, they’ve got a four founders, um, 124 employees on LinkedIn. It doesn’t mean this is twice the size of Nana, but you know, what we see with our data is Al, it’s growing very quickly. Yeah, I’m located in Utah recording. Uh, we’ve got five rounds of funding, 48 million total, um, the last round of the series B at 24 million.

RT: Yeah. And they have a 124 employees versus what 45 from, from Nan it. So I mean at least from an, from a head count, you know, drastically larger. Interesting.

Tyler: And the fun fact there is you actually have some intertwining investors here.

RT:

Tyler: So Techstars wasn’t involved with these guys. Yeah. So Techstars help to help Dalet let get off the ground and I think they did, you know, one of those, uh, programs that Techstars does and um, I’m also involved in Techstars, so, um, hopefully that can be the connection then maybe I can meet one of them. There you go. So market overview, um, in terms of the sizes market, it’s huge. Yeah, it’s crazy.

RT: Massive. So 800,000 monthly searches for the term baby monitors and Amazon spends $30 million a month advertising just baby monitors nuts. Crazy.

Tyler: So, you know, this is, that’s why we’re talking about what’s the interesting industry too, because you know, it’s massive. Everybody has children, right? But then you get in a situation where like, you can’t stay with the child forever because these products kind of work, they have the chorus right? So maybe like 24 months. So your life cycle of your, of your customer is kind of small. I forgot a way to sell more stuff down the road, which is easy for Amazon. We talked about they spend so much money cause they want to know when you have a baby, we need when it triggers, Hey Amazon, you know, this person is about a baby monitor, does a good chance they have a baby, then they know they can sell yourself to next diaper. Yeah.

RT: And I bought, I bought the alphabet on Amazon. I’m, I mean constant diaper ads and baby formula. And I mean they just, yeah, they know I have an Amazon knows I have a two year old and a three week old.

Tyler: It’s unbelievable for Amazon. Crazy. Um, so in terms of, uh, analytics and data, I mean we dug into these websites, we looked at their social media. Uh, we did our famous scorecards here. Um, so in terms of, I guess we tackle social media, it was interesting because there’s a couple of different approaches. So I think as a whole, both are social media as a probably. Okay. Like I would give them like a, like a B minus grade. Um, but one has a lot more followers, which is on Instagram. Yeah. Which is interesting because they’re, you know, Allah has 205,000 followers on Instagram versus Nana is 25,000. Yeah. 10, 10 times as many followers. Outlet has 10 times as many followers as Nana. And I mean, what do you think? Well interesting because engagement is super low on both these companies. So like that goes back to what we just talked about with the life cycle where, you know, if maybe you’re pregnant, you know, and you follow allied or you’re going to be assumed to be dad, you follow them, that kind of, you know, see what kind of products they have or whatever. And then you have the baby. Yeah. And maybe after a year you’re like, eh, I’m not really engaging with this brand. So I think the engagement was mindblowingly low on these, both of these companies that, you know,

RT: I’m just scrolling through both Instagrams right now. And I would say on both 75 to 80% of these posts are advertisements. You know, they’re not lifestyle. I mean there’s, there’s some lifestyle pictures in here. There’s obviously pictures of cute babies, there’s pictures of products, but you know, every other post is quite literally like text in the picture. It’s an ad. Yeah.

Tyler: Really. I mean, there’s a great opportunity for both of these companies for a user content, right? I mean, all you have to do for this company in terms of like having great images is take pictures of beautiful babies. Right? This is a great opportunity for them to feature these babies and do some cool stuff.

RT: And it looks like they do that. I think a missed opportunity for both of them. I mean, if I scroll back through my phone and I’ll, I’ll put some here in the video cause they’re just adorable, but I have some screenshots from Nantucket of Sawyer, like, you know, making buzz Lightyear fly and like hi camera. Yep. And like, yeah, there’s probably some really good content out there, um, that maybe I could just send Nan it, you know, hook me up.

Tyler: Right. But, um, perfect story content for Instagram. That’s a great thing you want in your stories. Um, you know, and you touched on something too, like I think outlet started to kind of get into this, but humor, you know, like yeah, this is an area where you want, you’re solving a problem that’s lifesaving, but you can definitely add some humor in there because kids are are funny, right? Yeah. And what parents go through during the stage is also funny. So I think that it’s,

RT: it’s like so stressful that like you’re thinking about it and everyone can relate to the new parents stress. Um, and comedy off of that I think is hilarious. And I think the ad you’re talking about was.

Tyler: outlet outlet and they did a couple of other things to this. They had a great ad then I think it was kind of interesting. They targeted probably towards men because it looks like Alice doing a lot more paid traffic on Facebook and social media. Um, it looks like they were targeting probably males with that, with that ad. But it was comedy. It was, it was funny.

RT: dude with a huge mustache making jokes about how like, you could get extra sleep with this or you’d have extra time for other things and then, you know, sits down next to his wife and she’s like, yeah. Other things like sleep punting. Cause like, I haven’t been tired. It’s not going to happen. And, and it’s, it’s hilarious and it’s, it’s just like the ads from a dr Squatch yeah. From the soap episode, you know, using that humor, um, and putting a, you know, an actor in there just randomly. The dude has just a massive mustache that just doesn’t make sense at all. But I’m now talking about it. So it worked. Right. Yeah. It’s interesting.

Tyler: And two other things too. There’s a great opportunity here. Once again, going back to humor, but I’m, Allen does something really cool when they crash baby showers and this is a great idea. Um, and they should be doing it weekly because what’s gonna happen is you’ll get that engagement and say, Hey, who should we crash? Go crash them. You know, even if you have to stay within, you know, maybe a hundred miles of their home base. Like that’s huge for them because so through the roof, um, it was a great idea. It was funny. It was really, really cool.

RT: Yeah. Um, let’s take a break cause the light just turned out 10 minutes.

RT: So another thing that I noticed about just like the social media and especially the ads of both these companies, you know, it’s one thing to have boring, you know, Instagram accounts was mostly at mostly ads on them, but a lot of the advertisements themselves were boring. I mean we had that one anecdote about the one funny ad from Elat, but I think that was the only ad that I liked out of. I mean we scrolled along. Yeah. There was a couple and I think it’s that fine line. I think they struggle with that and I, I’ll touch on that with a website. It’s like,

Tyler: it feels like they’re, they’re dealing with baby’s health, right? Keeping them safe. So they’re, they want to be serious. It’s a serious product, but like in the same breath, I think they’re missing a huge opportunity because of what we talked about. Like there’s a huge opportunity to add some humor, enlightenment. Um, you know, you’re not gonna catch people’s attention by just showing, you know, these boring ads. You know, they’re, they’re burning through cash. And I think that if they look at their ad spend, they’re probably not getting the return they want.

RT: And just, you know, looking at their website and comparing them, adding that in warn missed opportunity, in my opinion, is testimonials. I mean, they have to have, you know, thousands if not millions of very happy customers like me and you who would gladly, you know, lay in their child’s crib and wave up to the Nanna and say, this is the coolest thing ever. Um, and sure you can put that on social, like, yeah, I just think that’s a huge missed opportunity.

Tyler: Yeah. There could be a caveat here because when we get into the other sales data, we find out that they are selling a lot on Amazon, right? So it may not even matter. So like we’ll get into that a little bit advertising that, I mean they may just view a, their own website and social as like a secondary or a third option here. So, um, from what we S we found on the, on the data on the scorecard for, for sales, the traffic and their website, I Amazon is pretty impressive. So, um, Nana is about 140,000 visits a month. Wow. Um, Alice 200,000, that traffic is coming from a lot. It appears a lot of it’s coming from searches, so it looks like that brand awareness is coming from somewhere. So they’re doing a good job. I think probably with their PR, with getting some other things out there. Maybe in trade magazines or just different magazines or like printed out all kinds of different stuff. It looks like there’s their target here is just brand awareness and getting that out there and then drawing them in from there.

RT: Yeah, there was a ton of PR just as I was Googling them and trying to, you know, find other similar companies in the industry to compare them against, you know, there was a lot of different stories by very reputable publications. I’m quoting doctors and pediatricians, you know, and it’s you, I mean certainly they get a lot of organic traffic and SEO from those things.

Tyler: Yeah. And this data is coming from, you know, we use spy Fu, which is a partner of ours. I’m not your analytics, which they also own [inaudible] owns and that not your analytics, but it allows us to tap into their Google analytics and take a look via estimates on some of those data. So unfortunately I could only get data on outlet. It was just, it wasn’t in a nacho analytics yet. But the interesting thing is their bounce rate was only 11% on their website, which is mindblowingly small. Interesting. You know, a lot of people like to sneak under, we’ll lower the better. But I, you know, there’s a lot of websites are 50 60 70% there are 11% which is unbelievable. So that was really interesting for me. Um, the other interesting thing I found was that Nana is like getting no conversions off their emails. So that was super low. Um, where outlet was doing a decent job with their, with their email campaigns it looks like.

RT: Yeah. So once it looks like gal that’s doing a lot more by percentage, um, sales through social. Yeah. Um, which could be from, I mean, I would think it’s from that funny ad, like that’s probably working. Yeah, absolutely. But yeah, no, it’s, it’s interesting. And, and what you said about like the bounce rate, I’m just scrolling through outlet’s website right now. I actually never went to their website and went straight to Amazon. Sorry. But, um, now that I’m here, if I was shopping for this and if I, like I have, right now I have Nan and outlet both websites right here. I, you know, this is a really important purchase. Then I’m probably gonna like read every word on this website and watch these videos and just really understand like, okay, this is a couple of few hundred dollars, you know, is it the right one? And, um, how exactly does it work? And especially if you’re a new parent and you’ve never used anything like this before and you’ve never actually been a parent yet that yeah, you’re, you’re reading this and instead of what to expect when you’re expecting half.

Tyler: So that’s a great point. I mean, they’re probably even, you don’t buy the product you’re going through these sites, you’re going through the site and you’re looking at these pages because they do a great job. I think with our website. I mean it’s definitely a top to your website. Not confusing, not cluttered. They explain the product really well. Um, where Nana, I think that’s where they missed the Mark. They didn’t do a great job explaining the product very well where ally does a phenomenal job. Absolutely. Um, so with that said, you know, we estimated, you know, based on what I had, it looks like outlets do an almost a million a month off their website based on, based on conversions on conversion. We use a 2% conversion rate. I did not have the conversion rate accessible through nacho analytics. It looks like there, you know, even if we do a 2% conversion rate, 900,000 to a million dollars, um, their average ticket, I had a two 25 off their website. They have it’s expensive items. Right. You know, so, um, I think that’s probably written a ballpark, a Nana doing really well too with a website. About seven 70 is where I was at. I had their average ticket a little bit higher because their products are actually with the way they bundle in a little more expensive. Yep. Um, so I think that’s other, both doing great author website now using jungle scout, which is a Chrome extension and also, um, some, uh, an app that you can buy. Um, we, we look at Amazon, so it gives us the estimated sales volume on Amazon. Uh, so outlet about a million bucks a month on Amazon. Crazy. I think it’s probably than, yeah, I mean it’s probably higher than that, but that’s great. And you could tell by their listing the reviews, like everything is perfect. So if they’re doing a very good job and he goes, Oh yeah,

RT: they sold this on, they sold me. And yeah, I think I got it on a, it was either like the father’s day sale or something like on Amazon. It was extra 50 bucks or something like that off. And I was like, yep, cool. Yeah, that’s perfect.

Tyler: Um, whereas Nana is still doing well on Amazon, 600,000 a month is what the estimate comes out on, on jungle scout. That’s pretty good. Yeah. Yeah. That’s solid. Yeah. 600, 600 a month, you know, but you know, to be fair, if they have 50 and 120 ish employees each, you know, you gotta be making millions of dollars to have that much overhead. So I guess those, those numbers make sense. Um, as far as their, their overhead, their staffing, you know, um, you, you kind of need to hit those numbers if you want to grow to that rate.

Tyler: Yep. So that brings us to the beer scorecard. Absolutely. In the beer scorecard is basically our subjective look at these companies. Yep. So kind of rating each components. So the website, so on and so forth, the winner of the beer score, which is the cumulative score is the person we’re going to try to interview.

RT: Absolutely. And try to find to try to track down, um, both of them. Both of these companies have like three or four founders. So hopefully that makes it easier to find at least one that’ll talk to us.

Tyler: So going through the category, so a trust factor. Um, I, I mean I trust these companies. I actually had both at 10, because I really believe what they’re doing. They’ve, they’ve obviously solved a problem and they believe very strongly in it. I, I 10 for both of them. Yeah. And um, you know, just under you on both of them. Um, I think I trust, um, outlet just a little bit more based on, um, how clean their Amazon page was and their Amazon products were. And um, you know, just scrolling through their social media, it was a little less advertisement. Um, a little bit more humor. Yeah.

RT: You know, I just wasn’t comfortable I think with, with Al, let’s brand the Nana’s brand.

Tyler: And you said that’s because of that humor, Kevin involvement and like how they interact with I think so. Cause you made a good point earlier. Like it’s this, these are very,

RT: this is a very serious thing. Like you’re trying to keep, you try to live like this. Like you’re trying to get more sleep. It’s a baby monitor. It’s, it’s your most important asset, right? It’s your kid. But um, if you’re so confident in your brand and your product that you can add a little humor. I think that again, just makes me trust it a little more. I agree. I agree. A website. So I mean I think they both have pretty good websites. I really do like Albert’s website. I think it’s the tell the story, which is so important.

Tyler: It’s that is that storytelling that happens. And I think it’s just so clear where, and this is a technology product, right? So it can be confusing for me, you know? So I think allied is a great job. I’m going to give them the nod. I think I’m going to rank that at nine.

RT: Yup. And I’m, I’m right there with you. The, the, the thing I’ll say about neonates website that I love is right on the homepage. They have this parallax feature on the right side of the page that changes a slider on the left side of the page. And so the right side of the page is like lifestyle, telling you a story, walking you through somebody’s day. And then the left side is showing you screenshots from the app. So it’s just like, you know, it really gives you a feeling of what it might be like to use the app right there on the homepage of the website. Um, haven’t looked at this on mobile yet cause I don’t know how you would do this on mobile, but on desktop it’s really clean and um, yeah, this would be really good sales feature I would think. Yep. So, um, so next one is a marketing and advertising. What did you think about that?

Tyler: I mean, I’m critical, you know, so this is my jam. So like for me, I’m, I think they’re doing an okay job. I think Allis definitely got the nod. Um, doing some of the stuff they’re doing with their website. Amazon of social media is definitely a little bit better. Um, you tell just put together a little bit better. I think they’ve probably got a better team of, of marketing people. Probably it would be my suggestion just looking at it. It would be kind of where I’m at. Um, but I think they’re doing a little better job. So I gave him a seven.

RT: Yeah. And I’m kind of, you know, I’m right there with ya. Um, definitely a little bit lower on, on Nana’s side than outlet. Um, just because, you know, I, I’m using the humor I think with outlet was, was huge. Um, and I just, I feel like I related more to, um, the posts that outlet was doing. Um, it was a lot cleaner and um, I feel like I would follow them, um, are more, might be more likely to follow them, especially cause I mean quite honestly if I’m comparing it to Elliott has 10 times as many followers and whether they’re real followers or not. Like that’s a thing that people really look at as far as the trust factor. Um, so that’s interesting.

Tyler: Yeah. Social’s there because it’s entertainment, right. At the end of the day, like a brand that understands that is going to get the most value out of social media because it is entertainment. So you’re competing with mom, with grandma, you competing with your sister, you just had a baby, like all these things on social media. You’ve got to really stand out and tell that story and be humorous, be entertaining. And I think that’s huge for any brand that understands that they’re going to Excel in social media.

RT: Yeah, I agree. And then, you know, advertising also is on Amazon, you know, what is your Amazon sales page look like? And um, I think alphabet takes a nod on that one as well. Yep.

Tyler: User experience. Um, all, you know, they’re, they’re good. I mean, I have an eight for, for, uh, outlet and seven for Nina.

RT: Yeah. And, and for me, um, I’m actually a nine on Nana because I mean, I’ve used Nana for two years now. Um, it’s just really, really easy to use. I love the background audio feature of the camera. Um, I haven’t used the VASH that’s, that’s new, that would do the same thing into the SOC. Um, but I’ve, I’ve used similar products like that as far as putting something on. Um, it is kind of annoying to put a sock on, um, when your baby’s flailing and flinging around and you’re, I imagine some babies might not like a shock on their foot. Um, versus like a vest. I would think that would also be part of like swaddling and that might also help in other ways. So when you compare those things as far as who’s the user, the user is actually my son, you know, I mean I’m thinking user experience on my phone for the app, but also like comfort level for my children. Um, that’s what I was factor that in. Yeah.

Tyler: So social, um, you know, I think we’ve kind of already touched on this quite a bit. I think the ads that is more, it’s more of a paid traffic. It’s not really social, but I think that Al is doing a much better job. I think overall, you know, Alice doing a much better job with the social media strategy. Yup.

RT: Yeah, I agree. I think we can move on to a product design. I think we, we’d beat the beat the social worse. So what do you think? Um, first of all, I mean we, we talk about packaging later cause that outlet blew my mind. But product design, I mean outlet is just everything about it is beautiful. Even the SOC is really well designed. This little thing looks like a coaster that sits on your nightstand. You know, the camera doesn’t even really look like a camera. It has a magnet that holds it under the wall. So if you want to take it off or just move the angle, it’s really, really easy to use a nanny. You know, when you compare it, this thing is, you know, this, this floor stand is really nice. Um, cause it, it remains really firm. But I kind of like how outlet just literally like command strips to the wall. Um, I’m sure there’s a downside to that if your kid just grabs that from the wall. Yeah. Um, which, so here’s definitely pulled on this thing and hasn’t, it hasn’t budged, but, um, this, this thing is very um, stiff, like you can’t really move this around and get a good angle as much as you can on the outlet. So, um, I guess those are my pros and cons, uh, from a real user. Yeah.

Tyler: I mean, great experience for me. Um, the sock, I mean that’s probably the issue. One issue with the sock was just, it kind of came up, came out sometimes or like if food come out sometimes or become loose. Um, but overall the design’s amazing. I mean I think they’ve done a very good job in like what we saw from inception to like deliver on the product. It took them a couple of years to get this thing figured out. I think they did a great job.

RT: And both of them, I mean, part of their product, both of these companies is the app. Um, and that’s really the thing that you interacted with the most. And both the apps are phenomenal. I mean, just real clean outlet has like videos embedded in the app that show you how to put the sock on, which just blew my mind and I’m just like, how do I do this for my company? I don’t even have an app. And now I want one just so I can put like user videos in it. It’s crazy. Um, and nanny, like I said with the background audio, um, it’s those simple features that you don’t really think about until you get the product. They’re like, dang, you know, I dunno how I’d live without this.

Tyler: Yeah. So overall real good. I think, um, you know, we both had, I guess we tied with with, uh, let’s see. Yeah, I guess I had them both at eight [inaudible] and you had Ella just a little bit higher. Yup. Yeah, exactly. And then,

RT: I mean, just rolling into packaging. Um, I actually have where I put it, outlet packaging over here, this thing, I mean, this is like my Mac book, right? I mean, this thing I did a, I did an unboxing and maybe we can show that. Um, but it’s for outlet. It’s just perfect. I mean, everything about this package blew my mind. Um, it was very clean, very organized, all the instructions were really easy. Um, unboxing the outlet was amazing and to be totally honest, I don’t really fully remember unboxing the Nanay. That was probably like three days into being a dad for the first time. Um, but I do remember it being a long, skinny box. It was really easy to take out. Um, and assembly, even though there’s a fair amount of parts here was, was pretty quick. It didn’t stress me out and that’s why I think, why I don’t remember.

Tyler: Yeah, yeah, I agree with you. I mean, this is beautiful packaging. Like I remember getting this home and being like, okay, I’m exhausted and I’m like trying to find a solution here. And I remember just how easy everything was and we had it on them and probably, I don’t know, maybe maybe 10 minutes, you know, like start to finish. Like everything is ready to go on 10 to 15 minutes. And I remember thinking in my head at that time, like, this is so easy and such a great concept. Yeah.

RT: Oh, I mean, just the fact that you can literally find out about this product, drive to target, grab it from Amazon and you know, have it on your baby’s foot, uh, within the day is, is phenomenal. Yeah. So, yeah.

Tyler: So kudos the packaging with Gus. Absolutely. Um, so, you know, the last category is disruptive level and this is why we do this podcast so that we can learn from great companies so we can figure out how to implement this stuff into our companies. Um, I mean, they’re both great. Like, honestly, at the end of the day, you know, if it was just the camera, I think that they would’ve got a lower score for me, but now that they’ve really evolved and they have different products, I gave him a fairly high score. Um, but dude, they’re keeping kids safe, right? Like they were taught as business owners like find a problem, make a solution, and deliver it in the most efficient way possible. That customer and they outlets done it flawlessly. Yes. Problem solution. Here you go.

RT: Yup. And, and both of them I think have effectively solved those problems done in a really beautiful way from a product and packaging design standpoint. But as far as like fully disruptive, um, I think outlet takes the cake on that cause the first thing that they came out with was the sock and that was truly disruptive. Put this thing on your baby’s foot and it tells you how they’re doing and, uh, tells you that they’re still breathing and makes you be able to sleep a little bit more. That was their first product. That’s what they launched to market. It’s amazing. It works. And then they were like, Hey, we could probably have a camera that comes with it. Wouldn’t that be cool? You know, versus Nana. Um, not to say that that they started with the easier thing, but they started with the easier thing, which is the camera and now they’re, you know, they got into the vest. So, um, that said, what I’ve read about that vast, that technology is extremely disruptive because they’re using a camera to visually determine if there’s breathing, which I just blows my mind. I don’t really understand. This is like the same in the outlet sock is like the same technology as your Apple watch. So that just makes sense to me. Um, the camera thing from the internet is truly disrupting,

Tyler: we can learn some because we, you know, we did a business plan course actually, and we talked about y’all starting with a very simple product and basically skilling from there versus spending years trying to figure out a complex problem. Maybe you can fund it with a cheaper product or an easier product to overcome.

RT: Yeah. Well, and I was thinking about this the other day. I got the outlet, you know, because I just wanted to try something different. But if I didn’t know if it didn’t exist, I didn’t know they existed. Um, I would’ve seen Nan it, you know, new technology. I already have a camera, you know, they, they upgraded the software, so I could’ve just bought the vest and they would’ve got me as a, as a, basically a repeat customer for my second child. So that’s kind of cool from a, you know, keeping the customer for longer standpoint. Cool.

Tyler: So, um, I guess w what are your takeaways? So like, tell me about what your takeaways are on these companies, companies and the products.

RT: Yeah, so for me, um, the company is really cool. Both companies, their mission is to make parents sleep better, make parents now have to stress as much about some of the most stressful things, you know, being a parent, which is those, those first few nights, those first few months of nights, um, where you’re just making sure everything’s all right and constantly waking up to every little noise. Um, so from a mission and like the problem they’re trying to solve, I, I just think it’s wonderful. Um, they’re both doing it like basically, like we talked about in different ways, started with different things. Um, but my big takeaway is just I guess understanding that if you want to make a physical product like this, it’s not just enough to have the physical product work and function and be beautiful and cool. You also need an app and a huge amount of technology to work with this in order for it to function. So this is not just a physical product, these are both tech companies. I mean they want to at CCS. So merging the digital and physical and both of them are just knocking out of the park. So kudos to to that. And that’s really what I’ve taken away is if you have a beautiful physical product and you’re crushing it on the tech side, that’s how you make millions of dollars.

Tyler: Cool. So what’s one thing you think you could implement to your company right now you’ve learned?

RT: Yeah, so, um, from Nana’s homepage, I love how they’re doing, not just a full page parallax, but they’re also like showing you what’s happening on the product. I, I’m, I’m currently redoing our product page and I wanted to, um, have like a landing page at the top that has like an exploded view of a watch. And as you scroll down, like parts come off and it shows you how each part is made. That’s kind of intense if it’s full screen, but maybe I can do like the switch screen that they have and just kind of like highlight the part on the left side with the fully built watch and then show you the video in the description of how that part’s made on the other side. And that’s cool. Um, I want to see how they do it on mobile. I’m gonna check that out, but you know, stealing those ideas for sure.

Tyler: Yeah. Yeah. Awesome. Um, I mean it might take away, it was I guess the end of the day, like a lot of what you said. I mean it’s just a very well executed concept. Um, I think what I could apply to my business, um, it’s probably more down the road because we, we did talk about is how, you know, they’re selling e-commerce, Amazon, but the retail footprint is huge. Yeah. You know, so like if you want to be that $100 million company, 200 or $300 million company, um, in revenue, like you’ve got to have multiple distribution and what’s that look like? How’s it all work together? And so by seeing kind of like these bigger companies who have scaled so quickly, you know how they’ve approached those different revenue models. I mean, that’s something that I think we can both probably say, Hey, like we need to get to that point at some point.

RT: Yeah, for sure. It’s not just enough to have a beautiful website and sell direct to consumer. You know, you’ve got to have your Amazon business, right. If you can get into target like they did, obviously that’s where you got it. So they’re definitely making money through that spread in those sales channels out and reaching new customers that way. It’s here. Yeah. Yeah. So that was products we’re talking about the business of baby monitors and ANet versus outlet. We hope you enjoyed it. Let us know if you’re a customer of one of these companies already hit a separate your experience in the comments. Let us know if we miss any really cool features that we should have mentioned. And I’m, if you’re not a customer of these companies yet and you are a new parent, definitely check them out. We’ll put Amazon links to both of these products in the notes and, uh, on our social media and our website so you can find it. Um, so you can find all of that Uproxx worth talking about.com on Instagram. Facebook obviously is hosted on YouTube, and we hope you like it. We hope you check it out. And finally, as always, this episode and all of our episodes are sponsored by us, our small business and, um, business plan course, which can help you learn how to do, hopefully with these companies are doing. So, check it out. That’s proximately talking about, see you next time.

Speaker 3: [inaudible].

 

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