TechStars' Brad Feld invests in Atlanta retail software startup CloudTags

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Jeff Hillimire

Urvaksh Karkaria

Staff Writer- Atlanta Business Chronicle

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Atlanta data startup CloudTags helps retailers personalize the shopping experience and attract customers into brick-and-mortar stores.

As shopping increasingly shifts online, retailers seek innovative ways to lure consumers into physical stores — which typically generate a higher shopping order.

"The role of the physical store is becoming not only transactional, but also about engagement and data collection," CloudTags CEO James Yancey said.

CloudTags uses Near Field Communication (NFC) technology to allow shoppers to digitally interact with physical products using computer tablets provided in the store, delivering product information, reviews and recommendations as the shopper browses.

With greater personalization, there's more customer loyalty, Yancey said."It's about tailoring content in the store around the shopper," he said.

CloudTags recently closed a $2 million investment from Brad Feld, managing director at Boulder, Colo.-based Foundry Group and co-founder of TechStars startup accelerator. Atlanta-based Hallett Capital and the Georgia Research Alliance also invested in the round.

Early next year, CloudTags will raise a $5 million Series A to expand into more retailers.

Apple's entry into the NFC market is expected to drive adoption of CloudTags service, Yancey said."Eighty percent of shoppers in the kind of luxury brands we work with, are iPhone users," he said.

Using CloudTags technology, customers in a store scan NFC-tagged tagged products — say a pair of shoes to — to get additional information such as available sizes and colors. CloudTags recommendation engine suggests related products in the store and retailers can push in-store discounts and promotions to the customer.

Urvaksh Karkaria covers Technology.