luckycarrotapp.com

How a Team Won a Hackathon and Revolutionized Employee Engagement Globally

February 14th, 2025

Founded By

Mariam Gyulumyan

Days To Build

Founders

Profitable

Yes

Days To Build

Year Started

2019

Customer

B2B

Founded By
Mariam Gyulumyan: Days To Build
24: Founders
1

Profitable
Yes: Days To Build
24: Year Started
2019

Customer
B2B

Who is Mariam Gyulumyan?

Mariam Gyulumyan is an Armenian entrepreneur who studied business at the American University of Armenia, but found her true passion for start-ups during a stint at Draper University in Silicon Valley.

Mariam Gyulumyan, Founder Lucky Carrot

What problem does luckycarrotapp.com solve?

Lucky Carrot helps employees feel recognized and valued at work, cutting down on demotivation by allowing everyone to appreciate each other's efforts.

LuckyCarrot Homepage

How did Mariam come up with the idea for luckycarrotapp.com?

Mariam Gyulumyan came up with the idea for Lucky Carrot while working at a tech company in Yerevan. She noticed that their monthly "Employee of the Month" recognition on Slack seemed to leave many employees feeling unrecognized and demotivated. This experience sparked her curiosity about employee engagement, leading her to research more about how often employees need recognition to feel satisfied.

Her findings showed that employees typically require acknowledgment three to four times a week, which led her to rethink traditional recognition systems. To address this problem, she participated in a hackathon in January 2019, where the Lucky Carrot app was conceptualized as a way to build a culture of peer recognition and gratitude. The idea was then refined further during this hackathon and eventually became an award-winning solution.

In developing Lucky Carrot, Mariam learned the importance of testing assumptions and gathering feedback through direct interactions in the workplace. This approach not only gave her a clearer picture of employee needs but also highlighted the potential challenges of ensuring genuine usage of the app. Despite initial fears of misuse among employees, transparency in carrot transactions helped mitigate such concerns, teaching Mariam that design and user engagement play crucial roles in shaping successful solutions.

How did Mariam Gyulumyan build the initial version of luckycarrotapp.com?

Lucky Carrot began its development journey with a team of co-workers who participated in a 24-hour hackathon in January 2019. They utilized tools like Slack for communication and collaboration while focusing on creating a peer recognition app. The process was challenging yet rewarding, as they quickly needed to iterate based on real-time feedback to build a functional MVP. Within their existing tech company's resources, they had access to the technical talent required to expedite the development process without external fundraising initially. The team faced challenges in ensuring the balance of recognition across employees, addressing concerns of "carrot corruption," but managed to minimize it through transparency in the app's operations.

What was the growth strategy for luckycarrotapp.com and how did they scale?

Networking and Partnerships

Lucky Carrot leveraged networking and partnerships as a fundamental channel to grow. Founder Mariam Gyulumyan attended a Beeline Start-up Incubator, where she was able to connect with investors from the Business Angel Network Armenia (BANA). This networking event led to significant investments from four angel investors, which allowed the company to bring in more professionals, attend international conferences, and expand their client base internationally. Engaging in such partnerships helped solidify credibility and trust with potential customers, showcasing Lucky Carrot as a reputable player in the employee engagement space.

Why it worked: Networking allowed Lucky Carrot to build genuine relationships with investors and partners, providing them with the necessary capital and resources to expand. Trust built through these channels helped them create a strong foundation in the market.

International Expansion

Lucky Carrot targeted international markets as part of its growth strategy. The company looked beyond Armenia and identified promising markets such as the Baltic countries and the UAE to expand its reach. By targeting regions with a vibrant start-up culture or a pre-existing "thank you" culture alignable with Lucky Carrot’s values, the company strategically placed itself to tap into new customer bases.

Why it worked: Expanding to international markets allowed Lucky Carrot to diversify and increase its user base beyond the relatively smaller domestic market. By focusing on regions already familiar with tech solutions and employee engagement culture, they ensured a smoother entry and adoption process.

Product Hunt Launch

Lucky Carrot made use of Product Hunt, a popular platform for launching new products, to introduce their employee engagement software to a wide audience. This provided them with a broad exposure and an opportunity to gather valuable user feedback.

Why it worked: Product Hunt is known for its community of early adopters and tech enthusiasts who are constantly on the lookout for new and innovative products. By launching on this platform, Lucky Carrot gained visibility and interest from potential users, leading to organic growth through word-of-mouth and initial user reviews.

B2B SaaS Subscription Model

Lucky Carrot uses a subscription-based revenue model, charging companies on a per-employee basis each month. This straightforward model allows for predictable revenue streams and scaling based on customer growth.

Why it worked: The subscription model is sustainable, providing consistent revenue as companies grow and add more employees to the platform. It aligns costs with company growth, making it an attractive option for target companies. This model also encourages customer retention, as companies are likely to remain subscribed as long as they see continued value in the service provided.

What's the pricing strategy for luckycarrotapp.com?

Lucky Carrot prices its platform at $2.50 per employee per month, with additional revenue from gift card commissions.

Lucky Carrot Pricing

What were the biggest lessons learned from building luckycarrotapp.com?

Employee Engagement is Crucial: Lucky Carrot learned the hard way that simple appreciation models, like 'Employee of the Month,' can demoralize rather than motivate. Pivoting to a peer recognition platform significantly improved morale and engagement.
Cultural Fit Matters: They targeted regions with a thank you culture, like the UAE and the Baltics, ensuring the platform's values resonated with local corporate cultures, which facilitated smoother market entry.
Flexibility Overcomes Obstacles: The initial fears of "carrot corruption" were mitigated by ensuring transparency in carrot transactions, allowing employees to see all activity and fostering integrity.
Feedback Fuels Growth: Lucky Carrot leveraged user feedback to hone their ideal customer profile and adapt their platform to meet varying company needs, ensuring it remained relevant and useful.
Network for Success: Joining a start-up incubator and connecting with local business angels helped scale their business quickly by securing investments and gaining professional insights.

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