The Digital Deep Dive With Aaron Conant
A Digital Discussion on Going Back to the Basics
Thu May 18 2023Description
The episode discusses the importance of getting back to the basics in the digital landscape. It emphasizes the need for profitability and integration of online and offline elements. The negative impact of performance marketing obsession is highlighted, along with challenges such as high consumer acquisition costs and disruptive logistics. Fulfillment and customer experience are crucial, with options for different delivery times and incentives. Immersive commerce, including live streaming and virtual store experiences, is explored. The significance of physical stores and the importance of blending physical and digital retail experiences are discussed. Unified commerce, AI, and data optimization are essential for success in the changing retail landscape. Content creation using AI and the challenges of leadership adaptation are addressed. The chapter concludes with insights into digital solutions for fulfillment and the importance of unified commerce, immersive commerce, content, community, and commerce.
Insights
Profitability is Key
Being profitable should be the primary goal for brands and retailers. Operating an unprofitable business is no longer sustainable with decreasing investment opportunities.
Integration is Essential
Integrating online and offline, technology, content, and supply chain is essential for success in today's retail environment.
Fulfillment Matters
Fulfillment is as important as any other part of the consumer journey and experience. Brands and retailers should offer more options to cater to different customer preferences.
Immersive Commerce
Immersive commerce, including live streaming and virtual store experiences, can decrease customer acquisition costs and improve conversions.
Physical Stores Still Matter
Physical stores continue to be important in the integrated retail world. Retail apocalypse refers more to legacy retailers closing their stores rather than the entire retail industry.
Unified Commerce Readiness
A unified commerce readiness audit helps companies assess their current state and develop strategies to thrive in the new retail landscape.
AI in Retail
Artificial intelligence has the potential to revolutionize content creation and is now accessible to everyday people. It will have a significant impact on the retail and e-commerce industries.
Data Optimization
Optimizing data is crucial for digital content operations. Understanding Gen Z requires spending thousands of hours on social media with them.
Digital Solutions
Using digital age 3PLs, shifting PPC to DSP budget, and addressing ad fraud issues are important digital solutions for retail.
Chapters
- The Importance of Getting Back to Basics
- Fulfillment and Customer Experience
- Immersive Commerce and Experiential Retail
- Unified Commerce and AI in Retail
- Content Creation and Data Optimization
- Digital Landscape and Solutions
The Importance of Getting Back to Basics
00:04 - 08:02
- The podcast discusses the importance of getting back to the basics in the digital landscape.
- The number of new players and service providers in the industry has led to a focus on new tactics and strategies, but forgetting the basics is detrimental.
- Being profitable should be the primary goal for brands and retailers.
- Integrating online and offline, technology, content, and supply chain is essential for success in today's retail environment.
- Performance marketing obsession has negatively impacted growth and sustainability.
- E-commerce is going through a disruption similar to what it caused in the retail industry.
- Brands need to address challenges such as high consumer acquisition costs, questionable digital advertising results, and disruptive logistics and fulfillment.
- The basics include driving traffic, conversions, basket size, retention, and lifetime value.
- Operating an unprofitable business is no longer sustainable with decreasing investment opportunities.
Fulfillment and Customer Experience
07:36 - 16:05
- Fulfillment is as important as any other part of the consumer journey and experience.
- The delivery experience and how the product is delivered are crucial.
- Fast fulfillment can be expensive, while slow fulfillment can be cheap.
- Brands and retailers should offer more options to cater to different customer preferences.
- Finding the right solution providers for fulfillment is essential for a good customer experience.
- Amazon offers options at checkout for different delivery times and incentives.
- Amazon also introduced a program where customers can pick up their products and get $10 back on orders of $25 or more.
Immersive Commerce and Experiential Retail
15:35 - 23:52
- Immersive commerce is about bringing a social, two-way street experience to online shopping.
- Immersive commerce includes live streaming, shoppable video, pre-recorded shoppable video, 3D product images, and AR technology.
- Kiehl's website offers an immersive virtual store experience that increases conversion rates to 16% compared to non-immersive visitors.
- Walmart land on Roblox provides an immersive experience that connects consumers back to the Walmart brand.
- Experiential retail can be built through immersive commerce by marrying content, community, and commerce (3C integration).
- Physical stores continue to matter and are still the centerpiece of the integrated retail world. Retail apocalypse refers more to legacy retailers closing their stores rather than the entire retail industry.
Unified Commerce and AI in Retail
23:24 - 31:34
- Retail and store are not interchangeable terms; retail has grown exponentially in various forms, including online and influencer-driven sales.
- Influencers can now become retailers by using QR codes to allow their followers to buy products in real time while they promote them.
- Large organizations need a digital retreat to evaluate the fundamental changes required for unified commerce and immersive retail experiences.
- Connecting real-time buying platforms with ERP systems and paying influencers commission fees is challenging for big organizations, but some are embracing the change.
- A unified commerce readiness audit helps companies assess their current state and develop strategies to thrive in the new retail landscape.
- Party City's failure to integrate online and offline experiences resulted in the closure of more stores, highlighting the importance of blending physical and digital retail experiences.
- AI, such as chat GPT AI, is being used by brands to write copy more efficiently, although fine-tuning is still necessary for brand consistency.
- AI has the potential to revolutionize content creation for brands that require large amounts of content for campaigns.
- Artificial intelligence is now accessible to everyday people and will have a significant impact on the retail and e-commerce industries.
Content Creation and Data Optimization
31:05 - 39:31
- Brands and CPGs need to create massive amounts of content.
- A cosmetics retailer needs 2,000 pieces of content for a national campaign.
- Artificial intelligence is being used to help create content.
- OpenTable integrated chat GPT into their platform for restaurant recommendations.
- North Face uses IBM's Watson cognitive computing technology for personalized recommendations based on user prompts.
- Neiman Marcus has implemented an app called Snap that allows users to take pictures and find similar items in their inventory.
- Optimizing data is crucial for digital content operations.
- Leadership teams may resist change due to lack of knowledge or defensiveness, but adaptation is necessary.
- Understanding Gen Z requires spending thousands of hours on social media with them.
- Unified commerce, immersive commerce, data science, and AI are essential for keeping up with the changing landscape.
Digital Landscape and Solutions
39:08 - 45:41
- Using digital age 3PLs like DaVinci can save money and provide faster fulfillment for products.
- PPC to DSP budget on Amazon has shifted from 35% DSP and 65% PPC to 65% DSP and 35% PPC.
- Connected TV and OTT CTV paid media space have significant ad fraud issues.
- Unified commerce, immersive commerce, content, community, and commerce are important aspects of retail in the current environment.
- Michael Saguar at Five New Digital is helping many brands navigate the rapidly changing digital landscape.