In this episode of Talk Commerce, we have the pleasure of speaking with Matt Butler, CEO and co-founder of Bonsai. Bonsai is a company that measures and generates incremental outcomes for their clients through the power of first-party data. With a background in retail analytics at Google and a passion for data-driven storytelling, Matt brings a wealth of knowledge to the conversation.
The Shift in Digital Marketing
Matt discusses the changing landscape of digital marketing, particularly in the post-pandemic era. He notes that the days of simply throwing money at Google and Facebook ads to drive growth are gone. As he puts it:
“The attention around your consumer is incredibly sophisticated. So many platforms, it’s competitive. And so everyone’s sort of hit this sort of plateau, is what we hear.”
To overcome this plateau, businesses need to focus on generating incremental outcomes through first-party data.
The Power of First-Party Data
Bonsai’s approach to measurement revolves around leveraging a business’s own sales data, customer behavior insights, and touchpoints. By stitching these elements together, they can provide a deeper understanding of customer acquisition and optimization. Matt explains:
“A business is zoned sales data, customer behavior insights and identity and touch points, those things, when stitched together, can dive deeper so that when you’re thinking about acquiring a customer from a Google, you can see what else that customer is doing. You can understand if it’s really a new one or how to optimize media to find that next new customer.”
Small Wins, Big Impact
When it comes to measuring success, Matt emphasizes the importance of small wins. He shares an example:
“Some of our big wins were helping clients take, you know, pools of like large pools of money for acquisition, drive 15% better throughput, right? And you’re like, okay, 15%, you know, guys, that’s 10 million more incremental annual dollars, right?”
These seemingly small percentages can translate into significant business growth when applied at scale.
Unifying Customer Data
For retailers with both online and brick-and-mortar presence, Matt stresses the importance of having a single source of truth for customer identity. He advises:
“If you’ve got online and you’re going into stores, unify that customer ID, right? Like use a point of sale that like you can bring that data together if you’re a brick and mortar going online. Same approach, right? Have a single view of your own customer.”
By unifying customer data across channels, businesses can gain a more complete view of their customers and make data-driven decisions.
The Future of Data in Retail
Looking ahead to 2024, Matt sees a mainstream realization of the need for retailers to own their customer conversation and data. He predicts:
“This year is definitely like, you’re not getting your house in order, you’re probably officially going to start falling behind.”
Businesses that prioritize first-party data and measurement will be well-positioned for success in the coming years.
As the retail landscape continues to evolve, the insights shared by Matt Butler and Bonsai demonstrate the critical role that first-party data plays in driving growth. By leveraging their own customer data, businesses can make informed decisions, optimize their marketing efforts, and ultimately achieve incremental outcomes.
To learn more about how first-party data can benefit your business, be sure to listen to the full episode of Talk Commerce featuring Matt Butler.
