The Future of E-Commerce: Insights from Udayan Bose on AI-Powered Marketing

June 4, 2024June 4, 2024 Brent W. Peterson

In this episode of Talk Commerce, I had the pleasure of speaking with Udayan Bose, founder and CEO of NetElixir. With over 20 years of experience in digital marketing, Udayan shared his insights on the rapidly evolving landscape of e-commerce and how artificial intelligence (AI) is reshaping the way businesses approach marketing.

Failing Faster and Learning in Digital Marketing

One of the key themes that emerged from our conversation was the importance of adopting a “fail faster” mindset in digital marketing. As Udayan put it:

Just the willingness to dive in and figure things out and suddenly sort of you really have to obviously hustle hard but things slowly come in place and when it comes in place the impact is quite magical.

He emphasized that in an industry as dynamic as e-commerce, being open to experimentation and learning from failures is crucial for staying ahead of the curve.

Navigating Competitive Pressures and Rising Costs

Udayan also shed light on the challenges faced by e-commerce businesses today, particularly the squeeze on contribution margins due to intense competition and rising advertising costs. He noted:

If you certain categories saw a CPC increase of almost about 32%. So the cost per click, the same Google ad, costs a lot more now. So just think of it. You are unable to increase your prices, and the variable cost keeps on increasing. And this is leading to a massive squeeze in the contribution margins.

As someone who has worked with numerous e-commerce clients, I’ve witnessed firsthand the impact of these pressures on businesses. It’s more important than ever for merchants to optimize their marketing strategies and find ways to differentiate themselves in a crowded market.

The Power of AI and Machine Learning in Marketing

One of the most fascinating parts of our discussion centered around the role of AI and machine learning in transforming digital marketing. Udayan explained the difference between horizontal AI, which focuses on productivity and doing more with less, and vertical AI, which is tailored to solving specific problems using a company’s own data.

Vertical AI, I think of it, is very specific to solving your problem. And the problem that, for example, our tool, Alexa Insight, solves […] is we just wanted to solve a simple problem that the entire e-commerce world or digital marketing was focused on new customer acquisition. We wanted to change it marginally and say that, can we use machine learning to help you do new high value customer acquisition?

This notion of leveraging AI to identify and acquire high-value customers resonated with me. As e-commerce becomes increasingly competitive, the ability to target and retain the right customers can make all the difference in a business’s success.

Advice for E-Commerce Merchants

As we wrapped up our conversation, I asked Udayan what advice he would give to e-commerce store owners looking to stay ahead in today’s market. His response emphasized the importance of experimentation and staying informed about industry trends:

I would actually sort of have two very specifically. The first one is just creating, carving those experiments of those tests. […] The second one effectively is as simple as that. I mean, you have to reserve 10% of your personal time as the business owner or the CMO to just explore what is going on because in many cases the biggest mistake I have seen a lot of lot of business owners really make they’re just so so much working inside out that they just never get the time to look at us to what season am I in, right?

I couldn’t agree more with this advice. In my experience working with e-commerce businesses, the most successful ones are those that prioritize continuous learning and adaptation.

Watch the full episode on YouTube

Final Thoughts

My conversation with Udayan Bose offered a wealth of insights into the future of e-commerce and the role of AI in shaping digital marketing strategies. As we navigate this rapidly evolving landscape, embracing experimentation, staying attuned to industry shifts, and leveraging the power of AI will be key to thriving in the years ahead.

To dive deeper into these topics and hear more of Udayan’s expertise, be sure to listen to the full Talk Commerce podcast episode. Let’s keep the conversation going – reach out and share your own experiences and insights on the future of e-commerce!

Contact Details:
GLOBAL HEADQUARTERS:
3 Independence Way, Suite #203,
Princeton, NJ 08540
Call: 609.356.5112
https://www.netelixir.com/

Connect on Linkedin: https://www.linkedin.com/in/netelixirudayanbose/

The Power of Geofencing: How To Dominate Your Market with Location-Based Marketing

May 21, 2024 Brent W. Peterson

In this episode of Talk Commerce, we explore the world of geofencing with the dynamic duo, Barbara Wardell and Ernesto Caleri, co-founders of Kalari & Wardell. They share their valuable insights on how to use location-based marketing to attract customers, drive foot traffic, and outperform your competition. Get ready to unlock a powerful strategy that can transform your business!

Geofencing: A Powerful Tool for Small Businesses

“We started this company in the middle of COVID to help small businesses recover foot traffic,” says Ernesto. He explains that geofencing is a technology that utilizes the relationship between smartphones and satellites to create virtual fences around locations of interest. “When someone walks into a competitor’s store, we can send them an ad to your store.”

This tactic is particularly relevant for industries like restaurants, laundromats, and even niche businesses like mezcal brands. Ernesto emphasizes that the power of geofencing lies in its ability to track satellite-verified visits. “We do 5,000 satellite-verified visits a month across the US, Canada, and Australia.”

Democratizing Geofencing for Small Businesses

“We asked the question, what will it take to bring this technology to small businesses?” Barbara explains. Their answer was a revolutionary approach to geofencing, making it accessible for even the smallest businesses. They honed their strategy in the laundromat industry with a budget as low as $1,000 a month. “We were able to drive over 1,000 visits to one laundromat owner in the Carolinas with about 30 locations.”

This success story propelled them into new verticals, including private aviation, apparel, and even the alcohol and beverage industry. “We’ve been able to bring it to other verticals as well.”

Beyond Retail: Geofencing for Services and B2B

Ernesto and Barbara emphasize that geofencing goes beyond retail. “We can do B2B, which is retail. We also do services. We also do track website traffic.” They highlight examples like vacation rentals and retreats where geofencing can be used to target people in a broader geographic area. “We can look at neighborhoods in New York City, neighborhoods in Staten Island, neighborhoods in Florida. We can see where people are actually coming from and we can send ads to consumers like that even if they’re not living within driving distance of a location.”

Privacy-Focused Approach: Anonymity and Data Protection

One of the key concerns with location-based marketing is the perceived creep factor. Barbara addresses this concern directly. “Your device becomes anonymized, unlike with Facebook and other platforms.” She emphasizes that Kalari & Wardell prioritize data privacy and use a clean-room approach to anonymize users. “We actually do protect consumer privacy.”

The Future of Commerce: Hybrid Models, Data Accuracy, and Human Connection

As we move forward into 2024, Barbara believes the future of commerce lies in a hybrid model. “I think we’re going to go a little bit back to old school as well as integrate.” This means a balance between online and offline experiences.

Ernesto echoes this sentiment. “The world’s best visual models do not create faces that resonate with people just yet.” He believes that while AI is a powerful tool, it can’t replicate the human element of connection and empathy.

Final Thoughts: Embrace the Power of Geofencing

It’s clear that geofencing is a powerful tool for small businesses looking to attract customers, drive traffic, and dominate their markets. Kalari & Wardell offers a compelling solution that puts the power in the hands of the underdog.

The future of commerce is exciting and filled with possibilities. Get ready to embrace the power of geofencing and unleash the potential of your business!

E-Commerce Referral Marketing: Insights from a Partnership Manager with Raul Galera

April 17, 2024April 13, 2024 Brent W. Peterson

As the co-host of the Talk Commerce podcast, I recently had the pleasure of sitting down with Raul Galera, the Partnership Manager at ReferralCandy, to discuss the dynamic world of e-commerce. In a landscape that’s constantly evolving, Raul brought to the table a wealth of knowledge on current trends, challenges, and strategies that are shaping the industry. In this blog post, I’ll share the key insights and lessons from our conversation, offering a deep dive into the world of e-commerce from the perspective of a seasoned expert.

The Role of AI and the Impact of Rising Ad Costs

Raul began by shedding light on his role at ReferralCandy and how the company is navigating the e-commerce space. One of the most intriguing points he mentioned was the increasing use of AI for content generation. As brands strive to stay relevant and engaging, AI tools are becoming a game-changer in producing content at scale.

However, it’s not all smooth sailing. Raul pointed out the significant impact of rising ad costs on e-commerce brands. With the cost of customer acquisition climbing, brands are feeling the pinch, especially during high-stakes sales periods like Black Friday and Cyber Monday.

The Shift to Organic SEO and Understanding Consumer Behavior

The conversation then turned to the strategic shift towards organic SEO. As ad costs rise, e-commerce brands are looking to organic search engine optimization to drive traffic without breaking the bank. Raul emphasized the importance of understanding the nuances in consumer behavior, particularly the differences between products that fulfill needs versus those that are more likely to be impulse buys.

Offline Interactions and the Resurgence of Physical Mail

In a digital age, it’s easy to overlook the power of offline interactions. Raul highlighted an interesting trend: the use of physical mail for marketing purposes. This throwback approach can cut through the noise of digital marketing, offering a tangible touchpoint for customers.

Preparing for Black Friday and Cyber Monday

Looking ahead to major sales events, Raul anticipates a softer approach to discounts from e-commerce brands. Thanks to better stock management and preparation, brands may not need to rely as heavily on deep discounts to attract customers.

The Importance of a Clear Post-Purchase Plan

A key takeaway from our discussion was the importance of having a clear post-purchase plan. Raul stressed the significance of post-purchase customer journeys and the introduction of new and complementary products after the initial sale. This strategy is crucial for engaging customers and encouraging repeat purchases, which fosters brand loyalty.

The Power of Partnerships in E-Commerce

Raul then delved into the world of partnerships, explaining the two main types: co-selling and influencer marketing. He underscored the value of mutually beneficial relationships, whether between brands or with influencers. Co-marketing with complementary brands and strategic influencer marketing can drive sales and elevate brand awareness.

Leveraging Word-of-Mouth with ReferralCandy

Introducing ReferralCandy, Raul explained how the solution empowers brands to leverage word-of-mouth marketing through a referral program. The automated nature of the program incentivizes customers to refer friends, benefiting all parties involved.

Conclusion: Embracing the Future of E-Commerce

As we wrapped up the episode, Raul extended an invitation to brands to consider implementing a referral program to tap into the power of word-of-mouth marketing. He also offered his contact information for further discussions or inquiries.

The e-commerce industry is a complex and ever-changing beast, but with the insights from Raul Galera, brands can navigate it with greater confidence. From the impact of AI and ad costs to the strategic use of partnerships and referral programs, there are numerous opportunities for brands to thrive. As we continue to explore these topics on Talk Commerce, I invite you to join us on this journey and discover how to leverage these insights for your own e-commerce success.

Referral Candy: 00:01:22, 00:29:52
Shopify: 00:02:01, 00:22:36
AI (Artificial Intelligence): 00:07:00
Organic SEO: 00:10:33
Clienteling: 00:14:14
Amazon Days: 00:18:35
Klaviyo: 00:23:43
Influencer Candy: 00:28:50