Every year, Inside Commerce looks back at the key trends that shaped the ecommerce industry over the past 12 months.

In this episode, James and Paul discuss the evolving landscape of ecommerce as they reflect on the trends of 2024. They highlight the following:

1. More positive sales outlook & better consumer confidence

2. Consumers becoming increasingly value focused

3. Renewed focus on the importance of international markets

4. Emergence of focused use cases for GenAI

5. Growing significance of brand collaborations and influencer marketing.

6. Increased focus on loyalty and subscription strategies

7. Greater emphasis on sustainability

The discussion emphasises the need for brands to adapt to changing consumer preferences and leverage technology to enhance their strategies. We explore what's shaping consumer behaviour and the future of online retail, emphasising the need for brands to adapt and innovate in a competitive market.

Key takeaways:

• Ecommerce is seeing a more positive sales outlook in 2024.
• International markets are becoming a key focus for brands.
• Consumers are increasingly value-oriented in their purchasing decisions.
• AI is being integrated into ecommerce for practical use cases.
• Collaborations between brands are on the rise as a marketing strategy.
• Influencer marketing has matured with better tools and reporting.

• Loyalty programs are evolving to focus on rewarding positive customer behaviour.
• Subscription models are shifting towards quality and service rather than just discounts.
• Sustainability is becoming a priority for brands and consumers alike.

• Brands are investing more in creative content and brand strategy.
• The importance of data in shaping marketing strategies is increasing.

ABOUT THIS EPISODE:

In this episode, James Gurd & Paul Rogers interview David Magee, Product Director at World of Books, about their recent migration from Commercetools to Shopify.

The conversation covers the strategic shift towards direct-to-consumer sales, the challenges faced with their legacy tech stack, and the innovative solutions implemented during the migration process.

David shares insights on the importance of middleware, A/B testing for performance validation, and the project management structure that supported this significant transition.

In this conversation, David Magee discusses the integration of Algolia for search and recommendations, the challenges faced in navigating international markets with Shopify, and the transition to Shopify Enterprise.

He emphasises the importance of a build-measure-learn approach during migration, the significance of partner selection, and the complexities of launching a new site while ensuring a good customer experience. The discussion highlights the lessons learned from these experiences and the proactive strategies needed to overcome challenges in ecommerce.

Key takeaways:

• World of Books aims to be the world's largest sustainable online bookstore.
• The migration to Shopify was driven by rising costs and the need for innovation.
• Custom middleware was developed in-house to handle complex data integration.
• A/B testing was crucial to validate the new site's performance against the legacy system.
• Direct involvement from leadership was essential for project success.
• The migration process included extensive customer feedback and competitor analysis.
• Understanding data quality was key to the migration process.
• Understanding platform limitations is crucial during migration.
• A build-measure-learn approach is vital for success.
• Deciding when to launch a new site is complex.
• Collaboration with Shopify's product team was valuable.
• Clarity on success metrics helps align team efforts.

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ABOUT THIS EPISODE:

In this podcast, James Gurd and Paul Rogers delve into the concept of unified commerce, exploring its definition, evolution, and practical implications in the ecommerce landscape.

They discuss the similarities between unified commerce and omnichannel strategies, emphasising the importance of data integration and customer experience. The conversation also highlights the challenges of payment systems and the complexities of global operations. Through examples of successful brands, they illustrate how unified commerce principles can be effectively implemented, while also addressing the future of ecommerce strategies.

Key takeaways:

• Unified commerce is a rebranding of omnichannel strategy.
• Data integration is crucial for creating a seamless customer experience.
• Payment systems can complicate platform consolidation in ecommerce.
• The democratisation of technology has lowered barriers for small businesses.
• Unified commerce aims to simplify operations without compromising customer experience.
• Globalisation presents unique challenges for unified commerce strategies.
• The conversation around unified commerce is often clouded by jargon and semantics.
• A strategic aim of unified commerce is to consolidate technology and processes.
• The future of ecommerce will focus on data-driven decision making.

Replatforming isn't always the best solution to technology challenges.

An ecommerce platform can be fit-for-purpose but the implementation flawed, or outdated, resulting in the business thinking the issue is the underlying tech. Sometimes it's quicker, cheaper and more effective to improve how the current platform is built rather than pivot to a new vendor ecosystem.

For this podcast, James Gurd and Michal Klim discuss the complexities of re-engineering ecommerce platforms, particularly focusing on Shopify. Michal is the CTO of respected development agency Commerce UI, and recently helped Pangaia re-engineer their Shopify storefront and tech stack.

James & Michal explore the concept of technical and process debt, the importance of thoughtful maintenance, and the challenges of historical decisions in technology.

Michal shares insights from his work with Pangaia, emphasising the need for a clean slate approach to build better solutions. The discussion also covers the role of automation, the use of Shopify Flow and MetaObjects, and the integration of third-party tools, culminating in a conversation about transitioning from classic to new customer accounts.

Key takeaways:

• Re-engineering can be a better solution than re-platforming.
• Technical debt accumulates over time and needs addressing.
• Thoughtful maintenance is crucial for long-term success.
• Historical decisions can complicate current technology choices.
• A clean slate approach can lead to better outcomes.
• Simplifying complexity can enhance user experience.
• Automation tools can significantly improve operational efficiency.
• Shopify Flow and MetaObjects provide powerful solutions to operational challenges.

Loyalty is a hot topic in ecommerce. For this podcast, we're joined by Ed Bull, owner of leading ecommerce agency Limesharp. We discuss the evolving landscape of loyalty programs in the luxury and premium brand sectors, exploring how brands are redefining loyalty beyond traditional points systems, focusing on strategic approaches to customer behavior, the balance between rewards and profitability, and the importance of measuring success through key metrics.

The discussion highlights the need for brands to adapt their loyalty strategies, especially during peak trading periods, and the changing perceptions of loyalty programs in the industry. We delve into the intricacies of loyalty programs, discussing tier movements, the impact of gamification and community engagement, common pitfalls in managing loyalty initiatives, and future trends in the loyalty landscape.

The episode emphasises the importance of understanding customer behaviour, the need for personalisation, and the potential of leveraging influencers to enhance customer experiences. It also highlights the evolving nature of loyalty programs and the necessity for brands to adapt to changing consumer expectations.

Key takeaways:

• Loyalty programs are evolving beyond traditional points systems.
• Brands need to understand customer behaviour through data analysis.
• CFOs are crucial in discussions about loyalty program profitability.

• Loyalty doesn't have to be publicly advertised to be effective.
• Surprise and delight tactics can enhance customer loyalty.
• Measuring the speed of movement between loyalty tiers is important.

• Tracking unspent loyalty points is essential for program management.
• Loyalty programs can formalize existing rewards that brands already offer.
• Gamification can enhance customer interaction with brands.
• Community-driven loyalty programs are gaining popularity.

• Brands should avoid punishing customers for inactivity.

• The future of loyalty will focus on hyper-personalisation.
• Influencer partnerships can create unique loyalty experiences.

There's a feeling in the industry that some AI tools are solutions looking for a problem. In this podcast, we explore an AI solution that has a clear ecommerce use case and is focused on improving customer experience.

James Gurd speaks to Klevu co-founders Nilay and Niraj about their new product, Asklo, which integrates AI chatbots into ecommerce product journeys to enhance customer experience. This is the a logical evolution to PDP Q&As, with customers able to get real-time responses to product and service questions, rather than waiting for a reply.

The episode discusses the importance of optimising user journeys, the technology behind Asklo, and how it can improve conversion rates. The conversation also explores case studies demonstrating Asklo's effectiveness in reducing PDP bounce rate by 30%.

Key takeaways:

• Asklo aims to democratise product discovery in ecommerce by providing AI-generated Q&A on the PDP
• AI can significantly improve customer experience and conversion rates.
• Understanding user intent is crucial for effective product recommendations.
• The technology behind Asklo includes Retrieval Augmented Generation (RAG).
• Real-world case studies show a 30% reduction in bounce rates from PDPs.
• Integration with existing systems is seamless and quick (measured page speed impact of 15ms)
• Customisation options allow brands to control responses and tone.

• The future of AI in e-commerce will focus on seamless user journeys.

Summary:

In this episode of the Inside Commerce podcast, Paul Rogers and Joe Fletcher discuss the critical aspects of ecommerce reporting, focusing on the importance of data measurement, key performance indicators (KPIs), and the challenges posed by new tools like GA4.

They explore the significance of conversion rates, tracking, and common mistakes businesses make in their reporting processes.

The conversation also delves into how businesses should approach their reporting needs, the value of understanding customer behaviour, and the various methods of attribution that can be employed to gauge marketing effectiveness.

Key takeaways:

• Ecommerce has matured significantly, especially post-iOS changes.
• Critical KPIs should tie back to fundamental business outcomes.
• Conversion rates need to be contextualised for meaningful insights.
• GA4 presents challenges but offers powerful data if utilised correctly.
• Tracking issues can lead to downstream reporting problems.
• Data silos can obscure the true performance of marketing efforts.
• Businesses should start with their needs before selecting reporting tools.
• Customer sentiment is a vital but often neglected metric.
• Understanding the value of customers is essential for growth.
• A hybrid approach to attribution is often the most effective.

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ABOUT THIS EPISODE:

In this episode of the Inside Commerce podcast, Luke Hodgson from Commerce Thinking explains the common issues with ERPs and their integration with ecommerce platforms.

The conversation explores the importance of understanding ERP systems for ecommerce leaders, the evolving role of ecommerce directors post-COVID, and the demand for ERP in new businesses.

The discussion also delves into the role of middleware in ecommerce integrations, challenges related to peak order volumes, and strategies for maximising back office performance. Finally, we discuss the significance of technical leadership in ecommerce and provide practical advice for businesses facing integration issues.

Key takeaways:

• E-commerce leaders must understand their ERP systems.
• The demand for ERP has evolved post-COVID.
• Middleware plays a crucial role in integration.
• Peak order volumes require careful planning and execution.
• Technical leadership is essential for e-commerce success.
• Brands are increasingly exploring alternatives to traditional ERP systems.
• Effective communication with partners is vital during peak periods.
• Breaking down problems into stages helps identify issues.
• A tech leader should facilitate collaboration among stakeholders.
• The right technical resources are crucial for successful ERP implementation.