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e-commerce Podcast

Why Pinterest pushes shopping over commerce

There’s a big difference today between the role of commerce, and that of shopping, says Tim Weingarten, head of shopping product at Pinterest, on the latest episode of the Innovators podcast by the Current Global.

“Commerce has this implication of pushing for the transaction – about reducing friction in the conversion. Whereas shopping is one of joy. It’s one of serendipity, it’s one of discovering something you didn’t know existed,” he explains.  

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It’s that mentality that underpins everything his team does at the company, focusing primarily on how to better the user experience with discovery and personalization at its core. This includes the introduction of a series of tools that filter and predict needs – from Pinterest Lens, which allows customers to find items from the database by photographing similar ones, to the newly announced Catalogs feature, where brands can upload their entire product catalog as shoppable pins.

What makes Pinterest stand out among its competitors, is that its users navigate the platform for entirely personal reasons, such as renovating their kitchens or achieving the perfect hairstyle, as opposed to pushing aspirational content to followers, Weingarten comments. Being able to capitalize on that then comes down to having the right algorithms in place.

“The more data you have, the more you can personalize. But on an e commerce site, the only data they have is based on prior transactions. That’s a very sparse dataset and it happens very infrequently. If you switch gears to Pinterest, what you have is someone visiting every day doing this authentic thing – saving things for particular use cases. This engagement signal can be applied to all products… And because we have this authentic form of engagement, we’re able to understand what you’re trying to accomplish, and actually personalize it to your tastes,” he says.

Pinterest has been around for nearly a decade with a quiet yet steady climb to the top. As of 2018, users on the platform had pinned 175 billion items on three billion virtual boards. The company is now on track to top $1bn in revenue, and is rumored to be moving forward with an IPO this summer at a valuation of $12bn.

During this conversation recorded at Shoptalk with the Current Global’s Rachel Arthur, Weingarten dissects how Pinterest is only getting better at predicting consumer needs before they’re voiced; shares how the platform balances being commercial with keeping the joy of inspiration alive, and hints at the types of technologies he’s looking at to further personalize the shopping experience.

Catch up with all of our episodes of the Innovators podcast by the Current Global here. The series is a weekly conversation with visionaries, executives and entrepreneurs. It’s backed by the Current Global, a consultancy transforming how consumer retail brands intersect with technology. We deliver innovative integrations and experiences, powered by a network of top technologies and startups. Get in touch to learn more.

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data e-commerce Editor's pick Podcast Retail

Farfetch on the store of the future

Rosanna Falconer and Sandrine Deveaux
Rosanna Falconer and Sandrine Deveaux

The store of the future is about solving the problems of today in an innovative and meaningful way for the customer, says Sandrine Deveaux of Farfetch, on the latest episode of TheCurrent Innovators podcast.

Speaking to guest host, Rosanna Falconer, at a live FashMash Pioneers event in London, the managing director of the e-commerce company’s store of the future division, explains that her focus in not just on new technology for the sake of it, but on creating better shopping experiences driven by personalization.

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Following the announcement of Farfetch’s Store of the Future concept in April 2017, Deveaux has been building a series of beta tests in place in Browns East in London, Thom Browne in New York and Chanel in Paris. But the result doesn’t mean big flashy screens or variations on augmented reality, as she is so often asked about.

Instead, it’s about better servicing the customer; understanding what they want when they walk into stores thanks to data, but also making things like the payment experience a much more seamless one.

She says the store of the future is really about offering the experience of Apple, but the convenience of Amazon, so as to keep in line with increasing consumer expectations.

And so the end goal,for her team, she says, is to provide brands and boutiques with full visibility around customer behavior and customer intent, mirroring what’s possible online in the offline space.

“85% of customers, we don’t know anything about them. So that’s what the store of the future is really getting to – it’s about how we leverage the platform we have with Farfetch, and try to really look at online behavior and take that online behavior into an in-store context,” she explains. This is something Farfetch calls “enabling the offline cookie”.

On this episode, Deveaux also talks to driving disruptive innovation through healthy internal tension, how she’s changing the way luxury brands think, and why the ultimate sales associate for the store of the future might just be a unicorn.

Catch up with all of our episodes of TheCurrent Innovators here. The series is a weekly conversation with visionaries, executives and entrepreneurs. It’s backed by TheCurrent, a consultancy transforming how consumer retail brands intersect with technology. We deliver innovative integrations and experiences, powered by a network of top technologies and startups. Get in touch to learn more.

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e-commerce Editor's pick mobile Podcast

Alipay on educating US consumers with a unified payment experience

TheCurrent Innovators: Souheil Badran with Liz Bacelar
TheCurrent Innovators: Souheil Badran with Liz Bacelar

Chinese payments company Alipay is on a mission to wean US consumers off traditional payment behaviours. Creating an integrated experience is at the center of making that happen, Alipay’s president of the Americas, Souheil Badran, explained to Liz Bacelar on the latest episode of TheCurrent Innovators podcast.

“So far the whole US market has been so used to credit cards. And when you look at it from a tech perspective all the apps we use are in their own silos. They’re not connected at all,” says Badran, explaining that the Starbucks app is one of the few examples of an integrated experience based around the consumer’s lifestyle.

In order to achieve seamlessness, Badran hopes to see better collaboration with retail in what he calls the Uber experience – when getting from point A to B, the user no longer has to think about the payment aspect of it.

This everyday ease of use is already being achieved in China, where Alipay’s 520 million users have access to over 60 sub-applications integrated under the payment umbrella, creating a lifestyle ecosystem within the digital wallet that includes the ability to do things like pay peers and order a taxi.

But going beyond payments to create a larger sense of loyalty in this way in the US, means educating the consumers out of their comfort zone of just payments, Badran adds. “[Starting with the consumer], what are they looking for? What would make you go from just using your credit card, and what would attract you back to the app on a regular basis?”

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Badran wants to see Alipay reach the same level of interaction in the US, as it has achieved in Asia. Current users check their digital wallets 15-20 times a day, for instance. He hopes US consumers can get to that point, in the same way they already do with their social media channels. This would include creating experience-led features and promotions based on purchase history and other aggregated data, he notes.

Chinese Alipay consumers are also a big market for US retailers, which Badran has been working hard to evangelize on their value. “Back in 2013 when you talked about China in general, people understood the size, but couldn’t quite grasp the value of it. I have seen a tremendous shift over the last 12 months and hopefully it will continue to grow.” To target these users, Alipay is working with retailers in the US and Europe to ensure payment capabilities and promotions that intensify around peak travel seasons, such as Chinese New Year.

For millennial consumers, Alipay helps quickly build user credibility by leveraging data from previous purchases. This means a merchant that accepts the payment service can have visibility of the user’s track record, says Badran. He uses the example of purchasing at a luxury store, where Alipay can potentially extend the shopper’s credit on the fly – unlike a static credit card limit – depending on data such as previous repayments.

At present, over 150,000 merchants in North America accept Alipay as a form of payment. The future looks bright for the mammoth Asian company as it taps into the digital need for always-on convenience, as well as a demand for platforms that enable personalization and experience.

Catch up with all of our episodes of TheCurrent Innovators here. The series is a weekly conversation with visionaries, executives and entrepreneurs. It’s backed by TheCurrent, a consultancy transforming how consumer retail brands intersect with technology. We deliver innovative integrations and experiences, powered by a network of top technologies and startups. Get in touch to learn more.

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data e-commerce Editor's pick Podcast Retail

Yoox Net-a-Porter on nailing the basics of e-commerce

TheCurrent's Rachel Arthur and Yoox Net-a-Porter's Paolo Mascio recording TheCurrent Innovators podcast - e-commerce
TheCurrent Innovators: Paolo Mascio with Rachel Arthur

There’s little point in looking at all of the innovation surrounding e-commerce today, if you don’t first have the basics in place, Paolo Mascio president of online flagships at Yoox Net-a-Porter Group, explains on the most recent episode of TheCurrent Innovators podcast.

“If you can’t get the fundamentals right, forget about artificial intelligence,” he says. “Really, execution is the key word. It’s very easy to mess up with your customers… A bad customer experience is even worse than not giving [them] an experience at all. It’s better not to open Russia or China if you can’t serve them in the proper way. Discontent spreads… which is setting the base for a failure in the future as well.”

Both Yoox and Net-a-Porter are businesses known for their innovative approaches to e-commerce – the former for supporting brands on running their own operations, and the latter for its first-rate customer experience. While together they’re focused on maintaining their market leading position, many of their partners and clients by comparison represent an industry still getting to grips with how to handle multichannel commerce.

Mascio references the shift to convenience, or of frictionless customer experiences in an omnichannel world, as the foundation of e-commerce expectations today. But it’s service, he says, that can be the key point of differentiation for brands – especially those in the luxury space – comparative to multi brand retailers.

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Underneath that, what’s driving brand growth and loyalty today, is data, he notes. “Data is one of the fundamental things around which, not only our company, but the brands themselves are going to build their future.”

This is the big shift still taking place in luxury, he adds. “Most brands up to a few years ago thought they were all unique, now they’re all struggling to distinguish themselves in the digital space.”

“For decades the brands have built their success around their collections, around the designers’ names, and the designers’ abilities, around advertising, but they haven’t tracked down what the customer’s behavior was,” he explains, noting that today, it’s the customer that has the biggest voice.

Those who can understand their customer and use analytics to better serve them, are the ones who will win. On top of that, and only then, comes the next step forward, he explains. Personalization, for instance, is something Mascio is watching closely. Artificial intelligence (Yoox Net-a-Porter is working with IBM Watson), is going to be the facilitator that transforms how people shops for the very reason it enables the brand to manage customers on a one-to-one basis at scale, he says.

In terms of the user interface, another area he’s keeping an eye on, is that of voice technology. “I believe voice controlled systems [will] play quite a fundamental role in the future,” he says. “It will take time… but then there will be a need for a brand to evolve their interfaces, so that customers can use voice to search for products in a much easier way.”

Catch up with all of our episodes of TheCurrent Innovators here. The series is a weekly conversation with visionaries, executives and entrepreneurs. It’s backed by TheCurrent, a consultancy transforming how consumer retail brands intersect with technology. We deliver innovative integrations and experiences, powered by a network of top technologies and startups. Get in touch to learn more.