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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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Podcast technology Uncategorized

L’Oréal on how tech enhances the customer bond

Technology emphasizes the bond of customer experience, says Stephane Lannuzel, operations chief digital officer at L’Oréal, on the latest episode of the Innovators podcast by TheCurrent Global.

“Every CEO should be consumer-oriented, and technology can reinforce that link,” he explains.

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For years L’Oréal has been on an innovation path that has seen the group heavily invest in technologies that help personalize the consumer experience across the spectrum – from fully customized products to monitoring tools. At the heart of this is the importance of the shopping experience, Lannuzel notes.

He references Lancôme’s custom foundation, Le Teint Particulier, which makes use of a machine expertly mixing a formula to perfectly suit the individual consumer’s skin tone. He explains that at the end of the purchase journey, what consumers remember is not the technology itself, but the fact that they were made to feel special. This, he concludes, is the ultimate luxury experience, only enhanced by the use of tech.

Liz Bacelar and Stephane Lannuzel

There are plenty of challenges to working within such a large organization such as L’Oréal, but part of Lannuzel’s role is to make it move faster. Slowly but surely, the company is thinking digital-first; so much so that the group’s CEO, Jean Paul Agon, has said that digital is no longer the cherry on the cake for the company, but rather the whole cake itself.

The group approaches digital innovation through the lens of key trends as opposed to the technology itself, Lannuzel further explains. This includes looking at how to reduce a product’s time to market; the role of connected products and experiences; more agile operations; and the need for personalization.

During this conversation with TheCurrent Global’s Liz Bacelar, Lannuzel also talks about the huge role data and AI is playing in all of this – from manufacturing to consumer-facing interactions – and why there is a sweet spot when jumping on a new technology.

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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e-commerce Editor's pick Podcast

NET-A-PORTER on personalizing the customer experience

Rosanna Falconer and Matthew Woolsey

The future of e-commerce may not be about a traditional website at all, but about existing on multiple other platforms, expresses Matthew Woolsey, managing director at online luxury retailer, NET-A-PORTER, on the latest episode of the Innovators podcast by TheCurrent.

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The company sees many of its big customers making purchases over platforms including Whatsapp, iMessage and WeChat, which have become their primary entry point to e-commerce through their relationships with personal shoppers, he explains.

“We want to be in the platform where our customer is engaging with content, seeing the product or speaking with the personal shopper. It’s about what’s best for her. We never want to be in a position where we are forcing or imposing a platform or methodology on our customers, because that’s the opposite of customer centricity,” he explains.

“It’s very easy to imagine a time when NET-A-PORTER doesn’t even have a website, in the traditional sort of desktop sense, and really what it exists as is more of a concierge, on-demand, service offering. I think that’s the future of where this industry is headed and it’s something we are really well suited for because we have that infrastructure, we have that service component but we also know a lot more about our customer than just what she is buying.”

Data is central to being able to personalize the experience for individual customers in this way, he explains, outlining how the company is constantly looking at how to give its personal shoppers greater tools through technology.

The company is currently experimenting with how it can use artificial intelligence to merge data between purchase history and fashion trends to give personal shoppers recommendations and ideas in advance that are personalized to the customer, for instance.

Eventually the idea is for this to be scalable across the seven million consumers NET-A-PORTER talks to, but hitting its EIPs, or extremely important people, is the core focus, given the fact this 3% of its customer base, make up 40% of its revenue.

Speaking with Rosanna Falconer at a FashMash event in London, Woolsey also reveals why the most expensive item ever bought via a messaging app is so significant, whether NET-A-PORTER would ever think about physical retail, and how to manage the modern day tension between algorithms and inspiration.  

Catch up with all of our episodes of the Innovators podcast by the Current 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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Editor's pick Podcast product

Shoes of Prey on beating the odds in the customization market

Shoes of Prey
Shoes of Prey

For the latest episode of TheCurrent Innovators, Liz Bacelar chatted to Jodie Fox, co-founder and creative director of online custom-made shoe platform Shoes of Prey, about the company’s eight-year evolution and how they plan on changing the way women buy and wear shoes.

For Fox, the brand’s success in offering customized shoes at on-demand speed, lies in owning the whole manufacturing process, which is where a lot of other similar companies fell short during the customization boom in 2010, she says.

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In its early stages, selling the idea of building a factory that would do one shoe at a time was met with a lot of negativity. The company now employs 200 people, however, most of which are based out of their own factory in China, and can have a pair of shoes in the customer’s hands in under two weeks.

Shoes of PreyThe importance of creating a company anchored in technology means that as fashion evolves and becomes more embedded with tech, Shoes of Prey is at the perfect standing, Fox explains.

“One of the things we as a brand are really lucky not to have is legacy (…) Traditionally fashion is a very creative environment and I do believe that there is that desire to be innovative, but the way we get those ideas into market is still very broken. And that’s one of the key places that technology can power to simply be fashion,“ she says, stating that fashion and technology shouldn’t be mutually exclusively as they can both leverage one another.

Liz Bacelar and Jodie Fox
Liz Bacelar and Jodie Fox

As a consumer, Shoes of Prey offers over 10 trillion combinations of a shoe’s design, which include changing heels, silhouette and colour. Although the company began by offering a blank canvas, it soon realized the importance of striking the balance of giving consumers choice, but not overwhelming them. For this process, the input of a team of designers has been crucial in creating a controlled yet flexible shopping experience.

The platform also enables shoppers who once considered customization cost or time-prohibitive to see it as a tangible choice, particularly for those who fall outside the standard shoe sizing sold across the West, a group which Fox states 77% of women are part of. For the founder, it is surprising that shoe sizing has remained untouched for so long, which means consumers have become accustomed to the fact that wearing certain shoes – such as heels – won’t always be comfortable.

Fox, who alongside her two other co-founders has raised $30.6 million for Shoes of Prey since launching in 2009, says success has come from leveraging a simple rule of innovation: by being an industry outsider (in her case, with a background in law) she was able to find a common problem, and create an unbiased solution for it.

“One of the reasons why Shoes of Prey managed to make a difference is probably naivety, and not being indoctrinated in the expertise of manufacturing in the industry,” she says. “You can’t let expertise get in the way of an idea.”

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.