Commerce Outsights: Nov 11, 2024

Brands are betting on experiential loyalty programs, Amazon’s pushing the limits of its AI, and TikTok is going big on live shopping.

This week, we’re digging into the surprising limitations of AI in customer-facing roles, exploring how experiential rewards are bringing fresh life to loyalty programs, and taking a closer look at TikTok Shop’s big holiday bet on livestreaming to capture shopper attention. We’ve also got a tool recommendation that can help you level up your customer loyalty strategy.

Let's get into it!

Does your brand need help with strategy, design or development?

For over a decade, we’ve been shaping, launching, and scaling shopping experiences for category disruptors such as Cometeer, Framework, and Huckberry. No matter where you’re going, we can help you get there.

Book your consultation →

DTC is dead. Long live DTC (8 mins) Did you hear? Pure-play DTC is not a thing anymore. This may sound like old news, but it's a useful recap of how we went from the era of the Digitally-Native Vertical Brand to a much healthier We-Sell-Things-Where-People-Want-To-Buy-Them approach--and why. Key takeaway: DTC is a sales channel, NOT a business strategy.

The E.U. Goes Too Far (10 mins) Stratechery tackles the European Union’s latest regulatory moves, exploring whether their ambitious approach to tech oversight is heading in the right direction—or going too far. An interesting analysis for brands operating (or planning ot operate) in the EU and trying to navigate the region's regulatory landscape.

🔒 Customer-driven retail (7 mins). Ana Andjelic (now ex-Esprit) delves into what true customer-centricity looks like—and how modern brands can leverage qualitative research and customer personas to deliver a coherent, authentic experience at every touchpoint.

Amazon’s Shopping AI Is Confident and Wrong (7 mins). Marketplace Pulse delves into the evolution of Rufus, Amazon’s shopping AI, highlighting how it falls short of serving fundamental user needs. While AI has proven effective at enhancing operator productivity, its usefulness in consumer-facing scenarios is still quite debatable.

‘Everything that existed was very transactional’: Why experiential rewards programs are on the rise (6 mins). From exclusive events to personalized offers, brands are finding that experiential loyalty programs drive better results at lower costs. For a deeper dive into the topic, check out our guides to loyalty program design and membership programs.

TikTok Shop goes all-in on livestreaming to drive sales this holiday season (8 mins). Modern Retail covers TikTok Shop’s all-in approach to livestreaming as a primary sales strategy this holiday season. With influencers and brands teaming up for real-time shopping experiences, it’s a glimpse into how social commerce is capturing a new generation of holiday shoppers.

We don’t accept sponsorships for this newsletter. All product recommendations come from our consulting team.

Rivo. If you're looking to level up customer loyalty, Rivo’s platform is worth a look. It makes creating personalised loyalty programs, referral systems, and memberships simple and integrates easily with most e-commerce setups. Great for brands aiming to strengthen customer connections.

Does your brand need help with strategy, design or development?

For over a decade, we’ve been shaping, launching, and scaling shopping experiences for category disruptors such as Cometeer, Framework, and Huckberry. No matter where you’re going, we can help you get there.

Book your consultation →

💡 Need to build a Shopify app? If you’re interested in creating custom Shopify apps, check out Nicolò's latest article: it's about using Gadget to streamline app development and minimize time-to-market.

📉 Is selection bias hindering your decisions? In a recent LinkedIn post, I talked about the impact of selection bias on decision-making in areas such as loyalty programs and mobile shopping apps.

🛠️ Are you flows... flowing? Michela shared her insights on how user flow mapping enhances the customer journey. By prioritizing flow mapping before UI designs, teams can create a more efficient path to conversion.

That’s it for today!

If you’ve come across any interesting articles, podcasts, or products we should check out, you can email us at [email protected].

See you in two weeks! 👋