Connected Commerce is the Next E-Commerce Frontier: Q+A with Code and Theory and ForwardPMX

Following the explosion of e-commerce in the past year, our teams are helping brands recalibrate their marketing efforts to construct connected commerce experiences for consumers – pushing beyond antiquated approaches by leveraging technology to drive results. Code and Theory and ForwardPMX are two Stagwell agencies that partner with clients to adapt their strategies to the rapidly growing complexity of the e-commerce ecosystem. We asked CEO of ForwardPMX James Townsend and Code and Theory Chief Technology Officer Dave DiCamillo to share the key innovations reshaping this space and what they’re seeing from brands. 

What changes are companies making to their eCommerce strategies as the result of COVID-19?

DiCamillo (Code and Theory): The impact of COVID-19 has driven all companies, B2C and B2B alike, to explore new business models and more often than not rush into new remote and digital sales channels. As part of this shift, eCommerce has not only become more important but also significantly more diffuse. Customers interact across an ever-expanding ecosystem of digital touchpoints – and expectations for when and where brands meet them continue to rise. 

Even in the traditionally slow evolving B2B space, 70-80% of decision makers prefer remote or digital self-serve interactions. Between owned e-commerce platforms such as brand websites or apps, third party e-retailers and e-marketplaces, and the increasingly more popular commerce capabilities of social networks, companies must decentralize their go-to-market approach. In return, customers reward those brands that managed to deliver a consistent level of service across the ecosystem. In 2020, Ecommerce became more than just convenience: it is proof that a brand understands and empathizes with its customers and is willing to make the necessary investment to service them on their terms.

What are the biggest differences between a successful and unsuccessful ecommerce strategy?

Townsend (ForwardPMX): Simply stated, successful eCommerce strategies are those built around the customer and offering them a “connected commerce” experience. Success is based on a profound shift that is driven by consumer needs and behaviors across the whole ecology of a brand. This travels far beyond the marketing department and should touch and involve every corner of an organization to uncover new growth opportunities. 

To realize this, brands must enhance the understanding of their customers. With the death of the third-party cookie and increased privacy regulations, some marketers are worried about how they can still be relevant, and experience-driven. Smart brands will deliver a value exchange that unlocks a first-party, one-to-one relationship with customers, ultimately leading to better and better engagement over time as we learn about their wants and needs firsthand. 

DiCamillo (Code and Theory): A successful eCommerce experience considers every channel an opportunity to generate sales, but is not necessarily about reinventing the wheel. Consumers are used to an array of very specific (and fairly prescriptive) interfaces and toughpoints, so when we think about hitting the most important KPIs — namely Customer Lifetime Value (LTV) and Customer Acquisition Costs (CAC) — brands should aim to create experiences that are not only intuitive for their customers but that initiate an ongoing and channel-agnostic conversation rather than disconnected, one-off interactions. An always-on approach to measurement and testing is critical in eCommerce to allow for constant, detail oriented optimizations focussed on maximizing customer LTV, lowering CAC and with that delivering on increasingly higher ROI. 

When you look forward several years, what changes do you expect clients to make to their ecommerce strategies and what new technologies do you expect them to implement?

Townsend (ForwardPMX): Clients committed to growth will continue to evolve their eCommerce strategies by integrating brand and performance methodologies that are implemented through data and tech-literate solutions. And while global and local data privacy changes and the shift to a first-party data-centric world create some uncertainty, smart marketers will focus on planning for what is known today and continuing to thoughtfully prepare for the new future. 

Much of the industry has invested in building agency-owned data and selling it to brands, but we believe that the fundamental move is to help clients develop and operate their own data solutions. This will ultimately prepare brands for:

·  Responding to Complexity and Rapid Change: Advertising is going to look different and better – a more valuable experience for customers. Collaborating with partners has never been more critical, but neither has the imperative for brands to take ownership of their customer data. 

·  Planning for the Right Martech Solution: Modern marketers will look to build their own technology stack that empowers them to fully control the customer experience, grow loyalty and ultimately accelerate business. 

·  Strengthening Measurement & Optimization: Brands will be in search of even more transparency and insights across all channels through sophisticated and advanced analytics.  

What is the most interesting ecommerce project you have worked on for a client over the past year?

DiCamillo (Code and Theory): We partnered with the iconic retailer Party City to reimagine what a return to in-store shopping could be. We envisioned a shoppable kiosk that would enable self-service and a deeper, exploratory experience around their breadth of offerings and services. The kiosk would make it easy for shoppers to see inventory, build full party experiences, locate items in-store (or have certain items delivered to their homes), and check-out through eCommerce. 

Townsend (ForwardPMX): ASOS, a global online fashion retailer, described us as their growth partner. We are charged with helping them in-house their core media channels and also find new revenue streams. In the last year, we have helped set up the ASOS Media Group (AMG), an offering that allows ASOS to sell media on their site to their 800+ brands. This effort has unlocked new revenue streams for the client, better engagement and conversation for the brands on the site, and created a relevant on-site experience for the consumer. The work has been a great example of adding value to all the stakeholders in the ecosystem, none more important, of course, than the consumer.