3 learnings from Shoptalk 2023 🎪

3 learnings from #shoptalk2023

Learning 1: The uptick in physical retail investments continues. Many retailers enabled curbside pickup during COVID, but are now focusing more on getting customers back into the stores. 

Levis’Store CEO Chip Bergh spoke about this topic. He highlighted that one of the reasons he’s excited to pass the baton to Michelle Gass, former CEO of US department store retail chain Kohl's, is her depth of retail experience. This will aid Levi’s as it continues to open a variety of stores.

Another data point was Rich Phelan giving Marc Mastronardi props on Linkedin for highlighting the importance of Macy’s colleagues in the store experience.

Modern Retail covers more on Marc Mastronardi thoughts here. He outlines where physical retail fits: Discovery, Convenience, Service, and Engagement.

It’s not to say that online isn’t relevant it’s just physical stores provide a different channel with a different experience that online can’t 100% replicate... yet. That said, more on digital shopping experiences below ⬇ ⬇ ⬇

Learning 2: AI will shape online images and shopping experiences. I attended a packed session led by Carrie Tharp from Google where she spoke of the numerous ways they are helping top retailers deploy AI. That said, innovation isn't just happening at big companies like google. Of course, it's happening with ex-googlers Wayne Lin and Alex Kinnier here at Upside 😁 but it's also happening with startups like Dresma. From my conversation at Shoptalk with Madison Wynsma it was clear there is a race for personalized image content and post-production capabilities as shoppers continue to look for goods digitally. 

The goal of deploying AI image personalization is higher conversions with more relevant content. To illustrate this idea I have called out three personal AI favorites from Nick St. Pierre's recent tweets. With some very specific prompting, a very thoughtful product-specific image can be created in seconds when it would have taken a whole host of people to pull off the same photo in the physical world.

Good or bad, this tech deployed across a large brand could save money and potentially increase conversions. 

Learning 3: First-party data or "1p data" as it’s commonly referred to is worth its weight in gold. This purchasing data informs better repeat and future purchasing experiences for customers and brands recognize this. Owning this 1p data is important because retailers still own the relationship with that customer so they can move purchase frequency up and increase LTV (Lifetime Customer Value) in the most economically advantageous channel. Without that 1p data, retailers can’t validate that they wouldn’t have gotten those purchases through marketing efforts or across the multiple channels they are investing in. 

This is what we do here at @Upside: We help brands better understand their customers to bring proven profitable in-store incremental transactions.

Thank you to Shoptalk, thank you to the folks I met while in Vegas, and a thank you to my colleagues at Upside!

cc: Kevin Hart, Chad Crutchfield, Simon J. Palmer, Colleen Tigges, Jon Sands, Brandon Hillier, Charlie Sullivan, Jereme Marshall, Neal Sheridan, Nicholas R. Adams, Beau Powers, Uday Natra, John Oros, Leigh Guldig, Jennifer Drake, Seth Flynn, Marc Mastronardi,

#retailmedia #retailtechnology #ai