E-commerce: you are invisible, but you don’t know it

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Through Kevin Maillet, Head Of Engineering Arcane

In the age of flows, e-merchants are not equal. There will be losers and winners. The algorithms do not systematically put forward the best products, the machine is not the customer.

It’s no secret that the era of flows, algorithms and automation has made large platforms the new entry points for your products and customers. All the major e-commerce players are now piloting their Shopping campaigns on Google, Amazon or Facebook. The most sophisticated sometimes pilot well over 100,000 products in automated campaigns.

But do they know how their products are promoted or which are profitable? Better yet, do they know how to regain control by feeding the algorithms with their own proprietary data?

In the four years that I have been piloting the campaign flows of the most advanced players in e-commerce, I have acquired a strong conviction:

1- In the era of flows and algorithms, e-merchants will not be equal. There will be losers and winners.

2- Today’s competitive advantage lies in the ability to cross-reference its proprietary data, to analyze it and to segment it.

3- It is possible (and operable) reduce its customer acquisition costs by 30% by selecting its products by the margin.

4- Shopping campaigns can be used to achieve overall business goals, such as optimization of inventory management

The management of campaigns with sophisticated and strategic indicators (like margin, or competitor prices) can seem complex and unlikely. However, these fine KPIs speak as much to the E-commerce director as to the CFO.

In the age of algorithms, you are invisible but you don’t know it

Imagine delivering your product to a neighborhood store and now imagine that 80 to 90% of your products are not put on the shelves.

Yet this is what is happening today and one of the consequences of automation is the loss of control over the promotion of products. It is our observation, often the operation of automated algorithms without any optimization leaves 80 to 90% of products on the sidelines. Yet some of these products are potentially ignored future “best sellers” and missed sales.

For our clients, an Invisibility Audit is a real eye-opener. It confirms a fundamental truth: algorithms do not systematically highlight the best products, the machine is not the customer.

Now we can create new optimization rules and of segmentation of its flows to match both platform algorithms and, more importantly, advertisers’ goals.

Enriched feeds = More profitable campaigns

The transition to enriched flows of your proprietary product data and CRM allows you toavoid blind smoothing of algorithms and manage your campaigns according to your own indicators.

For example, by crossing data from Google Analytics, your product repository and your CRM database, you can identify products that are net generators of new customers, to prioritize them and achieve your acquisition goals.

The strategic advantage of this approach lies in the use of feeds and campaigns as levers to achieve strategic business objectives.

This is how we allowed one of our e-commerce customers to continuously use their marketing campaigns to optimize storage costs in the warehouse, by intelligently destocking its products, without degrading its profitability.

From virtual gondola heads to digital display units

It is this still rare expertise in the enrichment of flows by your proprietary data that allows you to identify not only your virtual gondola heads but also profitable gondola heads.

Better, by identifying upstream the future star products at the intersection of your objectives of profitability, turnover, volume added to the basket, share of voice and / or stock, it is possible increase your share of digital display by identifying emerging successful products among all of your references.

We know your future bestsellers

Who today can afford to drive their campaigns with fuzzy glasses?

Now, the strategic advantage in the age of flows goes beyond the profitability of campaigns. By giving you the possibility of controlling your most sophisticated KPIs and your proprietary data to the millimeter, it allows you to constantly refine your rules for optimizing online campaigns. This is an amplified competitive strategic advantage, because the rules refine their relevance while enriching themselves over time. The main difference is that these rules are unique because they are yours. and that they are fueled both by the market, but also by your internal objectives and challenges

The era of flows and algorithms is also that of the risk of obsolescence. These rules and new ways of operating at the intersection of IT and marketing. These rules, make no mistake about it, will be the secret code of your proprietary algorithms. It is this highly technological missing link that we operate at Arcane.

This is our observation and my last conviction: in the long term, for e-commerce leaders, optimization rules will constitute the best guarantee to operate online.

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