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.
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.”