August 23, 2019
Personalisation, AI and the data-driven approach in eCommerce – Matthäus Bognar | eCommerce Talks #6

Personalisation, AI and the data-driven approach in eCommerce – Matthäus Bognar | eCommerce Talks #6


Divante presents eCommerce Talks for industry experts share their insights about the ever-changing world of e-commerce today we’ll be talking to head of Global Enterprise and Business Development at Nosto Matthaus Bognar – Well thank you guys for coming back we are with one of our friends Matthaus Bognar from Nosto thank you for being with us today Matthaus but first I will ask you what I asked most of our guests if you can introduce yourself and give us a little background of how you end up being now head of global marketing in Nosto – Yeah well thanks again for the invitation and thanks for being able to take part so my name is Matthaus I’m a head of enterprise global and business development international for Nosto Nosto is one of the leading personalization providers from Finland with right now over 3,000 retailers in over 100 countries and well how did I end up in there so I guess for the last couple of years I’ve always been in the personalization industry working for two other major players DACH will air DACH orientated and UK orientated and I think with the experience and the network and also like the yeah the campaigns what we have achieved with those retailers that helped basically getting myself into this role and also stepping up now looking after the whole enterprise approach for an Nosto which is very yeah really really excited you are definitely definitely it’s like it’s so interesting that for the last couple of years like the focus for the ecosystems were like Europe focused and now it’s global and it’s like very interesting to see how the different ecommerce markets are set up how they’re operated what kind of players are out there what kind of new technologies are you know getting developed right now and there’s a lot of moving around ecommerce and anything related to omnichannel and yeah it’s very interesting – I mean it’s very interesting at what you guys are doing because you I mean it’s this concept of the personalization of the experience for the customer and obviously has to affect what you say personalize something for a U.S. customer versus a European customer is a completely different animal – It is but then again sometimes you do have similarities so for example like a fashion retailer in the USA will have more or less similar challenges and problems let’s say to a fashion retailer from Italy or Poland or Germany but then you always have to look on an individual level because customer client is a different you know they deserve a little bit different around people in Germany may have a different interpretation on how to use let’s say internet versus people in America there it’s more open there is more free people don’t really think about the consequences sharing their data anywhere where it’s like in Germany everybody is quite paranoid with the GDPR and say it’s quite interesting to see the different you know mentalities and also like what people are trying to accomplish with e-commerce – Now I mean a lot of people watched our cast is they’re CTOs people who are very well I mean very well trained in the tech world but for the ones that are not understanding very well how you personalize a customer journey it’s not that you’re I mean this is internal jogos but it’s not that your phone is actually listening to you trying to like learn more from you but at the same time it is somehow – Well I mean so the thing is we’re not the CIA but what we’re doing is we have built a personalization platform which the goal has or the goal is to empower retailers to do personalization more easier and when you look at Amazon when you look at Netflix when you look at Google like for the last couple of years there has been more and more personalization invested in ongoing and this is what the users are more and more expecting from retailers as well but the thing is you don’t want to invest millions of you know dollars in building something yourself and then you’re not maintaining it and it’s not your core business I mean you know it’s not as easy as a lot of people think that by building a recommendation the topic personalization is done so what we’re doing is we have invested quite a lot into our AI and what we’re trying to do is we’re trying to connect different data silos together and actually make retailers use the data from customers they already have to do better personalization and the way how we do it is basically that our AI analyzes the behavioral data and the transactional data puts it together enriches segments and customer life cycles and gives those informations back to every CTO or even CMO to say look your first buying customer life circles clients have a totally different interaction on the website versus returning customers or VIP customers and a lot of times these kind of insights are not known and you like experimenting around and you think like in that area that’s where should be focusing on but when you really start looking at the correlations between products related to each other or customer life cycles or brand affinities like somebody who loves Nike doesn’t necessarily want to see Adidas products and like has a totally different spirit about life and you know how they see themselves so you know navigating in an online shop that’s what we’re really trying to accomplish with the AI to really visualize this data and then use those segments and use those data on an automated way to do content personalization to do on-site recommendations to do a/b testing to do category personalization and so on yeah and that’s actually quite successful – I mean as a marketer that’s amazing you’ll be saving tons of time because one of the wrong concept that people have right now is that well as a marketing team as a CMO as a whatever involved in marketing we’ll have to try everything till you find what sticks right – I mean the thing is personalization is not a magic button which you activate and then you go on holidays and everything is gonna run smoothly right – I made a million of dollars – So yeah I mean that would really be amazing but the thing is personalization is like zero you have to constantly experiment you have to constantly try things out and I wouldn’t actually recommend like personalizating the whole web traffic hundred-percent you should be doing clever on segments where you see that there’s possibilities of improvements where you have a lot high bounce rate where you have a basket of animal rate where you see that people you know you still undecided what they want to do and the thing is that with the technology from us and also with the other retailers in the same industry what we all are trying to accomplish is that we want to empower the online marketing manager the CTO’s also to focus on their projects but have it have on the other hand a very flexible and easy to use tool and partner who challenges you on the daily basis to say does that really make sense what you’re right now doing with your customer data and with your customer experiences or would it not be better to maybe have two customer experiences Adidas versus Nike and then you have a third one which is neutral traffic and without having to invest resources for the next coming Sprint’s but actually to be quite independent and test and try a lot of things out with us and then maybe to build it after in-house with your own development once we know that it has proven – Actually I was gonna go there because one of the things that we talked a lot of on the show is externalizing your discount of services or trying to build your own team it could be a CCF from a big company I can just call you guys call Nosto and so that I need help with personalizating these products or figure out how to sell this better but if one of our CEOs are watching right now and it’s a two people or three people company where he or she should start been looking where they should start – With personalization in general? – Exactly like what kind of human talent they should be looking for to join them – Well so again personalization is a very big topic like is they all sort of different areas where you should be focusing on I think as a general advice what you should be doing is to implement as a very first step recommendations and to find a partner or technology who is not just limited on one logic but has a lot of logic behind it like that like fullback logics to say okay we detect based on the user behavior this is a new customers this is a returning customer should be for example promote best sellers or let’s say stuff like products on stock or on sale maybe products with a certain margin maybe products like connected to colors or size and in terms of going forward then once you have like more brand managers who really look after like product categories or brands that’s when it starts making sense to also think about content personalization to really start building custom experiences around let’s say Nike or Adidas right so that you have the people and the emotions in the actual online journey of the customer and really connect them to a brand with user-generated content with other impulses which help the customers to make the decision on do I want to buy this or not and there are really cool fantastic companies out there and then in terms of the ideal candidates I think people who are on one side really into marketing but also a little bit data-driven because you do have to look at the data or one extent you don’t have to be a google analytics Pro I would say but you know as long as you have a good understanding on what data consumption means and you have the marketing spirit and I think that’s the right kind of candidates what you should be looking for personalization – I completely agree and sometimes marketing professional they forget that people will not buy if they don’t trust your brand so the personalization is something that it finds the right way to touch the emotional buttons of our customer and then trying to hook them up with a product – I think one of the biggest mistakes what we see is a lot of times and this is not really department specific this can come from marketing this can come from the tech teams is that you build a lot of things which you think is the right approach but it’s not necessarily what your customers are expecting and you’re not using the data or which you already have on the side and then you make decisions where you say well I wouldn’t build it like this because I wouldn’t use it but then in reality if you would look at the data it actually tells the totally different story – I mean you might not be your customer target right – Exactly so this is something where we see a lot of mistakes getting done or happening but you know if you compare ecommerce ten years ago to today there has been so many changes it’s amazing what’s happening this is also why I love being in this industry and yeah it’s challenging and interesting – That’s crazy before we go I always try to ask our guests to recommend something for the people who’s watching right now so for example I would love to ask you you’ve been in most conferences are in Europe for our CTOs and people who are in Europe right now they plan to come to Europe what should be the three top conferences they should attend relating to e-commerce – So again this is I think ecosystems specific if we talk about the DACH area then my I would say three top threes which I definitely would recommend is the online marketing rockstars in Hamburg that’s quite a fresh unique approach there’s a lot of lot about networking a lot about you know discussing business but then actually not discussing business there but really just making sure the networking goals we have a lot of partying then the k5 in Berlin that’s more the elite group I would say more the when it really comes down to business and networking but it’s a little bit more stricter I would say and it’s really about the actual topics what you’re trying to fix and then to the Mexico because the Mexico you know it’s been there on the market for years it’s the dinosaur it’s everybody who’s looking up to it you have to be there – It’s a tradition – even if you don’t want to be in the tradition and definitely the Mexico which is not just that focus but also international focus and then you know you have other events like in Spain and in the UK so it really depends on what market to focus on but definitely the Mexico I would say for Europe and then if you look at the DACH focus as an example Omar and k5 for sure but then there are many other fantastic events as well and there would be a very long list to go for every single one – Well Matthaus thank you so much for coming to sit down with us for a bit – Yeah no worries – I hope we can have you again and thank your everybody for watching – Thanks

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