My Top Picks: 4 Key Takeaways & Insights from the CommerceNext Growth Show

Two weeks ago, CommerceNext held their annual Growth Show in NYC. For anyone in #retail and #DTC, these events are great for networking and connecting with solution providers. But what about the learnings, insights and takeaways?

I want to share the areas that impressed me the most and left me something to munch on.

1. Lean in to intuition, start small and act quickly
2. Apps are a gold mine
3. CFOs & CMOs: get guidance from the Street
4. Sustainability & Gen-Z

These are the ideas that my #DTC friends, vendor partners and fellow ecommerce operators nerded out on post-session as we walked to grab espresso in the city to fuel the day.

1. Lean in to intuition, start small and act quickly

Meeting customers where they are at is an art form. Chief Omni & Innovation Officer at Tapestry Noam Paransky observed that post pandemic, people were looking for connectedness. An early indication of that was a pick-up in online clienteling which signaled the pendulum swing and rush to return to stores. They reacted with digital merchandising teams connected with in-store associates to better serve customers. Similarly, Ryan Fagan ,VP of Digital added that at Lowe's Companies, Inc. they optimized in-store associates' guided selling with QR codes and recently leveraged marketplaces like Instacart and Doordash.

Over at SEPHORA , VP of Omni Convenience & Commerce Partnerships Amber Turley shared how they are very intentional, and lean in to meet customers when delivering gifts for key moments such as Mother's Day or Father's Day. (Translation: it's not too late to get mom or dad a gift; we've got your back via Doordash or Instacart.) Pretty genius if you ask me.

What impressed me is how quickly these teams glean insights, act on data and intuition. They avoid the analysis paralysis trap, and empower teams to act. But ... I am left wondering, how? What was the execution plan and chain of communication? Tell me more!

2. Apps are a gold mine

Do customers really use brand apps? I'd argue no; just a handful. The ecosystem is saturated and customers engage with apps like Amazon, Chipotle and Starbucks and retailers are competing for consumer time, attention and space on their phones.

But for those brands with extremely loyal (and engaged) customers, you can glean great insights and crowdsource ideas from (surprise) your very best customers on apps. Here, Victoria’s Secret & Co. engages with their customers who provide recommendations to improve their loyalty program and provide input on brand campaigns.

Here are the benefits with having an app for your customers:

• Glean better insights with 1st party data
• Send push notifications to directly market and interact with customers
• Earn deeper loyalty and higher LTV, retention, purchase frequency with your customers
• Improved messaging: market exclusivity, early access, rewards and promos
• Create an interactive digital community
• Provide app members with in-store and digital interactions (and redemptions)

Here, apps make sense where there is added value to both the loyalty members AND the brand marketers.

3. CFOS & CMOs: get guidance from the Street

In the "How to Win CFOs Over to Marketing and Ecommerce" keynote, moderator Emily Culp noted that only 22% of CMOs say their partnership with CFOs is “truly collaborative" per the CMO Council and KPMG (see Forbes article).

So why is there friction between CFOs and CMOs when they share common goals?

It comes down to mindset, approach and language. Often, I hear marketers emphasize ROAS or incrementality in a meeting where finance speaks to % of net revenue, contribution margin, revenue targets. Essentially, both teams want the same thing: growth and profitability. But the approach and conversation are not on the same wavelength.

Here, CFO Susan Colton Weisel , SVP & CFO at Coach Alex Brocklehurst and Alex G. at UNIQLO emphasized:

• Get to know each other first; start a personal relationship as colleagues
• Align early on initiatives and outcomes
• Note that assumptions can be measured; not every incremental $1 of sales is created equally

But what really impressed me? Alex Brocklehurst advised marketers to "look at values on the street for guidelines and valuation multipliers". Put differently, follow how Wall Street evaluates public companies to better align with your CFO.

I learned this early in my career when my CFO stopped in my office. I may have mentioned ROAS; but, he came back with basis points and EBIDTA. We weren't aligned.

I follow Prof G Markets with Scott Galloway and Ed Elson. I love their banter, insights and no filter analysis and predictions. Personally, wish I had this accessible content earlier in my career but it's never too late to upskill.

4. Sustainability & Gen-Z

In a panel with The Z Suite , Gen-Z panelists shared what motivates their purchases and how they shop. Values such as quality, transparency, sustainability, authenticity and "being seen" were highlighted. I was surprised to hear their definition of transparency extend to price transparency (for instance, do higher prices reflect a fair living wage across a brand's supply chain?).

Panelist Fay Shuai defined being seen and heard at the individual level but this also includes when a brand addresses customer opinions -- especially crowdsourced on TikTok. (see when Glossier, Inc. recently released an old formula based on popular demand).

I could go on here, and these values deserve a dedicated article. But what's interesting to me is how the panelists are hyper aware. Yes, they're all college-educated and digitally-native, but they're quick to sniff when they're being sold to. For instance, one panelist called out that she could detect when sustainability is truly at the heart and DNA of the brand vs. a brand campaign for face value. In contrast, panelist Angelina Aileen raved about reusable towel brand Papaya and proudly emphasized that not only did the brand meet her in her need, but addressed an area of concern for her in the area of sustainability.

The threshold to earn loyalty may be higher, but once earned, champions a deep sense of advocacy with these panelists. Whether this is indicative of the whole, time will tell.

If you attended, curious what you thought and impressed you. Leave a note or comment, and share your thoughts!