As the e-commerce landscape continues to evolve, staying ahead of the curve is more crucial than ever. With over two decades of experience in digital marketing, Udayan Bose, CEO of NetElixir, shares his valuable insights on the Talk Commerce podcast. Key topics discussed included the importance of a “fail faster” mindset, navigating competitive pressures, and the transformative power of AI and machine learning.
Embracing the Fail Faster Mindset
In the dynamic world of digital marketing, experimentation and learning from failures are key to success in the industry. Udayan calls this the ‘fail faster’ mindset, which he describes as having the willingness to dive in and figure things out, even through failure.
Udayan’s own career began with a bold experiment that encapsulates this mindset. He and his fellow engineering students started an online bingo company, Party Bingo, without knowing much about the game. Udayan recalls the relentless failures they faced:
“I was starting with a clean slate, which was exciting because I could really test things and come up with hypotheses, etc, etc. And there were relentless failures, probably failing about 20 times and getting one win. But that one win gave you so much happiness. It’s really difficult for me to express in words.”
This early experience set the stage for his future success. The fail faster approach has been integral to NetElixir’s success, fostering a culture that encourages innovation and rapid learning.
Navigating Competitive Pressures and Rising Costs
The e-commerce industry is facing unprecedented challenges with increasing competition and rising advertising costs. Bose sheds light on these pressures and the need for businesses to adapt their strategies:
“We have seen a tremendous or an exponential jump in the overall competitive pressure. It is not only new brands coming in but mega competitors like Temu and Shein really cutting prices to seemingly impossible levels…The challenge is – you are essentially competing with SHEIN, Temu along with Amazon and Walmart. You don’t have the liberty to keep on increasing prices.”
Advertising costs have also been steadily rising, posing a significant challenge for businesses. Bose shares shocking data from the first quarter of this year:
“Advertising costs, like CPCs, have been increasing constantly. In the first four months of this year alone, there was a CPC inflation of close to about 17%, with some categories seeing a 32% increase.”
To stay competitive, businesses must optimize their marketing strategies and find innovative ways to differentiate themselves in a crowded market.
The Power of AI and Machine Learning
One of the most exciting developments in digital marketing is the application of AI and machine learning. However there are two different types of AI, which Udayan classifies as horizontal and vertical. Horizontal AI, such as ChatGPT or Google’s BARD, operates on publicly available data to perform tasks more efficiently.
Vertical AI, on the other hand, is specific to solving particular issues. NetElixir’s proprietary tool, LXRInsights, exemplifies the power of vertical AI in solving specific business problems:
“Vertical AI, like our tool LXRInsights, is specific to solving your problem. It’s about using machine learning to target high-value customer acquisition, similar to identifying high rollers in a casino.”
Final Thoughts
Udayan Bose’s insights on the Talk Commerce podcast offer a wealth of knowledge for e-commerce businesses looking to stay ahead. As we navigate this rapidly evolving landscape, embracing experimentation, staying attuned to industry shifts, and leveraging the power of AI will be key to thriving in the years ahead.
To dive deeper into these topics and hear more of Udayan’s expertise, be sure to listen to the full Talk Commerce podcast episode and visit lxrinsights.com to see how NetElixir is harnessing the power of vertical AI in the world of experimentation.
