Greetings everyone. If you read nothing else, go to the very end of this newsletter. Thank you, now let’s get into it.

• Editorial: Where eCommerce Fails + 14 Ways To Unleash Its Potential

• The Latest: Canva & Adobe With Some AI Magic For The Masses

• BX: Differentiation Is Your Weapon. Attention Is Your Target

• MX: “How I Designed A LinkedIn Thought Leadership Content Creation System”

• UX: Show Products Next To The Problem They Solve

• CX: How AI Is Transforming Fraud Prevention In eCommerce

• EX: Wall Street Switches Up Its Dress Code

• DX: Why Data Ignorance Is Not Business Bliss with Mark Powell

Let’s jump in, shall we?

Where eCommerce Fails + 14 Ways To Unleash Its Potential

Markets are fickle creatures. Consumers know what they want, and it's tough for merchants to meet those expectations. Yet, regardless of how well they adapt, businesses need sales today, or they risk going under tomorrow.

So what's the problem with the current commercial model, particularly for eCommerce? It's far too focused on one thing: the transaction.

Why?

Well, technology shapes culture, and always has. Every generation is defined by the technology they grow up with. And since technology has biases (because humans do), our current eCommerce model, created by someone with the best tech available at the time, reflects those biases.

But here's the kicker: the current eCommerce model is outdated. Isn't it ridiculous that a measly 5% conversion rate is considered "great" in the current landscape?

The problem with this numbers-focused, transactional approach is not just its limitations—it's potentially harmful in the long run. The constant sales and discount culture kills brands, the fading connections with customers, and the looming "death of third-party cookies" are all symptoms of a system in dire need of an overhaul—a revolution, even.

The transactional era of eCommerce is on its last legs—and for good reason.

Perhaps this is the era of Relational Commerce.

In the coming weeks, I'll dive deeper into this topic, but here's the bottom line: we need a new commerce model that serves both short-term revenue goals and long-term customer relationships (lifetime value).

The existing 'convert-at-all-costs' mentality of transactional commerce is unsustainable. It's not that anyone's to blame for adopting it; they're simply walking down the well-trodden path laid before them.

Systems thinking tells us that structure influences behavior; we're naturally inclined to take the path of least resistance.

“Oh! This is how you build an eCommerce store. Great!” And there we go. Following everyone else to sub-optimal results.

There’s a better way. Here are 14 things to consider:

1. Built to Transact, Not Interact: Most eCommerce platforms are designed to get people to the checkout as quickly as possible. But what happens after that? A thank-you email? Maybe a discount code for the next purchase? That's not relationship-building; that's a one-night stand.

2. Third-Party Relationships are Over: The era of relying solely on third-party data and platforms lays on its death bed (and still won’t die). First and zero-party data are the new currency, and you get those by having direct relationships with your customers.

3. Light Buyers as The New Growth Engine: In the era of transactional commerce, it's tempting to zero in on your high-spending customers. But according to Byron Sharp's research, it's the light buyers who ironically hold the keys to brand growth. The key is to convert more 'window-shoppers' into light buyers and then into long-term, loyal customers. Your 'ideal customer' isn't just the one who spends the most today, but also the one who could become a brand advocate tomorrow.

4. AI Is This Generation’s Relational Tool: AI isn't just about automating tasks; it's about enhancing the customer experience. It's the digital concierge that knows you by name, remembers your last purchase, and can recommend products based on your browsing history. It's not just a tool; it's a relationship builder.

5. Shifting Expectations: Today's consumers want more than a transaction. They want experiences, stories, and authenticity—elements often overlooked in traditional eCommerce models.

6. Data as Actionable Insight, Not Just Numbers: Traditional eCommerce hoards data without maximizing its potential. All those ‘clicks’, ‘time spent on page’, and ‘purchase history’ deserves much more than a meaningless dashboard. Relational commerce uses this data for holistic understanding, converting insights into actionable in-the-moment events and interactions.

7. Communities as Relationship Incubators: Brands can create deeper relationships by building communities around their products or services. Let's say you're an eCommerce merchant selling specialized mountain biking gear. Your customer base likely consists of mountain biking enthusiasts. Creating a community platform where they can share trails, tips, and even organize meetups could create immense value for them, beyond just the gear you're selling. I know, everyone knows this, but soon this won’t be a luxury, but a necessity.

8. Transparency and Trust: In an age where data breaches are common, particularly in retail, trust is more important than ever. Transparency in business practices is a cornerstone in building long-term relational commerce.

9. Omni-channel Consistency: Customer experience must be harmonized across all channels—online, in-app, social media, and even offline. Anything less can cause friction and erode trust. BX and the Xs play a significant role here.

10. The Two-Way Street Feedback: Open lines of communication invite customers to voice their opinions, ask questions, and offer feedback, turning the traditional one-way eCommerce street into a bustling two-way relationship builder. This capability is available to every business now, but not everyone utilizes it. In the near future, this will be as standard as a website or mobile app.

11. Micro-Interactions: The instances when consumers turn to their devices for quick answers offer brands a chance for micro-interactions, an understated form of relational commerce. Can you imagine deploying an AI that initiates moments of surprise & delight on behalf of your business? That’s where we’re headed.

12. Values-Based Shopping: Consumers are choosing brands based on their values and ethics more than ever. And why not? There’s so many choices and so much sameness, something needs to stand out. Relational commerce thrives when you’re clear on what you stand for.

13. The New Metric is LTV: The days of measuring success by single transactions are over. It's about the long game now. How much value can you provide over time, and how much value can the customer provide you?

14. The AI Bridge: AI augments human efforts by handling routine tasks, so human staff can do what they do best—create, empathize, and build meaningful relationships.

Obviously, these ideas extend beyond eCommerce, and well into the general commercial universe.

The reactive, transactional commerce model is outdated.

The era of proactive, relational commerce just arrived. And yes, it’s enabled by AI, and really, a new mindset.

And people will be better off for it.

The Latest

Canva With Some Magic For The Masses

I’m a big fan of Canva. I design all the newsletter assets there, and it’s great for quick designs. So, of course I’m excited about their new AI, er, excuse me, I mean “Magic” drop (taking a cue from Apple there, I see).

Now if they can just fix the color picker and give me more gradient superpowers. Can’t wait to dive into the new features.

Adobe Stardust Preview

Not to be outdone by Canva, Adobe has its own tricks up its sleeve.

Check this out:

We’re going to spoiled in 2024.

Read more from The Verge here.

Final thoughts

It’s been a tough week so far, most of the REP AI team is in Tel Aviv, at the beginning of another war.

The leadership team is seeing that everyone is safe and taken care of. We hope there’s a quick resolution to this and we get some peace in the Middle East.

War and loss of life tends to put things in perspective, doesn’t it? Don’t forget the people you love and the ones who love you.

Be safe, wherever you are in the world ❤️

Paul