Driving Growth For DTC eCommerce Brands With AI – Webinar Recap

Josh Firestone – CMO at Bearbottom Clothing – and Rafael Granato – the Head of Marketing at Aidaptive – co-hosted a webinar that focused on utilizing AI to automate conversion rate optimization at scale. 

(In case you missed the webinar, you can watch it by clicking here.)

This article summarizes the key takeaways from the webinar, highlighting the challenges faced by DTC brands, the benefits of AI implementation, and the importance of personalization in driving business growth.

Why Bearbottom Clothing Sought an AI Tool for Personalization:

Bearbottom Clothing had experienced tremendous growth in their sales and SKU count–they knew they couldn’t keep up the manual optimization work with how things were going. 

They wanted to optimize conversion rates via a personalized experience for every visitor to their website:

“…as a customer-centric and innovation-driven brand, we wanted to present a personal experience to every customer that was coming to our website, and with all that growth, it was hard to do that at scale. 

So we needed a solution that could recommend products, improve search results, and (offer personalized experiences on) all other customer-facing areas.”

After exhausting conventional CRO techniques, they turned to AI to take their customer experience to the next level. They required a customized solution tailored to their business needs, leading them to partner with Aidaptive.

The Impact of AI on Bearbottom Clothing’s Goals

With the implementation of AI, Bearbottom Clothing has seen significant improvements across key metrics. 

Their click-through rates (CTR) on recommendations and searches have increased, resulting in higher revenue per visitor. Additionally, cart size and overall conversion rates have seen positive growth:

“From a hard number standpoint, we saw clearly an increase in clickthrough rates on the recommendations and searches, on revenue per customer and visitor to the site, to the cart size, and the overall conversion rate, they all improved significantly.”

The ability to showcase a broader range of products, such as sizes and colors, has empowered customers to find the right products more quickly, enhancing customer satisfaction.

Advice for Other Brands

Research by Salesforce shows recommendation campaigns drive sales, fueling 24% of orders and 26% of revenue

Gaining a comprehensive understanding of your target audience, determining the appropriate timing for delivering product recommendations, and recognizing their significance within your brand’s marketing arsenal are all critical aspects to consider.

Bearbottom Clothing recommends finding a partner that fits your specific needs, as more scalable AI solutions are now available. 

Starting early in the exploration process is essential, as waiting too long can delay the benefits of personalization.

Amplification of AI Efforts

Beyond their Shopify site, Bearbottom Clothing also integrated Aidaptive’s solution with their email service provider: Klaviyo.

This enabled AI-optimized personalization in any email communication to shoppers. This integration aligns with customer expectations, as research suggests that 71% of customers anticipate brand-personalized messages

Bearbottom Clothing has also explored other Generative AI solutions, including ChatGPT for Instagram and YouTube, text-to-speech platforms, and various free trials to enhance its marketing efforts further.

Staying Ahead of Industry Trends

At the end of the webinar, a question was raised about the best ways to stay on top of industry trends. Firestone acknowledged the question with enthusiasm, emphasizing the importance of staying informed about industry trends. 

Firestone mentioned that he also follows industry-leading sources like 2PM, which covers the intersection of media and commerce, and follows Taylor Holiday, CEO of Common Thread Collective, on Twitter.

Of course, although it may seem outdated, trade journals remain an invaluable resource for staying informed about industry-specific matters. Engaging in research to identify relevant journals and subscribing to their mailing lists can provide valuable insights. 

Take the time to read these publications either in print or online, and allocate a dedicated slot in your weekly schedule to thoroughly go through them. Doing so can help ensure you’re ahead of the game and not late to the party with emerging trends.

4 Key Takeaways and Why All Businesses Should Make Personalization a Basic Staple of Their Marketing Strategy

  • Find a partner that can provide a customized AI solution that fits your brand’s needs.
  • Customers appreciate and expect personalized experiences, with research indicating that 66% of consumers expect companies to understand their unique needs and expectations.
  • Personalization is a crucial element for scaling and growing your business successfully.
  • Personalization is a long-term trend, not just a passing fad. Start exploring and implementing AI solutions early to gain a competitive edge.

The Value of AI-Driven Personalization for DTC Brands

The webinar featuring Bearbottom Clothing and Aidaptive shed light on the value of AI-driven personalization for DTC brands. By embracing AI tools, Bearbottom Clothing witnessed improvements in CTR, AOV, Conversion Rates, and ultimately – revenue.

“With Adaptive’s solution, we can trust that we’re showing the best, most relevant products to each customer base based on where they’re coming from, what products are looking at, how often they’ve been on the site throughout their own personal journey and it’s cool to even see those numbers shown through data.”

The success story of Bearbottom Clothing serves as a testament to the importance of personalized experiences in the modern business landscape. 

As the market evolves, incorporating AI technologies early on can position brands for sustained growth and customer satisfaction

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