AI, Luxury & Ecommerce: Insights from Maria von Scheel-Plessen

According to one recent study, over half (54%) of CFOs are being instructed by CEOs to focus on cost reduction, with around 40% of them being told to focus on one of: strategy and business transformation, performance management, or revenue growth. For e-commerce in particular, how can AI help unlock progress in these areas?

AI has the extraordinary ability to unlock progress in cost reduction, strategy and business transformation, performance management, and revenue growth for e-commerce. By harnessing AI capabilities, marketers can leverage data-driven insights to optimize marketing campaigns by personalizing customer experiences to a new level, and by targeting audiences at the right time and with highly relevant content. This not only enhances efficiency and cost-effectiveness but also enables marketers to make data-backed decisions that drive revenue growth and overall business transformation in the e-commerce industry.

More powerful AI offers exciting new means of personalizing experiences, how do you anticipate the luxury market in particular will seize these opportunities?

The luxury market can seize the opportunities offered by powerful AI by embracing hyper-personalization to cater to the shifting consumer mindsets and increasing expectations. By leveraging AI-driven insights, luxury brands can create highly tailored and unique experiences that resonate with individual customers, fostering stronger brand loyalty and a smooth customer journey. Additionally, investing in attribution models & MMM allows luxury brands to accurately measure the impact of their marketing efforts, enabling them to refine their strategies and optimize the personalization process for enhanced customer satisfaction and business growth.

How will retailers’ digital maturity impact their ability to embrace AI’s benefits across their businesses?

Retailers' digital maturity plays a crucial role in their ability to embrace the benefits of AI across their business: A higher level of digital maturity enables retailers to effectively integrate AI technologies into their existing systems and processes. It allows them to collect and leverage the necessary data e.g. on past purchases and preferred stores, implement robust analytics capabilities, and establish a solid infrastructure for AI solutions. Also, digital maturity promotes a culture of innovation, adaptability, and data-driven decision-making, which is crucial for successful implementation and scalability of AI initiatives across the organization.

Marketing and e-commerce have changed a lot in the past few years, and have become increasingly data-driven. What key qualities make a team successful long-term when it comes to marketing and e-commerce? 

In the dynamic landscape of marketing and e-commerce, a successful team must possess agility and a direct approach to adapt to changes and effectively engage with customers. Effective communication and lateral leadership are crucial for collaboration and aligning marketing strategies with e-commerce objectives. Stability, combined with a forward-thinking and innovative mindset, allows the team to leverage data-driven insights while appreciating the importance of historical trends and traditions to drive long-term success.

How should businesses be leveraging digital channels as a means of communicating their values and performance in a clear, honest, and positive way?

Firstly, it is important to have a communication strategy based on the core values of the business which are then being amplified across respective channels as there is no one-size-fits-all approach. Secondly: know your audience! The level of detail, additional context, and insights depend on how closely the audience knows your brand. Don’t underestimate your audience either and be ready to be challenged – honest and direct communication asks for direct feedback. Lastly, I recommend to ask yourself if the communication adds value and has a greater purpose/plays into the defined value set – if not, it might not be the right news to tell.