SoundCommerce CEO Eric Best: ‘Data capability enables customer lifetime value’
SoundCommerce Co-Founder and CEO Eric Best said retail winners will increasingly be determined by how they leverage data and artificial intelligence to drive customer lifetime value.
Best, along with CTO Jared Stiff started the company to help brands deliver better shopper experiences with data. SoundCommerce, founded in 2018, has raised more than $33 million in funding. The company platform is designed to take retail data infrastructure and make it composable and no code so retailers can better model experiences on the fly.
Retailers will need to leverage data to thrive amid margin compression, pricing arbitrage, higher cost of capital and fierce competition. On DisrupTV, Constellation Research’s Ray Wang and Holger Mueller caught up with Best. Here are some of the key takeaways.
Two megatrends impacting retail. Best said there are two obvious megatrends that are reshaping retail. The first is the return to shopping in person and retail as a community activity. The second is that the cost of capital has increased dramatically. Both are impacting direct-to-consumer retailers.
Best said of direct-to-consumer retail:
“There are high variable costs on the front end to acquire a customer through some combination of Facebook, Tik Tok, Instagram and Google and on the other end, there are very high costs associated with doorstep delivery. We often joke internally that there are a thousand things that must go right to be successful in digital retail. And you fail if any one of them goes wrong.“
Read the full blog on Constellation Insights