After attending the event for four years, I’ve had the opportunity to see first-hand how the market has shifted over time. The discussions at eTail West in the earlier years were primarily about how to manage, measure, and increase transactions. But most retailers have this figured out by now, so their focus has shifted to maximizing their revenues in new ways.

Naturally as the market has matured, retailers have grown to be more concerned with customer experience and service, so it’s no wonder that the three consistent themes at this year’s event were multi-channel customer experience, personalization, and recommendations. Online retailers are looking for new ways to increase their revenues and to achieve better personalization and customer targeting. They are also looking for new ways to maximize revenues by deploying the recommendations they already have in place in a much broader sense. Now that retailers have reaped the benefits of traditional product recommendations, they understand the capabilities these technologies have to tackle the newer issues, such as navigating social elements of their sites and the ongoing quest to improve search.

Just as the market has matured, so has Baynote. Each year at eTail, we’ve seen interest in our approach grow. Listening to the conversations of the attendees and the other speakers this past week, it was clear to me that Baynote’s time has come as retailers hone in on providing a superior customer experience and ultimately how to create happier, more loyal customers.

Perhaps the best evidence of this was a survey I conducted during my presentation. I asked the crowd: “Raise your hand if you think your best salesperson can outsell your best customer?” The result? Not a single person in the room raised their hands. When I asked another question: if the happiest customers are the most important to increasing their revenues; almost every single person in the room agreed. This demonstrates just how powerful peer-to-peer brand advocacy has become to retailers and the bottom line.

I left Palm Desert thinking about what an exciting time it is to be involved in the e-commerce industry, and how proud I am that Baynote’s customers are setting the standard with more sophisticated personalization approaches that are transforming the customer experience as well as their online businesses.

The Era of Experts, Influencers, and Mavens
Guy noted that the old way to put a product in front of the masses was a trickle down approach. The goal was to suck up to the influencers, experts, and mavens that had an abundance of social capital and a platform to distribute your message to the masses. To make his point, he mentioned about a dozen of these “mavens,” including tech bloggers, popular media personalities and himself.
Bottom Line: Suck up to the important people, and that will effectively trickle down to the masses.

The New Age of the Masses and Crowds
Because of the advent of new technologies like Twitter, Guy argues that the most effective way to connect to users is from the ground up. Connect with users that are relevant within the context you are trying to reach. Influencers and experts will never be as valuable as the users themselves if you can reach them.
Bottom Line: Don’t ignore the experts, but make your audience and your users a source of collective intelligence that drives your business decisions.

Technologies like Twitter and Baynote’s Affinity Engine allows marketers to leverage their users in ways previously impossible. While Twitter allows marketers to speak to and gather feedback directly from their audiences, Baynote allows marketers to poll users through implicit observation. Ultimately, its all about making sure that your audience finds your products in a timely manner. Your audience may be on Twitter, but its definitely on your website and that is where Baynote comes in.

I’ve just returned from the Shop.org Annual Summit in

Many continue to ask whether eCommerce growth has peaked. With countless consecutive quarters of double-digit growth, one has to ask these kinds of questions. Well, the data suggests it has not peaked. According to Forrester analyst Sucharita Mulpuru, ecommerce will continue to grow at a rate of 25% annually for the next many years. The reason? Online retailers not tackling the basics.

As the holiday season approaches, and since it’s football season (thankfully), it’s only appropriate that we talk a bit about blocking and tackling fundamentals. Forrester and other pay mention to the following:

1) Completing the Transaction

Amazingly, some leading eCommerce websites are seeing transaction failures as high as 12-14%. For comparison purposes, the airline industry which is hardly the gold-standard in service sees has delayed/cancelled flight rates of about 6%. There are $ millions left on the virtual table as consumers are driven to alternative channels to make their purchase.

2) User Experience

Snazzy front ends that are engaging and interesting may draw some attention, but don’t forget the basics of making it easy to browse, search, add to cart, and purchase. ‘Pretty’ is good, but usable is better.

… and finally…

3) Product Recommendations

The only technology that Forrester recommended were recommendation engines.  Recommendation engines help retailers dynamically up-sell / cross-sell / merchandize their products.   With thousands of products and millions of visitors to an online retailer’s website and automated solution to this is a necessity, but measure the impact so you can truly understand the hard-dollar impact it’s making.

So make sure to do your homework and invest in the basics of selling, merchandizing, and completing transactions.Also, I wanted to give some credit to Jason Billingsly over at Elastic Path. He presented an eye-opening and incredibly engaging session on leveraging social media for eCommerce. If you have a chance, check out his session at Online Market World in

Come join us Wednesday, June 27 at the Santa Clara Convention Center for the WebGuild Searchnomics 2007 Conference and hear Baynote CEO Jack Jia speak on the Increased Revenue through People-Powered Site Search and Recommendations panel. We’d love to see you there! Register Now.

The Searchnomics Conference is a one-day event aimed at web and internet marketing professionals and dedicated to the search industry. At the conference you will learn about trends and best practices in:

• Search Engine Marketing
• Search Engine Optimization
• Design and Development
• Branding and Promotion
• Web Analytics
• New Innovations and Opportunities

Come be a part of this one-of-a-kind conference and learn from expert speakers in the field of search. Don’t forget to stop by the Increased Revenue through People-Powered Site Search and Recommendations panel featuring industry though-leaders including Baynote CEO, Jack Jia.

Register for Searchnomics here

Jack spoke during the conference on the Community Guided Web and illustrated the following points about The Invisible Crowd:

• Website visitors are lonely explorers, even though you might have thousands on a given website at any time
• The invisible crowd knows nothing of past successes or failiures on the site; hence, the community never learns.
• Most sites are developed without regard to your invisible crowd, and instead, reflect a web developers best-estimate of what is important to the crowd.

Thanks to everyone who came by to see a demo on how Baynote taps into this Invisible Crowd to improve website effectiveness. We spoke with as many folks as we could while at the show but we were getting double- and triple-teamed at frequently and may have missed a few of you. We’re flattered but apologize for not being able to spend time with everyone.

- Mike