From Search To Sale. How AI Drives Consumer Discovery And Retail Spend — Steve Warrington | Why Search Is Underrated By Retailers, How The Customer Journey Has Changed, How To Use Product Data To Boost Search, How AI Improves More Than Just Bidding (#387)

Subscribe to the ECB newsletter: https://newsletter.ecommercecoffeebreak.com/ 

---

In this episode, we explore how customers navigate from search to sale and how AI is driving consumer discovery and retail spend.

Steve Warrington, SVP of Client & Industry Engagement at upp.ai, shares insights from research conducted with Retail Economics involving 2,000 customers and 100 major UK retailers. 

The discussion reveals why search engines remain the most influential discovery channel despite retailer underinvestment, how fragmented consumer attention affects purchasing behavior, and the critical role AI plays in optimizing search performance for retailers with large inventories.

Link to research: https://insights.upp.ai/from-search-to-sale-report 

Topics discussed in this episode: 

• Why search is underrated by retailers. 
• How the customer journey has changed. 
• What is the ‘messy middle’ in eCommerce. 
• Why older shoppers lean heavily on search. 
• How AI improves more than just bidding. 
• How to use product data to boost search. 
• Why large inventory retailers need automation. 

Links & Resources 

Website: https://upp.ai/
Link to report: https://insights.upp.ai/from-search-to-sale-report 
LinkedIn: https://www.linkedin.com/company/upp-ai/ 
LinkedIn: https://www.linkedin.com/in/stephenwarrington/ 

Get access to more free resources by visiting the show notes at
https://tinyurl.com/3d9adw2z 

MORE RESOURCES

Enjoying this episode? Here are a few ways to grow your business: https://ecommercecoffeebreak.com/level-up/

Store Optimization Beginners Guide: Instant PDF Download! It's FREE. 👉 https://ecommercecoffeebreak.com/essential-conversion-optimization-guide/

Top Tools, Apps, and Services used by leading Ecommerce Brands: https://ecommercecoffeebreak.com/quiz-results/

Rate & Review: Help others discover the show by rating the show on Apple Podcasts at https://podcasts.apple.com/us/podcast/ecommerce-coffee-break-digital-marketing-podcast-for/id1567749422

Advertise on ECB - https://ecommercecoffeebreak.com/podcast-sponsorship/

Follow the podcast to catch all the bonus episodes I am adding. Hit that follow button now!

Transcript

[00:00:00] This episode is sponsored by Brevo. Time to take your marketing to the next level. Brevo is the all-in-one marketing platform that helps you connect with customers through email, SMS, WhatsApp and automation, all from one easy to use platform. Keep your customer data organized, personalize every message and drive real engagement effortlessly.

Try Brevo for free or use [00:00:20] ECB to save 50% on start and business plans for the first three months of an annual subscription. Head to Brevo.com/ecb today. You will find a link also in the show notes.

Hey there, this is Claus Lauter and you're listening to the e-Commerce Coffee Break Podcast, the show that helps you become a smarter [00:00:40] online seller. In today's episode, we are going to talk about how customers go from search to sale and how AI drives consumer discovery and retail spend. Joining me on the show is Steve Warrington, SVP of Client & Industry Engagement at upp.ai

so let's dive right into it. In today's episode, we are going to talk about how customers go [00:01:00] from search to sale and how AI drives customer discovery and retail spend. Luckily enough, I have a guest with me who has a lot of. Background and also data on this topic. This is Steve Warrington. He's the SVP of Client and Industry Engagement at  upp.ai

he's a seasoned e-commerce and retail media expert who 13 years leading performance marketing for leading retailers [00:01:20] like Wickes, Hackett, Dreams, B&O, and also spend six years at Jellyfish advertising major brands on eCommerce advertising as global of eCommerce. And so background when, hi, how are you today?

No complaints. My side, so Steven, I [00:01:40] understand that  upp.ai has commissioned a research with retail economics and with 2000 customers and hundred major UK retailers. Tell me a little bit about it was what? What was the background? Background was really to try to. Resurface, um, I suppose a, a traditional [00:02:00] digital marketing channel.

Uh, and then try to reinvigorate the view on it and the perspective on it. So, mm-hmm. As a growing business we wanted, that operates in this space, we really wanted to bring a lot of the insights about the value of that channel Users. Obviously as a vehicle, we wish to be able to get our message out, but I think, I think it's a tried and [00:02:20] trusted.

Channel that really needed to be shown a lot of love when there's some other new marketing channels that are out there that could overshadow, let's say the, the value of, of what we see, um, search delivering for retailers and, and actually what the research, um, shows in terms of its value. Now the research highlights that search engines are the most influential discovery [00:02:40] channel.

I think there always were, and I think that's going forward, that yet many retailers still under invest in them. What do you think, why is search so undervalue? Yeah. And I think that goes back to sort of why we're doing the research, right? So I, I've kind of grown up in, in retail with, with Google's rise, so mm-hmm.

It's evolution, the [00:03:00] importance of consumers. I've, I've experienced that over the past 20 years. And, and for what my opinion's worth, um, retailers under underestimate search is, is it's, it's viewed as transactional rather than strategic. Search to my mind isn't just about direct response, so I consider search as [00:03:20] it is kind of that engine that powers every stage of the customer journey.

Whereas actually I think retailers sort of look at it as in terms of it's gonna deliver me sales immediately. Because discovery to validation, you've got consumers instinctively turn to search to find, compare, and verify [00:03:40] products, which is the space we operate and, and yet retailers are sort of anchored in that, that legacy marketing model and that mindset, and they prioritize channels that they.

They can own like their websites or more visible, more tangible platforms like the social media models, let's say. Not that I'm saying there isn't value in that, in, in those [00:04:00] sorts of, um, platforms, but I, I, I feel from, from that point of view, that's, that's why they are undervaluing it. So I feel that the reality is if, if you're not winning in search, you're not really maximizing your presence in that consideration set.

And I think brands that invest in search, not just as a [00:04:20] performance channel, but as an intent driven sort of, um, wider ecosystem, they see far greater research returns. So where it demand happens, it isn't also where demand is shaped. And, and I think retailers need to deal with and they need to grasp that search really means what it really means for them.

Rather than just looking at it in [00:04:40] terms of that coin operated transactional, uh, undervaluing that the, the research may be, uh. That makes perfect sense. And also I think the report mentioned, um, fragmented attention economy. Um, everyone knows that attention span is very, very short. And you mentioned people are getting bombarded with messages from all sides of it.

[00:05:00] And I think search also happens on different levels. Tell me how this impacts the consumers in, in their behavior, in their user experience when they get different levels of search and how do, how they discover, um, products. I think, I think the signs are there that consumers today are sort of in this perpetual state of, of [00:05:20] partial consideration, if you can talk on that sort of phrase.

Meaning that they, they don't move through a linear funnel anymore. In fact, I'm not sure they ever really did. But today they, they bounce between channels. They're encountering products on social, they're researching on search. They're checking reviews on a, on a marketplace. And maybe they're even seeing a display [00:05:40] before, um, display advert before converting.

And, you know, let's be honest, journeys are a lot more complicated than that. And, and this means that being present in search isn't enough. You, you need to dynamically, uh, be relevant at every moment of that search intent. You know, check out the messy middle as a, as a piece of [00:06:00] illustration.

Today what AI is enabling is retailers to be able to reinterpret or interpret that real time demand signals ensures position when consumers are most to interact. [00:06:20] So the, the brands that win in that fragmented landscape as, as you say, are those that understand that search isn't a static touchpoint and it's fluid, it's, it's evolving the conversation with consumers.

And, and I suppose the best evidence of that is how Google have developed their campaign types, you know, to be more funnel based, more multi-surface, such as [00:06:40] the campaign type P max. It's AI driven, it's designed to meet con uh, consumers. As part of that whole fragmented journey across Google's social channels, its search while whilst browsing interesting content and, and in that discovery section so we can see that the biggest app [00:07:00] platforms have moved away or moved into this fragmented attention dynamic and.

And that's why they built these, the search tech to marry with the change in that consumer behavior. Tell me a little bit, talking about ai, talking about Google. Um, I think in the report it was mentioned that there's also, uh, a lot of numbers or a lot of figures on age groups [00:07:20] and who's influenced most by search.

Can you talk a little bit about that? Yeah. Um, I think res, I think the research is really looking at that retailers have traditionally focused their. Maybe younger demographics. Um, they're recognizing their high engagement with online channels because of the [00:07:40] fact that they are, you know, that they've grown up with digital, however.

Mm-hmm. While these audiences still remain critical, certainly for, you know, further down the line, um, retailers risk, I feel overlooking. Old that he's like me, uh, high valuable segment, you know, but they, they, you know, they spend more and they're [00:08:00] influenced by search more because they, they've sort of grown up with it.

So this group is, is unique, uh, in what they engage with. And, you know, they've got deep intent, uh, in their search. They're not just discovering products, but they're actively researching, comparing, and validating their choices before a purchase. So. Generally they tend to [00:08:20] have higher disposable incomes, which I did, but combined with, with more complex purchasing needs, like home improvements, let's say.

Mm-hmm. Or family expenses, maybe premium products means that their buying decisions are often more considered and, and higher value. And, and that's said search is not just a tool for this age group, it's, it's crucial influence across [00:08:40] all demographics. So younger demographics or younger consumers rely on search as an extension of their digital first habits.

Um, is, is my view, and that they're using it to navigate trends or verify information and, and discovering new brands. So for me it's about recognizing and optimizing the full spectrum of search behavior. You know, [00:09:00] retailers can ensure that they are not only capturing short-term demand, but also fostering long-term customer relationships across tho those different demographics that's driving rev revenue at every stage of the customer life cycle across.

Demographics that are digital and are [00:09:20] to buy.

Um, I think we're pretty much the same age group, so I can relate to that. Um, you look slightly better than me, uh, cla so I'm not too sure about that. So, generally speaking, I, I use search first as I did the last 25 years, but I see younger people and that's, I think what you mean. They, I have a [00:09:40] complete different behavior.

Um, they're on TikTok, they're using different apps to search.

Discover things and um, to do a search. Um, I'm pretty much stuck to search engines still. Now. You spoke about Google, you spoke about PEX campaigns. How does AI help me [00:10:00] as a retailer to get the consumer from wherever he's discovering me to buy from me? Yeah, I think. That sort of is what I was trying to convey with the fact that if you treat AI driven campaigns in the right way, such as P max, P max is built in that way to be able to get customers in the discovery [00:10:20] phase or in the intent phase and the transactional phase.

I, I think there's a lot of practices that are legacy views of how you treat search in this example. Mm-hmm. A different type of search campaign because it's using different types of inventory, I think. How do you get the most out of that? How do you make sure you are meeting [00:10:40] that fragmented attention that sits across those?

I think it's in our mind, if there's a business is, is making sure that you've got Google's best practices set up, but it's also around getting AI to manage AI and you know, vested interest here. That's what UP is doing. I think there's a lot of things that. [00:11:00] Of how retailers may operate. Of the, the tools that have been given, which have always been valuable, can also derail in, in where we sit today.

So, you know, you change a ROAS target so significantly that you go into a relearning phase and then you miss the opportunity in market. Those types of things mean that from our [00:11:20] point of view, when you've got large inventory set, you've got huge volatility. You've got customers in all of these different stages of, of their consideration, period, that.

Point of you can't.

To your question, I think you've gotta have AI managing ai. And [00:11:40] now a quick break to thank the sponsors of today's episode. Are you looking to take your business marketing to the next level? Meet Brevo, the All-in-One marketing and CRM platform designed to help you connect with customers, drive engagement, and grow your business.

With Brevo, you can manage all your customer interactions in one place. Nurture leads through their built in CRM. Reach them through email and [00:12:00] SMS and Goose. Retention with powerful automations effortlessly. Create personalized multichannel campaigns that ensure every single customer gets the right message at the right time.

And that's not all bvo offers. AI driven personalization, advanced analytics, seamless integrations and more. Giving you everything you need to market smarter, not harder. Get started for free. Or use [00:12:20] code ECB to save 50% on starter and business plans for the first three months of an annual subscription.

Head over to Brevo.com/ecb and take your marketing further with Brevo. You will find the link in the show notes. No, I agree. I There's a lot of data points in there and, um, automation I think is, is the, the, um. The main important thing there. Uh, [00:12:40] otherwise you're just lost in the data. I think that's a problem a lot of marketers have.

Um, the data is there, everyone is providing you with data. Um, but really to work with the data you, you need, need ai. Um, so how can ai, um, reshape search performance in bidding? How does it work? Yeah. I, I think this is, this is quite an [00:13:00] important piece, um, to get your head around that AI in search isn't just about justing bids.

It's about redesigning how search operates. So in performance driven campaigns, we know we were just talking about P max AI is continuously evaluating, you know, who's in market, [00:13:20] who's most likely to convert, what products should be surfaced in real time, um, based on intent. How do you optimize creative assets dynamically for maximum engagement?

But from my point of view, seeing what, where we are now, hence why I've joined up is, you know, the, the true transformation happens when AI moves beyond campaign [00:13:40] automation. When retailers start to integrate real time product intelligence, it's what we do. And, and you know.

Live e-commerce data and store data, stock data. We take in pricing signals and competitive insights. We feed that back into p [00:14:00] maps and brands can ensure that their search performance isn't just efficient, it's adaptive to both. Mm-hmm. The internal business conditions, but also the external market dynamics.

And the brands dominating search today aren't just tweaking the bids, it's going beyond the bid. It's, they're fueling AI with the right data. [00:14:20] And allowing it to orchestrate the entire search to sale journey. So with scale and speed, that as I was saying, you know, no human can really match, match that.

Mm-hmm. So how can you unlock the hidden power of product data? Search isn't just about keywords anymore. I think [00:14:40] it's about matching intent with the right products at the right moment. We, we've spoken about that fragmented ecosystem, you know, AI platforms like our ours, they're ensuring ai, who's managing the AI and, and that search engines dynamically prioritize the highest opportunity products.

On [00:15:00] in this instance, P in the market and profitability, and that's why AI is no longer optional in search point. You know, manual strategies can't keep up with a she volume of data. Needed to be able to make those optimal decisions in, in real time. You know, it's maths that's gonna win out in [00:15:20] that scenario.

And also the algorithms can predict what, what's right to push and what's right to advertise for the retailer, and then you've got to go with it. Otherwise, retailers are, are massively behind the leading practices, such as the ones that, you know, the retailers that work with us. So it's solving some of the fundamentals of, of [00:15:40] retail marketing, having products placed effectively.

And efficiently in front of customers when they're searching and they're effectively holding up their hands and saying, I wanna buy your products that you have within your range. It's offering you that symmetry of your range with market demand. Mm-hmm. No, that makes perfect [00:16:00] sense. Now, what's one key insights from the research retailers should act on?

I genuinely believe that search isn't just another channel. You know, we open now by, by.

I think it's the [00:16:20] backbone of digital commerce and, and it's grown to hold this position over two decades. I think if Google's been around that long, probably more than that. It not declining in value. Right. It's, it's growing in its importance and, and this. This needs to be appreciated. And you can see that in the research that that, that it's highlighting that and the [00:16:40] brands that invest in AI powered search strategies today, they're gonna be the ones that dominate the next era of retail.

No, that makes sense. Now you said you are helping a lot of retailers with AI with their campaigns. Who's your perfect customer? Our perfect customer, uh, budgets.[00:17:00] 

It's, it's one of the big budgets because it drives more data. You know, they, they, they've got a lot of budget to, uh, to, to, to wield in the market. Mm-hmm. And the data fuel, sorry, the, the budgets dictate the data, but it's also the product inventory set. Going back to that human point [00:17:20] of managing large inventory sets, how can you possibly have enough people to.

Thousands of products. Some of our customers have millions of products. So if you think about, for us, we take in hundreds of data points around an individual product. How could one individual human do that at one [00:17:40] product level constantly every 15 minutes given market demand? So our customers, larger enterprise retailers, they, their problem is how do they maximize market opportunity?

How do they get their retail range symmetry with the market? And they've gotta have decent retail practices. You know, they've [00:18:00] be open to the fact. For want of a better description. I'm not a big fan of this phrase, but we're, we're a bleeding edge solution and, and the industry is an inflection point.

You've got AI driven campaigns, managing media, and the need for rules and controls. That's sort of going away because P [00:18:20] max is doing a lot of that for you. So the mindset always also has to be there. So big budgets, big inventory set. The right mindset, mindset and some hygiene around retail. You know, pricing being good and strong.

Um, you know, we got, we, we did have some customers that are on a, on a website that [00:18:40] loaded too slow and that's gonna throttle your, your ad performance back. We know, we know that. And so I think there's a, a certain level of digital maturity as well that that needs to be, um, with the right customers as, as we move forward.

Sort of what the homework of the merchant has to do before it comes to you. Um, what's, what's the onboarding process? How long does it [00:19:00] take to get up and running? So, as I said, I, I come from the customer side and, and there's a lot of, there's a lot of tech providers that will say, yeah, it's really easy to integrate, and, and they will, it'll go like that.

Genuinely the onboarding with with Up is if you are ready to go, we, we hook into your Google ads, we hook into your Google [00:19:20] Analytics and you mentioned center. And we're ready to go. So generally you can, you can be live if all things line up, um, within a week, within a, if not sooner. Okay. Okay. Um, are there any kind of specific industries, verticals, niche that you work more with than with others?

Yeah, we're, we're retail specific, so, um, [00:19:40] as I, as I. Retailers with large inventory sets. It doesn't have to just be e-commerce providers. You know, we, we, we've got omnichannel retailers that have hundreds of stores and we feed that data in as well. So it is e-commerce, it's physical retailers as well. And as I said, those criteria of half decent [00:20:00] jits and PAX being spent in the retail sector, that, that's, that's our, um, bread and butter.

That's what we go after. Okay, cool. Before our coffee breakups today, is there anything that you wanna leave our listeners with that we haven't covered yet? I think the only thing I'd, I'd say is, you know, have a look at the research. It's, it's well worth looking at that and, and visiting  [00:20:20] upp.Ai, our website and downloading that material because.

I think it does a good job of resurfacing the importance of search, so mm-hmm. I encourage people to go and go and have a look at that. Yeah. I will put the links in the show notes. Um, I personally have looked into the research and I found it very interesting. There's a lot of interesting findings that I didn't know anything [00:20:40] about it, so, and I agree.

Search was always there. Search I think will be always there. That's just how humans, um, do their research.

Steve, thanks so much for your time today. Um, I will put link in the show notes and I hope a lot of people click through. Thanks so much. Great [00:21:00] to talk to you. Before you leave, don't forget to visit the sponsor of today's episode. Time to take your marketing to the next level. Brevo is the all-in-one marketing platform that helps you connect with customers through email, SMS, WhatsApp and automation, all from one easy to use platform.

Keep your customer data organized, personalize every message and drive real engagement [00:21:20] effortlessly. Try Brevo for free or use ECB to save 50% on starter and business plans for the first three months of an annual subscription. Head to Brevo.com/ecb Today you will find a link also in the show notes. 

Hey, Claus here. Thank you for joining me on another episode of the e-Commerce Coffee Break podcast. Before you go, I'd like to ask two things from you. [00:21:40] First, please help me with the algorithm so I can bring more impactful guests on the show. It'll also make it easier for others to discover the podcast.

Simply like, comment, and subscribe in the app you're using to listen to the podcast. And even better, if you could leave a rating. And finally, sign up for our free newsletter and become a smarter online seller. In just five minutes, we create content from more than 50 [00:22:00] sources, saving you hours of research, and helping you to stay on top of your e-commerce game with the latest news, insights, and trends twice a week in your inbox.

A hundred percent free. Join now at newsletter.E-commerce coffee break.com. That's newsletter dot eCommerce coffee break.com. Thanks again, and I'll catch you in the next episode. Have a good one.