StockX, a global platform for consuming and exchanging current culture, including high-end sneakers, streetwear, handbags, watches and collectibles, saw its valuation soar in April to 3.8 billion, or 9.5 times 2020 revenue. Now the company is leveraging consumer behavior analytics data to understand what’s driving demand so it can capitalize on those impulses.
In April, the company hit that high figure by selling $60 million of new stock and allowing some of its employees to sell $195 million of their own stock to investors.
Scott Cutler, CEO of StockX, has hired behavioral analytics platform Quantum Metric – which itself won the title of 2021’s top tech unicorn with a valuation of over $1 billion and a funding round $200 million Series B – to decompress the data points.
Mario Ciabarra, CEO of Quantum Metric, told me that the task at hand was to bridge e-commerce, digital commerce, and brick-and-mortar retail — yes, omnichannel retail. “How do you take what you do in stores, and do you take the love, care and empathy from physical retail experiences and build those connections,” he asked, rhetorically. .
“We basically and very simply look at aggregate analytics and understand and help companies focus on where they can have the greatest impact,” Ciabarra said. “What are the three things they should do… A lot of it is set up around where we can get the team to take action that will impact the most people. It’s not s It’s not just about fixing the squeaky wheel.
StockX has deployed Quantum Metric’s platform across its website and native apps to optimize the customer journey for sellers, buyers and bidders.
StockX already integrates data into its user interface. The website, which has the vanity of a Wall Street ticker at the bottom of the computer screen, tracking sales of brands offered on the site with green and red arrows, now further improves data usage to improve engagement, Ciabarra said. .
Cutler, who believes there is a dramatic shift from traditional retail channels to more dynamic experiences, said consumers want direct relationships with brands more than ever, so platforms need to think about the how to reach consumers in new digital formats and how to interact with them multiple times and in different ways.
The Covid-19 pandemic was an inflection point in the way retailers thought about digital commerce. Although some embraced a digital journey before the health crisis, for many retailers it was only lip service.
“We’ve all woken up during the pandemic to see that the world is going digital, and we need to get it right,” Ciabarra said. “Retailers need to lean more and be digital. StockX, in particular, has a mobile experience. There is so much to see and so much area to cover. Our job is to find where they can improve their experience, by adding additional filtering capabilities and product placement, for example. These are easy starting points.
Pain points also need to be addressed, Ciabarra said, adding that most customers had a less than optimal e-commerce or digital experience while trying to make a purchase, giving up on what they were hoping to buy.
“How can we work on new product features or fix a bug that exists,” he said. “Customer expectations are rising, and there are so many elements that make an experience successful.”
Ciabarra said optimizing data is an ongoing exercise, not a quick fix. “It’s not like you finish one thing and you’re done,” he said. “As companies roll out different campaigns, customer needs change over time. What we’ve learned is that there are a lot of different behaviors. You need strategies for web, mobile, and mall. We’ve seen a surge in desktop traffic as people shop at home. You have to stay on top of the trends. »
But the office will give way to digital as people return to work in offices, Ciabarra said. “Quantifying empathy is really hard to do on digital,” he told me. “It’s when we connect the overall experience to the real experience. Each time it got faster, it set a new bar, from cable modem to DSL, etc. Amazon, for me, and the rest of the world, was setting the bar for this experience.
Ciabarra said the 800-pound gorilla in the room created “a quick, easy find and a great, enjoyable experience, just like I have in the store. I want a great Amazon-like experience. Not everyone will agree that Amazon is a uniformly great experience, but Ciabarra is right.
“It’s very important to break down the silos within the organization,” he said. “A team has to be customer-centric and responsive, but it’s like finding the leaks in a house. It may be a nice house, but the kitchen sink is leaking. You can call these different rooms. There is a website and a native app.
Of course, StockX isn’t the only retailer with an emphasis on analytics. Ciabarra said each brand on the National Retail Federation’s 2021 Top 25 Retailers list “invests deeply in understanding customer behavior. They do it to be truly digital first.
“No company says don’t touch this [strategy or capability,] we’re done,” Ciabarra said. “It’s a constant iteration. ‘How to optimize the experience to meet the consumer’s needs?’ How to deliver the perfect experience to all these audiences. The market has seen many changes, such as third-party delivery. Retailers need information. They need it around the customer. It takes a small village to deliver a digital product.