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September 13, 2024

Marketers Talks. Anton Sizemin, WEE

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In this edition of Marketer Talks, we spoke with Anton Sizemin, the Commercial Director of WEE, who offered valuable insights into the distinctive characteristics of the advertising market in the UAE, especially concerning marketplaces. He also provided practical strategies for mobile app promotion and outlined the key features that a successful app should possess in today’s competitive landscape. Furthermore, we delved into the growing global live-streaming trend and its increasing popularity across markets.

Anton, we’re excited to have you share your insights with us today. As the Commercial Director of WEE, a marketplace based in Dubai, could you provide some context for our readers on how your role connects with the marketing side of the business?

I oversee the marketing efforts for the WEE marketplace, developing and executing strategies to grow the WEE brand in the UAE. Marketing is integrated into our overall commercial strategy, so I focus on attracting and retaining customers on our platform.

We have the flexibility to implement new technologies more quickly than large multinational corporations, and our team’s deep engagement makes this strategy especially powerful.

What unique aspects of e-commerce in Dubai can you highlight?

First of all, the UAE is a highly diverse, multicultural country. People from 37 different nationalities place orders on our marketplace, which truly reflects the country’s unique demographic makeup. I was once in a large crowd of Catholic Indians, which was quite surprising. It’s not widely known, but there are several million Catholics in India, and a significant community of them lives right here in Dubai.

It’s also important to note that the UAE market is growing rapidly, presenting great opportunities to implement the best practices already proven effective in other markets. When working with marketplaces, there are several stages to consider: integration, managing unit economics, content creation and maintenance, and automating accounting and warehouse operations. Regardless of the size of your business, you need to navigate each of these steps.

Understanding the need for sellers to be skilled and adaptable in the evolving e-commerce landscape, we launched the WEE Academy for our ambitious sellers. This platform allows us to share our extensive experience in the e-commerce sector completely free of charge.

We run the Academy with our in-house team, as we’ve accumulated a lot of practical knowledge in e-commerce. At the same time, we also invite outside experts to dive deeper into specific topics. We share this knowledge with WEE’s local partners and foreign companies interested in the Middle Eastern market.

The UAE market offers tremendous potential; it is a rapidly developing space where sellers can experiment with and implement best practices.

What features are essential for a successful marketplace app in the MENA region?

As I mentioned earlier, this is an emerging market, but much progress has already been made, and customer expectations continue to rise as companies strive to provide better services. Essential services like fast delivery, multiple payment methods (including our payment systems), and a high level of competition in product variety have already become standard in the market.

However, there are still areas for improvement. For instance, in the fashion segment, there are currently no options for partial purchases or trying on clothes before buying, and we are actively working on developing such features. Additionally, there are many opportunities to improve how content is managed and the overall level of customer support.

We focus heavily on building trust with our audience. Unique characteristics of the Middle Eastern market, such as retail stores often not displaying price tags, push us to actively work on increasing credibility with our customers. Partnerships with well-known entities, like our collaboration with the Dubai Dolphinarium, help reinforce that we are a trusted and reliable platform.

Can you provide more details on how app promotion works for WEE? Who makes up the team, how is it structured, and what objectives do you set for your promotional efforts?

Certainly! As a growing company, achieving traction — tangible results here and now — is crucial for our continued development. To drive short-term impact, I’ve focused on enhancing areas that deliver immediate results: digital marketing and what we call our «production machine.»

We also focus on long-term strategic objectives, directing our team’s efforts accordingly. For example, we have a task force that brings together people from multiple departments to shape the platform’s tone of voice and brand identity.

I believe we are achieving the results we’re aiming for. Not only have we optimized the cost of acquiring customers, but we’ve also developed what we like to call «Royal Marketing» — even members of the royal family are among our customers.

Our strategy is built around a unique set of high-quality communications, primarily targeted at a female audience in the Fashion and Beauty+ categories. These categories are challenging for competitors like Noon and Amazon to penetrate. We also offer a diverse range of curated products, which is challenging to manage with tens of thousands of sellers. We also provide fast delivery times and breadth that exceed even those of retail giants like Sephora. Additionally, we have the flexibility to implement new technologies more quickly than large multinational corporations, and our team’s deep engagement makes this strategy especially powerful.

Promoting marketplaces can be particularly exciting, given Dubai’s diverse multinational audience. Can you tell us about the unique aspects of user acquisition in this environment?

Absolutely. In a market as diverse as Dubai, hypothesis testing plays a crucial role, and we’ve made it a central focus of our strategy.

Hypothesis testing is one of the WEE team’s most dynamic and engaging processes. We’ve developed the ability to test hypotheses quickly and effectively, and other e-commerce companies in the UAE have adopted many of the ideas we’ve scaled.

While we’re always exploring new tools, we also leverage proven modern models. For example, we use PCM (Process Communication Model) techniques to engage with different customer groups. This model, even used by NASA, is effective not just in space but also in the Middle East. We segment our audience not only by standard demographic data and dynamic (RFM) principles but also by network groups, identifying the key motivators for each group.

Our strategy reflects the unique nature of the UAE market. By understanding and leveraging these characteristics, we’ve strengthened our position. From the beginning, we aimed to appeal to multiple customer groups. Our brand’s universal values and mission of saving time have allowed us to create a platform that resonates equally well with people of various nationalities and faiths. For example, our mascots, an AI family of cheetahs, symbolize speed, strength, family values, grace, and reliability.

From a product perspective, we’ve also adapted to our multinational clientele by implementing an automatic system that creates product listings in three languages: English, Russian, and Arabic. We even offer a fourth language in customer support — French, to serve customers from Europe and Africa.

We’re also innovating with new technologies. We’re currently developing an AI fitting system that will allow customers to upload their photos and see themselves wearing the clothes on our marketplace. I’m confident this innovation will be well-received by our customers and online shoppers in general.

Which media sources are delivering the best results in your niche right now?

Traditionally, search engine marketing (SEM) has delivered high-quality results, though it comes at a higher cost. We’ve also seen great success with blogger channels; our current network of over 200 influencers reaches more than 2.5 million people. Additionally, we’ve achieved substantial results with SEO optimization — over 20% of our product range now ranks in the TOP 10 of search results, and that figure continues to grow.

Social media marketing (SMM) is another critical channel for us. We put a lot of effort into content marketing and distributing that content across platforms popular in the UAE — such as Instagram, Snapchat, YouTube, TikTok, Facebook, and Telegram channels — to engage and retain customers. Collecting and converting contacts is the foundation of our CRM strategy. We’ve found that the likelihood of a customer becoming a regular increases significantly after three consecutive purchases. This mathematical insight has shaped our approach to customer return rates and retention processes.

One of our most promising initiatives has been launching our lifestyle blog, eweerything.com. We’re developing a super app based on an ecosystem of B2B and B2C services designed to create a convenient environment for people who want to save time for what truly matters: themselves, their families, and their lives.

Everything we do is guided by the WEE mission of saving people time. Our media portal reflects this mission; it’s a lifestyle hub featuring notes, articles, and stories on various topics, from beauty and fashion reviews to travel and cooking. It’s all about providing our readers with helpful information, positive experiences, and, most importantly, helping them save time.

As in-app inventory continues to grow, have you started utilizing this source? If so, please share your insights on DSPs and ad networks.

We have identified several partners ready to provide these services, and we plan to begin testing soon. While building long-term relationships with customers through creative content and contextual search is highly effective, we’re always looking to test new hypotheses and explore different avenues for growth. This approach allows us to remain agile and adaptive, ensuring we find the best methods to reach and engage our audience.

In your opinion, what is the current state of fraud in the MENA region? Is it a critical issue, and how much does fraudulent traffic impact your campaigns?

We haven’t experienced a significant impact from fraudulent traffic, as we are very selective with the channels and tools we use to attract customers. However, given the global and open nature of the local market, attempts to deceive us are not uncommon. For instance, we’ve seen cases where a graphic editor is used to fabricate better statistics on Instagram profiles.

To counteract fraud, especially in cost-per-action (CPA) models, we have developed a reward system that is directly tied to the purchase of an order and whether a customer is new or returning. Additionally, we implement a hold period of more than 3-4 weeks to account for potential refunds. These measures help us minimize risks and ensure our marketing efforts remain effective and trustworthy.

Are there any innovative strategies you use to promote your app?

Absolutely! A great example is our live streams, which you can find at wee.ae/live. These are quite unique for the MENA region, though live streaming has already proven to be a highly effective retail media tool, particularly in China.

We’ve adapted this approach locally with our community of over 500 sellers, experts in various lifestyle areas, and popular influencers. The live streams allow us to build long-term relationships with our customers by sharing valuable and interesting information in a fun and engaging way without directly advertising any products. This is a crucial aspect of our communication strategy, helping us connect with our audience on a deeper level while providing them with a unique and interactive shopping experience.

How do you tackle the challenges associated with privacy policies? Let’s take SKAdNetwork, for instance. How significantly does it complicate your app’s marketing, and what solutions do you have?

While SKAdNetwork is designed to protect user privacy, its implementation can indeed complicate marketing strategies for companies. Here are some ways we address the challenges related to privacy policies and the use of SKAdNetwork:

  • Analysis of Results: SKAdNetwork provides limited data for conversion tracking, making it essential to perform a comprehensive analysis of campaign results and optimize our marketing strategies accordingly. We consider additional metrics alongside the SKAN report, although this can be challenging due to privacy restrictions. This approach helps us identify patterns and make data-driven decisions, even with limited information.
  • Diversification: Diversifying traffic sources and advertising channels helps reduce dependence on any tracking mechanism. We use multiple tools and platforms to achieve maximum reach, including fully attributed sources like TikTok and Apple Search Ads. This strategy allows us to balance our reliance on SKAdNetwork with other robust attribution methods.
  • Improving User Experience in the App: We continually enhance the user experience within our app, which leads to higher conversion rates and increased user loyalty despite the limitations imposed by SKAdNetwork’s data collection constraints. By focusing on user satisfaction, we can mitigate the impact of reduced data availability.
  • Collaboration with Partners and Developers: We partner with industry experts and developers to develop innovative methods for data collection and analysis, helping us navigate the challenges of privacy policies. For example, we collaborate with AppsFlyer, which offers additional solutions to reduce dependence on SKAN attribution:
  1. Probabilistic Attribution: Using models like those employed by TikTok to estimate conversions based on available data.
  2. SSOT Dashboard (Single Source of Truth): This dashboard combines information from SKAdNetwork and other attribution sources, providing a more holistic view of our app’s performance.

By implementing these strategies, we can adapt to the evolving privacy landscape while continuing to achieve effective marketing results.

Regarding ad creative, what approaches have yielded the best results for your app’s promotion? Can you highlight any particular campaigns or elements that stood out?

Beyond standard tactics like giveaway promotions, influencer collaborations, and aiming for viral content, we’ve found success with more engaging and community-oriented campaigns. For example, our contest for moms generated thousands of comments and gained significant popularity, demonstrating that our audience is eager to engage in fun and meaningful ways.

We apply this same principle of engagement to our CRM strategy, which we prioritize highly. We’ve observed a high email open rate and strong engagement with surveys, indicating our audience’s interest in interacting with our content. We also conduct cost-effective but highly insightful customer development (cust dev) initiatives to better understand our users’ needs and preferences.

These efforts show that by creating opportunities for interaction and fostering a sense of community, we can build deeper connections with our audience and enhance the effectiveness of our promotional campaigns.

To wrap up, tell us where you get your inspiration and how you continuously improve your skills. What resources would you recommend to our readers to stay up-to-date with industry trends?

My most significant source of inspiration is my team. We have employees across 13 countries, and whenever a new tool or idea emerges, we’re quick to explore it. On the theoretical side, we share insightful books and even have a WEE library for our team members.

I also stay inspired by constantly networking, seeking out new partners, and exploring fresh channels for traffic acquisition. Continuous hypothesis testing is a core part of our strategy, allowing us to adapt and innovate constantly.

We also maintain a fun and positive atmosphere within the team, often sparking unique solutions to enhance our #RoyalMarketingWEE. For anyone looking to stay up-to-date with industry trends, I’d recommend being open to new ideas, constantly testing different approaches, and never underestimating the power of a great team dynamic.

VP of Marketing

Customer retention is the key

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What are the most relevant factors to consider?

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Don’t overspend on growth marketing without good retention rates

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What’s the ideal customer retention rate?

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Next steps to increase your customer retention

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