In short
The episode argues that Shopify merchants should prioritize real human outreach over AI chatbots for abandoned checkout recovery and other revenue opportunities, emphasizing compliance and incremental ROI.
Guest backgrounds
Steve (LiveRecover) builds a Shopify app that deploys real sales agents to text/call shoppers. Agents are 95%+ based in the Philippines (English-first, multilingual), with some in the US/Mexico. LiveRecover trains agents using brand guidelines and a knowledge base built from scraped FAQs/site content.
Key claims
LiveRecover targets shoppers who abandoned checkout but are not opted into marketing channels, reducing compliance risk versus automated SMS. It uses P2P SMS (human-to-human) with a dedicated brand agent phone number. Reported performance: ~21% recovery on abandoned cart email/SMS with ~20x ROI; conversation response rates 40β50% and reply-to-purchase 2β2.5x typical conversion. Discounting abandoned carts is framed as often βbackwardsβ because price usually isnβt the issue; test incentives aligned to unit economics.
Notable examples
A brand recovered $147,000 in one week; a red light mask brand used post-purchase conversations/surveys and found its audience skewed 55+ (not 25β40).
Written by AI. May contain mistakes. Listen to the episode to check what was said.
Chapters
Tap a time to open that second in VOThe Importance of Human Interaction
0:45 to 2:40
Discussing the preference for human interaction over AI in customer service.
βIt's fundamentally backwards to give a discount on an abandoned cart because the customer almost never has an issue with the price.β
The Importance of Human Interaction
2:46 to 4:40
Discussing the preference for human interaction over AI in customer service.
βLast year, I went to Commerce Roundtable in San Diego and it was so good.β
LiveRecover: A Human Approach to Cart Recovery
7:40 to 12:00
Interview with Steve about LiveRecover and its unique human-centric approach.
βYeah, all of our agents, or I should say, majority of our agents, over 95 % of them are based in the Philippines.β
Scaling and Personalization at LiveRecover
12:00 to 14:01
Exploring how LiveRecover personalizes service and scales with brands.
βthen train the agents and that never happens again.β
Innovative Post-Purchase Engagement Strategies
14:01 to 18:10
Learn how brands are using data to re-engage customers post-purchase.
βThis brand is great to work with, but they're so unique where they just are obsessed with being able to use our agents in other ways outside of the box.β
Understanding SMS Marketing Compliance
18:10 to 21:12
Explore the nuances of SMS marketing and compliance in customer interactions.
βSo there's no overlap, there's no confusion.β
Rethinking Discount Strategies for Abandoned Carts
22:39 to 26:30
Find out why discounts may not be the best approach for recovering abandoned carts.
βAnd you've got some data that like, it's not even that you just, you have to discount these abandoned carts to get them.β
Optimizing Customer Conversations Post-Abandonment
26:30 to 28:00
Learn how to effectively engage customers after they abandon their carts.
βSo are your agents trained to know different pain points that customers might have and try to address those first?β
Customer Conversation Strategies
28:00 to 29:10
Learn how to effectively manage customer conversations to boost sales.
βAlso might be very different the way that you close for repeat customers, which we could separate those flows and also post-purchase, right?β
The Role of Agents in Customer Experience
29:10 to 30:20
Understand how agents enhance customer experience and boost revenue.
βif it gets to a certain point pass it to them or they we can be the intermediary where we're basically troubleshooting it getting the answers from the brand and then communicating it back to the customer.β
Show all 25 chapters
Upselling and Post-Purchase Strategies
30:20 to 32:30
Explore effective upselling techniques and post-purchase engagement.
βAs soon as they have a good experience, They're texting our agents immediately, like a couple of days later or a day later, like, hey, do you know when my order is coming?β
Integrating Subscription Services
32:30 to 35:30
Discover how to incorporate subscription services into sales strategies.
βSubscription brands are licking their chops to test us for all of our new features, but specifically reaching out to one-time purchasers, trying to drive them into a subscribe.β
Pricing Models for New Features
35:30 to 37:50
Learn about pricing strategies for new sales features and services.
βbecause there were just, I think there were some gaps in data.β
Leveraging Live Agents for Success
37:50 to 39:50
Understand the advantage of using live agents alongside technology for brands.
βSo regardless if your agent sent 50 messages or five messages, it doesn't matter.β
The Future of E-commerce and AI
39:50 to 42:05
Explore the intersection of AI and human touch in e-commerce.
βLike that doesn't, it's not a normal way of thinking.β
The Role of Authenticity in Branding
42:05 to 43:50
Explore how brands can differentiate themselves by embracing authenticity and human connection.
βof what I'm hearing from really like a lot of top thought leaders, big time operators is like, we've never wanted to be able to differentiate a more authentic as a brand.β
Human Interaction vs. AI in Customer Service
44:04 to 45:50
Discuss the importance of human interactions in customer service amidst growing AI usage.
βWe take for granted that 15 years ago, every time we called a brand, a human picked up.β
Selling with a Soul in an AI-Driven World
45:51 to 49:19
Delve into the concept of authentic selling amidst increasing automation and AI reliance.
βI mean, this, I feel like leads into it a little bit here, but selling with a soul.β
Effective Strategies for Customer Retargeting
49:20 to 52:18
Learn about retargeting strategies that prioritize customer experience and engagement.
βI see a split a lot of times because I always am interested to hear from operators at the brand level, like what their sentiment is.β
The Future of AI and Human Interaction
52:19 to 56:01
Examine potential future trends of AI replacing human roles and the desire for authentic experiences.
βI think for normal abandoned cart automations, like it's in the single digits.β
Real Experiences Over Technology
56:01 to 56:59
Discussion on the desire for authentic experiences and community-oriented activities.
βLike going back to non, like teenagers wanting non-smartphones and people wanting real experiences.β
Best Practices for Using LiveRecover
57:00 to 59:06
Insights on how brands can optimize their use of LiveRecover for better customer results.
βSo you've worked with, is it 4 ,000 plus brands?β
Utilizing Data for Business Improvement
59:07 to 1:03:46
How brands leverage insights from customer interactions to improve operations.
βAnd how we're going to measure that for the first 30 days.β
The Importance of Genuine Customer Interaction
1:03:47 to 1:07:25
Emphasis on the value of directly engaging with customers to enhance sales.
βthat they now handle their fulfillment, which is kind of a dope use case.β
Closing Remarks and Socials
1:10:00 to 1:10:24
Learn how to connect with Steve Lacarica and show appreciation for the episode.
βIt's my name, Steve Lacarica, IG, LinkedIn, Twitter.β
Transcript
Automatic transcript. May contain errors.0:00Thank you.
0:30Steve Lequerica:One brand recovered$147 ,000 in a single week. Steve believes the future of selling has a soul. 30-minute posts, they're getting a text message from an actual real person from the brand. 21 % recovery rates on abandoned cart emails, SMS, at roughly a 20x ROI. Start with a small subset of crap. Target very high-value customers. It's fundamentally backwards to give a discount on an abandoned cart because the customer almost never has an issue with the price. They're okay with the price. initially getting us some brand guidelines so we can build out that knowledge base exactly the way they want. We're not messing up any conversations.
1:0597 % of people come in, turn around, and walk right back out and nobody talks to them.
1:13OmniSend just shipped something that I've always wanted. You can now connect OmniSend to ChatGPT or Claude and just say, where can my email and SMS campaigns be making more money? And it actually figures it out. It reads your store data, all your campaign details, your store history, and it tells you. and the insights are legit good. And even better, you can then say, okay, let's fix that or build that campaign. And it actually does it right from your chat. It's wild. Now, if you're one of our listeners, you can get 30 % off for three months on OmniSend. Just go to the show notes. There's a link there.
1:44Or you can just use the code J30, J-A-Y-3-0 when you sign up. Now, if you're using another email and SMS platform and you want to switch to OmniSend, which is a great idea, they will do the migration for you. Just give them five days and then you show up with everything set, ready to go. Now they've migrated thousands of stores from Klaviyo and on average, they're saving 35 % on their email and SMS bills. If you're listening to this show, you clearly care about your Shopify business. If your store isn't backed up and protected, it could all be for nothing. That's why I tell every store owner I know who cares about their business, you 100 % need Rewind installed.
2:20It's a non-negotiable for me. One bad CSV import, One app that edits your store the wrong way, which has happened to basically everyone I know. One bulk edit gone wrong. And now AI making changes for you. Listen, Shopify does not have an undo button. Rewind is the undo button. Go to shopify1percent.com slash rewind for 30 days free on us. Links in the show notes too. Last year, I went to Commerce Roundtable in San Diego and it was so good. I'm going back again this year. It's September 21st and 22nd. And honestly, you should come to. It's the one e-commerce event that I recommend to everybody without blinking.
3:00It's not a trade show. There's no booth demos. It's really just operators on stage sharing what's actually working in their stores right now. And it's basically a room full of all founders. I was actually scrolling through my camera roll from last year and I have over a hundred pictures of slides from people's talks. It's I learned so much. It's that kind of an event. Now, I have five passes to give away for a 30 % off ticket. It's first come, first serve. So if you're interested, email me, jay at shopify1percent.com and I will hook you up. They will go fast. So email if you're interested. And if you're going, come say hi.
3:35Let's grab a coffee or a drink during happy hour. I'd love to meet you. Hey, everyone. Welcome to another episode of the Shopify 1 % podcast. did you know i did some stats before this 79 of your customers say they would rather talk to a human than an ai which is probably not surprising most people i'm in that camp when i talk to an ai the first thing i start saying is human human i start rage typing it in and actually less than two percent of people say they prefer to talk to an ai so there actually is two percent of people that are okay talking to an AI, but that's it. So the question I have when I read these stats is why is every single Shopify merchant on the planet racing to bolt on an AI chatbot somewhere in their flow, in their checkout, their banning carts, everywhere else?
4:25So I had to have my guest on today because he's flipping it around. In the world where everyone's going AI, he's going real, real humans, real people actually sending texts, and he's getting incredible results. I'm going to quote this. He can tell me if I'm wrong. But the last thing I saw was they're getting 21 % recovery rates on abandoned cart emails or SMS at roughly a 20x ROI. And it's just crazy because we're seeing, I saw in the news recently, you know, Klarna laid off. I can't remember what it was, 700 or 900 people. And now they're slowly rehiring them all. And it's just so interesting what's happening in the world.
5:04So Steve's with LiveRecover. Steve, welcome to the show, first of all. Thank you so much for coming here. I caught you in the middle of a coffee shop, but I'm glad I got you. So we might hear some dishes in the background. Thank you so much for being here. Jay, no, it's thank you. I've been licking my chops to get on here with you. This show is so well done. You're a goat in the space and I love you as a person. So thank you, guys. Oh, I appreciate you. So, OK, I like to jump right into it. I can ask you the whole backstory of LiveRecover. But right now at this moment, like we were just at SubSummit last week and every booth is AI this, AI that.
5:37And everyone's getting pitched that they need AI for something, especially including cart recovery. So tell me about LiveRecover, the business that you've built doing the exact opposite. And then I have a ton of questions. But what is LiveRecover first of all? So people have the context. Yeah. So very high level, right? We are a Shopify app that instantly in 10 minutes, right? You can plug and play us. In 10 minutes, we deploy a sales team of real people for your brand. Now, when that happens, right, you install our app, our goal is to transform the way you communicate with customers, starting with abandoned checkouts.
6:16So the highest intent shoppers looking to buy, they have questions. Now, majority of shoppers that actually abandon checkout, you're not able to actually legally communicate with, right, from a marketing standpoint, unless they opt in to your marketing channel. but with a real person you can legally text them as long as the phone number is left so we are able to instantly activate a whole new channel of customers that you're actually able to talk to because otherwise if you don't have real people texting or calling these customers which i'd argue hey if you're not using a solution like live recover every brand should be doing this but you know then you run compliance risk who do you know is on a do not call list versus who's not, et cetera.
6:59But anyway, real people can text and call your customers today that abandoned checkout that are not often in your marketing list. And it'll transform the way you communicate with your customers, but also give you an extra 5 % to 15 % top line revenue. And that's, I think, the key, the key mode is how do we continue to optimize revenue for brands, not just for abandoned cart checkout, but for all different ways across the fund. And that's like what I'm trying to bring to the market. Okay, so what does this look like? I know right away where listeners' minds are going, they're saying, what, does he have a room full of people texting?
7:34Are these consultants around the globe? Are they all local? Or what does that look like? Yeah, all of our agents, or I should say, majority of our agents, over 95 % of them are based in the Philippines. They speak better English than you and I. It's their first language there. It's their first language. They're also multi-language. like for our Canadian folks, I've had a lot of Canadian brands that have French speaking customers. You know, now with AI and ChatGPT, we're able to handle a lot of conversations that are in local languages. But, you know, ideally, we want to focus on English. You know, that being said, agents are based in Philippines primarily.
8:12We also have some scattered in the US and Mexico. Big thing is need to cover all times there. So legally, we have to stay within SMS, you know, TCPA, CTIA laws for quiet hours. but it's 24 coverage right so if a brand if a customer abandons checkout on a brand site and it's like 2am within that respective time zone they would just fall into like the priority queue the following morning would still be texted just not obviously at 2am gotcha if there's a previous conversation if I abandon cart and it's during the day and you message me and I reply at 2 in the morning can they engage if I initiate the reply as a customer?
8:55No, that would be, that would fall within. They still wait, even though I'm messaging at 2 a.m., they wait until the non-restricted hours. Gotcha. Okay, and so I'm going to ask a bunch of the obvious questions before I get into some of the bigger picture stuff. Does one person work with one store? Do they get to know that particular store? or is there, depending on the store's size, multiple people assigned to it? Or if I'm a brand and I'm looking at doing it, what does that look like? Oh, you're getting juicy, Jay. I like this. I want to know. I want to know. The people want to know. So one, yes, there are brands because we work with nine figure plus brands all the way down to, you know, I don't discriminate, 10K, MRR.
9:42You know, we can scale with anybody. Certain brands that want a certain level of support, We have that optionality to get them a team of dedicated agents, you know, assigned two to three agents, depending on the brand. They eat, sleep and breathe that brand over time. They literally become an extension of your team. I kid you not. I have brands that have been with us for four years doing well over nine figures. One of the brands we just recovered 147 grand last week. They review our KPIs like on a weekly basis. I think I saw they emailed you and I think you had that on LinkedIn. So, you know, I'm not a liar.
10:14I literally saw that like four hours ago. I like... And they literally send their agent, like our agents, their team as well, gifts like on a monthly basis. You know, our agents are actually incentivized based on the quality of the conversation and how well they're working. So like, this is also a good point you make, right? Because this is always the number one or two biggest objection for brands. I don't care if you're Steve Madden I'm talking to or, you know, Joe Spices, you know, just starting. like everyone's everyone wants to feel like beachy they want their brand like they're like never to be tarnished never to write and so that's so sensitive to us and we have a very strict policy on our agents getting ramped up based on brand guidelines and what's called the knowledge base like everything's built out in the knowledge base so when a brand initially installs us we'll use ai to scrape their site and web for any fqs commonly asked questions like any information we can get.
11:12And of course, the brand probably has some guidelines as well that they're sharing with us. So we'll get that initial framework to the agents. But this is a big thing is over time, right? Even in the first few days or weeks, all those transcripts that we're compiling, that is invaluable data that we're going to also be able to share with you at the brand and say, hey, Jay, here's also some insights we've been getting. A lot of conversations are asking X, Y and Z. Can you help us fill in these gaps? Or, hey, what do you think about these conversations? Is there any feedback so we can add forward to the knowledge base of these agents?
11:45Because it's very simple. Some of the beauty and the curse is this is a human to human combat. So are we going to have conversations potentially that you wish we would have said X or we should have not provided that offer because you're providing a site-wide offer? Yes. All we need to do is be aligned and then train the agents and that never happens again. You probably have data on what a store's site is missing and not what answers are not being answered on their site. Like right now, one of the things that as a brand you want to do is make sure that every question is answered on your site so that when you go to ChatGPT and you ask a question like Steve Mann shoes, like what's the best way to treat and waterproof my shoes and or what's the most water what's the most waterproof dress shoe i might ask that question to chat gps and if you don't have an answer related to that on your site chat gpt is not going to know either because really it just ingests everything and so it's interesting like you might you also would have the gap between what a site says and here's everything we scraped in the knowledge base that we built for our agents and you're missing a lot because they're everything that gets asked is not likely on a site like you're sitting on valuable information too with that brother it's almost zero party data in a way because think about it and i've been you know again everybody that wants to take advantage of getting on early you know take advantage because you're getting so much value initially like we're not charging for a lot of these all these features that we're building aka to your point insights all the our insights feature, I've thought about how do we monetize that?
13:22Because there's, I sometimes think the biggest value brands get is that, especially initially, to your point, is filling the gap with being able to communicate to all those customers that they can't legally communicate to because they're not able to market to them today. They haven't converted them yet. And then being able to assess that information and bring it front-facing to them, always there's huge nuggets in there that the brand's like, oh, wow, I didn't even realize X. I didn't even realize why. The last thing I'll say is I'm starting to see so many brands use us in so many different ways and it's so cool.
13:56For example, this brand that sells around a $400 to$500 red light mask. I've got to start getting on that. They're the trend right now, man. They're the trend, man. This brand is great to work with, but they're so unique where they just are obsessed with being able to use our agents in other ways outside of the box. For example, we can do post-purchase So we can engage, and this is a huge unlock, we can target any customer that has ever bought from a brand and has a Klaviyo profile because that phone number store. So if they're not opted into SMS, but they have a phone number store because they previously bought from you, whether it's two months, two years, etc., we can re-engage them back to the site.
14:37so what this brand was wanted to do is they wanted to get it they wanted to do a survey a post-purchase survey to all their recent purchasers within the last six months to understand their demographic and where they found that from like where was the attribution and what was so cool is when they got all the data back and we assessed it with them they they thought that their target demographic was always like a 25 to 40 year old sweet spot but what they found is all the responses that we got the majority of them were 55 and older so again just the data point but like a lot like a lot of brands are starting to use us in ways that i really never even thought about for example helping them manage all of their ad comments on facebook instagram etc right just to give you a tip well that's interesting too so i want to just clarify so abandoned cart emails are okay but sms unless they're opted in from a human, it's okay, but an automated SMS, that's where the line is?
15:38Correct. There is legally, there's a huge delineation between, if you want to get like technical about it, it's called A to P SMS, which is automation to person or application to person is what it's classified as. That requires explicit marketing opt-in, either checking that checkbox at checkout, double opting in or putting that phone number, which the majority putting that phone number in the pop-up right and then opting into sms the majority of people that visit your site and also abandon your site are not ever going to opt in to that yeah specific yeah now if they end up reaching your site and leaving their phone number they can be texted once by a human and so that okay that's what's classified as peer-to-peer SMS, P2P.
16:29So human texting, another human. It's a separate channel. It's also, you require a separate phone number. So if you're using PostScript or Klaviyo or Attemptive or whoever for traditional SMS, you'll have your shortcode or a dedicated 10 DLC or 1-800 number. But with LiveRecover, you have your own live agent phone number, P2P phone number, and that should be looked at as your concierge, right? That's like your relationship. I have with my buddy at Bloomingdale's. I text him a couple times a year. Hey, I want that cologne. Do you have that cologne and that shirt? Oh, no, like, but I have, I don't have the cologne, but I have the shirt.
17:03Hey, come in Thursday. I got you. You text that phone number, you know, and it's the same phone number, same experience, like as if you have your own sales rep at that brand. Now, is those, these reps, so does each agent have their own phone number or they have, is it different by store as well too? No, everything's broken down by stores for the agents. Gotcha. In terms of the agent app. The phone number is registered by brand. Okay, so if three different agents, if one agent is sick and a different agent, they're all using the same number per store. It's through a web app that they're doing the messaging.
17:41Yeah, that's our internal app. And everything, like every brand, the way that we make sure it's full compliance and the best brand experience. because we also have the optionality now to do blue bubble RC, like the iMessage or green bubble SMS. But every brand we get on like an actual dedicated phone number. Yeah, it's amazing. Okay, so I think that's good context on like how it works. Now, what are the results you're seeing? Obviously, you're selling head to head against, I know you do a lot more than Abandoned Cart, but on the Abandoned Cart side, you're going head to head against the traditional automated flows from it's Klaviyo OmniSan, Attentive like Shopify has a built in one what are the results you're seeing compared to these automated ones yeah and the easiest way I always like to frame it is whoever we're talking to we're Switzerland right we sit on our island you let your email flows do their thing your SMS targeting for those that opt in maybe you have also AI chatbots or support chatbots, then the live recover, the live sales agent, we're focused on initially what brands usually do is say, hey, I just want to focus on first-time customers that aren't opted into SMS.
19:02So there's no overlap, there's no confusion. So I can truly prove out live recover is incremental, which 99.9 % of the time, we're going to prove that out, whoever the brand is. And so as long as we can justify that clear, very clean. Hey, here's who we're targeting, right? Because sometimes brands just want to target us for, hey, I only want LiveRecover engaging with customers that have a cart value of$500 or more and is a first-time customer, not opting into my marketing, whatever it is. But I know once at least we show them that experience, show them the conversion rates are always going to be substantially higher.
19:39We generally shoot for conservatively a 15 % to 20 % conversion rate with conversations that we initiate. Once we get a response, which our response rates are substantially higher, we generally, if we're going to start a conversation, we'll get a response 40 to 50 % of the time on average. And once we have that dialogue, our reply to purchase rate is two to two and a half X, the normal conversion rate. So if we're closing 15 to 20 % of conversations, our agents initiate. Once we get a response, we're closing and that's almost 50 % of the time. That's incredible. It's only SMS, right? The agents do the email as well too, or just SMS?
20:17I want to keep it simple, stupid right now. My partner, Corey Epstein, who he founded a D2C brand back in the day and had a successful exit distilled. I call him the AI godfather. I can't wait for you guys to meet one day. He's doing some special things in like building the future of our product. He has a lot of plans for potentially kind of doing different things where whatever a brand wants to do, whether they want to send a plain text email, a live person text or a phone, whatever. But what I've always really been focused on is keeping it simple, stupid, given live recover. The TAM is endless.
20:55And every brand should use a live recover or do this yourself or use a live recover or a platform that actually does P2P SMS. Because if you don't, you're leaving. 5 % to 12 % of revenue just sitting there on the table. It's insane. Why not test it? At the beginning of the show, I told you why everyone serious about their Shopify business should have their store backed up and protected with Rewind. There is no excuse not to. There literally is no undo button for Shopify. Shopify's own terms actually say that your data is 100 % your responsibility. Your products, your theme, your customizations, your settings, everything.
21:39They don't back up any of it. And no, a CSV export does not cover it. With CSV exports, there's no images, no meta fields, no themes, settings, etc. Nothing. I was talking to the people at Rewind about a brand where one team member actually ran a bulk update and accidentally overwrote 11 ,000 products. Orders, customers, contacts, all of it gone in a single action. Luckily though, with Rewind, it was a simple one-click rollback. It could be anything, a bad CSV import, a random app you just installed that messes everything up, or all of these AI tools that everyone's using to manage their store now.
22:16I have heard so many horror stories. Rewind just gives you peace of mind no matter what. If you don't have Rewind installed, you absolutely should have it. Go now and get it. Shopify 1 % dot com slash Rewind. you'll get an exclusive 30 days free on me. The link is also in the show notes.
22:39And you've got some data that like, it's not even that you just, you have to discount these abandoned carts to get them. Like, I think I got it here. I think this is from, I don't know if it's from a blog, but I pulled this in. Look at you, you're good, man. I got my notes, but for every one customer that redeems with a discount, 3.7 buy without a discount. Which is, I don't know, I know so many brands that they just give a 10 % discount on a abandoned cart emails or flows or whatever it is. But it's, they're throwing away money essentially on 75, more than 75 % on like, I'm not going to do the math in my head, but like on 85 % of the abandoned carts are not being redeemed with a discount.
23:23Like what's your philosophy on that? Yeah, it's funny, you know, and brands used to beat me up, man, on Twitter and whatnot, because we used to not have the functionality to support like our agents were only able to give a discount. Right. And I totally get like where brands were coming from, because multiple ways you can think that like just the experience, you never want to just be looked at as a discount shop. Customers are getting so much smarter that buy online, as you know, they're expecting a discount, whatever. But also people just add stuff to the cart and they wait a couple hours for their discount code.
23:57Like 100 percent. 100%. You know, I'm the most impatient person there is. I'm the worst online shopper to model after. Like I wouldn't, but at the same time, as soon as I get that discount, I'm going to use it. And so that eats at their margin, right? And what I'm always super, super focused on with anybody I speak with is when they're comfortable to actually test this, I want to make sure that I'm aligned with their unit economics. As long as our percentage take is aligned with their unit economics, it should be an incremental profitable lift. So it's not a one size fits all, although we'd always love that.
24:31I have amazing gun brands. I have amazing apparel brands. I have amazing furniture brands. I have amazing food brands. I have amazing X, Y, Z. Margins are not universal. So as long as we can align on what makes sense and also factoring in, if they're going to also provide a discount, let's be sensitive to what that percent needs to be. Maybe there's more flexibility if they don't provide a discount, whatever. But yeah, I think to your point, we absolutely can lean in and have our agents try to recoup that revenue without providing a discount and they do it. I mean, it does affect that traditional conversion rate a bit.
25:07Like when we're not providing an incentive that depending on what the brand is selling will change the conversion rate. I usually shoot for like 5 % to 10 % versus 15 % to 20%. But still, you're holding on to more margin, depending on how you look at it. I almost think it's fundamentally backwards to give a discount on an abandoned cart because the customer almost never has an issue with the price. Like if they saw the price and they added it to the cart and they got to check out, they're okay with the price. They're not okay with maybe the shipping time, shipping methods, shipping costs, your refund policy, returns.
25:47It could be anything else but the price. but then we like we just we reach out with this weird solution that's like oh here's a discount especially if you're selling like a higher ticket item like if you're selling like a$200 t-shirt the person's not going to care about a five percent discount on it they wanted to know that they could return it no questions asked for 30 days because they wanted to feel a certain way or you know like they're addressing the wrong problem they think that the symptom is always price, but it's, I bet it's almost never priced. Like I can't think of a time I abandoned a checkout because of the product price.
26:27I'm like, I put it in my cart. I got to checkout. And you know, yeah. So are your agents trained to know different pain points that customers might have and try to address those first? Absolutely. I think in twofold there, Jay, like something you just mentioned made you think like like i always say like in the experience like it's all like when a brand starts with us there's so much to tweak and optimize and test like right away because like i always like to say let's dance maybe you do initially start with i want to provide a discount target first-time customers and it's just one touch but maybe once we have that tech Once we text a customer and they respond to us, that's fair game for us to engage.
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27:12So if they don't convert, which is obviously going to happen, they don't convert after a day or two. We can also schedule a nudge where the agent follows up in two days or three days. Maybe there's an email in between or whatever, maybe. Or maybe when that abandoned cart triggers where an agent should have jumped in, you don't want a live agent to jump in yet. You want them to get other communications. maybe you are okay with us hitting up anybody that opts in as well so we can target anybody that abandons checkout it's just about how do you want to dance like have the sms flow go first then 24 hours maybe 48 hours you have the live agent to try and really close the deal and provide an incentive like there's so many different ways you can mix and match so i like i always say like always be tweaking like let's dance like the way that you know you're closing for first-time customers.
28:04Also might be very different the way that you close for repeat customers, which we could separate those flows and also post-purchase, right? There's so many different levers that we can pull. But initially, I just always like to say, hey, let's get in the door. You could start seeing what type of volume of conversations our agents are having, the quality, and then we can start to iterate on who are we targeting, incrementality tests, fold-out testing, etc. I imagine they're incentivized, right? The agents to some type of commission-based bonus something structure. Yeah. And every brand I pretty much talk to loves that, the way that we structure that.
28:41Because of course, they're also penalized based on quality. So they're never going to misrepresent the brand. We've done so many updates to our escalation path. We have a very robust way. Hey, if an agent actually doesn't know the answer to something, we can either escalate that directly to your team if you want us to pass that to your cx agents or your team of experts because we work with a lot of brands that are like have doctors on staff that sell health supplements or weight loss drugs etc you know there's a very like intricate like hey if it gets to a certain point pass it to them or they we can be the intermediary where we're basically troubleshooting it getting the answers from the brand and then communicating it back to the customer.
29:24But either way, however, the brand wants us to handle that. We have a very smooth pass up. We actually reduce support tickets, even though I never want to claim support. Our goal is to sell and optimize revenue for the brand. But we reduce support tickets by like 20 to 25 % per brand, just based on the intimate nature where our agents are coming in and driving impact in these conversations. I believe it. Is there a line they'll answer as much as they can? Well, they can probably answer questions related to shipping and basic stuff. But once it gets into product knowledge or somewhere? Is that when it gets handed off?
29:57Well, I used to get upset. Like, no, not upset, but just I didn't want to bog down agents for so much free and post-purchase support. But given that it all feeds into the whole ecosystem of value add for the brand and ultimately helping us convert more revenue, like, yeah, they do provide so much additional soft value, like outside of obviously, I can't tell you how many times think about it. Customers are texting. As soon as they have a good experience, They're texting our agents immediately, like a couple of days later or a day later, like, hey, do you know when my order is coming? And like all those things like agents can help with.
30:31But it's not like we're getting incentivized. Can they? So they have they can give tracking numbers or they can tell if it's shipped. Yeah, they have access to all of that, all the details pretty much. And if they don't, they can check with the brand because you're basically any brand that works with me is a half feet away from my agency. my right hand is Alina who manages our agents she used to work at Attentive, Flavio she just knows how to help any brand whether you sell knives, this, that to be successful implementing this channel and she's the one that literally goes and trains the agents daily and speaks to them in Slack and so you guys tell her something she immediately communicates it and gets that information back and forth So the agents they don't need a staff account to your Shopify store right they have their own live recover admin that pulls in just basic information about if an order is shipped hey this order number like that kind of an interface or do they get like a base do you get some stories giving them access at like obviously certain levels they have access to like all the order details so okay all of that's like passed within like their view is like a folder view yeah for brand that they manage and you know again if they don't if they can't access certain information, we can still troubleshoot it and get it from the brand generally very quickly.
31:50But yeah, they have access to pretty much all that order detail. Interesting. So I know I'm asking a lot of these basic level questions, but I feel like this is exactly what would be going through my head if I'm thinking about using it. And do they, is there any incentive for them to cross sell or upsell in any way, or do they keep it pretty much focused on the product? I love the way you brought that up because naturally, think about it. When a brand's using us, we're generally like a 20 to 30 % bump on their traditional AOV on Shopify. The basket size generally increases naturally, but also a lot of brands like to use our agents to either trigger, like this is where post-purchase can come in.
32:32We can say, hey, if someone bought X main product, in two days, I want you to trigger an agent to reach out to them to try and upsell them on this adjacent product and and or maybe you want them right then maybe you want them right right maybe you want them right then and there versus triggering two days later maybe you want them right then and there when they buy that product and say hey we can also include this product for 50 off and a free gift with this additional purchase if you want like there's a lot of different like we can do free gift from purchase we can do upsell post that I, but yes, to your point, that's where a lot of brands have been starting to test us on the post-purchase side is instant upsells on adjacent products, either a day later or three months later or whatever.
33:14And then subscription brands. Subscription brands are licking their chops to test us for all of our new features, but specifically reaching out to one-time purchasers, trying to drive them into a subscribe. Okay, yeah, we talked about this a little bit before we got on air and I thought it was fascinating and I kind of said, Okay, hold on. Let's talk about that on the show. So tell me about this. So someone orders Protein Bar one time and because there is a subscription on it, now you can trigger it where an agent will reach out and try to convince them to upgrade to a subscription. There or replenishing that order in 28 to 30 days, right?
33:56When traditionally they're likely going to be out of product. And it would be time to replenish that order. right so how do they i guess if they're going to upgrade to a subscription they just they give a link in the text thread and we could provide a discount on that on that like upgrade either instantly like either avenge like there there's multiple ways we could do it we could do free gifts with purchase but yeah link generally link back to code link back to where they can upgrade and also a discount associated one time does there even need to be a integration with a subscription app or could it just be with any subscription app?
34:37Like if a product has an active subscription and they're sending them to that product page to like, Hey Steve, noticed you bought this. Did you know you can save 20 % off or 10 % off? I can give you 50 % off your first month or whatever. If you want to switch to a subscription and then you share the link, does, is there an integration with the subscription apps or does it just work? We were looking into like, because there's a lot we could do with just having brands identify by customer tag, or there's some way to tag like that customer is a subscriber. But I'm not going to go down the technical path because I feel more comfortable with Alina or Corey talking through that.
35:21But we ended up now going the path of integrating directly with a recharge. And next is going to be Stay AI and Skiyo, etc. because there were just, I think there were some gaps in data. But now like actually us having the connection to a recharge, we can pull in all those different events. It's actually, you can know if, yeah, there's probably just keeps it cleaner. You would know if they either have an active subscription or had one in the past just to keep the messaging not. So you look like you, maybe that person just canceled the subscription and now they bought it once and now you're trying to sell them to a subscription again.
35:58That might look bad too. So I guess to have... Right. Yeah, that makes sense. That's interesting. How do you price it then? Is it like you're mentioning all these use cases. So you've got abandoned carts, the upgrade to subscription flow. You said this one brand is kind of, they did some surveys with it. Because I see on your website, I love your pricing model. Commission-based. Like if they make sales, I love that. But for something like this, or like this, the survey flows, How do you price that? Yeah, in the survey, they did provide... To answer your question, it's all priced the same right now.
36:37So there are going to be certain messages when we're sending these post-purchase. For example, the brand that sent the surveys, they did provide some type of coupon code if they did complete the survey. But there's still the element of... There's a lot of messages that went out. we probably had conversations with customers, had a good conversation, but like they didn't buy anything. Like we just eat those costs. Right. And then on the subscription side, we're in beta right now. So transparently, like unless we're getting a conversion or recover, churn, et cetera, like there, there might be a lot of times where we're not actually getting paid for whatever that conversion or that conversation, but we're exploring potentially a different pricing model for the subscription use cases?
37:27Because that's something we need to think through, right? Like maybe there's an element of, do we explore a certain aspect of like a per message cost with that? Or maybe, you know, exploring an increase in the overall percentage that brand has from a commission standpoint, open to it all. But the great thing is now brands are grandfathered into beta. So there is no additional pricing at this point. so yeah to me that i guess that seemed obvious but there is no sms fees the same way there is with a traditional sms tool if they make a sale there's the commission and there's like i think a flat monthly fee but then the rest is just if they actually make a sale but then there's no sms fees on top of that correct correct we eat all the carrier costs sms costs like that's i believe 99 % of instances, brands are going to look at that as an advantage when working with us because I want to be fully aligned with the brand.
38:26You're winning, we're winning, right? That's the only way to go. So regardless if your agent sent 50 messages or five messages, it doesn't matter. It's only if they get the sale. And I don't know, maybe there's an avenue we're going to help brands increase, maybe with this new ability to do so many new features. because we also have now a connection with TikTok where we can help brands sell way more on TikTok for brands, you know, from, you know, card abandonments and different ways that... Like DMs? Well, there's a huge gap between like TikTok Shop and Shopify where a lot of phone numbers are not being passed, right?
39:01So we're able to now select a lot more event data from TikTok Shop specifically and also do post-purchase events with TikTok Shop customers specifically, which there's like there's a black box between shopify and tiktok shop with that so yeah like i had an agency say hey can you test this with a brand and like we just so happen to have that same brand that like as a client that's doing nine figures they sell shower heads and we just launched that a couple weeks ago and we're already seeing some decent results like it's not a comparable like hey your conversion rate like compare your conversion rate on post-purchase with traditional partner country because it's much different you're targeting customers that like we're not showing intent to buy etc like but either way it's still incremental and it's optimizing a whole different like subset of channels so so yeah i mean anyway that and that's what we're that's what really our goal is right now is we're able to build so quickly like a lot of us are now given and all the advancements is really what is going to move the needle for you as the brand operator or you at this brand that you would you want to leverage live agents for like if you had a shiny genie bottle what would you want to use live recovery or live agents for alongside your ai and whatever to optimize for your specific brand like i'm starting to do a lot more customer interviews a lot now that i'm gonna i'm gonna try and tone down the travel a little bit because i've been on the road every week as you've probably seen jay seen you a bunch which i love but yeah i want to i'm going to start talking with a lot of our top brands and just all brands of shapes and sizes like to understand their current experience and what they want to specifically see because we could build very quickly i mean we launched subscription with recharge and tiktok in like a couple weeks so yeah yeah and i'm willing to bet most brands it's not something they think top of mind when they have a chat like the brand that wanted to send that survey or the brand like it's not something you normally think oh i could leverage hundreds of human people to send these messages.
41:04Like that doesn't, it's not a normal way of thinking. You start to think like, how can I build a tool to do this or buy a tool, but like you've got real people. And if you just make that known to brands, you're right. Like there's endless possibilities of what could be done if they know that it was there. Yeah. And some of what we fight against is that, right? It's like, you know, what we do is so non-sexy and non-cool right now with no buzzwords, MCP, flawed this, rock that. It just works. It's old school. It's human that actually work and help your brand sell more stuff. It just kind of operates in the background.
41:46But because there's not some crazy AI terminology with it and this, that, I almost feel like brands get turned off in a way. But at the same time, there are a majority of brands that are starting to come back. that initially had that AI buzz and I'm in love and everything needs to be AI. I feel like a lot of what I'm hearing from really like a lot of top thought leaders, big time operators is like, we've never wanted to be able to differentiate a more authentic as a brand. And this is going to help us do that in a lot of ways. So it's not, oh, I should just do AI or I should just do live people.
42:24It's, I should do AI, a lot of it, figure out where it fits. I should do my SMS retargeting, email, and I should do log people because it all fits in. Yeah. At the top of the show, I mentioned OmniSend can now talk to ChatGPT and Claude. And I want to tell you why that's even bigger than it sounds. So if you missed it, quick catch up. OmniSend is what I use for email and SMS on every Shopify store I work with, plus for this show as well. And you can now connect your AI Cloud Chat GPT straight to your OmniSend account. Your data, your campaigns, your flows, everything. You open a chat and you ask, what should I focus on this week to make more money?
43:05And it will come back with real answers about your store, which flow is underperforming, which automation needs improvement, which customers are going quiet, what's missing, everything. My favorite part though is AI segments. I used to build these by hand, clicking through filters forever. Now I just type something like customers who bought twice, but ignored my last campaign and it just builds it. And anything it writes already sounds exactly like your brand because it pulls from all your previous emails from your website, your logo, your color, your voice, everything. I've been doing this for 15 years and this is the closest I've ever felt to having a full-time marketer sitting right beside me.
43:43I have a link for you in the show notes that will give you 30 % off for your first three months, or you can just use code J30 when you sign up, J-A-Y-3-0. If you're ready to migrate from Klaviyo to OmniSend like thousands of others, they will do everything for you. You just show up and all your campaigns and automations from Klaviyo will be set up and running in OmniSend, ready to go. And usually at 35 % less what you were paying Klaviyo. It's so interesting. We take for granted that 15 years ago, every time we called a brand, a human picked up. if they had a chat thing on their website, you were talking to a human, like there was no bots.
44:21And now that's like a luxury to talk to someone. And brands need to realize that, that you can differentiate by just putting a human. It is so, I would feel blown away. Like every site I go on, I know the chat I'm starting with is always AI and it will try its best. But then eventually I almost always get to a point where I'm like, speak to an agent, speak to an agent. brother. I mean, we're building that too. We're going to have something called inbound because one of the biggest teacher requests that we have right now is what you just said. Hey, like we would pay you whatever you want, more percentage or a flat fee per month of like a couple thousand dollars.
45:03If you can have your agents be like a chat bubble in the front of like when someone enters the site and they like want to talk to some chat with an agent, chat with a rep. And then we're having that conversation and helping them through their journey on the customer site from the start of the page versus them having to reach the checkout. Because if a customer doesn't reach the cart or the checkout right now, we don't ever get involved. So, you know, like to your point, more ways that a brand can have the ability to connect with customers. Because, you know, right now I'm dealing with it right now.
45:34I'm dreading calling the IRS, calling the town of Nutley and all these things because I know I'm going to be on hold for three years and not going to be able to talk to someone. Yeah, I've been, we've all been there. Well, you said A is to sell with a soul in an AI driven world. Tell me what that means. I mean, this, I feel like leads into it a little bit here, but selling with a soul. What is that about? Selling with a soul. That sounds like some of our marketing. I like it though. I pulled it in from somewhere. It must've been because I have my, I think at the end of the day, I just think it's all about being authentic.
46:08It's so hard. I think it's so hard to, for people to just be normal these days. Like I even, like we were talking about before we jumped on the pot, Jay, it's like, I just, what you see is what you get with me. You know, from the moment I wake up to the moment I go to bed, like I try to be as authentic as possible and really embody the brand. Right. And all my social media probably annoy people like crazy and people get retargeted with our ads of me talking this and that, but it's like, how in such an AI driven world and a world that demands so much attention and pray for attention is like, how do you stick out?
46:42I don't really, I don't really know any other way than to just be your true self. You know, even when I write on my content, there's no M dashes 99.9 % of the time, there's no this, there's no that. I, you know, I go off the cuffs and just share, you know, raw things. You know, I get off a call and share exactly what happened and, you know, might not may not be for everyone but but yeah i think like you know truly from the brand side like it's so remarkable to see sometimes brands that had so much hesitation and were so convinced that this type of way of doing business or talking to their customers just wouldn't work but you know the only time I've genuinely seen our product not work for a brand is when this brand sold a very interesting business they were doing like eight figures but they sold like custom like a custom quilt that basically you'd send a bunch of shirts to them and then they would cut them out and craft it and connect them all so it's like you know you were bobby who's 18 years old and your mom wanted to get all your jerseys together blah blah blah you know like it was cool but there is so much back and forth of like issues with the order backup returns this that and you know once our services are rendered like in our terms and conditions we're not refunding our commission based on the customer refunds so like the way that they were just structured it just didn't work but yeah outside of that i mean we work at brands that sell custom car parts seven thousand dollar engagement rings you know yeah five thousand dollar beds you know twenty dollar spices.
48:21It really doesn't matter. Having real actual people, active sales people for your brand. Like just like if you're at the mall, I'm at the mall. I'm not, I'm not, you know, I might be in the minority, but if I'm at the mall, I'm going to buy shoes or a shirt or whatever. I'm enjoying that process with the sales agent. I'm not talking to chat GPT and getting recommendations or whatever. Like I'm just, we're going to have the old fashioned way. Yeah. So where do you draw the line? I sometimes hear people say that the best is a hybrid approach, you know use AI what it's good for use humans what they're good for automate what needs to be automated and humans for the other part like obviously brands are going to be using automation and AI for a portion of their business like there's got to be things that it's like yes use that do you have a rule in your head where you say like okay this is where humans excel and you should leverage it and this is where automations and AI excel and is do you have any guiding principles for that?
49:20Yeah. You know, it's funny. I see a split a lot of times because I always am interested to hear from operators at the brand level, like what their sentiment is. And I see such an interesting split. Like certain brands are like, or certain operators are like, I want to retarget everybody that I can under the sun as many times as I can. I can't send them enough emails. I can send them enough SMS. LiveRecover can hit up people that are not also opted into my marketing. I want them to hit up anybody they can. I also don't totally agree with that. I always enjoy brands that are very sensitive to that experience and really take a very dialed approach.
49:58Lately, people not actually doing SMS, doing email, not doing traditional SMS, but using LiveRecover for everything abandonment, using AI as a layer, of course. But I'd say crawl, walk, run. So my recommendation, and based on what I've seen successful, is you start live recover with a small subset of traffic because you're not going to believe it. So just have us either target very high value customers. So like over X amount. Yeah, like we only target customers that have a lifetime spend of X or they have$300 or more in their cart, right? And as a first time customer. and then you know over a 30-day period we measure the volume we measure the success we measure how those conversations look and then maybe we open up that net a bit and say hey why don't we now also start to target people that are repeat customers and let's adjust that threshold so we can now have more because the more we restrict in terms of who we're targeting the more the less sample size you have to see of what we could recover and optimize etc so i always say like crawl, walk, run in order to make everybody comfortable.
51:09Because once a brand sees, A, you can get set up with us in 10 minutes and we could start recovering revenue in like 30 minutes. So it's like the easiest thing you'll ever set up on Shopify and in your tech stack. And then over the course of time, we just kind of sit in the background and do our thing without you having to be involved. And so a couple of weeks go by, they start to see X amount of revenue recovered, X amount of recovery rate. It's very good conversations. seldomly if someone's going to want to leave and turn off. Yeah. I think you kind of answered my next question. I was going to ask if someone has a smaller budget and they wanted to try it, what is the first place to plug in?
51:46But you're saying pick the first-time customers who've never ordered before and haven't, I guess, also haven't opted in because they're brand new. So you can SMS them and you can pick a higher priced item. If your average order value is$40, maybe want to target 60 and up or something along those lines. Or 100 and up. Yep. Yeah. Super interesting. What are you doing? So I don't know. Do you know the exact number? Like you said, your average recovery rate, is it 21 % you said earlier? Yeah. Average conversion rate across all brands is 21%. Crazy. I think for normal abandoned cart automations, like it's in the single digits.
52:28I don't know exactly. Do you know what it is? Like 7 %? I mean, for traditional SMS, I would say like on a good day would be, you know, on a good day would be six or seven percent. So you're roughly tripling them. What is happening inside those conversations that are so different? Like, where's the gap? You know, it's it varies so much because there are, of course, a lot of conversations where, you know, customer didn't even realize they could talk to someone. Yeah. And maybe the brand is leaning in with like, hey, saw you check this out. Is there anything I can help you with or do you want a discount?
53:04And they're like, oh, yeah, I'd love a discount. Right? So the immediacy, like, right, this is truly like someone's leaving the store. Right. Because it's 30 minutes post, right? So 30 minutes post, they're getting a text message from an actual real person, from the brand, from where they just were evaluating whatever. and and so that that instant definitely plays a role in a lot of like we measure like conversation data and a lot of like customers i'd say 60 to 70 plus bypassively you know have that just maybe a basic question or two right also think about from a brand side when a brand's over complicating getting started with us like oh like how are you going to answer all my questions how are you going to do this how is you a lot of times they're very basic questions starting walls like you know they have a basic question or two sizing this right where i get excited is to your point what else happens is like there are very complex questions you know maybe they have sizing questions like someone says i normally run big in a large like you have a sizing chart if i also want to buy this for my sister who is x like what is your recommendation like there's so many different nuances we can talk for days but you know that's that's where the automated ones but they fall apart yeah even with the best ai even with the best ai you know if you're like hey like hold up like like you're talking to an ai bot like our agents actually i've seen in a conversation not that this really matters much but it's like hey hold on give me five five minutes i'll be right back i have to use the restroom like ai bots not going to be able to be that authentic you'll come back and it'll say are you still there are you still there chat closed well you know we were talking about like how we have you know in the nature of us i guess doing good business you know you always have some competition flaring up out of the woodworks and told you about a recent you know company that made a competing product that's also ai enabled so it's not really apples to apple but anyway they're targeting all my customers so their their whole moat is that they still do have real people but there's also ai on top of it so one of my brands that started to test them for a period of time showed us a conversation and it actually showed a customer being like, are you really a human?
55:18Which our agents get all the time. Are you really a human? Yeah. Obviously, we can answer that authentically. Probably one of the most common questions. Very common. When in that conversation, when the brand showed us, our agent asked, or the customer asked the agent, are you a real human? And the response was, I can't answer that question. Right, because they don't want to say no. They also can't lie. And so interesting. How long do you think Like, do you think there's a world in five years where AI becomes so good that there's like, or like there's never a need for human or does the more people get frustrated with it?
55:54I was listening to Gary Vaynerchuk yesterday and he's big on... What does my Jersey boy say? He's a Jersey boy. What does he say? He's big on like things going, not organic, what's the right word I'm looking for? Like going back to non, like teenagers wanting non-smartphones and people wanting real experiences. like actually kids playing in the park. Yes. Yes. Like, yeah. And like playing like Sega together. Like, yeah, like I'm with that. He wants to open, he wants to open a restaurant. I think he's got seven or eight restaurants. And he says he wants his next restaurant to be one where when you come in, you have to put your phone in a locker and every table is a communal table.
56:31So you have to sit with other people. You can't just sit and stare at your spouse and not talk about anything. You have to sit in a group and learn and meet new people and talk. And that's, yeah, he says as he, like, brother, I'll be right there with you. I would be taking retreats with you, you know, because, you know, you know, I love you. So I want to hang out with you more. Like, I'll be at your table with my phone in the locker. A hundred percent, man. I mean, we might start by switching a little bit, but we'll get over it after 15 minutes and then we'll have actual real dialogue, you know.
57:02I love it. So you've worked with, is it 4 ,000 plus brands? Oh, gosh. They make me feel my age. That's why I lost all my hair. hats. See, this is, I mean, it's my AI agent scraping things, pulling this in. So I'm going to trust my agent here that told me that you worked with 4 ,000 plus. Over, over 4 ,000 at this point. You know, we have close to, you know, we have close to 800 brands live, well over 4 ,000 that I've come across over the last five years. Is there anything that the best ones are doing different? Like I know, obviously like, you know, the agents are the ones talking to people, but I always say, you know, how you work with an agency, how you work with a product, how you work with like how merchants work with us at Bold affects how good their products are able to do.
57:47Like, what are the best brands using LiveRecover do to really get the best results? Is it for LiveRecover? Yeah. Yeah. So like if I'm a brand and I want to use it and I said, you know what? Tell me exactly what I have to do to be the best customer you ever had. I want to be a case study. I want to be on the front page of LiveRecover as your poster boy. What do I have to do as a brand to be that? Like how do I be a good brand with the tool? Yeah. So any brand that I work with generally, I'm going to give them access to Slack support at no additional call. I want every brand just to get on. And I know once they install the app, they're going to be successful because our team and the way we do business is phenomenal.
58:32We're going to help you execute. Now, the best brands are communicating with us in Slack. And I'm not talking like anything crazy, like initially getting us some brand guidelines so we can build out that knowledge base exactly the way they want. So we're not messing up any conversations, right? Because that's important. And if a brand is very sensitive to how we're going to interact with their customers, why don't you help us out a little bit there? So that's important. And then two, if I'm going to label two things, it's that. And then being open with us and communicative with us on how we're setting up that initial flow of who we're targeting.
59:10Are we providing an offer or not? And how we're going to measure that for the first 30 days. And then also their marketing calendar. Right? Because we're... Think about it. if we're having conversations with all these people that abandon checkout and are on your site, et cetera, and we're not aligned with what you're also offering on site or all those other discounts that are floating out there, we might provide somebody an offer or have a conversation that isn't aligned with what your existing offers are. Like, for example, Memorial Day, what is the brand's site-wide offer? We should be pushing that versus providing any discount codes right so it's the best the best bands are aligning with us on initial setup of brand guidelines and the marketing calendar market you know do they have do they have it in men where they like put this in or do they actually like tell an agent or if i'm running a promotion for the next month where it's buy any two bags of coffee get a free mug or whatever and i want my agents to know about this how do i convey that yeah dude it's like honestly the like a brand that they're okay with me sharing this too is like like think about it like we have like very like they'll just go to us in slack and i'm going to share this with you real quick am i able to share screen yeah you are yeah yeah here is my slack just real quick i'm going to share this these are my boys from jordan craig i love my brand from my my live recover live recover fam from jordan craig so think about like these are the upcoming like this is the sale name for the upcoming memorial day sale or whenever their past sale was it looks like this was last month and like they're letting us know hey here's when the sale start date is end date here are the codes here's the offer and then like our agents are communicating back and forth with whoever's running that at the brand and then once we said that they're right in there in the slack channel Oh, they're right.
1:01:05Like, dude, like we're literally an extension. We're an extension of these brands' team. You know, brands that are close to doing a billion dollars in revenue are like coming to us like as if we work together at their office, you know? I didn't realize they were that connected. That's kind of how we want it to be. Yeah. Like that's how connected you can be. And like, we've also started to dabble in, should we invest or should we start to think about like a service model? Because given the level of support that we provide, like brands are getting more value than what they're paying for. Of course, that's always tough to articulate and everyone's going to have their own opinion.
1:01:37But that's why I'm like, when a brand has issues with pricing, like talk to me, let's figure out what actually makes sense in order for your brand to be profitable. Because I know if you're profitable, this should never be a question, right? Like, not just the incrementality, but like the value add that we're actually adding to your business. Because there's so many different nuances and ways that we should be driving value, not just from money. We could do ad hoc reporting with all these insights, right? We talked about the insights. I can slice and dice all this transcript data and give it back to you, Jay, to know every single customer that abandons checkout, what they're saying about PillowCube, you know?
1:02:16Yeah. And you'll never get that with an automated text message that people can't reply to. You're either going to get a click that you just give away 10 % or you get nothing. You get crickets, but you don't get the data that's huge. That's huge. In my head, I'm thinking, do you get the transcripts? Like, do they get every kind of brand? So I would take all those transcripts and I would throw that in Claude or ChatGPT and I would ask it to read through all of them and pull out the five themes of questions and I would answer those on my checkout. Like, yeah, huge. Exactly. That alone, that's why we built the Insights feature that does basically just that.
1:02:59You have that built. Yeah, we have that built because about a year ago, one of our brands, Jordan Craig, you know, came to us and we were betaing that and we basically gave them a beta of it. And then they use that data to read. They were realizing that their shipping, like their whole shipping, basically customers were their shipping was an absolute mess. And so they used all of that data that they were compiling. And they they actually built a shipping program into three different tiers, like gold, silver, bronze, based on all the transcript data that they evaluated from all of just our conversations.
1:03:36Not saying that we're the only conversations that they're having, but there's so much value in just our data that we're actually having with legit potential customers that it transformed the way that they now handle their fulfillment, which is kind of a dope use case. That's worth its weight in gold right there. Amazing. This has been super informative. I didn't realize, like I had a very surface level understanding and I was, I'm actually blown away. I didn't realize how connected you would, you are with the agents. I, in my head, I kind of thought it was, there's a bucket of agents and you have just an app and you don't talk to them, but I had no idea it was so.
1:04:14No, I appreciate that, man. Yeah, I mean, like, they're like my family, you know? It's like our family, Corey and I. And what's also special is like over 90 % of them we've retained since we started the company. You know, we even bought the business from Dennis and Cody initially. Yeah. So there's a lot to be said about that. They eat, breathe, and sleep the space, you know? Amazing. Okay, I know we're over time here. You've been super generous. I want to ask you, you know, the topic or the theme, the title of the show, sorry, is Shopify 1%. And I often like to ask guests if there's something they can do today to improve their Shopify business 1%.
1:04:53Because I don't know if you know, I didn't invent this concept. But if you improve 1 % a day for a year, you're 3 ,700 % better at the end of the year. Compound. Oh, baby. In your space. I mean, right away, my mind is going to like, not just 1%, 10%. Get a human on your batting cards. but can you leave our listeners with something they can do to make their store 1 % better? Gosh, 1 % better is, you know, I hate to say it, 1 % better, I would say... It can be 2 % or 3 % or 10 % or 21%. Gosh, Jay, call me biased, but what's coming to my mind, and this is what I've been talking about, like I've spoke at a couple of events this year is screw LiveRecover, screw anything.
1:05:41Like you should be figuring out a way to talk to your customers that go to your site and leave without buying. There's a lot of customers you can talk to today, either text or call, they go to your site and abandon checkout. Do that for a period of time. You're generally going to reach a certain scale that either A, you're worried about, oh, am I calling someone or texting someone that's on a do not call list and I might get sued for? Or B, you're just going to reach scale where you're not able to follow up with everyone. But what you're going to always do is you're going to get insights from those conversations that could potentially transform your business overnight.
1:06:20So screw live recover, screw this. Just talk to your customers genuinely at any point and see what happens for you because I think that'll get you way more than 1 % better. I love that. That's so good. And it's something that sounds obvious, but hardly anyone does. But that's, I don't know what it varies by store, but roughly 97 % of the people who come on your store don't end up buying. So you're not talking to 97 % of the people. Like if you put that in the context of imagine a retail store, like what, like 90, imagine 97 % of people come in, turn around and walk right back out and nobody talks to them.
1:07:04That's what's happening. It's mind blowing. Like, and then, you know, like in this day and age, just even having, you know, I've always said like the only good qualities about me, the only good qualities about me is I have a decent memory and I can talk a little bit and just being able to actually genuinely talk to people. Way more good qualities about you than that. Come on. I appreciate you, Jack. But no, I mean, just being able to talk to people these days, gosh, you can change the world if you can actually talk to people. Cause I tell you, People don't even know how to communicate these days.
1:07:35We're recording this right after SubSummit. And this will probably go in a couple of weeks. But we literally said this today, like being at SubSummit last week, there's been a few brands that we've been talking to or like some of them are just. And then at SubSummit, like we're giving hugs, like people are running up. And it's like it just would never happen, you know, and talking, being in person, meeting them. Yeah, nothing beats it. So nothing. I couldn't agree more. Nothing. Steve, I know you've got a little bit of an offer that you were super gracious to before the show. I asked you if there's anything you wanted to extend to our listeners.
1:08:09So first of all, I guarantee there's a lot of people listening right now that are thinking about trying or using LiveRecover. And I'm a huge fan. I cannot, I am not sponsored in any way to say this. I just genuinely believe in what you're doing. Maybe LiveRecover will be a sponsor one day. Who knows? But like, that's not the point. Been that customer. I have been that person banging my head against a wall. I've been that one yelling at the AI agent, just screaming, human, human. And I think what you're doing is amazing. And I love that it is going against a lot of what is so easy to get caught up in right now.
1:08:44And every time I open Twitter, it just, it feels like, A, I'm behind on everything and the whole world is ahead of me. And even though I'm, I know that I'm in like the top 1%, but you feel like you're a million years behind and you feel like everything is. but you're, you got real humans, you know, that never goes out of style. And I love what you're doing. So if someone wants to try this, where can they go and tell me about this offer that you mentioned? No, I appreciate you immensely, Jay. And yeah, the, the offer I wanted to mention before they actually kicked me out of this place is so in all seriousness, I want to make this simple stupid for anybody to just test.
1:09:23So I actually would like to offer what we call it free summer. Jay and I called it free summer. So if you're signing up from the show, whether it's a link Jay provides or just reaching out to me that you found that about through the show, we're going to give live recover for free to test for the entire summer. So June, July, August, you will not, you can literally get free money. Even if for whatever reason, you don't like live agents. Everybody likes free money. And this is a tool that you'll be able to use for the whole summer at no charge to test. Amazing. No brainer. Let's try it. Steve, thank you so much.
1:10:00It's liverecover.com, right? Liverecover.com. Find me on socials. It's my name, Steve Lacarica, IG, LinkedIn, Twitter. And love to speak to any of you. Steve, you're an absolute legend. Thank you so much. You're the GOAT, Jay. Thank you so much for having me.
1:10:22Thank you.
From the publisher
How do I recover abandoned carts on Shopify? Ask anyone at a trade show and they'll tell you the answer is AI. My guest built a company doing the exact opposite. Steve Lequerica is the COO of LiveRecover, where real humans text the customers who bail at your checkout. Baymard says just over 70% of carts get abandoned. Steve's agents convert 21% of the conversations they start, roughly triple what a good automated Shopify SMS flow pulls on its best day. One brand recovered $147,000 in a single week. Real people, apparently, still work.
So if you're asking yourself "Do abandoned cart text messages actually work on Shopify?" or "Should I use AI or real humans to recover abandoned carts on Shopify?", this episode is for you!
KEY TAKE-AWAYS:- The legal distinction almost no Shopify merchant knows about: why a real person can text someone who abandoned checkout without opting in, but your automated flow legally cannot
- For every 1 customer who redeems a discount code, 3.7 buy without one. So why is everyone still leading with 10% off?
- What happened when a shopper asked a competitor's AI agent "are you really a human?" The answer is why this episode is called what it is
- The abandoned cart is almost never about price. So what is it actually about?
- The brand that rebuilt its entire shipping program into three tiers using nothing but text message transcripts
- Why 21% recovery beats the 6% you get from automation, and what's actually happening inside those conversations
- The post-purchase play: turning one-time buyers into subscribers with a text from an actual person
- What the best brands do differently in their first 30 days (it takes about 10 minutes and a Slack channel)
- The black box between TikTok Shop and Shopify that's swallowing your customer phone numbers
* LiveRecover: https://www.liverecover.com/ * LiveRecover on the Shopify App Store: https://apps.shopify.com/liverecover * LiveRecover pricing: https://www.liverecover.com/pricing * Steve Lequerica on LinkedIn: https://www.linkedin.com/in/steve-lequerica-589b207a/ * Human vs AI SMS, LiveRecover's data breakdown: https://www.liverecover.com/knowledge/human-vs-ai-sms-cart-recovery * Your Customers Hate Chatbots: https://www.liverecover.com/knowledge/your-customers-hate-chatbots-heres-the-proof * Baymard Institute cart abandonment research: https://baymard.com/lists/cart-abandonment-rate * Klaviyo: https://www.klaviyo.com/ * Postscript: https://postscript.io/ * Attentive: https://www.attentive.com/ * SubSummit: https://subsummit.com/ * Bold Commerce: https://boldcommerce.com/
π SPECIAL OFFER FOR LISTENERS:Steve is giving Shopify1Percent listeners what he's calling "Free Summer." Sign up through this show and you get LiveRecover free through the end of the summer. No charge, no catch. Mention you heard about it here, or reach out to Steve directly.
Support our amazing sponsors that make this show possible π βοΈ SATHI βοΈThis episode is brought to you by SATHI, the best affiliate platform built for Shopify brands.
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