Brands are cancelling all marketing activity except this....with Vimmi Co-CEO

The "TikTokification" of retail - live streaming from mobile devices direct to consumers.

Product videos distributed across social media, with purchases taking place on site or in e-stores like Shopify.

Is off line retail dead?

Eitan Koter,  Co-CEO of Vimmi, explains are driving 50%+ conversion rates on live shopping events.

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Transcript

Jim James (00:00)
Now you've no doubt been looking at your social media and had products be displayed to you, maybe in 15 or 30 second clips, and they're increasingly powerful. And you may have wondered how that happens. How does a shoppable video get made? How does it get delivered to your phone? And what makes great video content if you've got a product or a service

and you'd like to also engage and start using shoppable video. Well, if that's the case, you're in luck because I've got one of the pioneers of the industry here. He is the founder and CEO of a company called Vimmi He's based in Tel Aviv. His name is Eitan Koter. Eitan, welcome to the show.

Eitan Koter (00:44)
Hey, Jim, it's a pleasure to be here. Thank you so much for inviting me.

Jim James (00:47)
Well, well, I, you know, I am so happy to have you here because you can help me to understand what my daughter is watching on her phone, because I have teenage daughters and they're constantly getting these short form vertical videos. And it's a fascinating industry and one I know nothing about. So help us to understand what is shoppable video. And you're going to also tell us about sort of the Tik Tokification of the industry and really of

of merchandising and retail. So, and I think at the end, you're even going to share with us some amazing coupons so that people can try Vimmi at the end for their own products and services. take us away and tell us about shoppable video and what Vimmi does.

Eitan Koter (01:33)
Yeah, so, Jim, we are all immersed in this endless scrolling where we spend time on TikTok or Instagram or any type of social media platform. And those are primarily triggered by videos. So video is like everywhere. According to Cisco, video is like more than 82% of the worldwide Internet traffic. So video has been used in so many different use cases. And we saw the emergence of video being used for,

for shopping and for commerce in China with the rise of live shopping. you've spent a good share of time also in China and you saw the growth of how many dollar values or RMBs people are doing on a daily basis in China on live shopping. And this new concept was introduced to the West probably three or four years ago, primarily with the primary intention to deliver or to direct users to the brand .com website.

But what we saw and what we understand now is that social commerce is emerging as one of the largest business opportunities out there for any brand or retail or any type of business, because it's become so difficult to acquire customers or shoppers to your own dot com website. But people are spending time in those social platforms or marketplaces and other publishers, websites and affiliates. And why not deploying our ads or our shopper experiences

where people are spending their time. So what Vimmi is doing, are connecting our platform to existing E-commerce platform that brands might have. We are syncing product pages to our platform, and then we can associate product pages with videos. And those videos in one click are deployed in a lot of destinations, what we call destinations, can be your own TikTok account or TikTok shop account, Instagram, Facebook, YouTube, Pinterest, know, could be also Amazon or

Walmart, any type of affiliate engagement that you have, can just copy and embed code from our platform and deploy it. And then you have an interactive video player that people can purchase from within the video itself. So the idea is to deploy those videos across a big list of channels that brands can partner with. And it's very true that short form videos is increasing dramatically in terms of adoption because primarily, as you said, the Tik Tokification of things.

where TikTok taught us that it needs to be authentic. It needs to be short and high production values and long form values are probably something from a different era or something that is probably for YouTube. By the way, YouTube long form video is growing as well. So video is like exploding in every type of use case. And yeah, mean, the idea is to become more authentic,

going back to your roots, trying to explain your differentiators and videos in very short videos, use the right hooks and get attention, not only attention and impressions, but actually conversion. So we enable shop ability, what we call in each one of those platforms. They're fully integrated to our platform and each one of them provides different ways of checking out. Like in TikTok shop, the checkout must be within the TikTok app. Right. And then you can even have fulfilled by TikTok in terms of shipping and

So this is one aspect like an end to the platform like YouTube or Instagram. You can obviously tag product, but you can redirect to different product pages to complete the checkout. So we enable this from a single backend, saving a lot of time and resource for our customers.

Jim James (05:07)
Wow, there's a lot in there with Vimmi and that's V -I -M -M -I, by the way, .NET for those of you that are looking to dash to the site already. So, you've got a couple of things in there that I'd to talk about. One is from a workflow point of view, my understanding is that people would have made a video offline, maybe using their mobile phone, for example, and they're uploading that to your platform, to Vimmi, and then

Eitan Koter (05:14)
Correct.

Jim James (05:36)
It's a distribution platform. Is that right? So it's you load once and you, if you like, syndicate that ad to multiple platforms. Is that right?

Eitan Koter (05:46)
Yes, correct. So you upload videos that can be obviously pre-recorded short form videos, usually vertical or long form video. It can be a six by nine or horizontal video. We manage that in a very, professional way in what we call digital asset management. So archiving and storing those videos in a professional way, like you are becoming, for example, a broadcast station. Right. So we manage all your videos. But if we deploy our video player

inside your website. So we provide also the streaming capabilities, the content delivery network to support the streaming to your website. And once you have that videos deployed in the platform, and as I said, the first step is syncing all your product pages, it's very easy to associate product pages to those videos. And you can have multiple products described in one video. And once you do that association,

And then in one click, you just deploy these videos all over your networks. And this works for pre-recorded or video on demand type of video. The other form of video is live. But we know that live is very, very powerful and create a lot of powerful emotional engagement and relationship between brand and potential shoppers. And it's a very powerful way to create this loyalty

relationship, which is very, very important these days. And so in our platform, you can go live and again, sell your products when you go live. Again, you associate products to that specific live event. You can invite co-hosts a moderator to answer people's question on the chat. And we aggregate, of course, we stream these live shopping events to your own website, but also to all your social networks and even to Amazon live and many other platforms. And people are asking questions through the chat system. This is also a part of the platform.

And a moderator needs to reply to this question again from a single dashboard. And you indeed can create video checkout or video shoppable experiences also in a live event. By the way, we record all the live events and what we see that sometimes 50% of the sales happen 24 hours after that live event. Because if you do try it, you need to continue marketing, market those events after the live event as well. Of course, you do the marketing pre-event and during the event.

But if you it also a post event, creates a lot of other additional sales opportunities with messaging and campaigns that you can do from the Vimmi platform as well.

Jim James (08:16)
Yeah. So in that sense, you're almost creating a, well, a commerce led webinar, aren't you? You've got the chat and the people be able to convert there and then maybe a special offer. And you're right, lived in China for 14 years and we watched mobile commerce and streaming taking place, especially of course, when you've got a large geography and maybe the unit price is not that high. If people could look at that

Eitan Koter (08:22)
Nice.

Jim James (08:45)
good or service from their mobile phone. They didn't have to travel. No, no cost of take your taxi to the shop or the time it would take to get from one part of town to another wouldn't make it worth that kind of purchase, right? But with, with live streaming, they can literally watch it as and when they want to. But this ability to purchase inside the app is amazing. So what about the, the metrics? Because that's the other part of it in terms of

Eitan Koter (08:48)
Mm -hmm.

Yeah.

Jim James (09:14)
how well is that campaign performing? How do you help with that?

Eitan Koter (09:20)
Yes, because we see a lot of companies want to do that. So we don't need to educate the market. People, brands, owners and business owners know that video works, but they are struggling to find a way to make it work for them first because they never did it previously. And they say, okay, video is probably too complicated and I need to prepare a lot of times, which is not the case. Right. And maybe they don't know exactly how to choose the right host or how to convert. So we help a lot with that. And we have like a white glove.

business unit that helps those customers with even with content, with sourcing content, working with influencers, but also giving them a lot of knowledge how to do things in a way in the correct way. And definitely if you go live in a live shopping event, you need to build up towards this event. The buildup is through various marketing campaigns where you add it to your newsletter. You probably deploy it on social media and announcing this, maybe even providing some special terms like a discount or a coupon code or whatever

kind of a new loyalty program, try to provide something which makes people join the event. Because when people are joining the events, all of the people that are participating in the event, they have high intent to purchase because this is the only reason why they are here. During the event, you need to make sure that you describe the product correctly. And it's very different from one brand to the other because you need to understand where you are in the marketing funnel. Like if you are in awareness stage,

consideration or decision. So that various type of content that you need to create for each one of those steps in the funnel. Like if you're in awareness stage or talk a lot about education, so educate the people about the market, not just specifically about your product, but the market that you operate, what are the trends, a lot of market information like statistics and some variety of checklists, things that helps the users

when they are in consideration phase and they are comparing. So provide a lot of comparisons. Like don't be afraid to mention your competition. We see this also very powerful in blogs these days where all the versus blogs are being written by the brand or by the vendors themselves, right? It used to be written by the affiliates, but now the vendors or the providers themselves are writing it because it helps a lot on the Google ranking. So under consideration stage, a lot of

how to provide some case studies. And when you are in decision making stage, talk a lot about your product, right? Provide some functionalities, the values and prices, right? So it's very important to understand what type of content you want to create in each one of those major awareness consideration and decision steps. Also pay attention that for live event, most of the time people want to move away from

just putting themselves in front of a camera because they think that they're not good at. But people are looking for the authenticity. They're looking for that you know how to answer the questions in real time. And you are the real thing. If you pay some influencer or some celebrity to do that for you, it won't be delivered. So we see a lot of bad experiences because brand owners wanted to go with a specific influencer or a specific host that they didn't have the right knowledge or information to deliver the right questions in real time. And the whole event was a

wasn't that successful. So I believe a lot in a founder led growth, founder led content, executive led content, employee generated content, not just UGC, but also EGC. So think about employees that are going live or in front of the camera. This creates a very, very powerful brand sentiment and loyalty.

Jim James (13:03)
I think you've raised a lot of amazing issues there as well about how you can make this accessible, if you like, without a big budget, right? You my show is all about people being able to do this without a big budget. And I've looked, know, with Vimmi, by the way, you also have a free entry level, don't you? A starter plan for people, which we could talk about a bit later on. But you've actually got a starter plan, which will get people going. And one of the thoughts that

seems to be coming to the fore now is in this age of AI, that authenticity is going to be in a way the currency, isn't it? But where do you see AI, Eitan, playing a part? Because you talk about authenticity on the one hand. What about using AI to, for example, to create content or this use of avatars? What's your view there?

Eitan Koter (13:50)
Exactly. So before you go ahead and create the content, you need to decide what type of content you want to create. And I believe a lot in consistency and daily publishing. Right. So you can use ChatGPT or any other tools out there just to create, to define who you are, what you provide, what are your products, who are your competition, describe your audience, who is going to buy your product or by the way, it can be product, service, or even a digital product. Once you have that in place,

Ask ChatGPT to create a content plan for you for the next 30 days, for example. And I think any business owner can create a list of 50 pains that his customers are experiencing right now. So on every pain that you listed, you need to provide some kind of a value or maybe it's not a hundred percent solution, but some kind of a good tip that you can create in a video between 30 seconds to 60 seconds. And you can create a lot of these. No one cares about the background. No one cares about what shirt do you wear

and how good you look. Good lightning, good audio is important. Just go out there, be yourself and talk about those pain points, talk about the benefits that you can provide. And again, try to create content depending on the various steps of the marketing funnel that I've described right now. Make it daily, make it consistent. And this is guaranteed going to be your best marketing channel out there. Because today, if you want to grow organically,

Okay. Obviously, you can pay a lot to Meta, which is getting more more expensive and also on Amazon. Right. We know that. But one of the last places you can go organically is through videos on social. And this is where I encourage every business owner to focus and spend more time. And it's going to be amazing. Go out there and post.

Jim James (15:36)
Couple of questions. One is just TikTok, Instagram, YouTube. What about video for LinkedIn? Because many people are using LinkedIn for B2B. Does this work? Does Vimmi also integrate to LinkedIn, for example?

Eitan Koter (15:47)
Yes.

Yeah, so LinkedIn is obviously for B2B. And yes, we are fully integrated to that as well. I can tell you, I post regularly, daily on LinkedIn, and I create a lot of video commerce related content. The video posts are performing by far better than any other. So you talk about AI, I must mentioning a new app that I'm using. I'm using an app called supercreator.AI. This app is, you can just,

If you want, you can just type a few keywords of a topic you want to create a video and the AI will create the script for you and will break it down to scenes. In each scene, you can obviously take a video capture of yourself and you can add more assets. It can be in the background on top of you, like below you, split the screen and you build. It can create those few scenes and just compile the video and it's done. So I spend maybe half an hour on each one of those video.

And it's look really polished, professional. And there are other tools out there like that. But here is a quick way to spend 20 to 30 minutes on one video and make it go viral. I think last week, one of my posts reached close to 30,000 impressions within a hours just from spending 20 minutes on one topic, which if you ask me if this is the most interesting topic out there, no. It was one of my big list of topics. I don't know why this topic

generates all success, but the video part and the scenes and the switch over between the frames, I think it was very, very important. And that gave me lot of confidence to continue, obviously, something that I do a lot in terms of those video posts.

Jim James (17:17)
Yeah.

Well, okay, supercreator.AI will put that in the show notes as well. Eitan what we haven't talked about, what I'd just like to ask you though is about the kind of uplift or the kind of success you've got hundreds of brands using your channel. You're serving literally millions of videos every day. You've been in operation for over 10 years. So you're established. You know what works. What kind of uplift are people, companies getting

Eitan Koter (17:35)
Yeah.

Jim James (18:01)
when it comes to video, is it possible to give us some, some, some numbers, some metrics?

Eitan Koter (18:06)
I think I can share various statistics with you. Again, not mentioning specific names, but we have customers that they switch their entire market. They shut off their entire marketing channels and all they do is just live streaming all day long because they found it to be the most effective way in terms of ROI and everything. So this is one example. Another example that we see that those events are creating

Jim James (18:12)
No, I understand.

Eitan Koter (18:35)
conversion rates, are like 50% conversion rates for live shopping event. If you do it correctly, of course, the industry average talks about 30%, 20%, 40%. There's no exact number, but it all depends how do you build up towards this event? And if you have the right incentive to provide the users, this is very, very important aspects of what you're trying to convey. I can tell you one of the brands that I interviewed to my podcast on Ecompulse,

they are like in the furniture industry and they launched TikTok and TikTok shop. This is the last product you can even imagine that. So they said that we have a TikTok shop and we're creating a lot of videos for TikTok. And I said, why do do that? I said, said last quarter we grew 30% in our overall company sales without selling even $1 on TikTok, but we can attribute 30% growth

Jim James (19:14)
Exactly.

Eitan Koter (19:34)
for our TikTok videos.

Okay. It works. sometimes you.

Jim James (19:38)
It works even in a sort of a high ticket item in what you'd perceived to be like a junior demographic.

Eitan Koter (19:46)
Yes. Yes, correct. Sometimes you go to TikTok and you just be there not for the purpose of conversion, but for the purpose of increasing your overall sales. it's, you'll be surprised where this contribution will find you, you know, along the sales cycle.

Jim James (20:01)
That is fascinating, Eitan. So it's wonderful and people will be able to go to Vimmi .net and Eitan's got a coupon for us. So do stick around at the end, he's going to give us a coupon. We've got about a five or 10 minutes left to carry on to find out also about you as an entrepreneur, because you have listed a company on NASDAQ, you've had this business for a decade. Just tell us a little bit about how you've got this business noticed because

Eitan Koter (20:08)
Yes.

Jim James (20:30)
you know, that's what this podcast is also about is how entrepreneurs manage to bootstrip their businesses with their marketing.

Eitan Koter (20:36)
Yeah, so I've been working for a company that, you we raised a lot of funds from venture capitalists and firms. And also we floated company, this company on NASDAQ, it was back in 2005, with Scopus Media Networks. And with Vimmi, I've decided to, together with my partner, Amnon Sheriff, we decided to go private, I mean, and use our own funds for the growth. And what you need to do, you need to develop quickly and find good friends that are happy to support you on the process.

Of course, with Scopus Video Network, it was a hardware company. know, those units you put in racks and also now everything is SaaS, right? So in SaaS, things are moving very, very fast. And if you're thinking of expanding 18 months of development and then putting this product or introducing this to the market, that's probably the wrong way to do that. So I believe in what I call land and expand, like iterate very, very fast.

They find a very limited specific set of functionalities on a product that they can quickly introduce to a certain limited laser focused definition of your ICP or personas. Show them this functionality that makes some kind of a difference. Get feedback, iterate on a daily basis with customer feedback and break through for this very limited set of functionalities. Once you break through this initial steps, you can then introduce more functionalities

to your existing customers. This is the then expand type of approach, having this narrow innovation type of mentality, rather than having this broad vision about a huge platform that you're planning, which is very, very difficult. You need a lot of funds for that. So if you're bootstrapping, go narrow, go like laser focus on product definition, on market definition. And once you've been able to get in,

expand. We were lucky at the beginning to win some large enterprise customers with those limited functionalities. Okay. And I can tell you that for all the years we've expanded what we are providing to these customers, you know, tenfold from that first RFP that or the first project that we we've started. When we started Vimmi, we get noticed primarily through going to like physical exhibitions. Okay.

They were like, need to prepare it correctly, engaging with all the networking tools and creating all these meeting beforehand. And this creates a lot of business opportunities for us today. It's like the other way around today. It's all about founder led growth, founder led content. I create a lot of content. I post primarily on LinkedIn, although we do that also on the other channels, but LinkedIn is a primary area where we operate.

Another important thing is that partner up instead of building up your marketing team. Of course it's important, but the sales team try to delay as much as you can hiring of a sales team, right? And focus on PLG on product led growth, because if you have an amazing products, the word of mouth is creating a lot of leads for you. And if you are hiring sales too early, sales, they have their ways to maneuver even average products and

Jim James (23:40)
Thank

Eitan Koter (23:54)
execute a transaction and you need to work very, very hard to win each additional sales and cost of sales are going up and up. So if you focus on PLG on marketing, having this amazing product, don't hire sales and this create variety and network effect. Once you know that you are achieved this product market fit and it can take some time, very long time, right? But it shouldn't take more than six to nine months from the get-go.

Once you feel you have a product market feed, then yes, you can do a lot of things in terms of expanding your sales outreach capabilities, functionalities, and partner up. What I mean by partner up, any company can find partners who are serving their end users in a B2B, for example, or even on a D2C. So partners doesn't cost money. If you are able to work smart in getting their attention to spend time and resources on promoting your solution,

based on various terms that you provide them, then for them it's again that lend and expand type of mentality because they're already working with the customers that they're trying to approach and they are introducing a lot of business opportunities to you. So this is what we did. We partnered a lot. We iterate very, very fast and being very, very agile in terms of our mindset and the way we release software versions. Even until today, I think we are releasing between two to three software versions every week, right?

Jim James (25:20)
you

Eitan Koter (25:21)
To update our platform. And that's kind of a mentality that we've built from day one and very good partnerships that introduce us a lot of opportunities and content creation that gets us in front of our brands, our end users. And of course, the podcast, which is probably one of the main marketing channels that we use that is bringing us a lot of relationship building and expanding our network and building.

connection with important stakeholders in the industry.

Jim James (25:52)
Eitan, thank you. It's like a masterclass there in how you've done it. I haven't got to ask you one question though, because you said we managed to land some early clients. What did you say or what did you have that got them across the line? Because, you know, I've launched products, you know, and you're sitting there opposite someone and they go, well, they've got to take a risk. They're happy enough with

what they're doing or they're not willing to be the first. So the mission critical question to some degree is what did you say or what did you offer to convert that first customer?

Eitan Koter (26:33)
Yeah. So for us, was, I mean, we were targeting those large enterprises. And in the enterprise sales, you have a committee procurement type of process and the sales cycles are very long. This is where I grew up, right? As a sales manager and obviously as a VP sales and CEO of company. So I'm very used to work on this type of environments. And we weren't the first to introduce, you know, that's

Jim James (26:43)
Yeah, that's not an easy.

Eitan Koter (27:02)
online video platform 10 years ago. But we were there and we showed probably more agility and more commitment because during these processes, customers pre-sale processes that may take six months, customers ask you a lot of things. You can go to a POC and then you have some feedback. And if you iterate fast and like tomorrow you give them the solution, this is very, very powerful versus the big companies that it took just to schedule the meeting with the product manager, took two weeks.

During two weeks, we iterated 20 times with our customer and showed them in the lab what exactly they need. So this creates a lot of impact towards customers that probably help us to win the two, three large enterprise deals. These were like seven figures deals, right? So it helps a lot with projection and cashflow and just establish yourself as a company.

in terms of the ability that you can grow and execute better in various ways. We lost a lot because we lacked also the who is Vimmi, right? At the early days. Yes, they knew us probably from our background, but as a company, we were new and we didn't have these large VCs or large strategic partners that we have today. it's really, I mean, you don't need a lot of them. You need very few and you need to grow with them together

and just balance your cashflow in terms of cost management based on those projections. Because in our business, it's like monthly recurring type of income or nearly ARR. So you can plan. This is the great thing in SaaS, right? That you can plan forward. And if you work with this large enterprise, it's like you can go and describe those companies with debt loan providers and with the banks.

There is a way to establish credibility in terms of how do you manage your finances. So this was our story and this is how we started.

Jim James (29:06)
Yeah, that's wonderful. And that need for speed, I think, and the responsiveness and is it in a way, as you say, that's a function of scale. ironically enough, the smaller you are, the more that plays into that opportunity, doesn't it? So if you're on your own, you can be as fast or faster than the biggest company. So that's really wonderful advice. Eitan, I'm going to ask you before you have a kind offer for people,

Eitan Koter (29:10)
for speed yes

Jim James (29:34)
to use Vimmi, what would be a book or a podcast that you have either listened to currently or that you've read?

Eitan Koter (29:41)
Yeah. So the one of the powerful concept I heard lately is, is different, is more, is better than being better. So how do you differentiate yourself as a company, right? Versus the others. So they are like various, so there is a methodology how to do that. And I read a book by Jesse James, Marketing for supervillians. So that's the book. It's a really fascinating way to quickly,

and practically adapt things to your own business in the way you describe what you do and who you are in a very, very differentiated way versus the competition.

Jim James (30:18)
Jesse James, I had to see if they're a relative. Jesse James, which used to be a great outlaw, course, wasn't it? Jesse James, marketing for villains. Well, look at that. Eitan, thank you so much. You have kindly offered something for our listeners. What would that be?

Eitan Koter (30:20)
Yes.

Yeah.

Sure, so we are providing a coupon code. Can call it unnoticed20 that will provide 20% discount for unnoticed listeners for three months. And we will share this coupon code, obviously, in the show notes. And you can use that, I think, in our platform quickly after this recording. And you can go to vimmi.net It's v -i -m -m -i .net slash pricing. And you can start.

Jim James (30:54)
Eitan

Eitan Koter (31:01)
Probably selecting one of the packages. You can start with a free package and obviously grow from there.

Jim James (31:08)
Eitan I'm excited. I wonder if I can launch my new course through Vimmi because it sounds fascinating and frankly, a lot more innovative than going through Facebook ads and the traditional route. If people want to get hold of you, Eitan how can they do that?

Eitan Koter (31:12)
Of course.

Yeah, of course.

Yes, I'm quite active on LinkedIn. It's Eitan Koter E -I -T -A -N. Last name is Kotter. K -O -T -E -R. So that's the best place probably. And obviously our website vimmi .net.

Jim James (31:39)
Perfect, and we can, presumably, we can see your 30 -second videos all over the internet, especially on LinkedIn. Eitan thank you. This whole shoppable video and this whole ecosystem that you've introduced is brand new for me on the show. So thank you so much for coming on the show to explain it.

Eitan Koter (31:44)
Yes. Yeah.

Amazing. Jim, thank you so much for managing the unnoticed for so long, than 800 episodes, right? Already.

Jim James (32:05)
That's right, yes, I've got 800 plus episodes now on.

Eitan Koter (32:09)
Wow. Thank you for this amazing service you provide to all entrepreneurs out there. Really. Thank you so much.

Jim James (32:14)
Thank you. it's my passion, my vision is to have conversations with entrepreneurs like yourself and really curate these and able to share your wisdom with another audience. And that's really the mission that I've gotten. You're sharing videos and I'm sharing knowledge. So that's wonderful. Thank you so much for your gratitude as well.

Eitan Koter (32:38)
Thank you.

Jim James (32:40)
So there we have it, Shoppeable video. If you're not using it, you should be using it regardless of the product you are selling. And Vimmi .net is the way that you can do that. It's a free signup or you can use unnoticed20 as a coupon if you want to go for one of the slightly bigger packages. If you've enjoyed this as much as I have, please do leave a review because it really helps me to know that you're enjoying it and share it with a fellow UnNoticed Entrepreneur. I've got a few people in mind

that I know I'm going to share Vimmi with who have got products and I know they're going to use this and find it very valuable. And until we meet again, I just encourage you to keep on communicating.