Gilt Groupe uses data to attract the next gen of fashion consumers

How a personalised approach to Web experience is helping drive sales and boost customer loyalty at the fashion retailer

A personalised approach to delivering tailored and relevant curated content will drive conversions and improve engagement for any multi-brand retailer, according to vice-president of marketing and analytics of Gilt Groupe, Welington Fonseca.

Speaking at the Online Retailer and Ecommerce Expo in Sydney, Fonseca revealed how the US-based apparel and home products retailer started out in 2007 and quickly revolutionised its personalisation strategy to attract more customers to its discount store. It now ranks 59 out of the top 500 Internet retailers, according to the Internet Retailer list.

“We combine a scarcity of products with great brand labels and excellent discounts,” Fonseca said. “And this has worked really well, the company has grown dramatically.”

In order to drive relevance to customers, Fonseca said the Gilt Groupe utilises both an individual and persona-level approach. This combines both personal buying behaviour with demographic information such as age, gender and geolocation.

“I think of relevance as based on two simple reasons,” he continued. “I think a high level of relevance is one of the key pillars of any successful brands, especially with a multi-brand retailer like Gilt, where you have competing stores and competing categories.”

Using an algorithmic approach to capture emails, social data and browsing behaviour from its customers, Gilt then tailors the Web experience to the needs of its different types of customers, such as those who come just for the big brands, or those who looking for a unique piece of clothing.

“All the data combined gives Gilt both store and brand affinity,” Fonseca claimed. “We also empower and enable our customers to share their preferences with us, so it’s not all about implicit data.”

About 50 per cent of sales come from mobile, which Fonseca claimed has been extremely powerful and transformational both for Gilt and his new venture, Rent the Runway.

“Mobile allows different forms of communication with your customers,” he said. “It also allows interactions that are more intimate and more private, like shopping for underwear or intimate apparel. It allows us to be very relevant to deliver on that specific category that you otherwise wouldn’t sell online using another device.”

The next generation want one-to-one personalisation, and Fonseca forecast social scrapbooking and curating personalised ecommerce content as becoming the next big things. He claimed 39 per cent of online consumers already use social media in their purchase path, and 67 per cent of online consumers consider clear photos more important than the product info or customer ratings.

“The number one driver on our satisfaction survey is all of our photos,” Fonseca said. “Customers want multiple views from different angles. They also want that textured experience they would have the bricks-and-mortar locations.”

Fonseca also said empowering customers to state their preference will become a requirement for a successful ecommerce platform moving forward.

“I truly believe empowering customers to also share those preferences will become the key to our success,” he added.

Fonseca’s 6 tips to achieve customer personalisation

  1. Find the right mix between implicit and explicit data. Using only implicit data is not enough.

  2. Enable preference-based personalisation across channels.

  3. Motivate and provide incentives to customers to provide ongoing feedback about the relevance of your offerings.

  4. Utilise every touch point to learn from customers.

  5. Provide all departments with customer preference information

  6. Empower customers to create and share their own content

Follow CMO on Twitter: @CMOAustralia, take part in the CMO Australia conversation on LinkedIn: CMO Australia, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+: google.com/+CmoAu

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

Conversations over a cuppa with CMO: Microsoft's Pip Arthur

​In this latest episode of our conversations over a cuppa with CMO, we catch up with the delightful Pip Arthur, Microsoft Australia's chief marketing officer and communications director, to talk about thinking differently, delivering on B2B connection in the crisis, brand purpose and marketing transformation.

More Videos

That’s great! While 95% of customer value high-quality support over speed, delivering both is vital in this competitive age. Integrating ...

Akansh M

Foxtel debuts in-app messaging chat to improve customer service

Read more

Thanks for the post

Ashirwad Towers

How a brand facelift and content strategy turned real estate software, Rockend, around

Read more

Like we have been growing in technology since the first industrial revolution and never stopping but when it comes to businesses around t...

Bhooshan Shetty

Predicting the Future: Marketing science or marketing myth?

Read more

Was really informative. Customer retention is very important for companies as retaining customers are simpler compared to making new ones...

Bhooshan Shetty

Gartner survey: CMO spending hit by COVID-19

Read more

Couldn't agree more!The way AI and machine learning as evolved over these years, it has completely changed the look of marketing and cust...

Bhooshan Shetty

Marketing 2030 and the rise of the machines

Read more

Blog Posts

Life beyond the cookie: 5 steps to mapping the future of marketing measurement

​There’s no denying there’s been a whirlwind of response to the imminent demise of the third-party cookie from all parts of the industry. But as we’ve collectively come to better understand the implications, it’s clear this change is giving the digital advertising industry the opportunity to re-think digital marketing to support core industry use cases, while balancing consumer privacy.

Natalie Stanbury

Director of research, IAB Australia

Ensuring post-crisis success

The COVID-19 pandemic has exposed brands’ CX shortcomings and a lack of customer understanding. Given ongoing disruption, customer needs, wants and expectations are continually changing, also causing customers to behave in different ways. Just look at hoarding toilet paper, staple and canned food, medicinal and cleaning products.

Riccardo Pasto

senior analyst, Forrester

A few behavioural economics lesson to get your brand on top of the travel list

Understanding the core principles of Behavioural Economics will give players in the travel industry a major competitive advantage when restrictions lift and travellers begin to book again. And there are a few insights in here for the rest of the marketing community, too.

Dan Monheit

Co-founder, Hardhat

Sign in