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

Blog Posts

Does your brand need a personality review?

There are five tell-tale signs your brand needs to take a long hard look at itself.

Charlie Rose

Senior Strategy Consultant, Principals

How to create profitable pricing

How do we price goods and services? As business leaders, we have asked ourselves this question since the history of trading.

Lee Naylor

Managing partner, The Leading Edge

Sport and sponsorship: The value of event sponsorship

Australia’s cricketers captured the nation’s attention during their recent run to the semi-final of the ICC Men’s World Cup. While the tournament ultimately ended in defeat, for over a month it provoked a sense of belonging, hope and empowerment for millions of people across Australia. Cricket, and sport in general, has a near-unique ability to empower individuals, irrelevant of their background, demographic or nationality.

Nikhil Arora

Vice-president and managing director, GoDaddy India

Thank you, so do I.

David Freeman

Sustainability of message: H2coco founder's commitment to consumers

Read more

Hi Harry, thank you for pointing this out I can confidently say both these bottles are in transition away from PET as we continue to impr...

David Freeman

Sustainability of message: H2coco founder's commitment to consumers

Read more

I’m confused. He has a giant 2l hard plastic bottle in Coles and his pink bottle is also in plastic??

Harry

Sustainability of message: H2coco founder's commitment to consumers

Read more

Great message from an Aussie company about sustainable business practices, particularly packaging. Wish more businesses would think more ...

Krisy

Sustainability of message: H2coco founder's commitment to consumers

Read more

Well, I wish we could change the situation. But I am not sure it's possible.

Patricia Miller

Does social media make astroturfing acceptable?

Read more

Latest Podcast

More podcasts

Sign in