Fun Fact Friday!
"Both Fashion Brands AND Health & Beauty Brands Can Profit From Replenishment Campaigns"
In one industry - fashion - our client who is a leading footwear brand realized that customers purchase their boots annually. Optimizing on that insight, they send out yearly reminders to their customers based off of then they purchased. Customers that planned to buy appreciate the reminder, and customers who were not considering can be pulled into an otherwise unplanned purchase. Would you like more insights on what top fashion retailers are doing to make their brands stand out while delighting customers? Check out our 'Retail Trends Fashion Infographic' here.
On another end of the spectrum, AgilOne's cosmetics clients learned that, on average, their customer replenished their top creams every 6 months. This provides leaders in the space like The Body Shop, Perricone, Philosophy, & Ahava a way to easily automate personalized out reaches. They simply set up an automatic campaign (that can go out via email, direct mail, or both) that reminds customers to replenish according to what, when, and where (online or in-store) they purchased! Learn more about Health & Beauty retail trends & best practices through our infographic here.
We also have seen big business impacts from other industries and retailers that are taking replenishment campaigns to more sophisticated levels. For example, PetCareRx sends out replenishment reminders - but utilizes propensity to buy modeling to gauge how much of a promotion or discount the customer needs in order to make a purchase! Thus, they are able to preserve margin but optimizing sales - check out their case study here or watch their customer video here when you click the link below, or "Open Additional Customer Stories" on our customer page
What We Are Reading This Week
Every Friday we post top trending retail news for you and are now introducing a fun fact to help you benchmark your marketing efforts against peers. Get the articles here.
- Forbes: Why Ulta's Winning In Retail's Increasingly Crowded Beauty Sector
Macy's M -2.29% is also taking a deeper dive into beauty with its recent acquisition of specialty retailer Bluemercury. But Ulta Beauty, the highly successful, $3.24 billion chain — sales surged 21.4% in 2014, as comp-store sales climbed 9.9% — has hit upon a winning store concept that mirrors how consumers increasingly shop. The freestanding retailer sells both discount brands like Maybelline and prestige department store lines such as Clinique, side by side, in an open-sell environment.
- Forbes: How To Build A Retail Store Today
There are a few universal truths in retail: Sell good products that people want, merchandise them attractively and offer good customer service. But retail today is more about technology than theater, process not products. And when it comes to constructing a store, the digital blocks are more important in many ways than the physical bricks.
- Washington Post The Sephora effect: How the cosmetics retailer transformed the beauty industry
“Sephora and Ulta have tapped into every little girl’s dream of being able to open up their mom’s makeup bag and just play,” said Stephanie Wissink, a senior research analyst at Piper Jaffray & Co.
- WWD: Study Shows Millennials Expect Online Experience Inside the Store
Due to the generation’s deeply rooted connection to mobile devices, Millennials expect to have the same experience they have online in stores, according to a just-released research report and survey from Euclid Analytics and Harris Poll.
- Retailing Today: Study -Younger shoppers want stores
The study also revealed that each generation is looking to get something different from their store visits:
- Gen Z – Seeks the reassurance found through the sensorial. Stores like Forever 21 enable them to try on various sizes and styles that are difficult to perfect online, and brands such as Sephora offer samples and demos.
- Millennials – Seek efficiency and quality. Many are launching careers and have young families so they need to shop frequently, and favor big-box stores for their ability to quickly find everything they need in one place.
- Gen X – Seeks an escape and discoveries.
- Boomers – Seek comfort and space. They also value low music, light scents and seating.
Please feel free to leave comments below to share in this theme - replenishment, omni-channel retail trends, health & beauty, or more. We want to hear from you!