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Gilt Groupe
Tamara Gruzbarg, Senior Director, Analytics and Research, Gilt Groupe Malene Haxholdt, Global Marketing Manager, Business Analytics, SAS
Start with a coveted set of products, hand-picked to entice luxury goods not normally found online, such as designer samples and overstocks, direct from 2,000 partner brands. Offer them in limited quantities, discounted up to 60 percent but only to an exclusive audience and only for a limited time. The recipe is almost guaranteed to fuel a shopping frenzy. Vogue calls it the online shopping phenomenon. Its noon, Eastern Time, at www.gilt.com. Let the games begin. Launched in November 2007, Gilt Groupe quickly established itself as one of the fastest growing and most innovative online retailers in the US. The company selects a broad range of womens fashion and accessories, mens apparel and lifestyle, home, children, travel and gourmet food items for flash sales that typically last just 36 hours and feature many of the worlds most sought-after designers. The company often buys direct from designers who would otherwise sell their excess apparel in New York showrooms. To encourage designers to sell or consign overstock to Gilt, the company opens sales only to those who have registered with the website. This keeps the products it sells off shopping search engines (important to designers), but also challenges Gilt to find and retain customers. By all accounts, Gilt is succeeding in that department. In just over three years, the roster of registered members has grown from 15,000 to more than 3.5 million, most of them invited by an existing member. Every day starts a new sale, usually at noon. Its first-come, first-served, so if you want the best pick of the offerings, youd better act fast, before its too late. The model works. On average, about 5,000 units sell within the first 30 minutes of the sale, 48 percent of all items sell in the first hour, and 65 percent of items sell in the first two hours. Sales attract more than 120,000 visitors in the first hour, and 1.4 million shoppers a month. The fastest purchase is almost instant, in about a quarter of a second. Our members consider Gilt to be entertainment and sport, not just a regular retail website, said Tamara Gruzbarg, Senior Director of Analytics and Research. Our audience is very engaged and looking forward to discovering what is new every day, and they make repeat purchases at a high rate. The company also keeps adding new ways to bring members back. Founded as an invitation-only site for womens designer merchandise, Gilt has added business lines for men, children, travel and vacation, home and outdoor living, local services and experiences in seven major metropolitan areas, gourmet food, and Gilt Noir, a private site that offers exclusive experiences and privileges for top members.
When it comes to insight generation, SAS is a known leader in the field. We were able to get a deep understanding of our customer base through the profiling, segmentation [and] predictive analysis that we conduct with SAS Analytics.
Tamara Gruzbarg Senior Director Analytics and Research Gilt Groupe
Gilt Groupe scored some strong wins by better understanding its customers and what they want, which in turn enables them to better segment customers and drive them to the sales most relevant to them. Among recent successes: A 10 to 20 percent lift for customers browsing in new merchandise categories who had not purchased in those categories. A 100 percent lift (for the first three deciles) for women who shopped at the mens site but had not yet purchased. A 20 percent increase in new member conversion rates. Analytics enables Gilt Groupe to create a signature shopping experience with distinctive appeal for each of its millions of members, even though they have different tastes, needs and values. Just ask the 1.4 million loyal shoppers who will click to buy from Gilt this month. Is it noon yet?
To view the on-demand webcast: http://www.sas.com/reg/web/corp/1294896/attend.do For related webinars and conclusions papers: www.sas.com/ABAWS SAS Business Analytics Knowledge Exchange: www.sas.com/knowledge-exchange/business-analytics/ Analytics 2011 live events: www.sas/com/events/aconf/us/ Hands-on workshops: www.sas.com/handson