Retail Executive

SEP-OCT 2017

Retail Executive is the trusted advisor to top retail executives from the industry’s most profitable retailers. We help retail executives succeed in their job role and grow their business via exclusive, actionable, peer-driven content.

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Page 19 of 43

Rebecca Minkoff's website is very well done. It has a Wow-factor. How does digitize brick-and- mortar and simultaneously deliver a personal online experience? MINKOFF: We're undergoing a major redesign of our website. We've researched tools that will make our site more efficient. We partner with Bronto for email messaging, and our email messaging is very personal. Going forward, we plan to generate and send 50 versions of emails (e.g., we know that if you bought this item, chances are you will be inter- ested in this item). We have identified our customers' purchase cadence and have delivered personal, in- tentional messaging along the way. Next year, we will add personalization and prescriptive analytics tools so the website experience will reflect each individual customer's needs, and we will include personalized product recommendations. We have an advanced experience in digitizing brick- and-mortar. Our customers want additional product information or extra experiences beyond what's there, for example, the fitting room mirror that comes to life and provides product recommendations by scanning your mobile device. Rebecca Minkoff is an iconic, global brand. Explain the intricacies of global expansion and the why behind your global expansion success. MINKOFF: Our customers understand that Rebecca is a real person. We've made public the narrative of her life and how it is compatible with a global consumer's. Understanding that Rebecca her- self started with humble beginnings — the boyfriend who moved out, three roommates, electricity about to be shut off — has become a point of reality for the global consumer. She's relatable; she had to hustle, and our customers appreciate that she's not much different from them. Also, we identified early on that we had a strong Asian consumer, and today, we have stores in Korea and Hong Kong to build brand awareness in those areas. We've also identified a rise in European consumers, and we've begun aligning with influencers and investors there as well. R isolating five to seven consumer pain points. We went through the same decision tree practice with the on- line experience, but we noticed that those pain points were actually advantages, because we are able to eval- uate cart abandonment, bounce rates, etc. We realized the store has none of that data. How do we layer the efficiencies and success of e-commerce into the store environment? In the store, we only know how many people came in and what they purchased. But there is vast room for opportunity based on the data crumbs customers drop during their in-store experience. Re- tailers need to identify the points where she's dropping crumbs of data. We believe that it's never good to be in the middle. Re- tailers need to focus on extremes, as the opportunity lies in the extremes. You can't make money in the middle. Learn to identify the shopper's behavior; for example, consider the customer who feels she should be treated like a celebrity or a VIP. Then consider catering her ex- perience to that extreme. On the other hand, how do you treat the person who wants to be anonymous? We fo- cus on the consumer extremes, and we use decision tree processing to better her experience. When it comes to the depth and breadth of your product assortment, what are some of the things you've learned along the way? How have you honed your product assortment strategy? MINKOFF: Regarding our product assort- ment strategy, we use data to impact assortment. Con- sider this example using touchpoint data from the store: A jacket went into the fitting room 70 times; there were 36 size change requests but zero purchases. This shows us there is a high degree of interest and purchase intent, but something is off due to lack of purchase. Half of our guests tried to make the item work through size change requests, so it's not a problem with styling. Therefore, we began analyzing which items on the floor made it to the fitting room and converted to a purchase. We uncovered that clothing was performing or converting better in stores than in wholesale. It became a combination of what went into fitting rooms with the winning combination being higher priced merchandise mixed with lower priced mer- chandise. Mid-range merchandise did not make it into the fitting rooms as often. We presented the data to the design team, and they began designing to the right price points. RETAILEXECUTIVE.COM SEPTEMBER/OCTOBER 2017 20 EXCLUSIVE RETAIL FEATURE Executive By E. Harris RETAIL ACCORDING TO URI MINKOFF

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