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DVF turns to personalization strategies to boost mobile revenues

DVF recently relaunched its website. Image credit: DVF


U.S. fashion label Diane von Furstenberg has grown its mobile revenues after investing in a new Web site and more personalized ecommerce strategy. Leveraging software platform Qubit, DVF now attributes 11 percent of revenue as being driven by personalization. Qubit has also helped DVF, as well as other luxury retailers, create more cohesive multichannel shopping experiences as shoppers' habits continue to evolve. "The modern consumer is becoming ever more distracted by a plethora of apps and new ways to buy," said Simon Dean, senior director of strategic marketing at Qubit, London. "Therefore the challenge for ecommerce businesses is to provide immediate relevance so that they can capture the shoppers' attention from the outset. "As an ecommerce brand learns more about a shopper, they can further tailor their offers and recommendations to drive and encourage loyalty for those shoppers without needing to resort to other tactics, such as discounts and promotions," he said. Ecommerce changes Among the features Qubit introduced to the new DVF ecommerce experience are social proof, basket reminders, user-specific offers and smart email collection experience. Bag reminders proved to be successful, while personalized offers saw a 20 percent conversion rate among targeted shoppers. "The bag reminder fits into the broader category of personalizations known as abandonment," Mr. Dean said. "When executed smartly, abandonment is a proven technique to increase site revenue. The trick is to do it in a meaningful or helpful way." The revamped DVF website. Image credit: DVF While mobile accounts for more than 50 percent of DVF's online traffic, mobile revenue is significantly less than 50 percent of Web site revenue. Qubit's AI-powered product solution, Aura, helps mobile visitors see the most relevant products. This integration has already quadrupled conversions on DVF's mobile site. "Today's consumer no longer likes enormous messages that take over the entire screen and interrupt their session," Mr. Dean said. "Having a more subtle and relevant approach seemed right for the DVF brand." Personalized strategy Italian department store Luisa Via Roma’s ecommerce personalization tactics similarly boosted the retailer’s sales, showing the potential applications for the broader luxury industry. Bringing upselling to the online channel, the retailer worked with personalization provider Dynamic Yield to serve up tailored recommendations at various points in the purchase path. Beyond providing a customized experience for shoppers, this initiative yielded an uptick in both conversions and order value (see story). Luxury marketers and retailers need to be aware that product recommendations have a long-term impact on brand loyalty and customer lifetime value, beyond short-term conversions. When customers engage with product recommendations, there is a 70 percent increase in purchase rates in initial and subsequent sessions, according to a new study by Monetate. Product recommendations are instrumental in keeping online shoppers engaged (see story). "Any site personalization needs to be in tune with [a luxury retailers'] brand and should match your tone of voice," Qubit's Mr. Dean said. "If you don't have a heritage of using offers, this shouldn't be your starting place. "A central component of any personalization program is testing your hypothesis," he said. "When you serve a personalization, it's smart to keep an eye on your control groups to see if it's really driving value, whether the personalization wins or loses. "There's always a lesson that can be learned in the future to refine your strategy."