Saks' new 'hyper-personalized' homepage drives revenue increase
Saks Global has completed the rollout of a personalized homepage on Saks Fifth Avenue's online site and mobile app.
The luxury giant said its new "hyper-personalized" Saks Fifth Avenue homepage experience is unique to each individual customer and tailored to their preferences, using machine learning algorithms that leverage real-time customer behavior. The retailer aims to promote fashion discovery while increasing customer lifetime value and loyalty by serving extremely relevant content to every individual customer.
Since initially launching the personalized homepage to 5% of e-commerce traffic, Saks has gradually scaled the release to more customers, with 100% of Saks.com traffic now going to the personalized homepage. According to the company, the performance of the homepage has exceeded expectations, driving a 7% increase in revenue per visitor and improving conversion by nearly 10%.
"At Saks Global, we are reinventing luxury shopping by delivering luxury artfully curated to each customer," said Emily Essner, president and chief commercial officer, Saks Global. "This latest advancement in our personalization efforts is foundational to our overall work to bring our vision - The Art of You - to life. We look forward to building upon this innovation across Saks Global’s luxury retail brands."
How it works
The personalized Saks.com homepage is built to adopt the site’s headless framework, which separates back-end infrastructure from the customer-facing experience.
[READ MORE: Saks offers seamless shopping and fulfillment]
The personalized homepage is dynamically assembled based on each incoming visitor’s purchase intent so that the layout of the page, the content and the strategies seen by each customer is customized for them.
To guide the homepage features and recommendations, the company is using machine learning to refine recommendations in real time based on each customer’s predicted intent and preferences, continuously adjusting with any action on the site–from products viewed to pages visited.
Saks is leveraging a combination of first-party personalization capabilities, as well as personalization and decision-logic technology from Mastercard Dynamic Yield, to support the experience.
"With the successful launch of the personalized homepage on Saks.com, we are well positioned to scale these efforts across additional touchpoints throughout the shopping journey,” said Nivy Swaminathan, senior VP, commercial analytics and customer insights, Saks Global. “Saks Global brings together the largest and deepest luxury consumer data set in the U.S., empowering us to ground site features and customer interactions in data-informed customer insights. As we make progress on our personalization strategy, we remain focused on identifying opportunities to innovate on behalf of our customers."
Saks Global’s portfolio includes Neiman Marcus, Bergdorf Goodman, Saks Fifth Avenue and Saks Off 5th, as well as a portfolio of prime U.S. real estate holdings and investments.
