ModCloth Proves Online Personalization Helps Companies Grow

By focusing on the specific needs of individual customers, companies are able to effectively offer more personalized experiences, which Emarketer reports leads to higher levels of customer engagement. But do relevant customer experiences actually contribute to consistent business growth?

ModCloth Proves Online Personalization Helps Companies Grow image ModCloth homepage 310x180ModCloth Proves Online Personalization Helps Companies GrowMonetate can attest to the value of companies adopting more customer-centric digital strategies, with its clients growing 33% faster than the market rate of 15%. ModCloth, an online retailer that offers vintage-inspired fashion and décor, is a prime example of how improving the customer experience can improve the bottom line. The retailer just announced that it easily surpassed $100 million in annual revenue last year—well over 40% growth year over year—and it largely attributes this success to an unwavering focus on the customer and its fostering of a highly involved customer community.

Through continual interaction with its customers, ModCloth allows for unique shopping experiences enjoyed by all visitors. An article in TechCrunch quotes ModCloth CEO Eric Koger, stating, “Our vision and where we believe the industry is heading is retailers who align behind distinct communities of customers, and those retailers understand those customers better than any other retailer.” ModCloth uses Monetate to leverage customer insights to create the highly relevant online experiences that its community of customers expect.

Some personalization best practices that ModCloth has successfully implemented using Monetate’s Merchandiser, LiveTarget, and TestLab products include:

ModCloth Proves Online Personalization Helps Companies Grow image wtw badging brand affinity 310x149ModCloth Proves Online Personalization Helps Companies Grow1) Targeted badging campaigns that highlight new products from visitors’ favorite brands, and resulted in a 15.75% lift in conversion, a 5.79% lift in the add-to-cart rate, and an 11.79% increase in average order value.

2) Individualized product recommendations based on new versus returning visitors, as well as specific browsing history and apparel size. For example, a viewed-also-viewed product recommendation feature on intimate apparel product pages has resulted in a 16% increase in customer acquisition, in addition to a 14.94% lift in average order value.

3) Leveraging the power of social media. Koger told Bloomberg Television’s Jon Erlichman that ModCloth’s engagement with customers on social networks like Pinterest, Facebook, and Polyvore played an important role in the company’s revenue growth. To strengthen the connection when shoppers arrive on site from social networks, the retailer displays the product or promotion that prompted the click, while also introducing these visitors to its overall brand. These efforts improve both customer engagement and incremental revenue.

With a highly engaged customer base, many of whom come to the website multiple times in a day, ModCloth’s goal is to make sure it presents customers with fresh, relevant products and shopping features on every visit. And since an increasing number of those visits take place on smartphones and tablets, the retailer is expanding its personalization efforts to improve the shopping experience for the mobile environment.

“We’re still really focused on developing the best possible ecommerce experience across all devices. Mobile is a big focus for us right now, everything we do across the business we’re thinking about in a mobile-first way—so thinking about what that experience is on her phone and on her tablet before we start focusing on the desktop experience,” Koger said on Bloomberg Television.

Learn more about how ModCloth is using website personalization to help grow its business by downloading the customer story, “ModCloth: Fashioning a Customer-First Digital Strategy.”

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