Narrow profit margins are a reality for most online merchants…add to that a recession and it’s easy to understand why there’s increasing interest and demand for discounting alternatives. Marketing teams are also increasingly lean (I can speak from this personally), so it’s no surprise we’re also seeing more interest in marketing sophistication and automation. So what it really comes down to is finding a solution that is both appealing to consumers who are feeling the pain of the recession and profitable to merchants (and their marketing teams) who are also feeling the pain of the recession.

With Segment&Serve™, Sitebrand’s personalization platform and our team of pros who make it their passion to help clients be successful, I’m proud to say we’re able to tackle these above-noted requirements. While many best practice campaigns do involve hard incentives like discounts and free shipping, we’re really pushing for web personalization campaigns that leverage softer incentives that tie into service, social marketing and Web 2.0. And overarching everything is the added benefit of measurable results and return on investment. After all, if you can prove ROI, what’s the point?

So just today, Sitebrand issued a news release re: several client success stories (e-commerce case studies) that reference the use of non-traditional “soft incentives” or “comfort-style campaigns” if you will.  Essentially we’re talking about personalized web campaigns that offer helpful product suggestions (like you would get in-store), links to customer testimonials or product reviews (“word of web”), and wish list/gift card reminders (‘Tis the season now more than ever). These “soft incentives” truly counter the classic ”hard incentives” mentioned earlier – things like urgent discounts and free shipping. So what’s the result? Well, we’re helping many clients like ElectricShopping.com and Discount Dance see incredible results (that don’t compromise their narrow margins)…

John Miller, IT Director at Discount Dance says, “Depending on the type of visitor, and the campaign we’re triggering, we are seeing between a 5% and 20% lift on revenue.” Commenting on the measured statistics for multiple soft-incentive campaigns over a 30 day period, Miller adds: “On average, we’ve experienced a 5% conversion lift. Plus, our average order value has gone up about 2%.”

Gift Card Promo

For ElectricShopping.com, Rob Levy, Managing Director, attributes a 17% conversion lift to web personalization campaigns primarily comprised of “soft incentives” that promote the service (caring) side of their business. “I would attribute at least a 5-fold return on our Sitebrand investment, at least that,” says Levy on the ROI generated by Sitebrand. Messaging a concern for the environment is also proving successful.

We care about the environment...

With the help of Sitebrand’s comprehensive web personalization solution, innovative online merchants like ElectricShopping.com and Discount Dance are helping to reset the definition of what constitutes a sufficient incentive to motivate visitors – especially soft incentives that don’t involve any financial reward to the buyer or financial loss to the merchant.

What are you doing to be part of this recession marketing shift?

For more inspiration, you should check out these case two case studies and more in Sitebrand’s Resource Center at: http://www.sitebrand.com/resources/case-studies

It’s called Rue La La and it’s creating a shopping revolution that has to be one of the most brilliant online retail ideas I’ve seen in a while! It’s got designer brands, exclusivity, urgency, community and incentive…and that’s just the beginning. Here’s the gist of Rue La La…

First of all, you have to be a member. And to be a member, it’s invitation only via email so you have to be connected to someone hip and in the know. In my case, that would be fellow Sitebrander Dan Auns = thanks Dan! In your case, it’s now me, lol – I’m serious, if you’re interested I can send you an invite. It’s totally worth the discovery. Hmm, can you see the huge viral potential here too!?! Especially since when you send an invite to someone, Rue La La will give you a $10 shopping credit when any of your invitees make their first purchase. So bottom line – no membership, no access.

But once you’re a member (which is free), Rue La La is a destination that’s always changing. Any time you visit, you’ll have different and exciting offerings. No more of that same old, same old. And they love feedback because they want to be responsive to what members want most.

Now for the really cool part. Each private sale boutique is only open for 2-3 days!! Talk about creating a sense of urgency! When they say don’t delay, they mean it! And when you check out the featured boutique, there’s a days, hours and minute countdown ticking away. Now of course, they’re not foolish. In addition to seeing “Today’s Boutique”, you’re also teased with a mini list of the “Next Boutiques”. In this listing, you’ll see the upcoming days and hours of operation.

I love it because this concept is totally maximizing so many of the things you need to do to be successful online. On top of it all, the entire concept is awesomely framed around building that sense of community through social marketing.  With this post alone, I’m clearly feeding right into it!

Who are the brains behind Rue La La you ask? I wish it was me but it’s actually part of an exciting new division of Retail Convergence, Inc., featuring ”a portfolio of e-commerce companies leveraging a common technology platform, customer database, and management team to revolutionize online shopping”. In addition to owning the Rue La La brand, Retail Convervence also owns SmartBargains.com which just happens to be #100 on the IR500 list.

They are a self-proclaimed group of people who love shopping. They’ve built the connections required to negotiate private sale prices on some of the most sought after brands in fashion and home. And they have the exacting standards required to present only the best-edited collections. I should mention that Rue La La is not about trashy stuff that’s going to rip, tear and break. I’m talking about high-end designer brands that just happen to be selling at fabulous prices. Right now they are featuring Joseph Abboud. But only till 11 am EST. As of 11 am today and for only 2 days, they’re opening a boutique for vineyard vines.  Then 2 days later it’s PUMA, and so on…

So there you have it! If you want to get a taste of the ooh la la shopping experience at Rue La La, let me know and I’ll send you an invite. Just send an email to cgardner(at)sitebrand(dot)com 

Happy Shopping!