Gilt uses analytics to pioneer a new way to shop for high-end luxury goods
Gilt Groupe started as an invitation-only website devoted to selling luxury women's goods at insider prices that were once available only in exclusive New York trunk sales. Today, it is one of the fastest-growing online retailers selling a broad range of upscale women's fashion and accessories, men's apparel and lifestyle, home, children, travel and gourmet food items through flash sales. SAS® Analytics have helped drive membership engagement by allowing the firm to rapidly analyze data to better understand what its customers want.
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Senior Director of Analytics and Research
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A new sale starts every day, usually at noon. It's first-come, first-served, so if you want the best pick of the offerings, you'd better act fast. "Our audience is very engaged and looking forward to discovering what is new every day, and they make repeat purchases at a high rate," explains Tamara Gruzbarg, Senior Director of Analytics and Research.
Gilt paints portraits of its online customers and delights them with inspired selections
The data was there. There was demographic data gathered when new members registered, browsing and shopping history gathered from the website, mobile apps and the transaction platform, plus marketing history (such as acquisition source, referral connections and campaign response). Gilt had what it needed to answer questions about what brought customers to the site, and what brands they viewed but didn't purchase. Data alone does not equal customer insight. "From the analytics perspective, the amount of information that is theoretically available to us is unprecedented," Gruzbarg says. "But that doesn't mean it is readily available."
Gilt Groupe chose SAS because the solution could access and combine information from any number of sources and help Gilt quickly produce reports relevant to marketing, operating, finance and merchandising. The solution enables business users to manipulate, manage, store, analyze, visualize and report on data – all from a single environment.
Gilt also wanted the option to move to more sophisticated analytics – such as predictive modeling and segmentation – with just one vendor. "We needed a solution that would allow us to turn information into knowledge and then do in-depth analysis. SAS enabled us to do all that," Gruzbarg says.
With basic information more readily available and easy for business users to manipulate, Gruzbarg could turn her attention to more complex analytic questions such as customizing marketing messages, finding the best customers for cross-sell promotions and helping Gilt's partners understand their shoppers. "We started with straightforward analysis and can now do complex segmentation and clustering."
The right message to the right customer
More effective cross-shopping promotions
Deeper customer insights for Gilt's brand partners
"This kind of information is very interesting to retail brand partners, because we have the luxury of tracking our customers and understanding important aspects of their lifestyle and life cycle, due to the registration aspect of our site."
Next steps with SAS®
Gruzbarg is happy, though, to have been able to start with basic analytics. "It is never too early to start with analytics, even if you don't have full-blown capabilities right away," said Gruzbarg. "Simple segmentation based on one or two key variables, implemented at the right time, could go a long way in helping to move the business forward. Those initial insights can then be incorporated into future comprehensive strategies."
The results illustrated in this article are specific to the particular situations, business models, data input, and computing environments described herein. Each SAS customer’s experience is unique based on business and technical variables and all statements must be considered non-typical. Actual savings, results, and performance characteristics will vary depending on individual customer configurations and conditions. SAS does not guarantee or represent that every customer will achieve similar results. The only warranties for SAS products and services are those that are set forth in the express warranty statements in the written agreement for such products and services. Nothing herein should be construed as constituting an additional warranty. Customers have shared their successes with SAS as part of an agreed-upon contractual exchange or project success summarization following a successful implementation of SAS software. Brand and product names are trademarks of their respective companies.
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Gilt Groupe needed an analytics solution that would help the growing online retailer understand its customers better so it could determine what products to offer, how to customize marketing messages and share customer insights with partner brands.
SAS® Analytics Pro
Predictive analytics were used to identify customers likely to purchase from new site offerings, resulting in a 100 percent lift in conversions.
“"We needed a solution that would allow us to turn information into knowledge and then do in-depth analysis. SAS enabled us to do all that."”
Senior Director of Analytics and Research
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