Ted Baker : A Case Study In Personalization Marketing
It may seem like an adage from Marketing 101, but when it comes to the digital landscape, choice guides everything. And when it comes to conversion rates, the ability to customize product displays is a critical component to success. This is especially true in an increasingly mobile-centric world, where adaptation remains the driving force behind consumer selection. How then do marketers maintain the appearance of choice while also showcasing product offerings? Is there a critical difference in the need for personalization between geographical borders? To look at this, we’ll review one fashion brand who used the advantages of personalization to guide their e-commerce site: High Street design icon Ted Baker.
Interest and E-commerce
Founded in 1988, the London-based apparel brand Ted Baker was faced with the same dilemma as many luxury retailers when trying to keep up with both the demands for a customer-driven online experience and the need to expand into international markets: how best to offer a personalized engagement with online shoppers while maintaining their highly cultivated luxury apparel status? In 2013, after witnessing their luxury competitors lag behind in digital offerings (often losing sales to more mid-range competitors,) the High Street institution decided to move forward with a complete revamp of their online presence.
To start with, the answer was as perennial as time: offering customers the selection of two different page templates based on gender. The next was to examine purchasing habits in distinctly different geographic regions. To this end, Ted Baker offered customized portals unique to the UK, Canada, Australia and the US. More importantly, it bridged the gap present in omnichannel marketing by offering customers the utilitarian choice to “click and collect,” allowing them to purchase hassle free from the privacy of their home, yet still providing the same customer service they’ve become known for in over 320 different brick and mortar outlets worldwide.
Click and Collect : The Death of a Postman?
The ability of online shopping has without question revolutionized purchasing habits. At the same time, complaints about missing or lost parcels has never been higher. And as consumers are frequently demanding instantaneous results (particularly around holiday season,) the idea of waiting around for weeks on end only to have packages stolen or their carrier deliver “signature-only” notices while they’re stuck at the office seems counter productive. “Click and collect,” which allows users to purchase an item in stock online and retrieve it at the store’s nearest outlet (or in some cases, via a third-party centralized drop off point) eliminates the frustration of delivery hassles at a fraction of their cost (in many cases, eliminating delivery costs altogether.)
According to a report by Deloitte, sales via click and collect more than doubled between 2012 and 2014, amounting to over €7 billion. And as retailers are looking to more and more to bridge physical shopping routines with the online experience, those numbers are only expected to increase.
In 2015, Ted Baker announced a 64% increase in e-commerce sales, constituting an online revenue of £43 million out of its £226 million during its first three quarters, no doubt thanks to in part to its already reputable luxury status, but also due to the highly customizable content and purchasing options of its site. And as more and more international apparel firms are looking to models of how best to implement content and delivery strategies, there’s no doubt that Ted Baker’s numbers will only continue to increase.
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