Exclusivity Helps Keep Rue La La’s Cart Abandonment Low

There’s a reason Rue La La has chosen to shun social sign-ins such as Facebook Connect and remain an invite-only flash sales portal. And that’s the beauty of the invitation to join Rue La La, said chairman/CEO Ben Fischman during a keynote session at the Shop.org Annual Summit on Sept. 14.

Rue La La’s analytics show its customers invite their friends to become Rue La La members because they enjoy shopping the site, Fischman said. Even though the referring customers receive a $10 coupon incentive if their friend accepts their invitation to join, low redemption rates of these coupons indicate the reasons for brining in new members aren’t about incentives.

By letting anyone check out what Rue La La has to offer by having them sign in via Facebook, Twitter or any other social network, Rue La La would no longer be an exclusive members-only site.

Another reason to not open Rue La La up to social media users is that the membership strategy helps speed up the checkout and reduces shopping cart abandonment. Fischman said Rue La La’s cart abandonment rate is less than 12%.

By asking its members for their information before they can shop, then having them log in before they scout out daily deals, Rue La La can shorten the checkout process, he said.

“This is something more merchants need to think about,” Fischman said. “They need to give their customers a reason to log in before they get to the checkout.”

Partner Content

Hincapie Sportswear Finds Omnichannel Success in the Cloud - Netsuite
For more and more companies, a cloud-based unified data solution is the way to make this happen. Custom cycling apparel maker Hincapie Sportswear has leveraged this capability to gain greater visibility into revenue streams, turning opportunities into sales more quickly while gaining overall operating efficiency. Download this ecommerce special report from Multichannel Merchant to more.
The Gift of Wow: Preparing your store for the holiday season - Netsuite
Being prepared for the holiday rush used to mean stocking shelves and making sure your associates were ready for the long hours. But the digital revolution has changed everything, most importantly, customer expectations. Retailers with a physical store presence should be asking themselves—what am I doing to wow the customer?
3 Critical Components to Achieving the Perfect Order - NetSuite
Explore the 3 critical components to delivering the perfect order.
Streamlining Unified Commerce Complexity - NetSuite
Explore how consolidating multiple systems through a cloud-based commerce platform provides a seamless experience for both you, and your customer.