Nasty Gal, an apparel retailer, saw explosive growth in a short period of time that allowed it to attract millions of new customers due to its brand, loyal social following and online engagement, according to a case study.
Nasty Gal’s merchandising team needed an analytics solution that could help them to drill down a category, customer and product performance so they could make immediate changes to their online merchandising and marketing campaigns.
In order to continue to grow revenue and grab greater market share to support expansion efforts, Nasty Gal needed to do several things including:
- Optimize their merchandise strategy to ensure that they are leveraging their product catalog to drive conversions for new customers.
- Increase average order value by introducing existing customers to new products
- Decreasing the amount of time non-selling or low-performing products are on the site, occupying valuable real estate in order to command higher price points on other products.
- Keep revenue rolling in by segmenting and targeting their audience with the right offers and loyalty perks.
“The team required a solution that gave them a data scientist’s understanding of data, out of the box – and present it in a way that helped them quickly decide which products to promote,” said Dave Thomas, chief technology officer at Nasty Gal, in the case study.
According to Thomas, they chose Jirafe, a customer insights firm because ecommerce is dynamic and it helped tell Nasty Gal exactly which products are performing well in a given day so it could strategically merchandise its website and meet sale targets.
Thomas said their merchandisers can log into Jirafe and quickly view hot and cold products, and then re-merchandise the site in minutes based on what’s trending in the business.
“We can also use the data to lead customer acquisition campaigns,” said Thomas.
Additionally, Nasty Gal is able to optimize their average sale price by surfacing data around products that are not selling and then discount them. They can now drive sales to make room for additional inventory three times faster.
“If something isn’t selling, we quickly move it off of the site to make room for products that convert at full price, this way, we can preserve pricing integrity,” said Thomas.
Nasty Gal is also able to segment their customers by purchase behavior and then target them with personalized offers by using Jirafe.
“Since we have implemented Jirafe, other teams have also adopted it including marketing, finance and the executive suite,” said Thomas. “The data is accessible to everyone, and the whole team can use the data on-demand to drive our business strategy.”
Thomas added that it is now mandatory for new merchandising team members to learn how to use Jirafe upon hire.
“In less than five minutes our merchandisers are able to use the data in Jirafe, and make decisions that impact revenue – that’s powerful, and not something other solutions can offer,” said Thomas.
Nasty Gal plans to expand their usage of Jirafe and deploy more broadly across their marketing and customer service teams.
“We think this is a vital tool to our success,” said Thomas. “Through examining customer and product data, we know what merchandise to include in our look book based on what our customers want. This will help us deepen our customer relationships, increase our retail presence and position Nasty Gal for the long-term.”
As a result, in a matter of 90 days, Nasty Gal saw a revenue increase of 17%, an average order value increase of 10% and average selling price increase of 13%.