On a Q4 2015 earnings call held on September 22nd, CEO Don Grimes had some exciting news. The luxury retailer, currently preparing to go public, sold $1.3 billion online in fiscal 2015, an increase of 13% year-over-year. Web sales accounted for 25.5% of the company’s 2015 sales of $5.095 billion, up from 23.9% a year earlier.
On the same day, Daniel Neukomm, the CEO of La Jolla Group—parent company to surf apparel retailer O’Neill Clothing Company—had his own exciting results to share in an interview with Internet Retailer. In the last two years, smartphone revenue has increased 111.15% and smartphone conversions increased 15.28%. This improvement is good because, according to Neukomm, about 50% of O’Neill’s traffic stems from smartphones.
But these two CEOs share far more than some exciting sales numbers and a little press coverage. Each man credits the same foundational web experience strategy for his success: Personalization.
What They Did
At Neiman Marcus, the focus was on the on-site customer experience. From a personalized editorial homepage that provides customers with relevant content in the homepage main image to personalized site search based on buying or browsing behavior, Neiman Marcus hoped to capture high-end fashion buyers by serving the brands they love in a variety of ways. They also launched the ability to customize and personalize merchandise on the website and added a variety of advanced search filters so people can customize their experience even further.