Data Experts suggest UK Brands re-think strategy to celebrate the best of UK fashion

While London Fashion Week has put world focus on the best of UK fashion, data from customer relationship experts at Optimove suggests retailers should use the event to build long term relationships rather than focus on sales.

Photo © Lucia Carpio 2018

Optimove* data has found there is no dramatic change in online purchasing during Fashion Week, while also suggests that for most retailers the impact of sales will not be significant.  This is despite retailers try to drive a sales boost with ‘see now, buy now’ initiatives from brands such as Topshop and Burberry; or getting involved by sponsoring after-parties, pop-up shows and events.

Instead, Optimove said retailers should be focusing the development of long term relationships that can provide future value.

Pini Yakuel, founder and CEO of Optimove, comments: “Featuring in London Fashion Week is a great asset for many brands as it helps them to reach a wider audience.  However, focusing on boosting sales directly through showcasing at Fashion Week could quite possibly be a fashion ‘faux pas’. 

“Fashion is a passion industry: it brings together people with a shared love for style and design, and brands can utilise this to build a relationship with customers that lasts beyond Fashion Week. Simply aiming to sell more during this one week means that brands will miss out on connecting with customers and cultivating lasting brand loyalty and increasing customers’ lifetime value. 

“For the more valuable work of offering customers real value, brands need to communicate in an emotionally intelligent way.  Retailers should be able to identify a particularly fashion-forward customer and give them sneak peeks to an exclusive collection, access to limited editions or treat them to VIP/Concierge experiences, for example. 

Pini continues: “This means moving away from general demographic assumptions and towards segmentation based on behaviour analysis.  The data which helps brands to build up a fuller view of their customers is the most valuable thing to come out of London Fashion Week, because it can help retailers develop a relationship based on ongoing exchange of value.”

*Optimove is the Science-first Relationship Marketing Hub, used by over 300 customer-centric businesses to drive measurable growth by scaling customer engagement.

It’s International Women’s Day. Let’s celebrate the return to Power Dressing, Sonia Rykiel style.

The return of Power Dressing to the Woman. 
 Julie de Libran Artistic Director of Sonia Rykiel presented Autumn-Winter 2018-19 at Paris Fashion Week honouring the spirit of the late iconic Parisian designer Sonia Rykiel: “a spirit that encouraged women to live their lives creatively, individually, and out loud 
– and that includes me,” says de Libran.
The indomitable spirit of self-expression through fashion fuelled the establishment of Sonia Rykiel’s eponymous label fifty years ago, and it continues with Julie de Libran today.
Source and Photo: Sonia Rykiel.

Sonia Rykiel presented Autumn-Winter 2018-19 at Paris Fashion Week.
The artistic director explores the idea of a new Parisienne, a woman at one with the attitude and style of a city but who ultimately goes beyond it.

Sonia Rykiel Autumn-Winter 2018-19 

Above and below: Sonia Rykiel Autumn-Winter 2018-19 

Women are smarter shoppers than men, says relationship marketing platform, Optimove

According to new data, women save on average more than 7 per cent due to preferencing discounted items, according to relationship marketing platform Optimove’s new research, revealing that although women make 2.5 per cent more orders than men, their purchases are less expensive.

"women are without a doubt the savviest shoppers"

Roni Cohen, Data Science Team Leader, comments: “In the world of retail there has been a longstanding assumption that women will pay more than men, and with many retailers recently sticking a higher price tag on Valentine’s cards addressed to “husbands”, it is clear that this notion still exists.

“However, research from Optimove demonstrates that this is far from the truth. In fact, women are without a doubt the savviest shoppers, favouring discounts and remaining loyal to retailers which increases their chance of personalised rewards.       

Roni continues: “Retailers can best serve their female demographic by offering discounts up to 30 per cent – as women are found to buy in larger quantities than men, but typically spend less, offering this reduction aligns well with smart shopping habits and encourages brand loyalty.

“Our research highlights that women are more likely to return to the same retailer after their first purchase. But this shouldn’t be taken as gospel - if retailers want to retain their female customers, they must give them a reason to stay loyal.

“Engaging female customers with personalised offers and rewards, such as birthday gift vouchers or offering free delivery as part of a VIP service, is a great way to provide the treatment they deserve. If customers aren’t treated exceptionally - regardless of gender - they will inevitably go elsewhere.”

Sonia Rykiel Autumn-Winter 2018-19 

Fashion source and photos: Sonia Rykiel

Mixed results for UK retailers as December fails to match November online sales

It is indeed challenging times for clothing and food retailers in the UK these past six months or so, with political uncertainties and depreciating British Pound due to Brexit impacting on confidence and price inflation, not to mention the ever-changing dynamics of consumer shopping habits.

This week the market sees a mixed bag of post-Christmas results from retailers such as Marks & Spencer, Boohoo and Tesco.  According to customer engagement experts Optimove, the landscape of retail around the Christmas period is changing rapidly, with ill-planned discounting strategies hitting hard in a lean holiday season.

Pini Yakuel, CEO of Optimomve, comments: “Customers are beginning to buy online earlier in the Christmas and holiday period.  According to our analysis of customers in the festive season, total order amounts were 32% higher in November than December.

“The growing popularity of Black Friday and Cyber Monday are attracting large orders, but instead of increasing overall sales, this might encourage shoppers to make December purchases earlier at a lower price than they would without the discounts. This December saw a 10% lower order total than in 2016.

“Although heavy discounting can bring in more customers in one instance, retailers must be sure that this adds real value to overall annual revenue. We have found that heavy discounts of more than 30 per cent do not usually encourage customers to make a second purchase from the brand later in the year, unless it is a similarly discounted product.[1] While one-off sales provide some value, brands must focus on getting customers to keep returning to the brand to provide lifetime value."

More on UK Christmas 2017 retail sales analysis, click HERE.

Black Friday sales reveal online shopping behaviour and shoppers' loyalty

Analysis of over 7 million unique e-commerce transactions this Black Friday has revealed discounting falls as order amounts rise.  This is good news for retailers, as the average discount on an order decreased by 12 percent compared to last year, whilst the average order amount grew by 9 percent compared to that of 2016.

The data, from customer relationship experts Optimove, suggests that online customers in the UK were willing to spend more on more items on Black Friday 2017.  The average number of items in an order grew by 7 percent compared to last year’s sales day figures. Customers did not insist on receiving such big discounts in order to complete their transactions.

"It is clear that more shoppers are opting to buy online rather than in-store."

Pini Yakuel, founder and CEO of Optimove, comments: “As the numbers come in after Black Friday, it is clear that more shoppers are opting to buy online rather than in-store. Which is why it is more important than ever that retailers understand the behaviours and motivations of their online customers.

“Contrary to traditional analysis of the Black Friday phenomenon, our data shows that most of the individuals shopping with a brand on the day are actually returning, rather than completely new, customers.  On Black Friday last year, our research showed that 71 percent of shoppers had bought something from the brand before at some stage. And this trends continues.

"There are signs that days like Black Friday may be helping retailers to keep customers coming back to their brand." 

“This year, the share of Black Friday transactions which were made by first-time shoppers decreased by a further 18 percent. Customers’ pre-existing contact with a brand goes some way towards explaining why shoppers have been willing to buy more items without such high discounts this year.

“Despite the supposed ‘death’ of customer loyalty, driven in part by the ease of price comparison online, there are signs that days like Black Friday may be helping retailers to keep customers coming back to their brand.

"The challenge for retailers is to continue building on this relationship outside of the pre-Christmas and sales period."

“If retailers can continue to exchange value with their online customers – offering specific offers, personalised communications and experiences – then these positive trends can continue into the sparser months, January and beyond.”