The Future of Shopping is Now
Bricks and Mobile Conference Series

ALEXANDRA WILKIS WILSON, FOUNDER AND CHIEF MERCHANDISIN...
TODAY’S DISCUSSION

1. GILT GROUPE
2. CRM: THE IMPORTANCE OF PERSONALIZATION
3. THE IMPACT OF MOBILE
4. SOCIAL MEDIA AND I...
Launching Gilt Groupe: The StartUp
November 13, 2007, 9:00 AM

13,000 of our personal friends

8 of us sitting shoulder to...
Launching Gilt Groupe: Bringing
Sample Sales to the Internet
Would we be overcome with customer inquiries?
Would we have t...
Our First Sale - Was This a Risk
Worth Taking?
Gilt Groupe At-A-Glance
MEMBERS

MONTHLY SHOPPERS

BRANDS

5 Million+1.5 Million
6,000+
DAILY UNIQUE VISITORS

PACKAGES SH...
THE GILT EXPERIENCE
Traditional ECommerce
Reliable and Convenient

GILT
Addictive and Fun

Everything
Have to…

Want to…

...
GILT’S BUSINESS MODEL
Appointment
Appointment
Shopping
Shopping

Sales start at a set time and have a hard stop.

Call to ...
From Fashion to
Lifestyle Brand

5
Gilt’s Offering
The most aspirational shopping
experience for a stylish life
Three pillars to delivering this experience:
...
Predictive Commerce

8
Customization
is customers telling you what they want

Personalization
is the company tailoring experiences
and products t...
Personalized Shopping

Using data from browsing, shopping and appends,
Gilt offers a member a personalized experience tail...
Data Capture is Critical

Internal Data

External Data

• Transactions: what product
they buy, when, how

• Demographics

...
Key Point
Personalization is achievable if you
know who the person is!
At Gilt, we have this luxury because all members mu...
Personalize Each Email

Tops picks based on purchase
behavior

Category prioritization based on browsing
behavior
14
How Do We Do This:

We have developed two regression
models that are run daily
Browsing – What sales have you browsed / vi...
Email Experiences

TARGETED EMAILS

Emails are generated to remind users when a
designer they have previously shopped is o...
One to One Site Merchandising

Most likely
Women’s sale
or you

Prior Jewelry
ale

Noir sale

Men’s shoes

Prior
Home
sale...
“The products they show me are the one’s I want. They are based on
what I am currently looking for either on their site or...
A Store in Your Pocket

27
The Gilt on the Go apps
The iPhone, iPod Touch, iPad
Opportunity
•113MM iPhone and iTouch users worldwide*
•7MM iPads sold...
Members will buy almost anything
on their
iPhones and iPads
Customer Snapshot
•

On Gilt.com: 70% female, 30%
male

•

On ...
Lessons from the Gilt mobile
apps
Learning #1: Design for
each Device
•The iPad app was designed to be an
entertainment so...
Lessons from the Gilt mobile
apps

Learning #2:
Optimize for
Weekends and
“Downtime”
•

Mobile usage peaks on
public holid...
Lessons from the Gilt mobile
apps
Learning #3: Speed,
Stability, Scalability matter
•Large number of images are our
streng...
Social Media: Go to the
Conversation

21
Bring Services and Sales to the
Conversation

22
Connect Real time with our
Consumers
•Managed
Communities
•Customer
Service Interface
in Facebook and
Twitter
•Proactive
M...
Give Them Lots to Talk About and Share

•Contests
•Fan Drives
through Charity
•Viral Incentives
•Sweepstakes
•Photo Sharin...
Surprise & Delight

18
WOW SALES DRIVE
EXCITEMENT
For the relaunch of the Jetta,
Volkswagon and GILT partnered to sell
3 customized Jettas @$5,99...
WOW SALES
LADY GAGA
• Sales curated and styled by
Nicola Formicetti
• Dress worn in Mugler show
• Tickets Mugler show in
P...
Content and
Commerce Have
Merged

21
Content is Best Delivered Through Imagery

22
Consumers Navigate and Learn Visually

22
Romance the Product with
Compelling Images.
Written Content Just Explains.

24
Last Thought

32
It’s Just the Beginning…
Focus on what you can do online that you can’t do
offline
• There is no success roadmap for
marke...
THANK YOU
www.gilt.com/alexandra
@ GiltAlexandra

40
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Bricks + Mobile: The Future of Shopping is Now!

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Gilt Groupe is a US based shopping website with iPad and mobile apps that offer its member luxury merchandise: clothing, home décor, food, social activities, and travel. Since 2007, this luxury online retailer has grown from zero to nine hundred employees, 3.5 million members, and a half a billion dollars in revenue. Alexis Maybank, Alexandra Wilkis Wilson, along with Kevin Ryan, co-founder of Doubleclick, have built this fast moving company. These savvy retailers are ahead of the curve, and they are already thinking about who will be their next subscribers in 2012.

Looking back to March of 2009, the Gilt Groupe women launched their first mobile app in Japan and the US version quickly followed in September of 2009. When I asked Alexis how they calculated the risk of going to the mobile commerce channel as an early adopter, she easily replied, “The revenue stream was always viewed as valuable. One-third of our sales come from the mobile and iPad shoppers”.

Join us, as Alexandra explains how they launched a simple yet groundbreaking business that catered to their passions. She’ll provide straight talk on how to build strategies with retail and mobility thinking.

Closing Keynote with Alexandra Wilkis Wilson, Co-founder and CMO, Gilt Groupe and Co-author of By Invitation Only

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  • A $15,000 necklace
    A $3,500 Kyle Bunting rug
    Most popular purchases are handbags, dresses, underwear, sneakers, suits and jeans
    Two All New 2011 Jettas at $5,995 each
  • Gilt updates our mobile about about 6 times a year, although sometimes we may update 2 times a week and sometimes once every 6 months.
  • There are many hand raisers online
  • Add tumblr
  • Bricks + Mobile: The Future of Shopping is Now!

    1. 1. The Future of Shopping is Now Bricks and Mobile Conference Series ALEXANDRA WILKIS WILSON, FOUNDER AND CHIEF MERCHANDISING OFFICER
    2. 2. TODAY’S DISCUSSION 1. GILT GROUPE 2. CRM: THE IMPORTANCE OF PERSONALIZATION 3. THE IMPACT OF MOBILE 4. SOCIAL MEDIA AND ITS USAGE 5. THE MERGER OF COMMERCE AND CONTENT 2
    3. 3. Launching Gilt Groupe: The StartUp November 13, 2007, 9:00 AM 13,000 of our personal friends 8 of us sitting shoulder to shoulder
    4. 4. Launching Gilt Groupe: Bringing Sample Sales to the Internet Would we be overcome with customer inquiries? Would we have to put on flats to sprint through the warehouse space to pack boxes?
    5. 5. Our First Sale - Was This a Risk Worth Taking?
    6. 6. Gilt Groupe At-A-Glance MEMBERS MONTHLY SHOPPERS BRANDS 5 Million+1.5 Million 6,000+ DAILY UNIQUE VISITORS PACKAGES SHIPPED PER DAY 400,000 15,000 PICTURES / DAY 3,000 FASTEST SELL OUT DIRECT CONTACTS PER WEEK 12,000 MOST EXPENSIVE ITEM 0.25 sec. $200,000 6
    7. 7. THE GILT EXPERIENCE Traditional ECommerce Reliable and Convenient GILT Addictive and Fun Everything Have to… Want to… Text-Driven Browsing Visual Browsing Product-Driven Stores Lifestyle-Driven Stores Same Product Every Day New Every Day Search Discovery Buy Traffic on Google 3 Curated Viral and Repeat
    8. 8. GILT’S BUSINESS MODEL Appointment Appointment Shopping Shopping Sales start at a set time and have a hard stop. Call to Action Call to Action 48% of items sell in the first hour. 65% of items sell in the first 2 hours. Customer Customer Engagement Engagement Shopping on GIILT is entertainment and sport. 75% of orders are from repeat customers. 46% of customers have made 3+ purchases. Viral Viral Marketing Marketing Lifestyle Lifestyle Offering Offering 4 Event sales drive sharing and media impressions. Members-only model drives referrals Customer lifestyle drives business expansion: Fashion, Home, Travel, Services, Wine and Food, Experiences
    9. 9. From Fashion to Lifestyle Brand 5
    10. 10. Gilt’s Offering The most aspirational shopping experience for a stylish life Three pillars to delivering this experience: • Coveted clothing, accessories, home goods, services and travel • Simple, fast and fun site experience • Personalized shopping 10
    11. 11. Predictive Commerce 8
    12. 12. Customization is customers telling you what they want Personalization is the company tailoring experiences and products to me CRM broad term that encompasses using data and technology to enhance a customer’s interaction with your company
    13. 13. Personalized Shopping Using data from browsing, shopping and appends, Gilt offers a member a personalized experience tailored to the current and changing shopping behavior. 13
    14. 14. Data Capture is Critical Internal Data External Data • Transactions: what product they buy, when, how • Demographics • Demographic • Media Appends • Web behavior • Interests • Psychographics • Source of business entry • Marketing campaign tracking 14
    15. 15. Key Point Personalization is achievable if you know who the person is! At Gilt, we have this luxury because all members must be signed in. Most sites do not know who is shopping At Gilt we talk to our customers every day Directly, and by tracking behavior 15
    16. 16. Personalize Each Email Tops picks based on purchase behavior Category prioritization based on browsing behavior 14
    17. 17. How Do We Do This: We have developed two regression models that are run daily Browsing – What sales have you browsed / visited Purchase – What sales have you made purchases from This is product category based (shirts, blouses, shoes, etc.) to handle new brands. 17
    18. 18. Email Experiences TARGETED EMAILS Emails are generated to remind users when a designer they have previously shopped is on sale again. 18
    19. 19. One to One Site Merchandising Most likely Women’s sale or you Prior Jewelry ale Noir sale Men’s shoes Prior Home sale Women’s exercise 19
    20. 20. “The products they show me are the one’s I want. They are based on what I am currently looking for either on their site or other sites. They know what I have bought before and I don’t buy large bags.” “When there are problems with my orders they tell me before I find out.” “When I call and talk with them, they know me and can really help.” 20
    21. 21. A Store in Your Pocket 27
    22. 22. The Gilt on the Go apps The iPhone, iPod Touch, iPad Opportunity •113MM iPhone and iTouch users worldwide* •7MM iPads sold •Gilt members were asking for a way to shop while mobile Marketing Objectives •Drive incremental revenue by providing members a way to shop wherever they are •Attract new members to Gilt Groupe Source: Asymco's Horace Dediu, estimated from Apple (AAPL) company reports
    23. 23. Members will buy almost anything on their iPhones and iPads Customer Snapshot • On Gilt.com: 70% female, 30% male • On Gilt Mobile Apps: 50% female, 50% male Purchasing Snapshot • Over 3 Million downloads between iPhone, iPad and Android app downloads • Drives 20% of revenue on weekdays and 30% on weekends • Seeing strong mobile purchases in all categories. Purchases made on the Gilt apps include:
    24. 24. Lessons from the Gilt mobile apps Learning #1: Design for each Device •The iPad app was designed to be an entertainment source during user’s downtime •The iPhone app was designed to provide instant access to shop Gilt sales and products
    25. 25. Lessons from the Gilt mobile apps Learning #2: Optimize for Weekends and “Downtime” • Mobile usage peaks on public holidays and weekends • Mobile exclusive sales targeted to the user mindset during downtime • Home and Kids categories perform well on weekends
    26. 26. Lessons from the Gilt mobile apps Learning #3: Speed, Stability, Scalability matter •Large number of images are our strength, but challenging to scale on mobile devices •Continually to make the app faster •Need to rapidly iterate on mobile products within Apple’s App Store framework
    27. 27. Social Media: Go to the Conversation 21
    28. 28. Bring Services and Sales to the Conversation 22
    29. 29. Connect Real time with our Consumers •Managed Communities •Customer Service Interface in Facebook and Twitter •Proactive Monitoring and Response 22
    30. 30. Give Them Lots to Talk About and Share •Contests •Fan Drives through Charity •Viral Incentives •Sweepstakes •Photo Sharing 22
    31. 31. Surprise & Delight 18
    32. 32. WOW SALES DRIVE EXCITEMENT For the relaunch of the Jetta, Volkswagon and GILT partnered to sell 3 customized Jettas @$5,995 (MSRP $22,945): • 1 mobile sale / 2 mobile + web sales • 50MM+ high value impressions • 350K unique visitors to sale • Sold in under one second • 55K on Jetta waitlist 19
    33. 33. WOW SALES LADY GAGA • Sales curated and styled by Nicola Formicetti • Dress worn in Mugler show • Tickets Mugler show in Paris • VIP access to Lady Gaga concerts and parties • Over 100M media impressions 20 VIRGIN AMERICA • Bundles of short haul, medium haul, long haul tickets • Largest sale ever on Gilt (over $3M in 24 hours)
    34. 34. Content and Commerce Have Merged 21
    35. 35. Content is Best Delivered Through Imagery 22
    36. 36. Consumers Navigate and Learn Visually 22
    37. 37. Romance the Product with Compelling Images. Written Content Just Explains. 24
    38. 38. Last Thought 32
    39. 39. It’s Just the Beginning… Focus on what you can do online that you can’t do offline • There is no success roadmap for marketers or brands. Experiment. •Don’t expect immediate payback from investments in social. Social is about 100 small things, not one big push • Just because you open a store doesn’t mean they’ll come. Give them a reason to come – and find a way to go to them •Convenience and reliability aren’t enough anymore. Make it fun, keep it new. 33
    40. 40. THANK YOU www.gilt.com/alexandra @ GiltAlexandra 40

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