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Case Study

                                          ChannelNet® reinvents the
ourselves, what do Saks Fifth Avenue               in-store events. This means that customers
more, without having to wait for the IT staff to
                                            become available.

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ChannelNet Saks Fifth Avenue Case Study


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With the advent of Internet shopping through the 1990's, big retailers like Saks Fifth Avenue were jumping on the bandwagon and creating web sites where customers could buy everything from designer clothes to pricey hand lotions. And buy they did—Saks began doing a brisk online business soon after getting its web site up and running. But impulse buys were down!

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ChannelNet Saks Fifth Avenue Case Study

  1. 1. Case Study ChannelNet® reinvents the shopping experience for Saks Fifth Avenue customers. HIGHLIGHTS Ten years ago, when everyone was purchases driven by immediate, tactile enthusiastically applauding the advent of experiences. The feel of a cashmere cardigan, • Microsites allow each Saks Internet shopping—“It’s so easy!” “It’s so for instance, that makes slipping it over your Fifth Avenue store to have its own convenient!”—big retailers like Saks Fifth shoulders—and bringing it up to the cashier— website, featuring local events and promotions. Avenue were jumping on the bandwagon and irresistible. Or the sudden realization that you creating enormous websites where customers need a new wallet just as you are passing the • Hundreds of microsites were could buy everything from designer clothes to Hermès display and you breathe in that fresh created on the existing J2EE Saks pricey hand lotions. And buy they did—Saks new leather aroma. You can’t replicate these web platform and using the existing began doing a brisk online business almost things on a website. Saks web design, keeping costs down and providing a seamless immediately after getting its website up and click-through experience for running. Although Saks’ web sales were rising, customers. their bottom line was not. What to do? Then reality set in. It didn’t take long before ChannelNet had the ideas, the know-how • The new microsites act as a portal top management began noticing something and the technology to come up with the right to Saks’ brick-and-mortar locations, not so great about the New Shopping answers, implement a solution, and empower enticing customers to come in and shop for more than one item at Experience. When customers walk into a Saks Saks’ stores to take charge of their own a time. Fifth Avenue brick-and-mortar store, they revenue-boosting programs ever since. spend an average of $154 above and beyond • By capturing online customers’ the item they came in to buy. On the Internet? A novel idea: driving web shoppers email addresses, Saks can make It just wasn’t happening. into the stores. sure customers hear about store events and promotions even if they don’t visit the website. You can’t beat the smell of leather. ChannelNet took on the Saks Fifth Avenue challenge with its signature combination The management team at Saks quickly of strategic thinking, creativity and realized that there’s no substitute for impulse technological innovation. We asked © 2006 ChannelNet. All Rights Reserved.
  2. 2. ourselves, what do Saks Fifth Avenue in-store events. This means that customers customers want? Quality merchandise, don’t even have to be shopping online to obviously. Good service, definitely. know when their local Saks Fifth Avenue store Convenience, for sure. is having a special sale, a holiday event, or opening a new café. By staying top-of-mind But they also want something else that the with their customers, Saks builds loyalty Internet can’t give them: the experience of and stronger customer relationships—not to shopping at Saks and a personal relationship mention stronger sales with their local store and its salespeople. So, we decided to use the Saks website to drive Our SiteBuilder™ technology made it customers into the stores, as well as letting all happen fast. them shop online. Creating hundreds of microsites would have Microsites that perform and entice. cost a couple of hundred thousand dollars if Saks had tried to do this the traditional way. Our solution began with creating a more But ChannelNet’s SiteBuilder™ technology targeted store locator and hundreds of allowed us to deploy all those websites, with microsites, so that each local Saks Fifth full functionality, at a fraction of that cost. Avenue and Off-Fifth store has its own landing page. Now Saks’ Cincinnati customers can We built the new sites on Saks’ existing feel that they are shopping at the Saks they J2EE web platform, keeping costs down know and love in Cincinnati or San Francisco. and providing a seamless click-through experience for online customers. ChannelNet Even better, each microsite allows local even kept Saks’ original web design intact, stores to post special in-store events and transferring it to the SiteBuilder™ platform for promotions. So while you may have gone new functionality and easy administration. online to buy a pair of gloves for your brother’s birthday, you’re going to quickly find In fact, SiteBuilder is so easy to use that we out that there’s a fashion show featuring the were able to train 60-plus administrators, new fall collection of your favorite designer at using one-hour Webinar sessions, on our your local Saks store this coming Saturday. system in just one week! SiteBuilder™ Each microsite calls for customers to enter allows store personnel to easily post special their e-mail addresses to find out about events, holiday hours, new promotions and © 2006 ChannelNet. All Rights Reserved.
  3. 3. more, without having to wait for the IT staff to become available. Saks Fifth Avenue built their business on retail stores, and, as it turns out, stores are still their most profitable venue. With ChannelNet’s help, they’re using technology to get their customers through those front doors again—ready, willing and eager to buy. ABOUT CHANNELNET For 21 years ChannelNet has created multichannel solutions that help companies sell complex products and services through traditional sales channels. Each solution is developed with its patent-pending software prod- uct, ChannelNet SiteBuilder™, which significantly reduces the costs and development time of custom solutions. As a full-service company, ChannelNet also offers expert professional services for everything from multichannel sales strategies and best practices to dedicated solution support. The pri- vately-held company is based outside San Francisco in Mill Valley, California, with offices in Detroit, Michigan. ChannelNet 100 Shoreline Hwy. Building B, Suite 300 Mill Valley, CA 94941 Tel. 800-677-6858 Fax 415-332-1635 Email: © 2006 ChannelNet. All Rights Reserved.