• May 28, 2019
  • By Leonard Klie, Editor, CRM magazine and SmartCustomerService.com

Diane von Furstenberg Raises Revenue with Personalization

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Using the Qubit Pro personalization platform and Qubit Aura, the product discovery solution for the mobile web, luxury lifestyle and fashion provider Diane von Furstenberg (DVF) has been able to create in-the-moment experiences for customers that have led to tremendous success.

In fact, DVF, which is headquartered in New York and has a global distribution network in more than 55 countries and 1,500 points of sale—including 148 DVF-owned and partnered stores throughout North and South America, Europe, the Middle East, and Asia Pacific—is now supplying its demanding customers with the right message, offer, or product in the right place and at the right time, increasing brand engagement and customer loyalty. The company now attributes 11 percent of its revenue to its sharp focus on creating e-commerce experiences that are personalized for each and every visitor.

After the launch of a new website, DVF used Qubit Pro to introduce new experiences, like social proof, basket reminders, user-specific offers, and smart email collection experiences, all served at moments defined by each individual’s behavior and intent. Bag reminders alone drove substantial revenue, while personalized offers saw a 20 percent conversion rate among those who received them.

Qubit Aura, the artificial intelligence-powered product discovery solution, curates one-to-one experiences for visitors to the mobile website and allows them to see more of the product catalog and more of what’s relevant to them with just a few swipes. With hundreds of products available at any one time, artificial intelligence is the only way DVF could ensure relevancy on mobile, especially given the confines of the small screen and attention spans.

For DVF, mobile now accounts for more than 50 percent of all traffic and continues to grow, but mobile had been generating significantly less than half of all web revenue. By using Qubit Aura, DVF has increased conversion on mobile by four times for those who use the solution.

“As a brand, we’re under pressure to maintain growth and revenue in a highly competitive landscape, particularly from online-only retailers,” said Felipe Araujo, senior director of e-commerce at Diane von Furstenberg, in a statement. “The luxury industry itself has seen a major shift toward e-commerce, with 40 percent of purchases now influenced by online content. Previously, luxury brands defined themselves by an exclusive in-store experience; this change in focus, combined with an online presence that required updating, was the catalyst behind our decision to implement Qubit Pro and Qubit Aura.”

“The premise of cutting-edge personalization technology is as old as commerce itself: give the customer what they want. With a refreshed brand, Diane von Furstenberg saw the chance to deliver this. By providing the right tools, Qubit was able to set the retailer on the path to personalization, a strategy that has been proven to deliver 6 percent revenue growth for those that implement it,” said Graham Cooke, CEO of Qubit, in a statement. “The revenue DVF has generated from personalization is a testament to this and adds to the $600 million of weekly [online] sales influenced by Qubit. It is yet more evidence that once brands begin the path to personalization, online success shortly follows.”

Qubit’s success with DVF came on the heels of similar experiences with luxury brands L’Occitane and Vestaire Collective.

Overall, the luxury retail market, which research firm Bain recently estimated to be worth more than $307 billion, is quickly turning to Qubit as the main supplier of proprietary AI/machine learning technology to create personalized experiences for each and every website visitor. 

The Payoff

Since turning to Qubit's Pro and Aura products to personaize its e-commerce platform, luxury lifestyle and fashion brand Diane von Furstenberg has seen the following results:

  • 11 percent of revenue attributed directly to personalization;
  • a 20 percent conversion rate among website visitors targeted with personalized offers; and
  • a fourfold increase in conversions on mobile devices.

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