Saks Says ‘Hyper-Personalized’ Homepage Boosts Revenue Per Visitor by 7%

Saks Fifth Avenue’s new “hyper-personalized” homepage in its online and mobile app experience has improved conversion by nearly 10% and boosted revenue per visitor by 7%, according to the luxury retailer’s parent company, Saks Global.

The new homepage uses machine learning algorithms and real-time customer behavior to create an experience that is unique to each customer, tailored to their preferences and capable of delivering relevant content, Saks Global said in a Thursday (Aug. 14) press release.

“By bringing the one-to-one relationship our customers experience with their stylist in stores to the online experience, we have reached an important milestone — not only for Saks Global, but also for our customers who now enjoy highly relevant content and recommendations whenever they visit Saks.com,” Emily Essner, president and chief commercial officer at Saks Global, said in the release.

The retailer plans to expand this personalization effort beyond Saks Fifth Avenue’s homepage to include other touchpoints in the shopping journey as well as other Saks Global luxury retail brands, according to the release.

“Saks Global brings together the largest and deepest luxury consumer dataset in the U.S., empowering us to ground site features and customer interfaces in data-informed customer insights,” Nivy Swaminathan, senior vice president, commercial analytics and customer insights at Saks Global, said in the release. “As we make progress on our personalization strategy, we remain focused on identifying opportunities to innovate on behalf of our customers.”

The PYMNTS Intelligence and AWS collaboration “Personalized Offers Are Powerful — But Too Often Off-Base” found that wealthier shoppers demand more personalization than the average consumer.

The report found that 89% of consumers who make more than $100,000 a year are interested in receiving personalized offers, compared to 83% of those who make $50,000 to $100,000 and 74% of those who make less than $50,000.

When Saks Global completed its acquisition of Neiman Marcus Group in December — bringing together the luxury retail brands Saks Fifth Avenue, Saks Off 5th, Neiman Marcus and Bergdorf Goodman — the company said it would create a highly personalized shopping experience.

“As one company, we have an opportunity to transform the way we serve customers, blending art and science to ensure each customer’s experience is unmistakably their own,” Saks Global Operating Group CEO Marc Metrick said in a December press release.