CASE STUDY | Saks OFF 5TH

Saks OFF 5TH drives revenue and retention since relaunching loyalty program with Wunderkind.

Saks OFF 5TH, the premier destination for luxury off-price fashion, decided to enhance its focus on customer retention and build customer loyalty. To achieve this, they conducted extensive research to identify their target customer and determine the most effective ways to engage with them through their owned channels. The findings revealed a lucrative opportunity with a younger demographic, characterized by a passion for fashion and a penchant for seeking deals. Astonishingly, over 70% of this group actively participated in two or more retail loyalty programs, demonstrating their willingness to spend three times more within these programs compared to outside of them. This valuable insight emphasized the importance of providing their customers with exceptional value and promptly rewarding their loyalty.

2.7+ m

enrolled in loyalty program within a year

2x

revenue from triggered programs since relaunching with Wunderkind

2x

retention for those in loyalty program compared to those not

Industry

Retail

Challenges

Saks OFF 5TH was growing in customer acquisition, but wanted to enhance its focus on retention.

Wunderkind Products

Wunderkind has been really great at helping us test different iterations of the right place and time to reach out in the customer’s journey.”

Sara Couch, VP of Personalization at Saks OFF 5TH

Challenge

While Saks OFF 5TH was rapidly growing in customer acquisition, they recognized a need to keep these customers interested and engaged, which led to a renewed focus on retention. They began by researching their target customers and their preferred channels of communication. Saks OFF 5TH identified a significant opportunity to cultivate a devoted customer base among a younger generation that valued both fashion and deals. In fact, over 70% of that cohort were already in at least two retail loyalty programs, and spent 3x in those programs as they did outside of them. This demonstrated to Saks OFF 5TH that value is what matters most to these customers.

Solution

Saks OFF 5TH set about creating a personalized and data-driven loyalty program, OFF 5TH Rewards. Since launching the loyalty program, they have enrolled nearly 3 million customers. Additionally, they have uncovered which channels their customers prefer to receive communications.
“We want to let the customer choose how they want to interact with us. We just launched our email capture on exit on our website with Wunderkind. So, at the first chance the customer is offered to join the loyalty program, and then we offer up more places for them to provide their email and integrate those touchpoints with loyalty as well.”

Results

As a result of OFF 5TH Rewards, Saks OFF 5TH’s database of customer information is now significantly more accurate and relevant. Because of this, they can provide more tailored communications that resonate with their customers. For example, their cart abandonment, low-in-stock, and price drop messages have been performing particularly well.
“In Q4, we worked with Wunderkind to relaunch and take control of our triggered programs. The power of these triggers is you build them once, and they keep running and driving revenue. They’re driving 2X the revenue this quarter as they were before they launched,” Couch says.