Neiman Marcus was recently featured in the Dallas Business Journal for the work the company is doing to personalize the shopper experience. The publication interviewed Jeff Rosenfeld, Vice President of Customer Insight and Analytics at Neiman Marcus, to get his insights into how new technology, such as that offered by Coherent Path, can be used to create a shopping experience oriented around customers’ preferences.
However, given that it requires a subscription to read, we thought you might appreciate a summary of the article, as found below:
Technology is changing the way people shop and retailers are adapting to this shifting landscape. Neiman Marcus is among the leaders in this new digital landscape and is working with several companies, including Coherent Path, to deliver an online shopping experience that rivals that of its legendary in-store service.
At the time of Neiman Marcus’s founding over a century ago, there was no internet and the only channel through which the company could engage customers was the store. The customer walked into the store and either found what she wanted herself or was assisted by a sales associate. Neiman Marcus made great use of such sales associates.
A good sales person could pick up on the visual cues of a customer and get to know them over time in order to offer the right product suggestions and deliver a personalized experience. As evidenced by the company’s success over the years, this proved to be a winning strategy. But times have changed.
Thanks to the rise of digital, customers are now interacting with brands in areas out of the reach of human sales associates, but within the reach of smart new technologies like machine learning. Neiman Marcus is utilizing these technologies to understand the preferences of their customers and deliver the kind of experience that customers expect in the store.
“We’ve gone through the customer journey and all the places she touches at Neiman Marcus, and figured out how we can leverage technology to improve that experience and make it more personalized,” notes Rosenfeld.
Machine learning enables the retailer to see when and where a customer is no longer engaging and identify ways to win them back. Still, this isn’t without its challenges. As Rosenfeld points out, “Customer behavior is a lot more complex than a lot of us are wanting to admit.”
Indeed, new marketing technologies don’t replace human marketers but rather augment and enhance their abilities. You still need to know your business and your customer, but technology can help you reduce the complexity of dealing with the preferences and habits thousands or even millions of customers.
Neiman Marcus is using Coherent Path’s Campaign Optimization to personalize their email marketing around customer preference. Specifically, the company is using the solution to identify which products should be offered to which customers in order to increase near term engagement and revenue while inspiring loyalty and growing lifetime value over time.