We've all heard the phrase "big data" so much in recent years that the words have ceased to convey much meaning. But to hear specialty retailer Moosejaw talk about its use of software from AgilOne is to understand why there's so much hype around it.
As frigid winter days rapidly approach and weekend ski trips take shape, traffic to Moosejaw's website spikes. Then there's the holiday surge on Cyber Monday, when the company, based just north of Detroit, will pull in as much revenue in 24 hours as it did in half the month of June. About 40 percent of its annual sales come during the holiday period.
Down sweaters from Patagonia, hiking boots from Asolo and North Face jackets are among the many hundred dollar plus items that Moosejaw sells at 11 physical stores and its website. There are plenty of other places to buy similar items, so Moosejaw has to win with deals, but more importantly by targeting customers with the right item on the right day of the week at the exact right time.
Loading a cart up with snow gear is a good indication that a hat or gloves may be in order. Someone who buys every new fleece product that hits the site is providing a clear sense of likes, and probably dislikes. Some consumers respond to web banner ads and others are more likely to click through if an offer comes via e-mail. Reminding consumers when they have loyalty points that are about to expire turns out to be a rather good way to get them shopping.
AgilOne collects all the data that flows through from customers so that Moosejaw can maximize its marketing spending and be as certain as possible that it's reaching the right users with the appropriate message. Since deploying AgilOne three years ago, Moosejaw's costs to acquire customers have come down by 10 to 15 percent as a percentage of sales. Revenue is approaching $100 million a year and increasing 25 to 27 percent annually.
"One challenge a lot of e-tailers have is recognizing an individual customer," said Eoin Comerford, Moosejaw's chief executive officer. "Scrubbing and making sure you have a holistic view of the customer is important."