Behavioral Retargeting Gives a Leg Up to Online Novice Fashion Retailers

In nightmares, sometimes we are being chased by an unknown, barely visible individual or thing.

We run, this way and that way, trying to escape our terror, but to no avail – our dreams are smarter than we are, anticipating our every move or reaction and, no matter what we do, only awakening can banish our fears.

Behavioral retargeting can be a lot like a bad dream…

Everywhere you go online, there it is. Those boots I pondered buying earlier are taunting me in the right-hand sidebar. An entire outfit, the individual pieces of which I placed in a shopping cart I later abandoned, keeps flashing to the side of my email inbox as I scan through random messages. For us ladies who have a penchant for online shopping and fight the urge to give-in on a regular basis, the battle is real.

Though retargeting ads can sometimes be annoying – especially when that pair of boots you already purchased as a gift for your mom keeps following you around online – they have their benefits for consumers, such as personalizing the online shopping experience, and they are helping many small fashion retailers carve a niche for themselves in the online retail industry.

Re-Targeting the Target
On average, we see almost 2,000 banner ads per month, and, according to ComScore, over 5.3 million display ads were served to U.S. users in 2014. Only about 8 percent of Internet users account for 85 percent of clicks.

Why so little interest in banner ads?

Our online search experience has become so flooded with advertising of some sort, that we have learned how to tune it out. Though retargeting has been around for some time, with the advent of new forms of technology and other advancements, it has only just begun to gain in popularity. In a survey of 400 clients by a San Francisco-based marketing company, 74 percent said their retargeting ads performed better than regular banner ads.

Why does retargeting work?

Considering that almost 70 percent of all online shopping carts are abandoned before purchase makes it easier to wrap your head around how retargeting gets the job done… retargeting works by keeping track of those people who visited your site and displaying retargeting ads to them as they visit other sites. According to a Shopify article, 2 percent of shoppers convert on the first visit to an online store; retargeting brings back the other 98 percent.

The reason behavioral retargeting is so effective is because it breaks through the clutter – it is a highly personalized ad that is relevant to the target audience at the time it is displayed.

The target has already expressed an interest in the item being displayed, so therefore, they are a more eligible prospect. Gone are the days when guesswork was needed by a marketer to determine which items a lost customer was interested in – with behavioral retargeting, the customer will find it hard to forget about that item they were on the fence about.

Retargeting Infographic

Behavioral Retargeting Infographic courtesy of Retargeter.

Online Fashion Boutiques Take Retargeting in Hand
According to a Business Insider article, in the first quarter of 2014, 198 million U.S. consumers bought something online; that translates to 78 percent of the U.S. population age 15 and above, with millennials remaining the key age demographic for online commerce. Cyber Monday sales this year were up 8.7 percent, while sales over mobile devices jumped 29 percent. However, brick-and-mortar stores saw about 6 million fewer shoppers over the holidays. There is a trend in online shopping that can’t be denied

Allen Gannet of The Next Web said the rise of the online-only brand marks a new generation of e-commerce – one that offers more affordable, higher-quality brands that consumers are growing to prefer. Though there are many brands that would now fall into this “new generation” of e-commerce, online fashion boutiques that provide clothing, shoes and accessories to women (particularly the millennial generation of women), are really stepping to the forefront in a time when some brick-and-mortar clothing stores are closing up shop.

Wet Seal, Delia’s, Aeropostale and American Eagle are all once popular clothing stores that have either closed now or are struggling to re-define themselves in a changing industry and re-identify with their once loyal target market. As they struggle to find an identity, online boutiques like Red Dress Boutique, Mint Julep, Lime Lush, Grace and Lace, and Two Chicks on a Clothes Line are finding that the power of the “social business” – one with strong social networking and email marketing capabilities, a personalized website and a heavy retargeting strategy – sometimes brings more benefit than being able to offer an in-store experience.

Let’s take a closer look at three of these successful boutiques who are gaining popularity among online female shoppers (and, of course, because I’m a loyal customer of all three).

Red Dress Boutique

Red Dress

Red Dress Boutique “Our Story” puts a personalized touch on the business.

The Red Dress Boutique is quite possibly the most well-known of the three, toting itself as the “fastest growing online women’s boutique in the U.S.,” with 80 percent of its clothing line retailing under less than $50. Red Dress owners Josh and Diana Harbour appeared on an episode of Shark Tank in late 2014. The company had $8 million in gross sales in 2013, with anticipated sales of $12-$15 million in 2014.

Red Dress was the first boutique I took an interest in online. I first became aware of them on Facebook when friends began sharing a Red Dress post as part of an online contest. After visiting their site, I could not escape that fur vest I talked myself out of buying. It followed me for days before I finally caved and made my purchase. Red Dress was actually my first taste of behavioral retargeting.

Though their clothes are high-quality and they offer a variety of both casual and professional dress, it is their story that most interested me the first time I visited their site. They have an “Our Story” section of their website that tells Diana’s journey from working a 9-5 job to becoming an entrepreneur based off of a dream she had to design clothes. Each outfit on her site is lovingly given a unique name and a unique story. The outfits also come with a very detailed sizing chart and description of the fit, so that no customer is left in doubt about what size is perfect for them. The company now sends hundreds of orders per day to women all across the country.

I would be remiss not to mention that their marketing does not stop once you’ve made your purchase online – the item arrives wrapped up like a gift, with the Red Dress logo stamped across the front and a special hand-written ‘Thank You’ card addressed to the customer. If that’s not personalization, I don’t know what is!

Mint Julep Boutique

Mint Julep

The Mint Julep Boutique offers women’s clothing and accessories to fit many different sizes and style preferences.

The Mint Julep was a site I also first became aware of on Facebook. Of all the boutiques featured here, Mint Julep provides the heaviest marketing on Facebook, posting creative, enticing statuses with photos daily. Their email marketing of “New Arrivals” and “Slouchy Sundays” make them the boutique I most frequently feel compelled to visit online. Their website is fresh and fun, with a well-maintained blog called The Sugar Cube that provides advice on style, maintained by each of their employees. This year, they’ve expanded their audience reach by adding sections for “Curvy” women and “Maternity” wear.

According to an article in DigiDay in 2013, four in 10 social media users have purchased an item in-store or online after sharing or favoriting it on Facebook, Twitter or Pinterest, and Facebook is the leader when it comes to driving social traffic to retail sites, responsible for about 60 percent. Half of social media-driven purchasing happens within one week of sharing, tweeting, liking or favoriting the product.

Last year, an outfit I had lingered over on Mint Julep followed me around Facebook for two days. I eventually bought the look – from the boots on the models feet all the way up to the scarf around her neck. I love putting on that entire outfit, getting compliments and praising the Mint to anyone who asks.

Grace & Lace

Grace and Lace

Grace and Lace Boutique began as a frilly boot sock boutique.

Grace & Lace, also a boutique that appeared on Shark Tank, offers looks that remind me of a similar brick-and-mortar shop known as Free People. The styles are very casual and chic. The company first started out offering frilly boot socks and bows, selling $800,000 worth of socks in their first calendar year. Following their appearance on Shark Tank, the company closed out 2013 with 2.8 million in sales.

I have not had much experience with Grace & Lace employing retargeting to me, but their email marketing and company story are the biggest drivers of their success. Their slogan is “Made with His grace and a little lace.” Grace & Lace is a Christian-based boutique, whose owner offers a heart-wrenchingly beautiful story about her triumph over tragedy, and the birth of her boutique.  Their site immediately prompts you to “join their mailing list” to receive a 10 percent discount coupon.

These boutiques’ eagerness to embrace emerging media and trends is one big driver of their success in the online fashion retail market, however, they also offer highly personalized experiences to their customers and stories that are relatable. Though the fashion retail space is changing (mainly how consumers shop is changing), I think brick-and-mortar stores can survive – but they will have to learn how to carve out a niche of their own in an industry that is quickly moving online, where the customers are.

Have you had experience with any other online boutiques that have “creeped” on your online searches? Or, any other boutiques with an interesting story, for that matter?


5 thoughts on “Behavioral Retargeting Gives a Leg Up to Online Novice Fashion Retailers

  1. Great post! I’m looking forward to reading your other ones as well. All of the topics are calling my name….”Read me! Read me!”….I think I know which site to visit when my brain needs a break from my office work.

    Also, have you ever considered researching the used clothing market? Or even the idea of yard sales on Facebook, Craigslist, and Instagram? Maybe you already have, but I think it would be a cool thing to research if you haven’t.


    • Thanks for reading, Audra! Great to hear from you! Those are some great ideas I had not considered. I see those yard sales on Facebook all the time, and I know there is some kind of culture they have developed there. Might be interesting to look into further. Thanks for the ideas! If you ever have anymore, keep ’em coming! 🙂


  2. For a long time I kept a filter on my email that prevented retargeting ads from displaying. A couple of years ago I removed the filter and was amazed how items I had looked at while shopping online – purses, shoes, furniture, etc. – appeared on the periphery of my screen, urging me to buy. I cannot say that these have influenced me to purchase something I looked at in the past, but I was surprised to find that I actually enjoy remembering the beautiful things I’ve admired and considered purchasing. As you can tell, I don’t do a whole lot of buying online, but rather a whole lot of looking. Just don’t fit the demographic 🙂 This is a great blog, Kati! Enjoyed browsing your topics. – Myra


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s