Destination XL Group Inc., a leading retailer of men’s large and tall apparel, is set to improve its revenue based off of product recommendations and e-mail by more than 100 percent in the next six months, a case study released by DynamicAction showed. The report reveals the strategies DXL deployed in order to better address its target consumers through a range of data optimization methods.
“It is not feasible for a retailer to have enough people on payroll to turn the mountains of data from every part of the organization into insight, to turn that insight into action and to make that action replicable and profitable,” said Sahal Laher, chief digital officer and chief information officer at DXL.
In order to improve its revenue, the retailer deployed a suite of services from DynamicAction that ranged from automated analysis of consumer profiles, product exposure and conversion, inventory transparency, and insight into factors belonging to profitability.
“The answer in modern and future retailing will be a combination of data clarity, advanced technology solutions and human oversight that allows for fast, accurate and business driving decision-making,” Laher said.
This resulted in a mountain of valuable data. Perhaps most profound, DXL discovered that “purchases in the sportswear category were more likely to be made by existing customers, who also spent more, purchased more items per order, and purchased more often,” said a DynamicAction spokesman. “The DynamicAction system showed that these customers purchased additional, higher-dollar sportswear items in the same session 14 percent more than they purchased in any other category.”
What’s more, DXL was able to uncover that consumers that shopped the sportswear vertical maintained a higher lifetime value, further necessitating consumer acquisition in the area. With that, DXL unrolled efforts to attract more sportswear customers — and upsell to existing shoppers. Specifically, the retailer refreshed product recommendations within the category and devise targeted e-mail lists centered on the segment.
“DXL used the Action Impact feature in DynamicAction, which automatically detects and alerts to changes in price, exposure and inventory availability and then reports the impact on profitability and sales, to measure the results. This allows DXL to see the results of even the most surgical adjustments and take action accordingly,” said the DynamicAction spokesman.
From these efforts, DXL has boosted its revenue based off of product recommendations and e-mail and anticipates it increasing by more than 100 percent in the next six months — and generating 10 percent more profit from new shoppers within the next year.
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