Ex-Genetic Scientist Revives Barneys Email Marketing

With the help of Sheldon Gilbert, a genetic scientist turned software expert, Barneys department store now has the ability to precisely target customers through email marketing. Gilbert’s company, Proclivity, sorts through data left by millions of anonymous visitors of Barneys’ web site. Using this information, they predict who is likely to buy what, when, and at what price.

According to Barneys’ director of Internet marketing, Heather Kaminetsky, “We used to spend $90,000 on a full-page ad in The New York Times. Then with the web site, we would send an email about, say, Lanvin handbags to 100,000 customers. But 90,000 of them probably didn’t even know what a Lanvin handbag was.” However, since Gilbert’s arrival Barneys has seen up to a tenfold rise in response rates.

Kaminetsky can target customers based on their overall habits—such as fashionistas who buy risky new designer products, bottom feeders who always buy sale items, or cosmetic zealots. The company even has the ability to know when a customer is going to run out of shampoo, so they can send you an email. Rather than feeling spied on, the customer is thrilled because the message is relevant.

Barneys has discovered that customers are more tolerant of e-advertising when the products being advertised are relevant to them. Now, Barneys is attempting to determine how many emails are too many.

Source:
Cohen, A. (2008). Barneys and Friends. Fast Company, 125, 47-48.